Mesa/aca Deal Could Involve Us Airways

[USA320Pilot]

Today Mesa chief Executive officer Jonathan Ornstein indicated on a conference call the company could take its offer to acquire Atlantic Coat Airlines (ACA) directly to shareholders, which would create hostile takeover implications.

Meanwhile, it's come to my attention informed sources believe Mesa's unsolicited bid for Atlantic speaks volumes about the likely endgame for United Airlines (UAL) and the prospects for the "unique corporate transaction" with US Airways.

Since UAL's miserable failure in strong-arming ACA back onto the reservation or the proposed United Express family upon emergence, reports indicate the unsecured creditor's committee believed it was apparently necessary for a nominee (Jonathan Orenstein's Mesa) to make the hostile move to capture ACA and secure its RJ services for UAL's east coast operations before ACA took itself out altogether and made a restructure of UAL's east-of-Chicago network all but impossible.

Given the close ties between Mesa and US Airways, it would seem to be almost logical to expect Mesa, once it had acquired and digested ACA, to shift the ACA operations supporting UAL to support an expanded US Airways. Therefore, there is now reason to believe the Dulles operation among Denver, Chicago, and others, will most likely shed to US Airways (if not abandoned altogether) as it radically reduces its own size and scale in order to qualify for some kind of Chapter 11 exit financing.

I now understand the ultimate question of UAL's long term survival won't be settled until it is known whether UAL will be compelled to sell off the London Heathrow operations and/or its crown-jewel Pacific Division as part of this process, which obviously has further implications for US Airways and the Star Alliance.

Respectfully,

Chip

 

[330JETSTEW]

Who's to say United would even to business with MESA in the first place. Also, why on earth would UA consider dumping IAD/DEN and dropping pac-rim routes JUST becuase of an acquisition of an operation (ACA) that United has been trying to dump for a while now. As far as I'm concerned, United dropped ACA for a reason. I highly doubt they'll go crawling back just becuase the name has changed to MESA, and I even more doubt that USAIRWAYS will gain a single penny from this.

 

[AOG-N-IT]

Chip,

I really don't get you at all Captain. Johnny O attempting to make a hostile takeover of ACA leads U into the core of UA's assets how?

I for one have seen the wrath of an Orstein takeover...and that led to hundreds of loyal and hardworking people at CCAir being out of work...and likely out of this industry for good. How that becomes a positive simply escapes me?

Mesa did not ramp up in CLT when CCAir was shuddered...it did give the entire commuter operations to PI's control...who in turn has scaled back operations and Acft numbers ...and who's employees still question thier futures in light of DHC-8's leaving...and no RJ's showing up.

I for one am very leary of Jonathan Ornstein...He attempted to buy his way into the inter-sanctum of U before 9-11-01 ...via large stock purchases. Sadly for all of us the end result was bad...but it's one positive was not allowing Johnny boy to buy his way on to our BOD.....I believe he's still looking for a way to redeem himself personally and financially over that mis-que.

Keep in mind...Ornstein is doing plenty to keep the industry salaries at poverty wages. His comments about "Pilots" being over paid should alarm you directly.

How can he assume that his pilots are over-paid? Simple "I have no problems filling my new hire Pilot classes".

Simply put..if it's good for Ornstein?...it's good for Ornstein only !!! Should U benefit in some SMALL way from his dealings...you can bet it will be at premium yields to himself and his interests , Not yours , mine and U's ..or the WO's

 

[USA320Pilot]

Jetstew & AOG-N-IT:

The thoughts to start this topic are not mine; the thoughts were communicated to me from a very good Wall Street source that is outside of US Airways/the industry, but a knowledgeable "insider".

Regardless, it will be interesting to see how this plays out, but I do remember Siegel telling Julie MacInstosh from Reuters that if United were forced to divest of its Dulles hub, US Airways would be interested in obtaining it. I thought this would be odd when I read it, considering the proximity of Dulles and Philadelphia, especially since US Airways previously eliminated its Baltimore-Washington hub.

AOG, I agree with your comment of being "leary of Jonathan Ornstein."

Respectfully,

Chip

h34r:

 

[Busdrvr]

Chip,
I'm ROTFLMAO!!!!

 

[USA320Pilot]

Busdrvr:

I find it interesting that within minutes of me posting a comment about US Airways' business partner you come out of the woodwork, but we rarely see you post otherwise.

Are you that interested in US Airways and my postings?

Respectfully,

Chip

 

[Busdrvr]

Chip, I just enjoy a good laugh, and this is MUCH cheaper than the local comedy club

 

[Fly]

Ornstein said that the combined company could save more than $200 million but did not expect a push to cut costs that much. He said that rebuilding Atlantic Coast's relationship with United Airlines (UALAQ: news, chart), which is an increasingly important customer for Mesa, would be a priority. Atlantic Coast has been planning to drop its role as a United feeder airline and to start up its own low-fare alternative.


