Branson Eyes U-s Airways......

[E-TRONS]

I rcvd this in my e-mail today from an ex-employee in TPA. I do not know its source but it came with a darling pic of sir Richard himself....all smiles I might add.

At this point anything is possible and you can bet your lifesavers that the company as it is known today is but a temporary thing......concessions or not. However, with a planned all-american workforce, lower wages would be a plus......hence the Dave "Jim Jones" Lorenzo death video pleading for more. <_<

Anyone?? Anything???
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Branson eyes US Airways

Richard Branson's Virgin USA low-cost carrier plans to purchase as many as 55 planes and may partner with US Airways Inc. as it seeks to take advantage of demand for low costs flights in the U.S. "We shouldn't have any problems in now getting the airline launched" by early next year at the latest, Branson said.
The Virgin Group will invest between $50 million and $250 million in the carrier and will own 49 percent. "US Airways may sell off part of their assets, and they may sell it off in part cash and shares in a new company," Branson told journalists. "If they were to do that, they might decide to do something with Virgin USA." Virgin USA is choosing between San Francisco, Los Angeles, Boston and Washington for its headquarters, Branson told journalists at a briefing in London, adding Virgin USA will be 100 percent American employees.

 

[Bizman]

The Virgin Group will invest between $50 million and $250 million in the carrier and will own 49 percent.

As a forigner he's not allowed by law to own more than 25%. Your "source" seems to be a little optimistic with this one.

 

[E-TRONS]

True. But considering the unique position this mis-management has situated the company, I would not be shocked to see uncle sam make an acception to the rule.

Just think of the leverage it would provide for the open-skies deliberations.......IMHO

LHR anyone?????

 

[BoeingBoy]

Technically, he can own 49% of the equity, but only control 25% of the voting shares. There has been talk of raising the voting share to 49% for years (mainly by other countries governments) but would take an act of Congress to do it.

Jim

 

[Light Years]

Unless I'm reading this incorrectly, this isnt good for U employees. So US sells assets to VS (likely the Shuttle triad) eliminating thousands of employees while Branson hires new ones, leaving US with an even worse route structure with three crappy hubs (sorry!), and US makes money from thier Virgin investmemt while the employees take more pay cuts and much more layoffs.

Am I missing something?

 

[Hula Girl]

Here is the link to the article. This one is dated March 24.

Link

 

[to much time to quit]

Unless I'm reading this incorrectly, this isnt good for U employees. So US sells assets to VS (likely the Shuttle triad) eliminating thousands of employees while Branson hires new ones, leaving US with an even worse route structure with three crappy hubs (sorry!), and US makes money from thier Virgin investmemt while the employees take more pay cuts and much more layoffs.

Am I missing something?

No nothing missing, just another day in paradise for us wonderful usairways employees!! :angry:

 

[BoeingBoy]

My 2 cents worth....

I think it's possible (if Dave gets wages, etc low enough) for Sir Richard to take employees with assets, or at least offer the opportunity to employees. Based on his track record, I think he's smart enough to realize that there's nothing wrong with US employees that good management, a growing company, and a modicum of respect wouldn't fix. And starting off with an experienced workforce does have it's advantages.

Jim

 

[7.5victim]

Unless I'm reading this incorrectly, this isnt good for U employees. So US sells assets to VS

If there are any sales of assts, they won't be to VS. VS and the proposed new carrier will be two completely seperate companies, using two seperate operating certificates. VS flies a UK flag, the new carrier will majority American-owned and fly a US flag on the side of the aircraft.

I'm sad to say that I feel an asset sale off in almost a foregone conclusion. IF, (and this is a big if) an offer to take people as part of the sale, it likely will be contingent on a new contract and work rules. It's becoming obvious that the current contract hasn't helped. While the wage changes have helped, it doesn't appear that productivity improved as much as needed. Unless that is achieved prior to an agreement to buy any assets, I'm afraid much of UAIR might not attract any interest.....

 

[Light Years]

7.5, this is true, I just used VS as I'm not sure what VirginUSA's code will be (VU maybe?) Although I wouldnt mind working for Virgin Atlantic!

If there were to be an offer to take employees (and your right, that a huge if!), I think many would be willing to take an LCC-type contract- for BRANSON. People would be willing to be productive and cost-competitive for a company with a plan and a vision, a company they can believe in. Folks would be more likely to do it for someone with proven success and a great track record with employees than for a dinosaur airline with an identity crisis. Say what you will about US, the employees have proved time and again that they can operationally run a great airline, if someone could tap into that it would be like finding a pot of gold.

 

[mweiss]

I'm not sure what VirginUSA's code will be (VU maybe?)

Won't be VU, since that belongs to Société Nouvelle Air Ivoire. The only IATA codes available that begin with V are VD, VX, VF, and V1. The first two certainly wouldn't go over well among American customers (besides, there can't be too many Virgins with VD ), but V1 would be kinda cool.

 

[mweiss]

I think it's possible (if Dave gets wages, etc low enough) for Sir Richard to take employees with assets, or at least offer the opportunity to employees.

Agreed. But the answer isn't to buy lock stock and barrel. Rather, buy the assets, and let US employees have first rights to interviews, or something like that. Anything to make it a very clean break from the past.

 

[ktflyhome]

Michael: I got a real chuckle from the VD post. Now that would be funny.

 

[BoeingBoy]

mweiss,

"But the answer isn't to buy lock stock and barrel. Rather, buy the assets, and let US employees have first rights to interviews, or something like that. Anything to make it a very clean break from the past."

Agreed. Contracts wouldn't carry over - they'd have their own. Seniority wouldn't carry over - except to determine the pecking order once there - everybody would be a new hire. Etc.

As someone mentioned, I could see the shuttle assets as the basis for V-USA's startup if they decide to base on the east coast. Not to operate the shuttle but to get the planes and slots. Allows them to hit the ground running.

Jim

 

[deltawatch]

Sounds just like CO, EA a few years ago. Continental bought and raped Eastern, took all the good parts and sent the rest into chapter 7.

FLASH BACK h34r:

Eastern did not fare well in the 1980s. Under Borman's shaky command, the company was in deep trouble as a result of major disagreements between management and the labor unions, and also because of major debt from purchases in the late 1970s. As Borman ineffectively tried to get pay cuts to compensate for debts, Eastern began to rack up year after year of losses until late 1985, when it had a debt of $3.5 billion. It was at this point that Frank Lorenzo, the infamous airline powerbroker who controlled Continental Airlines, stepped in. After Borman failed to get any significant concessions from his trade unions, Lorenzo bought the whole airline for only $615 million, adding Eastern to his existing prizes of People's Express, Frontier Airlines, Texas Air, and New York Air.

Lorenzo was ruthless in using Eastern's core assets for his other airlines, devising various ways to use them to make money for his other properties. He let Texas Air “purchaseâ€￾ Eastern's advanced reservation system but issued only an I.O.U. for it. Eastern then had to pay Texas Air a monthly fee of $10 million to use its own system. He “soldâ€￾ six of Eastern's planes to Continental but paid nothing for them. The result was that, to survive, Eastern had to sell off aircraft and lay off workers in large numbers. As tensions mounted between the labor unions and Lorenzo's harsh tactics, Lorenzo slowly began to dismantle Eastern and sell off its parts. When the unions struck in March 1989, Lorenzo filed for bankruptcy. This gave him some breathing room and allowed him to use strikebreakers to continue operations. By this time, however, Eastern was collapsing under its debt, and finally in January 1991, the airline completely ran out of money to operate. In late 1991, the airline was liquidated. Thus ended the life of one of America's greatest domestic airlines.