- Oct 31, 2003
- 90
- 0
US board of directors start search for new ceo after chairman Wolf announces retirement after failed merger attempt. Doesn't have a clue now, gets out while there still is a slush fund intact.
Dave is tapped as new ceo. Impresses board with big ego and the "TRUST ME" I will turn this airline around attitude. Being bold enough to say, "THIS IS THE LAST CEO THIS AIRLINE WILL NEED"
Puts plan into place to create LCC MDA. But doesn't reveal anything else to public or employees except (you guessed it employee sacrifices once again.)
Tries to sell plan to Texas Pacific Group for financial backing and " labor friendly attitude ". After reviewing Daves plan TPG becomes troubled at plan, realizing the plan has holes. Revenue projections to high, decimation of mainline route structure. Talk of bankruptcy to get casm down to 10.5 cents from the current 12.8. TPG knowing Lcc is 7.8 cents or lower has doubts. Hey I'm Dave " Trust me " I did it before It'll work.
Enter Bronner, looking to buy something on the cheap and make a mint, and maybe get some jobs for Alabama. Listens to Daves plan. On the edge of his seat after listening says H*ll I got 24 billion, how much it gonna take to get this airline making me money?
Dave S: 500 MILL another 250 MILL coming out of chapter 11.
Dave B: You really think this plan can work?
Dave S: "Trust me " you think you got money now, wait to you see what I CAN DO FOR YOU.
Dave B: I'm in !!!
US enters bankruptcy to lower costs (shaft Lessors, Vendors, Employees, Tampa, State of PA. and everybody else I forgot to mention). Upper management keeps lavish salary and bennies. "Trust me " I've done this before.
Fall of 2002 revenue projections aren't meeting The plan projections. MDA won't be allowed to get of off ground until exiting bankruptcy (additional lost projected revenue)
Dave B: I'm getting a little nervous here, this plan of yours, is it really going to work? I'm waiting on my return, you promised ! I've got 500 mill in this !!!
Dave S: "Trust me" so I was a little off on the revenue side of the plan. No big deal we're still in chp. 11. Hey, how about a round 2 for (you guessed it) employee concessions.
Dave B: Your beginning to irritate me. You said one round would be enough
Dave S: So hey, I was wrong. Just threaten chp. 7 if the employees don't give in. " TRUST ME IT'LL WORK"
Jump to spring 2003, rumors floating around airbus heavy checks to be farmed out, pilots pension to be terminated, Iraq war looming amongst others.
Dave S: We are absolutely making progress and on track for a fast track exit from chp. 11.
Dave B: I don't know Dave. Where's the revenue coming from? Your projections aren't being met and MDA is still a dream.
Dave S: Sit back and watch me work my magic. " Trust me" been there done that.
Exits bankruptcy but not before closing Tampa hangar, rejecting Pittsburgh leases, and putting plans in place to farm out Airbus a/c. Terminating pilot pension plan and additional 5% pay cut for war provision. Dupes government with same plan to secure loan of 1 billion. Bronner ponies up another 250 mill in exit financing.
Dave B: This better work. Just remember I'm not you sugar daddy !!!
Jump to summer 2003. Revenue still falling short. Big order placed for rjs to increase feed for mainline, and increase revenue, that was supposed to be flying in spring 2003.
Dave B: So how's my investment Dave, "Show me the money"
Dave S: Well uuhh, revenue is not what I told you and the government it would be.
Dave B: Remember who's money your playing with here. You better think of something quick.
Dave S: Uuuhhh, oh I know, you wanted jobs in Alabama right ? I'll give you the airbus heavy checks
Dave B: Thats illegal
Dave S: Whats your point
Dave B: What's this going to cost me?
Dave S: Nothing "Trust me" It's yours. Start your hiring now it's in the bank.
Jump to October
Dave B: So hows my heavy checks coming ? I'm all ramped up and ready to go.
Dave S: Just a little bump in the road. Judge said no!!
Dave B: Your beginning to p*ss me off.
Dave S: I'm going to park these a/c. "Trust me" this is going to work.
Dave B: I bought into this company at $ 7.34 and I'm now sitting on 6 and change. I've got a reputation here!!
Dave S: OOHH, and one other little thing I forgot to mention, Southwest is coming to philly.
Dave B: YOU @#$%^$#!!!! I thought you said this plan would work!!!
