10-K Usairways Group

Since airline mergers have been happening for 80 or so years, it's hard to believe that Doug was the champion of such things before anyone else...

While Parker isn't the worst airline CEO that ever existed, he doesn't walk on water without getting his feet wet either... :lol:

For instance, his insistence on a cost neutral pilot contract for nearly 1.5 years was a mistake. If not for that, it's entirely possible that a joint contract could have been ratified before the Nic award came out and the last nearly 5 years of seniority battles wouldn't have happened. So he played as much a role in that as anyone.

Jim
I thought I was more clear that I was talking about the mergers and consolidations of the post 9/11 era. So yes mergers occurred long before Parker, but rarely in the context of "consolidation" and "capacity constraint" that Doug was championing even before he joined AWA. Up to that time it seems to me that most mergers and acquisitions were about growth and expanding marketshare. Doug's goal was to reduce capacity so that a more rational pricing strategy could be achieved with fewer carriers providing fewer seats rather than a big airline getting bigger but still chasing after too few customers with too many seat choices at prices below cost.

Nope, Doug doesn't walk on water and he is just as apt to make a bad decision as any other "good" airline CEO. Each situation is unique and there are still few if any examples of a smaller airline CEO acquiring a near-liquidated airline that was 3-4 times its size in terms of revenue and then navigating that combined airline through the oil price spikes of 2008 and the worst economy in most of our lifetimes. No other airline CEO can put those kinds of stories on his resume.

Those are some pretty big "ifs" regarding getting a contract agreement before the NIC came out. Would the Kirby proposal have been enough over the cost-neutral stance? If not, how much more would have been required? Do you actually think that anyone would have predicted a protracted 7-10 year battle over seniority infighting between the pilot groups and that binding arbitration would not have settled the matter by now? Still, if Doug had put the Kirby out in 2006 or even an "industry-standard" contract out to prevent opposition to the NIC from gaining a foothold, do you think LCC would have avoided chapter 11 or chapter 7 with those kinds of cost increased when oil prices went to $140bb? With banks and investors taking an iron grip on money during that time, it seems altogether probable that LCC would have skipped chapter 11 and went to chapter 7 if pilot and FA wages were 20-40% higher during that period. So, which is better, survive to fight another day with labor groups still toiling for a better contract, or giving the groups a better contract only to liquidate the company two years later?
 
FYI, Doug Has never sold a single share of his stock. That speaks volumes IMHO.
Are you certain about that?

A cursory review of the 2006 and 2007 Proxy Statements reveals that Doug held options on 738,373 shares in 2006 but by the 2007 Proxy Statement, he held options on only 466,123 shares. In both years, his total shares owned equaled the same 20,160 shares. I don't have time to look at every Form 3 and 4 that was filed in 2006, but I'm wondering where those shares went if those options were execised.
 
Technically, He wasn't in prison.

Well in my view if your door is locked from the outside and the windows have bars on them and a person in a uniform escorts you to the dining hall then it's Prison. What's the old saying? " A rose by any other name......."

Yes, he was in county lock up not part of the AZ state prison system. Like I said that door slams and locks behind you as they take you to your cell, IT'S PRISON!
 
In the interest of fairness I found this.

Doug Parker
Transactions
Date Shares Transaction Value
04/20/2011 168,375 Award at $0 per share. 0
06/16/2008 191,000 Acquisition at $2.8 per share. 534,800
06/16/2008 1,400 Acquisition at $2.79 per share. 3,906
06/16/2008 1,700 Acquisition at $2.78 per share. 4,726
06/16/2008 2,900 Acquisition at $2.77 per share. 8,033
04/09/2008 51,480 Award at $0 per share. 0
04/11/2007 24,540 Award at $0 per share. 0

J. Scott Kirby

Date Shares Transaction Value
04/20/2011 117,875 Award at $0 per share. 0
12/30/2008 18,000 Disposition at $7.69 per share. 138,420
04/09/2008 35,710 Award at $0 per share. 0
04/11/2007 17,180 Award at $0 per share. 0

Derrick Kerr
Date Shares Transaction Value
04/20/2011 67,000 Award at $0 per share. 0
10/27/2010 107,415 Disposition at $11.71 per share. 1,257,830
10/27/2010 38,585 451,831
10/27/2010 146,000 Derivative/Non-derivative trans. at $3.1 per share. 452,600
07/27/2010 30,715 Disposition at $11.03 per share. 338,787
01/22/2009 10,000 Award at $7.65 per share. 76,500

04/09/2008 6,810 Award at $0 per share. 0
04/11/2007 3,440 Award at $0 per share. 0

