Four Airlines Bid For Uair Assests

[genejockey]

Reuters
Four airlines bid for US Airways assets-sources
Tuesday January 27, 11:19 am ET
By Kathy Fieweger


Four airlines bid for US Airways assets-sources

 

[ITRADE]

Wow....I have to say that the asset sale is no longer simply a scare tactic.

 

[Jetlaagd]

Well US320 Pilot I guess after reading this ,Ual get the left overs? Or does U still mege with Ual after the other 4 airlines buy U's assets?

 

[Chinook]

Hello,
Is the East Coast Shuttle as valuable as it once was? With high speed trains and the general hassles involved with air travel these days, I get the impression the Shuttle is not the plum it once was. So, maybe selling it is a good way to generate revenue without a huge sacrafice. I don't have any experience with the Shuttle, but I'd be curious what U employees think about this asset. Or perhaps all this talk about selling things is a ploy to get more givebacks as some have suggested. Thanks.

 

[7.5victim]

"Delta, which already flies an East Coast Shuttle, was said to be interested in US Airways' non-hub flying slots and "pretty much everything" except the shuttle, according to one source."

Let's see DL is thinking about buying up parts of a failing major carrier.... Airplanes that have no fleet commonality, a disspirited work force who will want to come to the pay level of the new owner, highly unionized. And IMO, all in order to keep a competitor from getting the pieces. In 1991 TWA drove the price up on DL's bid to buy parts of PA. Now it appears DL is looking to buy up US, in order to keep the slots and assets out of the hands of B6 and FL. Yeah, that'll get the wage concessions... Meanwhile, the analysts are starting to think that a DL bankruptcy is a real possibility. Brilliant!

Those who do not remember history are doomed to repeat it....

 

[ITRADE]

Let's see DL is thinking about buying up parts of a failing major carrier.... Airplanes that have no fleet commonality, a disspirited work force who will want to come to the pay level of the new owner, highly unionized.

DL could acquire all the DCA and LGA slots if it wanted. As for aircraft, it could acquire the 737-300s and maybe the 737-400s. Those two fleets are common with DL's fleet.

And who said that any employees had to come with the aircraft and slots??? Taking 60 aircraft and the slots would be less than 20% of the fleet, so no contractual lines would be triggered.

 

[Light Years]

In all of this it needs to be assumed that NO EMPLOYEES ARE INVOLVED. They have thier own furloughees and can hire off the street.

 

[savyinvestor]

I hope this isn't true , but maybe it will make a certain captain shut the DELETED up! Savy

 

[burghlaw1]

And who said that any employees had to come with the aircraft and slots??? Taking 60 aircraft and the slots would be less than 20% of the fleet, so no contractual lines would be triggered.

Wouldn't the sale of aircraft trigger the 279 aircraft requirement in the Pilot's contract?

 

[Pacemaker]

If someone does take 60 planes what are they going to do with them for 6 months to a year while they recall and train 1,000 pilots to fly them? Anyone taking on such a large chunk is going to want a turnkey deal and they're going to need someone to fly the planes the day they come on the property. If it's only the shuttle then we're talking maybe 15 planes or so and someone like jetBlue might be able to stretch for a while until they hire a few more people.

And yes the 279 number still stands. ALPA would get an almost immediate court decision validating that number, so UAIR would probably have to do a CH. 11 or CH. 7 to get around it.

 

[sfb]

I strongly doubt that any of the bidders have any interest whatsoever in taking on employees from UAIR -- unless they come in through the normal hiring process at the bottom of the payscales. Delta and American both have employees on furlough which they'd need to bring back first or risk worsening labor relations.

As for aircraft, American and AirTran likely have no interest in any of US Airways' fleet, given no commonality in the small narrowbody fleets. Delta has a modest fleet of 737-300's, some inherited from Western, but I'm not sure they really need more aircraft. I suppose jetBlue could possibly use some A320's, but they're probably getting a better deal from Airbus as it is and used aircraft would push up their maintenance costs. Besides, I seem to recall reading that aircraft assets were not on the table.

I'm a bit surprised to not see Continental or Southwest in the bidding, especially for the former given the reports that CAL is looking to buy Avianca. And the availability of a large block of LGA/DCA slots and possibly BOS gates would be a golden opportunity for LUV to break those markets wide open. I don't think that the PHL hub was on the table, which probably meant there was little of interest to Northwest, and UAL's not in a position to be bidding on assets while it's in Chapter 11.

 

[Bud8EE]

DL could acquire all the DCA and LGA slots if it wanted. As for aircraft, it could acquire the 737-300s and maybe the 737-400s. Those two fleets are common with DL's fleet.

And who said that any employees had to come with the aircraft and slots??? Taking 60 aircraft and the slots would be less than 20% of the fleet, so no contractual lines would be triggered.

In accordance with several contracts the company still must maintain a 279 fllet count and in the pilots contrat a no furlough provision. Since this would most definately be a Unilateral change allowing for immediate self-help, what are the odds that this wouldn't push an already angry work force to just shutting the place down? If Bronner is for 300 million in leases and 300 million in stock equity and this place probably has negative debt to equity ratio the shareholder will most certainly get nothing in any kinfd of bankruptcy. I hope something is worked out and the company moves forward and tries to grow its way out of this. look at the LCC competition growth seems to be the key. I hope UAIR management realizes this nad presents a plan and back it up with their reputation and then maybe people will be willing to help. If they go the way of the assett sale UAIR is burnt toast. Bronner and company's might be slightly less so but even for them it will be a swallow of vinegar in bankruptcy.

 

[USA320Pilot]

US Airways chairman David Bronner has made it clear that if the company has a competitive cost structure including labor participation that there may not be a need to sell assets. However, the company will not violate terms of the loan guarantee and if necessary, the company could sell assets to meet loan guarantee requirements.

The January 23 ALPA code-a-phone said, “As provided by a recently passed MEC resolution, your Negotiating Committee, along with ALPA staff and advisors, will begin meeting on Tuesday of next week to begin fact finding discussions with management. We will provide developments from those meetings on the code a phone and web site once they become available.â€￾

The timing of today’s news coincides with today’s meeting where US Airways senior management will present to ALPA the transformation plan and the Company’s opinion on how the pilot group could participate. The plan could include adding 60 A320 family aircraft, the pilot monthly flying increased to 96 hours, and a 6-hour average minimum day.

However, without new labor accords I expect asset sales and more furloughs.

In my opinion, PSA will be sold and Allegheny/Piedmont may be sold, but all other assets will be kept, if management and labor make progress on new CBA’s. The funds obtained from the sale of the Express carriers could be used to pay down some of the loan guarantee and change the EBITDAR requirements, which take effect in July.

Finally, I expect to see an article appear in the Pittsburgh Post-Gazette tomorrow commenting on today's meeting between ALPA & management and a comment that if labor agrees to work rule changes then an asset sale will not be necessary.

Respectfully,

USA320Pilot

 

[delldude]

i was under the impression that the assets are DCA,LGA and BOS slots and the shuttle ROUTES ONLY..no planes...

 

[Light Years]

A few questions....

*How much of "the company" needs to be sold to constitute employees going too? How is this determined? By aircraft?

* If there was a transaction including employees, who goes? Senior Sally or Junior Joe? Do they bid?

*How many aircraft are dedicated to the Shuttle operation?

*US Airways would be required to maintain 279 aircraft. What would they do with the excess aircraft?

*Are our valuable DCA/LGA slots commuter slots or are we just stupidly putting RJs in them?