The "new Plan"

[Finish or Ignore]

US AIRWAYS SELLS ALL ITS PLANES AND DISMISSES WORKFORCE
In a dramatic move to slash operating costs, US Airways announced that it will immediately lay off its entire rank-and-file workforce and sell all of its aircraft.

"We need to lower our costs to better compete with the low-cost carriers," a US Airways executive explained. "We've determined that flight crews, mechanics, baggage handlers and even the planes themselves are high-cost items that aren't supportable in today's competitive environment. We've said for months that everything was on the table in our efforts to meet the goals of our post-bankruptcy business plan and we think the actions we've taken today will go a long way toward bringing our costs and revenues in balance."

A US Airways spokesman later dismissed as "rank media speculation" the contention that travelers would not buy US Airways tickets if there were, in fact, no planes, no crews and no flights.

"We've looked carefully at our consumer-satisfaction surveys," the spokesman said. "When given the choice, even our best customers would prefer not to fly us. So we think this plan perfectly aligns our service proposition with consumer expectations

 

[delldude]

AH HA...we now have proof positive supporting the much aligned and disputed UCT/ICT/FUCT/ETC.
i can see this coming into fruition in the near term.

 

[jimntx]

This the funniest thing I've seen in a long time. Management thinking taken to its [il]logical extreme!

 

[savyinvestor]

US AIRWAYS SELLS ALL ITS PLANES AND DISMISSES WORKFORCE
In a dramatic move to slash operating costs, US Airways announced that it will immediately lay off its entire rank-and-file workforce and sell all of its aircraft.

"We need to lower our costs to better compete with the low-cost carriers," a US Airways executive explained. "We've determined that flight crews, mechanics, baggage handlers and even the planes themselves are high-cost items that aren't supportable in today's competitive environment. We've said for months that everything was on the table in our efforts to meet the goals of our post-bankruptcy business plan and we think the actions we've taken today will go a long way toward bringing our costs and revenues in balance."

A US Airways spokesman later dismissed as "rank media speculation" the contention that travelers would not buy US Airways tickets if there were, in fact, no planes, no crews and no flights.

"We've looked carefully at our consumer-satisfaction surveys," the spokesman said. "When given the choice, even our best customers would prefer not to fly us. So we think this plan perfectly aligns our service proposition with consumer expectations

Be careful what you joke about. In todays Pittsburgh Post- Gazette Bonner Said: " If the unions are not willing to put in another penny U dissolves, it goes away". Not a pretty picture. Savy

 

[delldude]

US AIRWAYS SELLS ALL ITS PLANES AND DISMISSES WORKFORCE
In a dramatic move to slash operating costs, US Airways announced that it will immediately lay off its entire rank-and-file workforce and sell all of its aircraft.

"We need to lower our costs to better compete with the low-cost carriers," a US Airways executive explained. "We've determined that flight crews, mechanics, baggage handlers and even the planes themselves are high-cost items that aren't supportable in today's competitive environment. We've said for months that everything was on the table in our efforts to meet the goals of our post-bankruptcy business plan and we think the actions we've taken today will go a long way toward bringing our costs and revenues in balance."

A US Airways spokesman later dismissed as "rank media speculation" the contention that travelers would not buy US Airways tickets if there were, in fact, no planes, no crews and no flights.

"We've looked carefully at our consumer-satisfaction surveys," the spokesman said. "When given the choice, even our best customers would prefer not to fly us. So we think this plan perfectly aligns our service proposition with consumer expectations

Be careful what you joke about. In todays Pittsburgh Post- Gazette Bonner Said: " If the unions are not willing to put in another penny U dissolves, it goes away". Not a pretty picture. Savy

sounds like when he said he's take back his DIP monies if we didn't sign off on concessions. :down:
bring it on dude.

 

[DCAflyer]

Savy investor said:

Be careful what you joke about. In todays Pittsburgh Post- Gazette Bonner Said: " If the unions are not willing to put in another penny U dissolves, it goes away". Not a pretty picture. Savy


DCAflyer replies:

Dr. B will lose everything he invested if the company liquidates and will lose almost everything if the company goes back into C-11. Don't believe his idle threats. He knows the only way labor will give anything is through scare tactics. He is the one who will have to go explain to hus buddies in Alabama how he lost all the money he invested in U.

