US Airways to go after Uniteds assets?

[DLFlyer31]

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On 1/15/2003 10:03:06 AM chipmunn wrote:

UA CEO Glenn Tilton has publicly said UA is discussing selling assets and UA and US management have held discussions this year on possible interesting corporate combinations. Reports indicate US is interested in gates and LAX, SFO, DEN and gates and slots at ORD, along with appropriate aircraft.

Chip
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I agree that UA is in worse shape than U at this point. However, Chip, you are just regurgitating the exact same words over and over again. In fact, it seems you just cut and paste, as you have been told repeatedly that there are no longer slots at ORD. Yet everytime you mention the ICT, you always mention the slots at ORD.

 

[diogenes]

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On 1/15/2003 1:38:29 PM us10 wrote:

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On 1/15/2003 1243 AM TransatlanticFlyGuy wrote:

Yeah, i know we still have the pension thing to deal with and the threat of war with Iraq, but to any of you feel that US will go after some of the assests of UA during their Chap 11 or god forbid Chap 7? Rumour has it that "someone" was in Philly saying the assets in DEN and SFO look good.Yeah, i know your now saying, "where are we gonna get the money". I think the good ole man in Alabama has some deep pockets to help us get some of what UA may have to offer. In my opinion, i believe that was the primary reason liquidation at US was threatened. Bronner really wants US to go after the carcass of UA. I guess well all see in time. Any thoughts on this people? [img src='http://www.usaviation.com/idealbb/images/smilies/1.gif']
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I've got real problems with even discussing going after the "carcass of UA".This group should know better than anyone the hell the UA employees are going through right now.To hear other airline managers and employees discuss the distribution of U's assets (jobs) has not been easy for U employees to contemplate.I'm sure UA employees visiting this site find it equally distasteful

Please keep in mind we're far from out of the woods and still have many hurdles to overcome.

Just my opinion.
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us10

Here, here sir. Well said.

 

[FA Mikey]

Buying anothers operation is one thing. Making it work another. PSA comes to mind.

 

[Borescope]

Don't you think we each have our own set of problems that are unique? All we need right now it to fix our own problems, not merge or buy assets of another airline so we can both go 7. We also need a reduction in capacity in the industry so fares can go up. Maybe one of us will help out. Good Luck.

 

[chipmunn]

The highest levels of US senior management have personally told me US is interested in acquiring UA assets, but US cannot complete a transaction before it emerges from bankruptcy because any deal would have to be approved by the court and the creditors. Moreover, the two companies have been holding discussions on a "unique corporate tarnsaction", which may transition to an "interesting corporate transaction", since early 2002.

FFG, I have been told US has the financing in place to complete such a deal.

Also noteworthy, the last ALPA modified restructuring agreement counterproposal, which was not included in the final language, required RSA to provided funding to buy the assets of an airline who had over $3 billion in quarterly revenues, if management decided such a deal was prudent.

Chip

 

[us10]

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On 1/15/2003 1243 AM TransatlanticFlyGuy wrote:

Yeah, i know we still have the pension thing to deal with and the threat of war with Iraq, but to any of you feel that US will go after some of the assests of UA during their Chap 11 or god forbid Chap 7? Rumour has it that "someone" was in Philly saying the assets in DEN and SFO look good.Yeah, i know your now saying, "where are we gonna get the money". I think the good ole man in Alabama has some deep pockets to help us get some of what UA may have to offer. In my opinion, i believe that was the primary reason liquidation at US was threatened. Bronner really wants US to go after the carcass of UA. I guess well all see in time. Any thoughts on this people? [img src='http://www.usaviation.com/idealbb/images/smilies/1.gif']
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[/blockquote]

I've got real problems with even discussing going after the "carcass of UA".This group should know better than anyone the hell the UA employees are going through right now.To hear other airline managers and employees discuss the distribution of U's assets (jobs) has not been easy for U employees to contemplate.I'm sure UA employees visiting this site find it equally distasteful

Please keep in mind we're far from out of the woods and still have many hurdles to overcome.

Just my opinion.

 

[ITRADE]

I find it a bit macabre that folks are discussing picking over the bones of UA's carcass when folks were debating, with some resentment, the same of US Airways just a month ago.[BR][BR]

 

[Stick-n-Rudder]

[BR][BR]1. Glenn Tilton was hired into the position of Pres. of Texeco Oil Co. to "provide a smooth transition" for it's new owner. I think it was ARCO? Can't remember?[BR][BR]2. I thought I read in a post that RSA owns Aircraft leased to United? Could RSA take their aircraft back and redeploy them at US?[BR][BR]3. If US can give Midway $20 million and become Midway's DIP while US is in BK why can't US buy another airlines assets?[BR][BR]4. United's international operation is the crown jewel. Steve Wolf had alot to do with United's aquisition of those eastern and western routes during the demise of Pan AM![BR][BR]5. US applied for DCA/SFO service but lost to Delta's DCA/SLT. Is this because US/UA have a domestic plan which the Gov. knows about but is a big secret?[BR][BR]All's I'm saying is what I'm saying!

