another merger

[hp_fa]

Haven't you people had enough upheaval at one company during the past four years??

The management has only been through one transaction and no bankruptcies, so they have a lot of energy and ambition still.

 

[LCC_#1]

Re potential USAir merger:

why don't you ask the customer who is trying to buy your product and has been sitting on hold for thirty minutes (or better yet ask one of your chairman-preferred customers) if they think a USAir merger is a good idea?

Haven't you people had enough upheaval at one company during the past four years??

I find your reaction interesting. Hum...you guys are losing millions, will have to make more cuts and probably go back to Ch 11 again just like US. The numbers don't add up and while the CP's continue to flock to UAL, you people continue to lose money and guess what? We are MAKING money. SO when you guys either have to give more in paycuts...causing poor attitudes (oh I forgot UAL employees are all happy happy happy), or you have to cut those FABULOUS perks that all our CP rave over, lets see if they are loyal and lets see who has the last laugh. Oh and by the way, it is the biz community talking that up. So go ahead and continue your snub replies.

:down: :down:

 

[javaboy]

The management has only been through one transaction and no bankruptcies, so they have a lot of energy and ambition still.

AWA - 1 bankruptcy
US - 2 bankruptcies
CAL - 2 bankruptcies
NWAC- 1 bankruptcy
DAL - 1 bankruptcy
UAL - 1 bankruptcy

there has been a 3 strike bankrupcty law since the abuse of the early 80s and certain "wall street types" meaning 3rd time is automatic liquidation. While AWA has only gone thru one BK, the remaining company of the corportate transaction is US, there will be no more bankrupcty use for US (unless laws changed again).

as for speculation....

CAL + NWAC + DAL more likely since they are already aligned marketing wise, AMR goes it alone, UAL + LCC (retaining UAL as namesake)

but then again...just a guess....

 

[FWAAA]

While AWA has only gone thru one BK, the remaining company of the corportate transaction is US, there will be no more bankrupcty use for US (unless laws changed again).

I'm not certain I agree.

The surviving corporation of the merger was America West, which promptly changed its name to US Airways Group. That might just sanitize the new company of the two previous bankruptcies (since that debtor, USAirways, no longer exists). LCC's Ch 11 count may be one (from the decade-plus ago HP Ch 11).

 

[PITbull]

Surviving corporation? This is almost too funny...what cash of AWA was used for this acuisition? Let me guess? Its the AWA Executive retention that constitutes acqusition???? Who do you think hires these fellows and gives them contracts? And who, pray tell, approves it?

The funds came from investors that bought into the franchise of U and AWA. If one will take notice, the majority routes. a/c, employees are from East.

FWAAA, if you could please inform everyone on this board where in any of the documentation that it states AWA acquired USAirways...please do.

AWA didn't have the money to stay in business let alone buy a major legacy, my friend.

 

[BoeingBoy]

FWAAA, if you could please inform everyone on this board where in any of the documentation that it states AWA acquired USAirways...please do.

Sorry, PITbull, but FWAAA's right. Notice that he carefully said AWA was the surviving corporate entity, not the acquiring corporation.

SEC mumbo-jumbo or whatever, AWA did in fact merge with a division of US Group (Barbell) and then change it's name to US Airways Group, Inc.

Jim

 

[FWAAA]

Surviving corporation? This is almost too funny...what cash of AWA was used for this acuisition? Let me guess? Its the AWA Executive retention that constitutes acqusition???? Who do you think hires these fellows and gives them contracts? And who, pray tell, approves it?

The funds came from investors that bought into the franchise of U and AWA. If one will take notice, the majority routes. a/c, employees are from East.

FWAAA, if you could please inform everyone on this board where in any of the documentation that it states AWA acquired USAirways...please do.

AWA didn't have the money to stay in business let alone buy a major legacy, my friend.

Check out the AGREEMENT AND PLAN OF MERGER by which East merged into West and West was the surviving corporation:

http://phx.corporate-ir.net/phoenix.zhtml?...CZhdHRhY2g9b24=

From page 272 of PDF version of the merger agreement:

1.1 The Merger. Upon the terms and subject to the conditions set forth in this Agreement, and in accordance with the Delaware General Corporation Law (the “DGCLâ€￾), at the Effective Time (as defined in Section 1.3) Merger Sub shall be merged with and into West and the separate corporate existence of Merger Sub shall thereupon cease. West shall be the surviving corporation in the Merger (sometimes hereinafter referred to as the “Surviving Corporationâ€￾), and the separate corporate existence of West, with all its rights, privileges, immunities, powers and franchises, shall continue unaffected by the Merger in accordance with the DGCL.(Emphasis Added)

What money of West was used? In addition to the new money, the stockholder equity of HP shareholders was used - that's why holders of HP stock got new stock in LCC and holders of USAir stock got nothing.

You're right - without the new money, AWA and USAir would likely have liquidated, eventually.

But make no mistake about it - East merged into West and East's corporate existence evaporated. Corporation Law 101.

 

[hp_fa]

FWAAA, if you could please inform everyone on this board where in any of the documentation that it states AWA acquired USAirways...please do.

AWA didn't have the money to stay in business let alone buy a major legacy, my friend.

I think FWAA is correct. I'll try and find the reference tomorrow if someone hasn't beat me to it.

Also PB, remember that AWA was still generating profits and had filed papers for a $500 million shelf offering in the months before the transaction was agreed to last May.

