Interesting Or Just Plain Bull?
- Thread starter cavalier
- Start date
aerosmith
Senior
I heard the law firm of Dewey Cheetum & Howe is going to handle this one. 
That would certainly be appropriate anyway.aerosmith said:I heard the law firm of Dewey Cheetum & Howe is going to handle this one.
http://requaweb.home.comcast.net/dewey/areas.htm
Cavalier:cavalier said:
So what this means is that "time is of the essence"
for all of the work groups to come together and
negotiate with management to keep control of the
company out of the hands of TPG and their new
reported partner, DNS. Doesn't anyone seem to
see that US Airways could be a strong contender
if only they could get their costs to an acceptable
level? I can't believe for one minute that anyone
would rather see the company be chopped up and
sold to TPG when changes to work rules and minor
wage adjustments can give US Airways the
opportunity to grow and prosper.
EyeInTheSky
Veteran
Oh, who the hell knows anymore with US Airways. We might as well get a Ouija Board out and have a séance, probably be more logical than what comes out of CCY.
Meanwhile, down in Atlanta...
Blackstone says hired by Delta Air for debt talks
Wednesday May 26, 8:55 pm ET
NEW YORK, May 26 (Reuters) - Delta Air Lines (NYSE😀AL - News) has hired Blackstone Group in a restructuring advisory capacity, Blackstone's Chairman Pete Peterson said on Wednesday at a New York conference.
ADVERTISEMENT
Peterson, who co-founded the New York investment advisory firm, said Delta had recently hired Blackstone, which is one of the top five debt restructuring advisory firms.
At a private equity industry conference sponsored by the Kellogg School of Management, Peterson declined to elaborate on what Blackstone might do for Delta Air Lines.
Firms like Blackstone, Lazard and Rothschild typically work to reduce debt at troubled firms and frequently bring them into Chapter 11 bankruptcy as part of the debt-restructuring process.
Delta Air Lines, like the bankrupt carrier United Airlines (OTC BB:UALAQ.OB - News), has been hit hard by discounted airline travel and looming debt issues, which are forcing major carriers to consider debt restructuring like Chapter 11.
Blackstone has also advised Enron Corp. (Other OTC:ENRNQ.PK - News), Global Crossing and other major companies in distress.
Meanwhile, down in Atlanta...
Blackstone says hired by Delta Air for debt talks
Wednesday May 26, 8:55 pm ET
NEW YORK, May 26 (Reuters) - Delta Air Lines (NYSE😀AL - News) has hired Blackstone Group in a restructuring advisory capacity, Blackstone's Chairman Pete Peterson said on Wednesday at a New York conference.
ADVERTISEMENT
Peterson, who co-founded the New York investment advisory firm, said Delta had recently hired Blackstone, which is one of the top five debt restructuring advisory firms.
At a private equity industry conference sponsored by the Kellogg School of Management, Peterson declined to elaborate on what Blackstone might do for Delta Air Lines.
Firms like Blackstone, Lazard and Rothschild typically work to reduce debt at troubled firms and frequently bring them into Chapter 11 bankruptcy as part of the debt-restructuring process.
Delta Air Lines, like the bankrupt carrier United Airlines (OTC BB:UALAQ.OB - News), has been hit hard by discounted airline travel and looming debt issues, which are forcing major carriers to consider debt restructuring like Chapter 11.
Blackstone has also advised Enron Corp. (Other OTC:ENRNQ.PK - News), Global Crossing and other major companies in distress.
jimntx
Veteran
Because they don't want the whole thing. Just the choice parts. Also, buying parts of the airline probably means that they can avoid taking the employees at current salaries and seniorities.sentrido said:
Because of AFA and ALPA bylaws that require DOH for merged employees, my guess is that everyone is going to try to pick up assets other than employees. Harsh, but reality.
Light Years
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US Airways has been solidly paring itself down into the tasty bits ever since the UA merger s**t the bed. Airbus fleet, Shuttle, BOS-DCA-LGA, PHL, CLT, Carribbean, Europe, and disposing of what was either not wanted or didnt suit a merger- F100, MD80, DC9, Metrojet, BWI.
You cant shrink to profitability but you can shrink to a neatly packaged, smaller version of yourself fit to be bought. For the time being, you can make up for the shrinkage by handing any fool with an RJ a bucket of blue paint to do your flying. If you can get massive concessions from employees and hopefully force a large number to leave, even better. And better yet, if you can start an in-house alter-ego airline to quietly transfer employees to sub-regional contracts then your in shape to sell. But the unions would never fall for, much less agree to any of that, now would they? 🙄
You cant shrink to profitability but you can shrink to a neatly packaged, smaller version of yourself fit to be bought. For the time being, you can make up for the shrinkage by handing any fool with an RJ a bucket of blue paint to do your flying. If you can get massive concessions from employees and hopefully force a large number to leave, even better. And better yet, if you can start an in-house alter-ego airline to quietly transfer employees to sub-regional contracts then your in shape to sell. But the unions would never fall for, much less agree to any of that, now would they? 🙄
oldiebutgoody
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It's true that UAIR is probably worth far less than the cost to acquire it, and the parts are worth EVEN LESS. If all someone wants is airplanes and gates I doubt that buying parts of UAIR would be a prudent thing to do.
If US goes under and there is a sell-off, I would imagine that a prudent move for AA might include:oldiebutgoody said:
1. DCA & LGA slots
2. the Shuttle
3. a significant presence at CLT (remember the east coast base they could not make out of RDU BECAUSE of US at CLT?) for a more significant east-coast ppresence (not to mention the Caribbean).
4. additional flights to PHL (an underserved market) including possibly a "BOS-like" set of international flights to key Europe markets (LHR, CDG, MAN).
5. the DM program to capture as much of US's customer base as possible.
Of course, you also have DL and UA trying to make the above NOT happen....
