US Airways to go after Uniteds assets?

[iflyjetz]

[blockquote]
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On 1/16/2003 1235 PM DCAflyer wrote:

Second, when the merger discussions were alive and ongoing back in 2000-2001, UAL employees were up in arms and certainly were not about to willingly let us into your precious little fold... or your elite group, if you will... with one labor group going so far as to file a lawsuit to block seniority integration. If there is bad blood and ill feelings about a potential union between the two airlines and if U comes out smelling like a rose, UAL employees need look no further than themselves as to why there might be some hesitation on the part of U employees to graciously accept UAL employees into such a scenario.

DCAflyer[/SPAN]
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[/blockquote]

It was not a union of airlines, it was a buyout. Demanding DOH was out of line. Was then. Is now.
U is in deep trouble. Chap 7 is hanging over your heads, yet some of you talk like you'll rise like Phoenix from your ashes. Another strong wind, and U's ashes will be alongside EAL, PAA, Braniff, and many others. Get a grip on reality.

 

[GGpillow]

A few months ago, when UA employees were responding in this forum, it was to a similar thread. Same topic. Most of it was poking holes in Chip's "theories". Don't characterize it as a bunch of UAL folks came over onto this forum to rag on yall for going into ch 11. Noone ever did that. Most of the time, as I said, was spent poking factual holes in Chips theories, as I am about to do again. Don't have anything personal against Chip, but it sure seems like his "sources" at the "highest levels" never seem to have their facts straight, or at the least, only focus on the facts they want to. I will agree that furthur esop sales down the road could possibly trigger our sunset provisions, however, neither UAL, the DIP creditors, or any of our other creditors, will be looking for us to take huge tax hits. [BR][BR][A href="http://www.suntimes.com/output/business/cst-fin-united14.html"]http://www.suntimes.com/output/business/cst-fin-united14.html[BR][/A][BR]Also[BR][BR]CHICAGO, January 13, 2003 - UAL Corp. (NYSE: UAL), the parent company of United Airlines, today announced that the company is permitting State Street Bank & Trust, the independent trustee of the UAL ESOP, to sell up to 12,857,600 additional shares of UAL stock held by the ESOP. The company delivered a letter to State Street Bank & Trust on Friday pursuant to an order from the U.S. Bankruptcy Court overseeing the company’s bankruptcy case requiring that the company inform the ESOP trustee of the number of shares that it could dispose of without jeopardizing the company’s use of its net operating losses (NOL). Preserving the NOL is expected to generate substantial tax benefits following United’s emergence from Chapter 11 protection. [BR]If the ESOP trustee had sold, as of December 31, 2002, all 12,857,600 shares permitted by the company's letter, the ESOP, together with the other company-sponsored benefit plans holding shares of UAL equity, would have held more than 20% of UAL common stock. Accordingly, "Sunset" (as described in the company's most recent Form 10-Q) would not have occurred had such sales been made as of such date.[BR][BR] News releases and other information about United Airlines can be found at the company’s website, www.united.com.[BR][BR][BR] [BR][BR]

 

[GGpillow]

[P]
[BLOCKQUOTE][BR]----------------[BR]On 1/17/2003 8:07:47 AM PineyBob wrote:
[P]Well Mr Pillow welcome on over here. Nice to see you again.[BR][BR]I happen to think that Chip might be on point at least partially. I've been in the business world for a while now and I have no inside info but every bone in my body tells me that US is going to survive and perhaps even thrive and UA will be a big part of that phoenix you mentioned. The question is HOW will it play out. And don't think RSA doesn't have cards to play or influence to peddle. When you start playing out the possibilities Chip could well be right. Remember the failed merger attempt made great sense from a route structure point of view, but on every other front was a bad idea. So now with both companies in BK the game is different and ANYTHING could happen. UA's labor relations are far worse than at US and that alone could sink you Mr Pillow and UA. But for now at least the Chapter 22 Aliance seems in tact and ready for action. [BR][BR]Sounds to me that you might be jealous that US has a clearly defined plan to emerge as a profitable entity while UA continues to flounder with no discernable concrete plan to right a badly listing ship.[/P]----------------[/BLOCKQUOTE]
[P][/P] Hey PBob. Thanks for the welcome, shoulda extended you the same when u jumped over from FT. I know you've been biz world for a long time, and I don't deny that the combination of US-UA makes a lot of sense, in a lot of ways. [BR] As for me being jealous, please! UA's ch 11 is proceeding just fine. The company has the paycuts they ASKED for. Yes they are temp cuts giving 6 mo to negotiate long term cuts, however, that is what they asked for. The IAM had their cuts enforced on them. That's fine too. The reality is that the IAM was afraid it would fail if put to a vote, and why not let the judge do their dirty work for them? Far easier then rolling the dice on a vote passing by mech's that will be voting themselves out of a job, as UA will outsource half of them by doing away with IND and getting rid of R&D. [BR] U has no better plan then UA when it comes to coming out of Ch 11. They are doing the same thing! Renegotiating leases, and taking most of it out of the pockets of their employees. Let's not get Dave S's press releases mixed up with reality here, they don't have a magic bullet here that will increase revenue, and, you and I both know that has to happen for a turnaround in this industry. A profitable company is not built on paycuts alone. True?[BR] Let me be very clear on one point, I want and hope U comes out of this smelling like a rose. I have a LOT of friends that work for them, and I want nothing but the best for them. The U employees I have worked with, were some of the hardest working, most customer friendly folks I have had the pleasure to interact with in my years in this business, and, it is my hope that they are given the chance to continue to be so.[BR] The issue I have is that, among both U and UA employees, many see to see it as an either-or situation. UA going in the tank is not going to help U. Not when their are carriers with far greater amounts of cash laying around. U dieing will help UA in no real way either. UA is in no position to acquire routes, equipment or infrastructure. We are NOT, as of yet, that closely linked that our futures depend on the life-death of eachother.