Ok, which part says they are going to eliminate UAL Chipwich? Looks like the exact opposite.


Want the source of that info Dippy? Mesa/ACA

 

[N786P]

Geezzz...what a bloody mess! I thought it was bad when "Frankie L" was around..maybe he still is, oh and Elvis is in the building! Viva Las Vegas!

 

[AOG-N-IT]

Chip,

I view Orstein the same way Roy Horn should have viewed the tiger...it's only my friend when I feed it....beyond that ? .it looks at me as something to feed upon.

Frankly I have seen more than my fare share of thier way of thinking...and I see Dave as nothing more of that same kind of beast...only in a shorter cut pair of slacks.

U is never going to amount to anything for those of us dependent upon it for a living...and to a degree to those whom are loyal enough to fly us....until the passengers needs and employees welfare become important again. Amazing how fair treatment becomes a common thread between the two things that make us a company...instead of a den of vipers.

 

[pitguy]

..and I see Dave as nothing more of that same kind of beast...only in a shorter cut pair of slacks.

Heh.......I like short people. Even my kids are short. I just don't like short "nasty" people.


--Dave (a.k.a. the new Lorenzo) gotta go.

 

[N786P]

Very well put!! AOG-N IT

 

[USA320Pilot]

Fly:

What else do you think Ornstein is going to say? Would it be better for Ornstein to say United is going to be "cut up into little pieces" or "rebuilding Atlantic Coast's (ACA) relationship with United Airlines, which is an increasingly important customer for Mesa", to gain shareholder support for the proposed transaction?

Most knowledgeable observers believe Atlantic Coast's plan to operate as an independent airline is doomed to failure, thus Ornstein is likely using third party communications to gain shareholder support, if the ACA board rejects his offer.

Regardless, the comments to start this thread are "well placed", but considering Duane Woerth's comments to the US Airways MEC about United's DIP financing and its problems, it appears we will know more about United's final disposition shortly.

It's no secret Ornstein and US Airways chief executive officer Dave Siegel are close friends and business associates. Let's see how this turns out, as the plot thickens.

Respectfully,

Chip

 

[Cosmo]

Chip:

Logical consistency within the same post is apparently not a concern of yours!

First you say:

... reports indicate the unsecured creditor's committee believed it was apparently necessary for a nominee (Jonathan Orenstein's Mesa) to make the hostile move to capture ACA and secure its RJ services for UAL's east coast operations before ACA took itself out altogether and made a restructure of UAL's east-of-Chicago network all but impossible. (My emphasis.)

But then you say:

Given the close ties between Mesa and US Airways, it would seem to be almost logical to expect Mesa, once it had acquired and digested ACA, to shift the ACA operations supporting UAL to support an expanded US Airways. (My emphasis again.)

So which is it? Mesa can purchase ACA to secure United's IAD (and to a lesser extent ORD) hub feed network, or Mesa can purchase ACA to expand Mesa's feeder support of US Airways. But obviously Mesa can't do both of those things, although that's what you seem to be suggesting above.

Your logical inconsistencies notwithstanding, IMHO it seems extremely unlikely that United's unsecured creditor's committee would arrange for a Mesa takeover of ACA without some agreement with Mesa or constraint on Mesa's ability to then move the merged airline over to US Airways (or any other carrier, for that matter). It just doesn't make any sense.

Moreover, your "theory" directly contradicts Ornstein's comments (as related in this morning's (10/7) Washington Post) in his letter to Kerry Skeen, ACA's CEO, arguing against ACA's plan to sever its ties with its main business partner United. Indeed, according to the Post, "If he is successful, Ornstein said, he will solidify the carrier's ties with United." And on top of that, since both Mesa and ACA are public companies, the SEC would likely not be pleased if Ornstein made comments like this which clearly affected both companies stock prices, and then did something completely different. Ornstein may be a lot of things but stupid isn't one of them. Does the term "securities fraud" mean anything to you?

Clearly, you are now far out of your element, and you and your sources don't know what you're talking about when it comes to Mesa's potential acquisition of ACA!

 

[USA320Pilot]

Cosmo, :unsure:, right....

Time will tell, but unless something changes, I am dead on accurate.

Meanwhile, I find it very interesting that United employees hardly post in their forum, but within minutes of a post I make that discusses their company, they quickly post on the US Airways board in response to my comments. Can't the United employees discuss or find out information about their company from their message board?

Regards,

Chip

P.S. I'm getting tired of the "uninformed" United employee bantor and if I do not respond, do not take it personally, I'm just tired of the keystrokes. By the way, it's a great Cleveland Browns Tuesday night....