 

[airportman]

BACK TO TOPIC


US Airways CEO Doug Parker, speaking to Merrill Lynch analysts Wednesday,
>said the company has already achieved $175 million in cost savings from the
>merger and is well on its way to beating the $250 million per year savings
>he estimated would result when all the system conversions -- human and
>technical -- are completed.
>
>Kirby hopes the merger and all the big and little details will be a done
>deal by late 2007. Right on schedule.
>
>"We said it would take two years," he said.
>
>But by then the company may be taking on new challenges.
>
>In the session with the Merrill Lynch analysts, Parker would not rule out
>another merger. Two airlines -- Delta and Northwest -- are currently
>operating in bankruptcy.
>
>"We're interested," Parker said. "We think there's an enormous value in
>consolidation. We're staying focused on what's on our plate, but we're not
>letting opportunities go by that may not show up again."

 

[DCAflyer]

AWA - 1 bankruptcy
US - 2 bankruptcies
CAL - 2 bankruptcies
NWAC- 1 bankruptcy
DAL - 1 bankruptcy
UAL - 1 bankruptcy

there has been a 3 strike bankrupcty law since the abuse of the early 80s and certain "wall street types" meaning 3rd time is automatic liquidation. While AWA has only gone thru one BK, the remaining company of the corportate transaction is US, there will be no more bankrupcty use for US (unless laws changed again).

as for speculation....

CAL + NWAC + DAL more likely since they are already aligned marketing wise, AMR goes it alone, UAL + LCC (retaining UAL as namesake)

but then again...just a guess....

No such law exists, according to my friend who is a corporate bankruptcy attorney. It's been rumored on this board for years, but it is not true.

 

[awausairtech]

Surviving corporation?

The funds came from investors that bought into the franchise of U and AWA.
FWAAA, if you could please inform everyone on this board where in any of the documentation that it states AWA acquired USAirways...please do.

They call this Arizona Math.
You can look at it this way, WE (East and West)are all on the same HOTPLATE NOW!
This is the Company's SMOKE AND MIRRORS to hold us down. LOL

http://www.donlinrecano.net/dr201/mwc/04-1...02399-0002.pdf:


Although the merger is structured such that America West will become a wholly owned subsidiary of US Airways Group at closing, America West will be treated as the acquiring company for accounting purposes under SFAS No. 141,“Business combinations,â€￾ due to the following factors: (1) America West’s stockholders are expected to own approximately 37% of New US Airways Group common stock outstanding immediately following the merger as compared to certain former US Airways Group creditors who will hold approximately 12% (these percentages
reflect certain assumptions concerning the likely exchange of certain convertible debt and the impact of certain securities that are dilutive at the per share purchase price paid by the equity investors); (2) America West will receive a larger number of designees to the Reorganized Debtors’ board of directors; and (3) America West’s current Chairman and Chief Executive Officer will serve as Chairman and Chief Executive Officer of the Reorganized Debtors following the merger.

 

[PhxMama]

People, who cares? Im MORE annoyed with the stock options that were taken than who acquired who(m). It doesnt matter. Lets get together and not let them work the divide and conquer scenario.

 

[PowerUpPowerDown]

People, who cares? Im MORE annoyed with the stock options that were taken than who acquired who(m). It doesnt matter. Lets get together and not let them work the divide and conquer scenario.

EXCELLENT POSTING!!!!
LETS TRY AND MAKE THIS A TAG LINE WITH THE FA GROUP!!!!
MAYBE WE CAN GET A BETTER THAN EXPECTED CONTRACT IF ALL FA'S WOULD GET THIS IDEA STUCK IN THEIR HEAD!!!!

 

[USA320Pilot]

Here are points that I know to be true:

-- Doug Parker does not believe Delta and Northwest can emerge from bankruptcy in their present form and will need some form of consolidation similar in scope to US Airways’ bankruptcy exit plan to emerge from their formal reorganization. Parker does not believe Northwest and Delta can merge together.

-- Parker recently indicated US Airways’ cash position is approaching $3 billion and coupled with the company’s current stock price/ability to obtain further capital the Tempe-based airline has the ability to finance a large corporate transaction.

-- Delta CEO Gerald Grinstein recently told the news media he believes industry consolidation will occur and this time it will be similar in scope to “Pan Amâ€￾.

-- Two Wall Street airline analysts who are friends of mine believe United did not fix its problems in bankruptcy. These respected individuals believe United must cut costs more to survive and could be involved in some sort of M&A activity.

In my opinion M&A activity will occur again, but it will most likely not occur until Delta and Northwest are further along in their restructuring(s) and need to finalize their POR’s and recapitalize their balance sheets with exit financing, more debt offerings, asset sales, or some other form of a corporate transaction.

Finally, the US Airways - America West merger has improved RASM due to code sharing by about 10% according to Parker. I believe much of this revenue has been transferred from United code sharing to the new US Airways route structure, which could make a merger less attractive between the new US Airways & United.

If my memory serves me correctly Parker indicated about 10-12% of the RASM improvement has been due to a reduction in capacity, about 10% due to merger code sharing, and additional RASM improvement due to the new company website.

Regards,

USA320Pilot

 

[USA320Pilot]

One more point...recently US Airways attempted to obtain some of JetBlue's EMB-190s positions but the New York-based company declined the offer.

Regards,

USA320Pilot