Robert Isom
04/20/2011 67,000 Award at $0 per share. 0
10/25/2010 106,540 Disposition at $11.46 per share. 1,220,949
10/25/2010 39,460 452,212
10/25/2010 146,000 Derivative/Non-derivative trans. at $3.1 per share. 452,600
07/26/2010 13,000 Disposition at $10.58 per share. 137,540
07/26/2010 4,800 Disposition at $10.59 per share. 50,832
07/26/2010 3,300 Disposition at $10.6 per share. 34,980
07/26/2010 1,000 Disposition at $10.61 per share. 10,610
07/26/2010 18,161 Disposition at $10.62 per share. 192,870
07/26/2010 800 Disposition at $10.63 per share. 8,504

04/09/2008 26,590 Award at $0 per share. 0
09/06/2007 35,000 Award at $0 per share. 0
Copyright 2012 FactSet Research Systems In

Doug, in poker parlance is indeed "All in". What's more interesting is the other three who aren't "All In". This tells me something, only trouble is I'm not sure what it tells me.

To echo Boeing Boy, He's not the worst CEO but he isn't even close to the best. My personal feeling is he'd be a great CFO as he has superior Finance and management tools. What he isn't is a forward thinking innovative leader with a vision and sadly few are. For every Steve Jobs there are 1,000 Doug Parkers. Frankly, IF by some fantasy come to life I was to be CEO of US Airways the truth of it is, I'd keep Doug as my CFO. However J. Scott Kirby wouldn't last the day as I;d personally tell him "You're Fired", I'd go so far as to have a locksmith there to immediately change the locks on his office. Further I'd have a crew pack up his personal effects and deliver them to his house. I don't like him because he's a documented liar.
 
In the interest of fairness I found this.



Doug, in poker parlance is indeed "All in". What's more interesting is the other three who aren't "All In". This tells me something, only trouble is I'm not sure what it tells me.

To echo Boeing Boy, He's not the worst CEO but he isn't even close to the best. My personal feeling is he'd be a great CFO as he has superior Finance and management tools. What he isn't is a forward thinking innovative leader with a vision and sadly few are. For every Steve Jobs there are 1,000 Doug Parkers. Frankly, IF by some fantasy come to life I was to be CEO of US Airways the truth of it is, I'd keep Doug as my CFO. However J. Scott Kirby wouldn't last the day as I;d personally tell him "You're Fired", I'd go so far as to have a locksmith there to immediately change the locks on his office. Further I'd have a crew pack up his personal effects and deliver them to his house. I don't like him because he's a documented liar.
First off, I believe Doug did a one-time sale of stock options around 2006 totaling around $10m. IIRC he had certain options that had expiration dates on them and he had to convert or lose them. Since he was doing the transaction anyway he might have sold quite a few additional options while the price was up and he probably only wanted to pull the trigger once over a ten year period or so.

As for the rest, they would be required by the SEC to sign a blind trust agreement or a Executive Diversification and Investment Trust where they have no direct control (participation, knowledge, inside information influences) over when their shares are sold or converted. If an executive is granted an RSU at the value of $2.00 on the date of issue and he files the blind trust with his broker stating that he would like to sell if the price reaches $10.00, then he would have no way causing or stopping the transaction if the price spikes up to that amount. As soon as the price point is triggered, the shares will sell. It might happen in six months or it might happen in six years, or it may never happen. So, the only thing you can determine from the stock conversions is that these senior execs filed a blind trust for a certain number of shares at a certain stock price. If you (public traders) could read into those transactions that the execs lacked confidence in the company, then the system would be broken. My guess is that Doug sets his blind trust very high so that he doesn't have to come out every couple of years and explain why he took an additional couple of million that year.

I don't think you have to worry about firing Kirby. If you were miraculously appointed CEO, he would probably beat you to the punch and clear out his office before you got your employee badge. ;)
 
I don't think you have to worry about firing Kirby. If you were miraculously appointed CEO, he would probably beat you to the punch and clear out his office before you got your employee badge. ;)

You're assuming he knows I exist? Hmm that pauses I? Wonders who Callaway Golf really is?
 
You're assuming he knows I exist? Hmm that pauses I? Wonders who Callaway Golf really is?
Well I haven't been to 111 W. Rio Salado in a couple of years now and never spent a whole lot of time on the 9th floor if that's what you are asking.
 
Sparowhawk, looks like you really upset MRS Parker now..... :D Yes Parker may be the money wizard, but just think how great this airline would be if he wasn't so intent on hating the employees so much....Another thing...is Parker really in charge of this company or is he just Robert Isom's puppet..ever notice when someone asks him a question he usually doesn't know the answer and has to ask Robert...hmmm.
 
