You've Got $1.5bil Of Private Equity To Invest

[whatkindoffreshhell]

USair too far gone, no way I'm spending my clients' money there.

DL is attractive but until they file Ch11 the pilots just won't get with the program.

UA is the easy choice. Brand value, route network, market position (but Jake will have to leave first and until they pry his cold fingers....)

Which airline would you invest your money ???

 

[KCFlyer]

USair too far gone, no way I'm spending my clients' money there.

DL is attractive but until they file Ch11 the pilots just won't get with the program.

UA is the easy choice. Brand value, route network, market position (but Jake will have to leave first and until they pry his cold fingers....)

Which airline would you invest your money ???

[post="182437"][/post]​

Considering that UAL has yet to emerge from BK, and when they do, most likely all shares trading will become worthless, I'd say it's an easy choice to avoid. My answer - budweiser. At least you can get a deposit on the bottles and some cash for the aluminum cans.

 

[FWAAA]

Considering that UAL has yet to emerge from BK, and when they do, most likely all shares trading will become worthless, I'd say it's an easy choice to avoid. My answer - budweiser. At least you can get a deposit on the bottles and some cash for the aluminum cans.

[post="182438"][/post]​

I may be mistaken, but I assumed that the OP was talking about investing $1.5 billion, which would provide exit financing for UAL, and would thus own all (or most all) of the new UAL stock. But I may be wrong.

In which airline do I invest $1.5 billion? Easy. Southwest.

 

[jimntx]

With the fickleness of the avg. airline passenger, the continuing spread of LCCs, and the cost of jet fuel, could I interest you in some nice fixed interest bonds?

 

[Seatacus]

I can answer in two words........bullet trains. The wave of the future.

 

[whatkindoffreshhell]

I may be mistaken, but I assumed that the OP was talking about investing $1.5 billion, which would provide exit financing for UAL, and would thus own all (or most all) of the new UAL stock. But I may be wrong.

In which airline do I invest $1.5 billion? Easy. Southwest.

[post="182442"][/post]​

You are not wrong, I would invest $1.5bil in UA to emerge from BK. Of course there would be major changes and many of 'em! Begin with new managers. Dump DEN. Emphasize cargo as a revenue source not just a by-product. Convert TED to a Privatair model and fly the cream pax, leave the dirty masses to the LLCs. Cut a deal with the feds on the pension issue, something like "we won't dump on the PBGC but you've got to work with us". Cut base wage rates but also give 'em productivity incentives not just a beat-down. WHQ info tech costs are astronomical. Ban all 'consultants' and investment bankers. Change advertising agencies (those new pastel commercials are beautiful but they're too long and represent old-style thinking). Attract outsourcing work from other airlines (i.e. mechanics, overhaul etc cause UA already has the fixed cost and knowledge base). Fire the lawyers. Take on a 24.9% foreign partner until we can change the law. Make all union contracts expire on the same date so we don't have this ongoing drama. Sell sell sell -- every employee is a salesperson.

As for the other points in this thread....

SW is not the place for a $1.5bil cash injection now, not enough upside.

Seatacus: bullet trains don't get you overseas. And the money would all go for infrastructure. Plus too many environmental studies and such. I want a home run NOW.

 

[KCFlyer]

You are not wrong, I would invest $1.5bil in UA to emerge from BK. Of course there would be major changes and many of 'em! Begin with new managers. Dump DEN. Emphasize cargo as a revenue source not just a by-product. Convert TED to a Privatair model and fly the cream pax, leave the dirty masses to the LLCs. Cut a deal with the feds on the pension issue, something like "we won't dump on the PBGC but you've got to work with us". Cut base wage rates but also give 'em productivity incentives not just a beat-down. WHQ info tech costs are astronomical. Ban all 'consultants' and investment bankers. Change advertising agencies (those new pastel commercials are beautiful but they're too long and represent old-style thinking). Attract outsourcing work from other airlines (i.e. mechanics, overhaul etc cause UA already has the fixed cost and knowledge base). Fire the lawyers. Take on a 24.9% foreign partner until we can change the law. Make all union contracts expire on the same date so we don't have this ongoing drama. Sell sell sell -- every employee is a salesperson.

As for the other points in this thread....

SW is not the place for a $1.5bil cash injection now, not enough upside.

Seatacus: bullet trains don't get you overseas. And the money would all go for infrastructure. Plus too many environmental studies and such. I want a home run NOW.

[post="182634"][/post]​

Okay, If I had 1.5 billion to invest, I think I'd look at the airline that has a great route structure and brand value and decided not to visit BK court - AMR.

 

[Kev3188]

NWA-good route structure, well poised for "expansion" with SkyTeam, invaluable 5th freedom rights....

 

[gatemech]

Cut base wage rates but also give 'em productivity incentives not just a beat-down.

[post="182634"][/post]​

This is a reply to one sentence in your post. A little off subject.

Most wages at UAL have been cut far enough. I really don't know what a pilot or f/a is worth. I do know that the mechanics are worth more than we are being paid now. Just what do you think we should make? Just because some AMT's are whoring themselves out at aircraft chop shops for $15 hr doesn't mean that is what we should make. You say cut wages? Look at WHQ. Look at ramp. The ramp people make $8 - $10 hr more than industry average. UA mechs are middle of the road in pay. Soon to be lower I'm sure.

Ual could be a good investment with the right management team at the helm. We still have too many from the old school at WHQ. Tilton was a bad choice. I don't care what the CEO makes. That CEO better be worth it. An oil guy was not the right choice for an airline.

 

[MrAeroMan]

If you invested 1.5 billion of your investors money I'd bet those investors would take you out of the office, put you in a rubber room and ask you why you'd lost your mind.
Put the money under the pillowcase before you invest in an airline.