Fragmentation Or Liquidation?

[USA320Pilot]

There is a Wall Street rumor that David Bronner has received offers to sell key assets, in particular the A320 fleet, which would effectively lead to the fragmentation and liquidation of US Airways. As I understand it, Bronner is frustrated with ALPA and the other unions inability to adjust to the LCC reality and wants to cut his loses and recover as much of his investment as possible.

Is it true? There is no way of knowing, but the thought makes sense because Bronner probably does not want to go through a "formal reorganization". US Airways does not have a CEO with the interest to run the company in bankruptcy and Virgin America make sense as a suitor. If true, ALPA probably has one chance to prevent this from happening and that is this week at the MEC meeting.

Respectfully,

USA320Pilot

 

[Segue]

Delete entire previous post quote- please read the pinned topic regarding quotes-mod.

[post="172349"][/post]​

I would have no doubt that it is one of the many scenarios that Bonner is evaluating.

 

[Hope777]

Please, Stop it already..........with these UCT's.

But the good thing, you have stopped talking about UAL.

 

[delldude]

I WASN'T UNDER THE IMPRESSION WE OWN THE BUSES....?
THOUGHT IT WAS LEASED...

 

[whlinder]

There is a Wall Street rumor that David Bronner has received offers to sell key assets, in particular the A320 fleet, which would effectively lead to fragmentation and liquidation of US Airways.

[post="172349"][/post]​

Who would buy the A320 fleet?
AA- no
UA- no
DL- no
NW- are their A320s compatible? Not exactly tons of cash laying around.
CO-no
WN- no
HP- again, compatible A320s? Could they afford them?
AS - no
TZ- no
B6- different engines
DH (Indy air) - ooooh wouldn't that be rich? They can probably get the money for them and then postpone their own A320 deliveries.....
Virgin USA?

So tell us oh great prognosticator, what entity has the resources (as well as the fleet commonality) to purchase all of U's A320 fleet?

 

[USA320Pilot]

DellDude:

You're right on the A320s being leased. Let me change the term to transfer A320 leases.

I do know from the LGA station manager that both Virgin America and JetBlue are trying to obtain US Airways LGA terminal and Southwest is trying to esablish a major beach head in PHL.

Bruce Lakefield, ALPA's financial advisor Michael Glanzer, and other ALPA advisors have told the US Airways' MEC that if an agreement is not reached with the pilot group, the company will likely liquidate.

Respectfully,

USA320Pilot

 

[USA320Pilot]

Whlinder:

Whlinder asked: "So tell us oh great prognosticator, what entity has the resources (as well as the fleet commonality) to purchase all of U's A320 fleet?"

USA320Pilot: Virgin America, JetBlue, or non-U.S. airlines. From Bronner's perspective he could cut his loses and not have to deal with labor. From an investment perspective, the idea has merit.

The idea was discussed by Lakefield two weeks ago at the ALPA MEC meeting, which I attended and personally heard him say.

Respectfully,

USA320Pilot

 

[Hope777]

Please dont put to much stock in what (L) has to say.

 

[BoeingBoy]

According to the 2003 Annual report, we own 46 of the little Buses. And all owned aircraft are pledged as collateral for various loans. And we gave up the right to keep 25% of the proceeds of any asset sales.

To me the issue is not fragmentation OR liquidation, it's fragmentation AND liquidation.

As for ALPA being able to stop any of this, the only way is to capitulate and give the company far in excess of $295 million a year as stipulated in the latest company "proposal".

Unfortunately, the "house of cards" is starting to collapse and it is an open question whether even that will be enough to stop the "run on the bank" as creditors and the ATSB start protecting themselves rather than hoping for a turn-around. Bombardier has already started in this direction, requiring the company to find alternate financing for several of the CRJ deliveries.

Jim

 

[USA320Pilot]

BoeingBoy:

So has American Express...

Respectfully,

USA320Pilot

 

[delldude]

boeing boy: thats exactly what my PIT IAM LL prez said several months ago...the dominoes are a falling.one starts the roll then they can't be stopped.

 

[whlinder]

AFAIK B6 has different engines on their Airbii than US.... so basically you are saying that Bronner is talking to Virgin USA.... I suppose Bronner could provide the 51% that Branson cannot (though I don't know why he would want to), however this seems a touch far-fetched, IMHO.

 

[BoeingBoy]

Just to throw more wood on the fire, we do own all the A330's. Of course, they're still collateral for loans, and I have no idea about commonality with other airlines A330's.

As for Bronner recouping some of his investment by "selling" a/c leases, I'm certainly no guru on the subject (dumb as a rock comes to mind) but my question is why would anyone pay to take over a lease when presumably they could either get the lease before long on the cheap or lease brand new a/c for little if any more?

Jim

 

[jimntx]

This rumor is some more pipe dreaming on someone's part. If the a/c are pledged as collateral for loans, it would be a violation of the law--specifically theft--to sell/transfer pledged assets. Dr. Bronner is neither stupid nor a criminal. Besides, his total investment is in stock. As a stockholder, the RSA would be next to last--right ahead of the employees--in getting any recoupment from an asset sale or company liquidation.

Anyone can start any rumor they like. Nice thing about rumors, they don't have to have any basis in fact or logic. Considering the track record of the initiator in being right over the past year or so, what's the chance this rumor is true?

 

[FA Mikey]

He provided the DIP financing. He is first in line.