Interesting Interview With Gordon Bethune

[chipmunn]

Today Aviation Daily reported:(Bethune) also said he believes there will be at least two more bankruptcies, one in Chicago and one in Phoenix, hinting at the financial situation of United and America West. He said the consequences of the potential bankruptcies would be good for the industry. Bethune was not concerned that United in bankruptcy would lower fares to stimulate traffic: I cannot believe they would be that stupid. For United, the two choices were disintegration or orderly reorganization. Commenting on the labor negotiations, Bethune said if the unions say they don't want to change anything, then, Good luck, United. [BR][BR]Chip comments: Nobody likes this situation and I disagree with Bethune's comments that bankruptcy may be good for the industry. It may be good if you can prosper, but it certainly is not good for the shareholders, customers, communities that rely on air service, or the employees of a company that fails.[BR][BR]US is well underway to an orderly reorganization with a brash, talented senior management team, consensual labor restructuring agreements, DIP financing, multiple equity investors, likely deeper creditor and vendor cuts than initially projected, ATSB backing, the most flexible industry-wide RJ program, MidAtlantic Airways opportunity/IPO, the likely UA domestic code share plan, and Star alliance.[BR][BR]UA employees must immediately grasp the opportunity to restructure to obtain the benefits of the US orderly restructuring (which is an orderly restructuring that could shortly receive some major breaking news) or as Bethune said the Elk Grove Twp airline could disintegrate. Ironically the salvation could be a unique corporate transaction versus a liquidation.[BR][BR]Chip[BR]

 

[UAL777flyer]

Good 'ole Gordie! Between him and Mike Boyd, this industry has enough soundbytes to re-write War and Peace.

 

[Diesel8]

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US is well underway to an "orderly reorganization" with a brash, talented senior management team, consensual labor restructuring agreements, DIP financing, multiple equity investors, likely deeper creditor and vendor cuts than initially projected, ATSB backing, the most flexible industry-wide RJ program, MidAtlantic Airways opportunity/IPO, the likely UA domestic code share plan, and Star alliance.

UA employees must immediately grasp the opportunity to restructure to obtain the benefits of the US "orderly restructuring" (which is an orderly restructuring that could shortly receive some major breaking news) or as Bethune said the Elk Grove Twp airline could "disintegrate". Ironically the salvation could be a "unique corporate transaction" versus a liquidation.

Chip

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Wow!

 

[chipmunn]

UAL777flyer & JonC:

UAL777flyer: Good 'ole Gordie! Between him and Mike Boyd, this industry has enough soundbytes to re-write War and Peace.

Chip comments: UAL777flyer, I do not agree with Bethune’s comments and he is likely raising his “testosteroneâ€￾ level thinking about UA entering bankruptcy. As you know, UA still has sufficient capital and $ 3 billion in unencumbered assets that could financed, provided reasonable financing could be obtained to prevent a corporate liquidation. The challenge for UA and its employees, just like we are experiencing at US, is could a bidder come in and acquire assets during a formal reorganization?

JonC said: I think a MidAtlantic spinoff/IPO is REALLY BAD news for us. As it means the vestigal US Airways will probably be sold off to someone else.

Chip comments: Jon, I disagree with your thoughts regarding an IPO. Express I and CO Express each executed an IPO to bring in equity liquidity for generate corporate purposes, aircraft acquisitions, and regional growth opportunities. Although the IPO market dried up, this can be a very good move to sell stock on the open market by taking a company or division public.

In regard to US being sold, the times I stated above, where US is well underway to an orderly reorganization with a brash, talented senior management team, consensual labor restructuring agreements, DIP financing, multiple equity investors, likely deeper creditor and vendor cuts than initially projected, ATSB backing, the most flexible industry-wide RJ program, MidAtlantic Airways opportunity/IPO, the likely UA domestic code share plan, and Star alliance, all increase the odds of the company remaining independent. With an acquisition, some of this could be lost.

 

[JonC]

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On 9/24/2002 4:18:37 PM Diesel8 wrote:

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US is well underway to an "orderly reorganization" with a brash, talented senior management team, consensual labor restructuring agreements, DIP financing, multiple equity investors, likely deeper creditor and vendor cuts than initially projected, ATSB backing, the most flexible industry-wide RJ program, MidAtlantic Airways opportunity/IPO, the likely UA domestic code share plan, and Star alliance.
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Wow!
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I think a MidAtlantic spinoff/IPO is REALLY BAD news for us. As it means the vestigal US Airways will probably be sold off to someone else. I hate corporate mergers - they destroy both companies in the end by screwing employees, investors and customers. We will probably lose our seniority (and job security) with a merger, as well as any say in what happens to us. I hated the UAL merger from day one and still get sick when I hear merger talk...ask the PSA and Piedmont people how well they faired in a merger.