Mesa May Purchase Usairways

[Ch. 12]

What are the lesser of 2 evils...

Continuing increasingly unprofitable operations OR becoming profitable through an investor that has a track record of profitability in unprofitable times.

Now...will labor relations suck? Of course, but is there labor without profitability? Not for long...

 

[usairways_vote_NO]

Bruce Lakefield is a man of character and integrity

[post="254872"][/post]​

Remember we know why you call him a man of integrity. Anyone remember or should I refresh? Or you could remind us 320.

 

[700UW]

I will take Lakefield for $100 Alex.

Who was in the navy and was on submarines.

 

[usairways_vote_NO]

I will take Lakefield for $100 Alex.

Who was in the navy and was on submarines.

[post="254962"][/post]​

Give the man a cigar

A fellow naval officer

Fellow Naval Officer

 

[linemech]

What are the lesser of 2 evils...

Continuing increasingly unprofitable operations OR becoming profitable through an investor that has a track record of profitability in unprofitable times.

Now...will labor relations suck? Of course, but is there labor without profitability? Not for long...

[post="254938"][/post]​

Lakefield and is inability to turn USAirways around after finishing the screw job that Dave started can blame himself for what he has gotten himself into.
He didn't even have the brains to make any changes to the plan that calls for labor ALONE to save the airline. ( But remember who started it all )

This plan was the brainchild of Siegel, and would have come to pass much sooner had Dave not been booted out before he and JO had rung every job out of USAirways and transfered them to Mesa Air Group.

Linemech

 

[USA320Pilot]

The Turtle:

The Turtle said: "Delta owns a sizable chunk of their stock. Why would Delta allow an investment in a competitor?"

USA320Pilot comments: First, because Lakfield said they were negotating with Wexford Capital who owns and operates Chautuaqua. Lakefield indicated if any affiliate does not provide "fee for service" relief or equity than they will be replaced by Air Wisconsin.

700UW:

700UW said: " man of charecter and integrity would have taken a paycut when the the company went to court and had the judge impose paycuts on the employees."

USA320Pilot comments: Lakefield took a US Airways CEO pay cut first. When Siegel came to US Airways he was paid $750,000/year, which was reduced to $600,000/year during labor's first major concession. When Lakefield became CEO he dropped CEO pay down about another 30% to $425,000/year.

Regards,

USA320Pilot

 

[700UW]

What was Lakefield's salary before?

ZERO, he took no paycut, he got a $425,000 a year raise.

Let see Kelleher, Parker and Neeleman all make less then Lakefield, yet WN and B6 are profitible while US is in its second bankruptcy in less then two years.

Your spin won't work here, and yet Siegel was grossly overpaid also.

So why was Lakefield's total compensation last year listed at $1.1 Million, not $425,000?

Don't let the facts get in your way once again.

 

[usairways_vote_NO]

700UW said: " man of charecter and integrity would have taken a paycut when the the company went to court and had the judge impose paycuts on the employees."

USA320Pilot comments: Lakefield took a US Airways CEO pay cut first. When Siegel came to US Airways he was paid $750,000/year, which was reduced to $600,000/year during labor's first major concession. When Lakefield became CEO he dropped CEO pay down about another 30% to $425,000/year.

[post="254970"][/post]​

Too bad Lakefield wasn't lucky enough to take part in rounds 2 and 3. Wonder if good luck will come his way and they will let him participate in round 4. We hate seeing him missing out, you know, not being part of the team and all.

 

[700UW]

I wonder how many extra miles Chiames just gave you for that post?

 

[BoeingBoy]

I give the current management a heck of a lot of credit in one regard and that is that fact that US Airways exists at all is proof positive of some skill.

[post="254997"][/post]​

Of course, it couldn't have anything to do with the approximately $2.5 billion per year in concessions given by the employees.......

 

[BoeingBoy]

USA320Pilot comments: First, because Lakfield said they were negotating with Wexford Capital who owns and operates Chautuaqua. Lakefield indicated if any affiliate does not provide "fee for service" relief or equity than they will be replaced by Air Wisconsin.

[post="254970"][/post]​

Facts are such pesky critters.....

Wexford is the majority owner of Republic Air Hold Holdings, of which Chautuagua is a wholey owned subsidiary.

As of 12/31/04, Republic had $40 million in cash/cash equivalents. They've since sold additional stock which raised another $80 million, bringing their reported cash/cash equivalents up to $120 million - hard to see them investing all of their available cash in U while they are aggressively adding RJ's (primarily Emb-170's) to their DAL & UAL contracts. (I saw recently where they were contemplating accellerating their delivery schedule - wonder where the extra delivery positions could come from?)

Now none of this precludes Wexford from making an investment in U, with or without provisions for changes in the affiliate agreement. But as the saying goes, money talks and BS walks. If Wexford is writing the check, they get to do the talking. I can't see them talking about changes to the affiliate agreement that would harm Republic (where they already have an investment worth well over $200 million)

Oh, that's right - there's that leverage Lakefield has to tell the affiliates to give relief or equity, or they'll be replaced by AWAC. Only one little problem - AWAC had the money, they get to talk. So I'd love to see the quote from the AWAC jet services agreement that gives Lakefield the power to demand that AWAC place planes here if the current affiliates don't play along.

Jim

 

[linemech]

Jim,

That management team may pay a steep price for victory. The final chapter has yet to be written. I see some things I like and some things I don't like.

[post="255002"][/post]​

Yes they will mister, But they don't even have a clue and your post if read by someone in management will probably be the first time anyone of them has even thought about it.

I don't care how many management people that they have on the payroll, labor supplies the product . They have thrown excessive numbers to the street and those that remain will not line managements pockets with bonuses and other performance incentives by doing any more than is absolutely nessesary.

So when it is all said and done and no one has a job they can tell their children how good that "VICTORY" tasted.

Linemech

 

[BoeingBoy]

Did they play hardball with the workgroups and win? Yeah they did!

That management team may pay a steep price for victory. The final chapter has yet to be written.

[post="255002"][/post]​

You're right, they won - but only the battle. But you're wrong - the final chapter is being written as we speak. "Holiday Meltdown" was but one page. I see additional pages being written every time I fly....

Jim

 

[PITbull]

When Lakefield got the job I did a Google search on him. In general he has been viewed by the business community as a "Quiet Leader" who through his efforts was widely credited with saving Lehman Brothers. He comes with a pretty good pedigree.

Now an investment banker is not an airline CEO as they are radicaly different business's. The only real knock I saw on him was he didn't have a ton of experience with unionized workforces.

One area where he has demonstrated considerable skill is negotiating with the money people to keep the doors open.

I give the current management a heck of a lot of credit in one regard and that is that fact that US Airways exists at all is proof positive of some skill. Other areas I am less impressed with.

[post="254997"][/post]​

Excuse me...how did Lakefield save Lehman Bros.? When was it going off a cliff? Was it in BK? Verge of BK?

My understanding is that he ran the "European" Division of Lehman Brothers.

 

[BoeingBoy]

Well you might be right but I've yet to fall victim to what you allude to. So for me right now all is right with the world.

[post="255023"][/post]​

You probably won't until this place implodes because you only see the public face of the employees you deal with.

If, like USA320Pilot, you think the feelings toward this company that you see expressed here represent a small minority of the employees, then you are mistaken just as much as he. The victory cup management received for their win over the employees is filled with vinegar, not wine.

Jim