Is the CEO responsible?

[LD3]

Story here

With the exception of oil, should the board be concerned how the CEO is operating the company?

 

[usair_begins_with_u]

Let me start off by saying what im about to post is only opinion, and conjecture but my honest sense of what it going on with LCC.

I think LCC stock is being managed (not manipulated, but the difference is subtle) down. There is no rush to make steps towards relief for union contracts/employees, no rush to fix operational issues, no rush to improve product image, no rush to repair damaged relations with business travelers. LCC's top management is sitting on their hands, doing nothing.. well nothing. The object of not fixing problems is to let most of the future value of LCC equity to errode to zero.

My theory is that after the failed attempt of the Delta take over, Doug & Co. were basically left with no viable long term strategy options. The only thing left for LCC is to be acquired and to become some one elses mess. Letting operations go to crap, chasing away business travelers, is all about supressing the the stock price to lure a buyout. None of the viable suitors really have the funds to buy LCC when it was prices in the 30's and 40's, but now the market cap is down to ~ 1.4B , players are ready to play. This is also why I feel Doug and Co. got their employment contracts renewed with more favorable change of control options built in.

Now all that said, it would be illegal to manage stock price downwards as its a breech of fiduciary responsiblity to current share holders. The only problem is purposefully incompetent management is hard to prove. Maybe the drunk driving thing was masterfully planned to create the illusion DP is really a dope?

I don't know if this is all true, but it will be quite telling if LCC is acquired at fire sale in the next few months.

 

[pilot]

That sounds like black helicopter stuff. It may be true but I doubt it.

I truly think this group of overgrown teenagers in Tempe don't have the expertise to run an airline the size of which was created with the merger. They certainly don't have the maturity.

I do think the airline will be acquired, pieced out or merged in the not too distant future. The east truly does have a valuable route structure and flies where people want and need to go. One of the main reasons the operation survived two C11's. Incompetence is rampant once you get away from the rank and file. There is no leadership here. No one in Tempe has a clue what to do.

And the employees are the ones who have and will continue to take it in the shorts.

 

[night-ice]

In your opinion, who do you think would be the buyer? With UAL literally begging to be be bought/merged, why not pursue them or v/v?
What airline has the most similar aircraft to that of US?[/quote]

 

[usair_begins_with_u]

That sounds like black helicopter stuff. It may be true but I doubt it.

Truth is stranger than fiction my friend... <_<

 

[pilot]

Truth could be precisely what you state. Morals and ethics in the business world are long gone and based on the actions of DP he adheres to the lack of both too. So your opinion may well bear out as fact.

What boggles my mind is how the corporate world so soundly rejects the adage of employees being the most important assets they have. Certainly true at US Airways. But that doesn't explain the lack of ability of these cretins in Tempe to operate this airline. Northwest treats its employees badly but still runs a great operation.

Here we go. I say the merger or buyout guys will be Northwest. IMHO

 

[usair_begins_with_u]

What boggles my mind is how the corporate world so soundly rejects the adage of employees being the most important assets they have.

Pilot,

The dark shadow you cast on the behaviors the corporate world are not entirely fair, and fortunately its not that way at all companies. Its not suprising coming from an airline industry employee though where margins are tight and near term survial is the only viable strategy vs planning for long run stable growth.

In order for a company to provide stable long term value to its share holders, it MUST treat its employees as its MOST valuable asset. This is first thing taught to the budding business leaders of tomorrow (MBAs)... the value of human capital. No matter what industry, a firm is only as good as its people. Loyal hardworking employees who feel personally vested in an companies success can overcome the largest hurdle, and conquor the most fierce competition comprehensible.

There are firms that do treat its employees very well, and those companies usually provide superior returns to their shareholders.

I believe deep down inside, Doug knows these things but cannot act responsibly because he is stuck in survival mode. Doug is more or less a product of environment, and that is why he is not a great leader. Great leaders can transcend larger than life problems and lead their people to victory. Doug is only average, and therefore will take the quick and easy way out.

 

[diogenes]

The CEO is responsible when the stock is up, the skies are sunny and there are bonuses and stock options to gather.

When the skies are cloudy, profits are in the tank and the stock is is the dumper, why it's the evil employees' fault.

And the only answer is another round of pay cuts to the fund retention bonuses necessary to retain top management.

Personally, I think US would get better results to post every strategy (like when the WOPR went crazy during War Games) on a cork board and let a monkey throw a dart at it.

I find usair begins with u's scenario plausible. Business schools teach their minions how to talk in dog whistle to each other and avoid SEC scrutiny (as if this Administration would go there).

God knows I'd love to see US bought out and the name (along with the management team) consigned to the dustbin of history. I think passengers, shareholders and employees would be better off.

 

[AstroLounge]

Let me start off by saying what im about to post is only opinion, and conjecture but my honest sense of what it going on with LCC.

I think LCC stock is being managed (not manipulated, but the difference is subtle) down. There is no rush to make steps towards relief for union contracts/employees, no rush to fix operational issues, no rush to improve product image, no rush to repair damaged relations with business travelers. LCC's top management is sitting on their hands, doing nothing.. well nothing. The object of not fixing problems is to let most of the future value of LCC equity to errode to zero.

My theory is that after the failed attempt of the Delta take over, Doug & Co. were basically left with no viable long term strategy options. The only thing left for LCC is to be acquired and to become some one elses mess. Letting operations go to crap, chasing away business travelers, is all about supressing the the stock price to lure a buyout. None of the viable suitors really have the funds to buy LCC when it was prices in the 30's and 40's, but now the market cap is down to ~ 1.4B , players are ready to play. This is also why I feel Doug and Co. got their employment contracts renewed with more favorable change of control options built in.

Now all that said, it would be illegal to manage stock price downwards as its a breech of fiduciary responsiblity to current share holders. The only problem is purposefully incompetent management is hard to prove. Maybe the drunk driving thing was masterfully planned to create the illusion DP is really a dope?

I don't know if this is all true, but it will be quite telling if LCC is acquired at fire sale in the next few months.

I pretty much AGREE with everything that you have insinuated, EXCEPT......the notion/illusion that DP and his drinking were "masterfully planned" to make him appear to be a dope. <ha> The actions and management style of these clowns would RUIN A WET DREAM! They are cocky, arrogant and blatantly ignorant. As an investor in the New USAirways I would be demanding an explanation of HOW and WHY things went SOUTH so Quickly and so Fast. They should be banned from the airline industry like Lorenzo was! The employees deserve better than their P*ss Poor Excuse of Management!