ableoneable
Veteran
- May 6, 2007
- 711
- 0
Talk about dancing on the deck of the Titanic. Gentlemen, you need to pay attention to the financial health of your airline. You are bouncing on the cash covenant of the exit financing package. If you break the covenant, then the whole loan can be called. Your company can't hedge fuel because they have no cash to use as collateral. They went to the convertible market and that money is all used up. They are still having trouble financing brand new A-330 aircraft.
There is not much left. The next step is asset sales. The problem is any asset that is worth buying will further weaken the company. If you guys don't figure out some way to fix your problems and help fix your company, you will not be happy. Your seniority issues will seem quite secondary because when the poop hits the fan, it is going to be ugly.
If LCC can't raise cash soon, they will have to start selling stuff. That will not be good for LCC pilots.
Okay, back to fighting.
USAirways may indeed breach its loan covenants and go TU.
The pilot groups' ability to affect this outcome is pretty close to zero. - Unless we want to do a British Airways and offer to work a month for free. If it comes down to that I would hope that the pilot group would say thanks but no thanks. This profession has taken enough hits and any carrier that can't afford to pay its employees needs to go out of business.
As has been discussed many times before, this battle is doing nothing but positive things for the company's bottom line. Management has a built-in, permanent whipsaw that almost operates itself.
Sure, this comes with a few expenses related to irregular operations but overall it is the labor deal of the century.
I believe that the east pilots' belief; that a contract is not coming to a theater near you any time soon, is correct. The company is not desperate to pay us more. The Delta/Northwest merger has already shown what happens when you merge two pilot groups who do not attempt to kill each other; you have to throw a crap load of money at them. A single contract is probably not necessary, or even desirable, as a pretext to another merger.
Everybody keeps saying how this merger proves what a horrible CEO Doug Parker is. The people who financed this merger cashed out and cashed out big. Parker was able to raise cash in November/December and again last month. UAL appears ready to hit pawn shops in Chicago and they look like a better airline on paper than USAir.
We might not necessarily like Parker but don't think for a moment that the investment community shares our disdain. After all, these are the people who believe the sole reason GM, Chrysler and Boeing are in torpedo water is because of organized labor.