I thought I was more clear that I was talking about the mergers and consolidations of the post 9/11 era. So yes mergers occurred long before Parker, but rarely in the context of "consolidation" and "capacity constraint" that Doug was championing even before he joined AWA.
Nope, the earliest mergers were about consolidation. All you do is pick a period where HP was the among the first to merge. Make it this century and Doug is not the first - AA/TWA, AF/KLM. Even ATA, which Parker tried unsuccessfully to buy, was picked up by WN. Parker's "innovation" was attempting to merge with the other airline was in bankruptcy, which is nothing more than his "do it on the cheap" way of doing business - be it employees, mergers, airplanes, whatever. How often has he said US has had problems finding replacement 757's "at the right price" (lower than others will pay). How often has he said that US can't pay employees what the other carriers can.

Jim
 
ATA was not picked up by WN, they went out of business in bankruptcy.

On April 2, 2008, ATA filed for Chapter 11 bankruptcy protection. ATA then announced it was ceasing all services, effective 4:00 AM EDT, Thursday April 3, 2008 citing the unexpected loss of a major contract for its military charter business, as a subcontractor of FedEx Express, along with recent increases in jet fuel prices. Red-eye flights in the air at the time of the announcement proceeded to their destinations. Flight 4586 from Honolulu to Phoenix was the last ATA flight, departing almost 2 hours late at 12:10am (HST) arriving April 3, 2008 at 8:48am (MST).

Southwest Airlines owns and retains all ownership of the operating certificate and all assets held by ATA Airlines including trademarks, logos, etc. These were purchased for $7.5 million by Southwest while ATA was operating under bankruptcy protection.
 
Your quote contradicts your statement, 700. You should at least get your story straight before telling someone they're wrong. Did WN acquire the assets of ATA? Yes. Was ATA in bankruptcy at the time? Yes, I didn't say they weren't. All I said was that WN acquired ATA, which is what happened.

Jim
 
Did they buy planes?

Did they merge?

Is WN flying ATA's routes with their equipment and employees?

Nope ATA went out of business and WN picked up what was left after everything was gone.
 
Nope, the earliest mergers were about consolidation. All you do is pick a period where HP was the among the first to merge. Make it this century and Doug is not the first - AA/TWA, AF/KLM. Even ATA, which Parker tried unsuccessfully to buy, was picked up by WN. Parker's "innovation" was attempting to merge with the other airline was in bankruptcy, which is nothing more than his "do it on the cheap" way of doing business - be it employees, mergers, airplanes, whatever. How often has he said US has had problems finding replacement 757's "at the right price" (lower than others will pay). How often has he said that US can't pay employees what the other carriers can.

Jim
You are the industry and historical expert so I will defer to you on those matters. However, as far a picking a period, I was selecting a time period when Doug was CEO and was in a position to pursue a merger. The fact that he was in that position for ten days prior to 9/11 also seems significant since that changed a lot of factors in the industry in regards to profitability and solvency concerns for most of the majors.

I don't archive articles, but I do remember reading some national news stories back in 2005 which were quoting industry sources (something like the Boyd Group, but I could be wrong) that went into great detail about how Doug was the only airline executive that was championing consolidation. I also remember quotes from Franke about how Doug talked about the need for consolidation in his interview to come to AWA and how Franke viewed Doug as having remarkable insight into what the industry needed to do to gain long-term profitability and sustainability. This was all couched in the concept that Doug was not at all like other CEOs and he had a strong resolve to reduce seats and gain pricing power that seemed absent from his peers at the time. Now the article(s) may have just been a PR piece, but I do recall reading those things back then.

Again, if I recall correctly, one of the big objections to the US/DL takeover was that there was too much overlap in the routes for certain people's comfort. Overlap means consolidation options and pricing power. Now compare that to the limited overlap at DL/NW or UA/CO and tell me again how all CEOs strive for consolidation rather than expanded marketshare. If you are focused on consolidation you seek overlap. If you seek marketshare you seek complimentary routes, right? IMO consolidation of corporate headquarters and changing a hub or two into a focus city is a far cry from substantially reducing the number of seats flying between city pairs throughout the network.
 
Did they buy planes?

Did they merge?

Is WN flying ATA's routes with their equipment and employees?

Nope ATA went out of business and WN picked up what was left after everything was gone.
Good grief. Ever hear of chapter 7? How in the world was anything left to buy after everything was gone? Wouldn't everything being gone mean that there was nothing to buy? Here is the quote you posted:

Southwest Airlines owns and retains all ownership of the operating certificate and all assets held by ATA Airlines including trademarks, logos, etc. These were purchased for $7.5 million by Southwest while ATA was operating under bankruptcy protection.

Jim