Conversation With Lakefeild On Thurs In Clt

[etops1]

on thursday i was in clt waiting to work a trip when i saw lakefeild waiting to board a flt to rsw. i went over and introed my self to him . he wad very ni8ce and we sat and chatted for at least 30 min. i asked him what the deal was. he told me "feul" said that "feul is killing us" i asked him how much longer can we go like this he said that if fule does not go down or "united does not buy us" we will be gone in june. no b/s. thats what he told me. iaske him how is united gonna buy us if they are hurting as well . he said they have a few tricks up their sleeves and he left it at that . but said if things do not change then its over. said that there is no way he will come bakc to labor for more money. the labor costs are where they want them if not even lower. he said he was only at airways to do a favor for a friend (bronner) but he is still here because he admires our passion . that the only reason us is still here is because of the employees. aslo told me that there are many airlines out there that want to purchase airways but only assets not the employees including aw. the only airline that is willing to purchase assets and employees is ual. said that he will not make a deal with an airline that does not have our mainline employees interest at hand.
asked about midatlantic . he said that republic sais that they will honor the midatlantic pilot contract. asked about the f/a and that if they still have recall rights at airways. he said that if hew were a f/a he would not bank on being recalled.
asked about the fll focus hub. he said that it was doing what it was supposed to do and that is drive customers away from amr. said that if it does not work he will pull it. he will not come back to employees form ore money to save it. it makes no sense . asked if the fll hub was moving to tpa . he said that that was pure b/s the hub stays in fll. many more quest were asked . he seemed like a very down to earth individual. take it for what you want. it all came from the horses mouth. he seemed very honest . he told me there was no reason to b/s me. its reality.

 

[700UW]

320 is going to be mad, lol.

 

[EyeInTheSky]

etops1, thanks for letting us know about your chat with Lakefield. I guess fuel is the key to US immediate survival.

 

[Winglet]

Fuel is bleeding everyone white. It's just a question of how much longer each of the airlines can bleed. Even if they're aquired by UAL, the bleeding still continues unabated. Plus you have all the lawyers palms that need to be greased and the enormous integration costs, HUGE seniority fights among employee groups just trying to stay employed, executive bonuses, buyouts, retirement stipends, etc. Combining airlines isn't going to do much for you when you're still selling tickets below cost. Instead of losing $5 million a day, a combined U/UAL can lose twice that.

Air Whiskey, Republic, and some other high-CASM RJ operators may find out they have to function as real airlines, instead of living off the guaranteed profit teat of the majors.

In this time of gross industry over-capacity, the ONLY thing that would make sense is a partial asset aquisition of carefully selected U routes and equipment.

End of Jun is 2 months away, oil is out-of-sight, and UAL is out of airspeed, altitude, and out of ideas as well.

Even when U goes, the small amount of diminished capacity isn't going to make anybody else "get well."

 

[Rob]

I'm not doubting your report of Lakefield's comments - I just don't see how a merger fixes UAL's problems. Did he have that answer?

 

[BoeingBoy]

I don't disagree with anything either Winglet or Rob said, but I can see 1 possible rational for UA acquiring US - if it could be done cheap like via a stock swap.

If we liquidate, UA would have to bid on any US assets that they might want - slots, planes, etc. There could be other bidders with deeper pockets than UA - AA comes to mind.

By acquiring US pre-liquidation, UA could keep the assets they want and sell off what they don't want.

I'm not sure it does anything to fix UA's problems, though.

Jim

 

[Winglet]

AA . . . deep pockets? They may be deep, but they're empty with holes in the bottom of them.

If you believe this story, Lakefield says he won't fragment the company without employees. I just don't think they would be allowed to give UAL a sweetheart deal cheap when the assets could be bid up on the courthouse steps and bring more money in for the plethora of creditors that U owes money to. Besides, Tilton and the exec clowns at UAL aren't smart enought to take advantage of it.

 

[BoeingBoy]

I'll admit I haven't looked at their annual report, but at the end of the 3rd quarter last year they had nearly $3 billion (that's with a B) in unrestricted cash. By legacy carrier standards, that's pretty deep pockets.

Jim

ps - just looked....

At the end of the year, they had just under $3 billion in unrestricted cash.

 

[Walmartgreeter]

we will be gone in june.

Put this statement on the wall of shame with all the other chapter 7 statements by our resident scarecrow from the south. I guess the employee's at U will now plan their May and Jun self initiated vacations accordingly. Greeter

 

[Winglet]

I'll admit I haven't looked at their annual report, but at the end of the 3rd quarter last year they had nearly $3 billion (that's with a B) in unrestricted cash. By legacy carrier standards, that's pretty deep pockets.

Jim

ps - just looked....

At the end of the year, they had just under $3 billion in unrestricted cash.

[post="258802"][/post]​

Yes, but at the burn rate they are going through it, that'll be gone this time next year if oil keeps with present course. I don't see how buying more money losing routes or acquiring old 757s from U would help that. I think it's been proven that the airline executives have zero ability to plan for the future in this business environment.

 

[airbiiguy]

its all false hopes and dreams. no one is gonna buy U as a whole w/employees. thats too funny! i dont buy his supossed compassion for the employees.

 

[BoeingBoy]

"I don't see how buying more money losing routes or acquiring old 757s from U would help that."

Actually, I wasn't thinking about routes or planes (though for someone like WN the 737's that we own might be of interest) - I was thinking of slots in LGA and DCA. In theory at least, those could be worth quite a bit of money. I think the appraiser put a distress valuation of over $400 million on them.

Besides, like I said, it's the only rational for UA buying US that I could come up with that made the slightest sense. Like you, I think the prospects for a successful merger are slim to none in the current environment.

Jim

 

[Winglet]

"I don't see how buying more money losing routes or acquiring old 757s from U would help that."

Actually, I wasn't thinking about routes or planes (though for someone like WN the 737's that we own might be of interest) - I was thinking of slots in LGA and DCA. In theory at least, those could be worth quite a bit of money. I think the appraiser put a distress valuation of over $400 million on them.

Besides, like I said, it's the only rational for UA buying US that I could come up with that made the slightest sense. Like you, I think the prospects for a successful merger are slim to none in the current environment.

Jim

[post="258808"][/post]​

Actually, that's what I was thinking of also. I remember a few years ago Carty was interested in those slots and the 757s since they had the Rolls engines. Now, however, I'm afraid that's all water under the bridge.

I think Arpey knows he's headed for a train wreck. It's just a matter of time in this environment.

 

[pitguy74]

They already recalled 50 F/A's and they start may 1st in LGA. Well actually, I believe that they got around 30-40 to accept. Would not make sence to ask about recalling when the place is headed south by June. I'd like to see the government let two large bankrupt airlines become one. I just find it hard to believe that any CEO would state, "I'm just waiting for United (any buisness) to buy us."

 

[coolflyingfool]

I could see SWA throwing their hat in the race for the LGA slots, if only to force the price up. Just my thoughts...........