 

[wench]

[COLOR

=blue]

enough with the THREATS ALREADY>>>

HIT THE ROAD"""[/COLOR]

 

[repeet]

delldude
Posted on Dec 19 2003, 01:03 PM

Sounds like when he said he's take back his DIP monies if we didn't sign off on concessions.

Bring it on dude.

Right on delldude.

I'm tired of being scared.

It's time for a stand.

 

[delldude]

Savy investor said:

Be careful what you joke about. In todays Pittsburgh Post- Gazette Bonner Said: " If the unions are not willing to put in another penny U dissolves, it goes away". Not a pretty picture. Savy


DCAflyer replies:

Dr. B will lose everything he invested if the company liquidates and will lose almost everything if the company goes back into C-11. Don't believe his idle threats. He knows the only way labor will give anything is through scare tactics. He is the one who will have to go explain to hus buddies in Alabama how he lost all the money he invested in U.

flyer: bronner is first in line in a liquidation sale,then GE and the FEDs if iam correct.
he will get his cash back one way or the other.

 

[cavalier]

DCAflyer replies:

Dr. B will lose everything he invested if the company liquidates and will lose almost everything if the company goes back into C-11. Don't believe his idle threats. He knows the only way labor will give anything is through scare tactics. He is the one who will have to go explain to hus buddies in Alabama how he lost all the money he invested in U.

Exactly. He is not going to come out and say, gee guess we better work with the unions because they are really pissed. And on the other extreme he is not going lightly dismiss all the money he put up with his empty remark that "it goes away". That remark is a challenge and a threat. A challenge to work it out and a threat that he will walk away and forget the money and recoup some losses by selling off the assets. It's high stakes which he is accustomed to playing, and knows we as working men and women are not and therefore he believes he will win, that indeed we will absolutely give more to Dave. FEAR FACTOR usually works and will be interesting to see what occurs this time around.

 

[N628AU]

Savy investor said:

Be careful what you joke about. In todays Pittsburgh Post- Gazette Bonner Said: " If the unions are not willing to put in another penny U dissolves, it goes away". Not a pretty picture. Savy


DCAflyer replies:

Dr. B will lose everything he invested if the company liquidates and will lose almost everything if the company goes back into C-11. Don't believe his idle threats. He knows the only way labor will give anything is through scare tactics. He is the one who will have to go explain to hus buddies in Alabama how he lost all the money he invested in U.

flyer: bronner is first in line in a liquidation sale,then GE and the FEDs if iam correct.
he will get his cash back one way or the other.

Delldude,

I think everyone is in the same boat now. I believe he was first in line during the BK process, but once the company emerged, that changes things. I do not believe there is any longer a "DIP" lender. This would be a good question for a BK attorney.

 

[JayBrian]

Dr. Bronner's Retirement System of Alabama fund is an equity investor in USAirways. If US should go Chap 11 again its most likely that his equity would be wiped out in favor of debt holders. I don't think he really would want another round through bankruptcy court.

Jay

 

[BoeingBoy]

I also believe that the exit from BK changed Bronner's status. According to the restructuring agreement, RSA is a "Tranche B" lender as well as an investor. As a lender, RSA would be in line ahead of the stockholders for claims on the assets of U in proportion to the amount of the $1billion loaned be RSA (Tranche B lenders are the minor lenders).

As a stockholder, RSA could end up with all or none of their $240million investment back.

It all depends on when the company liquidated. Prior to 7/1/04, U is required to maintain over $1billion "cash & cash equivalents". This is enough to repay both Tranche A & B lenders. After 7/1/04, the requirement drops to below $400 million "cash & cash equivalents".

Before 7/1/04, how much RSA (the lender) gets of their loan back. The value of the slots at LGA & DCA (about all that would be left of value) would determine how much the investors would get.

After 7/1/04, the value of the company would go first to repay the lenders. Any left would be split between the creditors (including shareholders)

I'll admit that I'm not an expert in this stuff and the reorganization plan/ATSB documents make dull reading, but this is my understanding.

Jim

 

[700UW]

All DIP monies were paid back upon emergence from bk, the only money we owe is loans from the banks and the loans from GE for the RJs

 

[delldude]

All DIP monies were paid back upon emergence from bk, the only money we owe is loans from the banks and the loans from GE for the RJs

700UW is correct....bronner got the trump shuttle and routes before they emerged from BK.....so don't tell me he didn't have all his bases covered.
his 240 MILLION is gaur-on-teed if you will...so the royal people of ALA....RSA won't get screwed by the shrewd dude.