 

[FrugalFlyer]

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On 1/15/2003 1:02:48 PM chipmunn wrote:

The highest levels of US senior management have personally told me US is interested in acquiring UA assets, but US cannot complete a transaction before it emerges from bankruptcy because any deal would have to be approved by the court and the creditors. Moreover, the two companies have been holding discussions on a "unique corporate tarnsaction", which may transition to an "interesting corporate transaction", since early 2002.
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OK, fair enough, once US is out of chpt. 11 it can do more or less whatever it wants. But: if UA were to put up some assets for sale, I would imagine some sort of a bidding war. How would the bk. court and the UA creditors react if UA wanted to sell a hub such as DEN to USAirways but CO or DL or Frontier offerred more $$$ for it? I would imagine that even if UA wanted to sell to US, the creditors / judge may not approve it but instead sell to the higher bidder. Can US get into a bidding war? Would US have enough $$$ for this even with the ATSB loan guarentee?

 

[real world]

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On 1/15/2003 10:27:53 AM FrugalFlyer wrote:

[blockquote]
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On 1/15/2003 10:03:06 AM chipmunn wrote:

UA CEO Glenn Tilton has publicly said UA is discussing selling assets and UA and US management have held discussions this year on possible "interesting corporate combinations". Reports indicate US is interested in gates and LAX, SFO, DEN and gates and slots at ORD, along with appropriate aircraft.

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Only 15 days into the new year, and we have: "interesting corporate combination"

I don't think US is in any condition to purchase anything (although stranger things have happenned).

Also, if UAL is selling assets such as SFO, DEN, etc. would it not be in the best interest of creditors that these assets go to the highest bidder?

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US bought a postion in Midway....anything is possible

 

[autofixer]

RSA has some mighty deep pockets!

 

[ONTHESTREET]

Oh come on people, U will be lucky to survive....we are not anywhere near off life support yet. If we manage to get out of bk then maybe we can do something.

Right now all the problems that got U in BK are still there with the exception of labor cost. We are still bleeding badly.

 

[chipmunn]

[P]Frugalflyer:[/P]
[P]Frugalflyer asked: How would the bk. court and the UA creditors react if UA wanted to sell a hub such as DEN to USAirways but CO or DL or Frontier offerred more $$$ for it? I would imagine that even if UA wanted to sell to US, the creditors / judge may not approve it but instead sell to the higher bidder. Can US get into a bidding war? Would US have enough $$$ for this even with the ATSB loan guarentee?[/P]
[P]Chip comments: Tonight Reuters said United Airlines is on the verge of losing its status as one of the world's largest employee-owned companies, as sales by various employee stock plans trigger a loss of control for union owners, sources familiar with the matter said. For the near future, unions will keep their board seats but will lose a host of special powers that go with them under the 1994 corporate charter, including the right to veto things like big asset purchases or sales, and selection of executives. See [A href="http://biz.yahoo.com/rb/030115/airlines_united_4.html"]http://biz.yahoo.com/rb/030115/airlines_united_4.html[/A][BR][BR]If a plan is submitted to the court involving an asset sale, the judge would have to decide what is in the best interest of the creditors. If the US offer is at or near the offer of another bidder, and the US offer can show the debtor would maintain or improve revenue through its alliance, the US deal could be considered more attractive. The key advantage US has over other bidders is the alliance, which would provide UA with a stronger plan of reorganization by keeping revenues within the alliance "umbrella".[BR][BR]Chip [BR][BR][/P]

 

[UnitedChicago]

You got to be joking. Why would UA sell DEN? It's right smack dab in the middle of their route structure!

If and the keyword is IF they were to sell off an operation operation...they'd start with something that had the least impact. The first thing to go in my would be MIA and south america.

But...everyone knows that the strength of UA is their route structure - the best in the industry. They will fight to the end to keep that entact.

The "interesting corporate transaction" talk is the biggest BS. I'm sure the "good news" Dave is set to announce will be code-share related.

On paper...closing IND and sharing maintanence facilities in PIT sounds cost interesting. But with UA and the IAM in tense negotiations...I HIGHLY doubt that this scenario is true.

Can we please retire the words unique and interesting?

 

[chipmunn]

Pineybob:

There is a lot of truth to your post.

Chip