Dave S: Now on his knees, please Dave , "Trust me" this plan will work, I've done it before.
Dave B: Everything is on the table now. Including CCY. I want a return on my investment
Dave S: Now with tears in his eyes, no Dave no not CCY I promised my family they wouldn't have to move again !!!
Dave B: You didn't care about all the employees who lost their jobs, or the countless number of employees who had to move theirs.
Dave S: "Trust me" this plan is gonna work as soon as I figure it out I'll let you know !!
To be cont.
Will management heed or continue to bleed !!!!!
Dave is tapped as new ceo. Impresses board with big ego and the "TRUST ME" I will turn this airline around attitude. Being bold enough to say, "THIS IS THE LAST CEO THIS AIRLINE WILL NEED"
Puts plan into place to create LCC MDA. But doesn't reveal anything else to public or employees except (you guessed it employee sacrifices once again.)
Tries to sell plan to Texas Pacific Group for financial backing and " labor friendly attitude ". After reviewing Daves plan TPG becomes troubled at plan, realizing the plan has holes. Revenue projections to high, decimation of mainline route structure. Talk of bankruptcy to get casm down to 10.5 cents from the current 12.8. TPG knowing Lcc is 7.8 cents or lower has doubts. Hey I'm Dave " Trust me " I did it before It'll work.
Enter Bronner, looking to buy something on the cheap and make a mint, and maybe get some jobs for Alabama. Listens to Daves plan. On the edge of his seat after listening says H*ll I got 24 billion, how much it gonna take to get this airline making me money?
Dave S: 500 MILL another 250 MILL coming out of chapter 11.
Dave B: You really think this plan can work?
Dave S: "Trust me " you think you got money now, wait to you see what I CAN DO FOR YOU.
Dave B: I'm in !!!
US enters bankruptcy to lower costs (shaft Lessors, Vendors, Employees, Tampa, State of PA. and everybody else I forgot to mention). Upper management keeps lavish salary and bennies. "Trust me " I've done this before.
Fall of 2002 revenue projections aren't meeting The plan projections. MDA won't be allowed to get of off ground until exiting bankruptcy (additional lost projected revenue)
Dave B: I'm getting a little nervous here, this plan of yours, is it really going to work? I'm waiting on my return, you promised ! I've got 500 mill in this !!!
Dave S: "Trust me" so I was a little off on the revenue side of the plan. No big deal we're still in chp. 11. Hey, how about a round 2 for (you guessed it) employee concessions.
Dave B: Your beginning to irritate me. You said one round would be enough
Dave S: So hey, I was wrong. Just threaten chp. 7 if the employees don't give in. " TRUST ME IT'LL WORK"
Jump to spring 2003, rumors floating around airbus heavy checks to be farmed out, pilots pension to be terminated, Iraq war looming amongst others.
Dave S: We are absolutely making progress and on track for a fast track exit from chp. 11.
Dave B: I don't know Dave. Where's the revenue coming from? Your projections aren't being met and MDA is still a dream.
Dave S: Sit back and watch me work my magic. " Trust me" been there done that.
Exits bankruptcy but not before closing Tampa hangar, rejecting Pittsburgh leases, and putting plans in place to farm out Airbus a/c. Terminating pilot pension plan and additional 5% pay cut for war provision. Dupes government with same plan to secure loan of 1 billion. Bronner ponies up another 250 mill in exit financing.
Dave B: This better work. Just remember I'm not you sugar daddy !!!
Jump to summer 2003. Revenue still falling short. Big order placed for rjs to increase feed for mainline, and increase revenue, that was supposed to be flying in spring 2003.
Dave B: So how's my investment Dave, "Show me the money"
Dave S: Well uuhh, revenue is not what I told you and the government it would be.
Dave B: Remember who's money your playing with here. You better think of something quick.
Dave S: Uuuhhh, oh I know, you wanted jobs in Alabama right ? I'll give you the airbus heavy checks
Dave B: Thats illegal
Dave S: Whats your point
Dave B: What's this going to cost me?
Dave S: Nothing "Trust me" It's yours. Start your hiring now it's in the bank.
Jump to October
Dave B: So hows my heavy checks coming ? I'm all ramped up and ready to go.
Dave S: Just a little bump in the road. Judge said no!!
Dave B: Your beginning to p*ss me off.
Dave S: I'm going to park these a/c. "Trust me" this is going to work.
Dave B: I bought into this company at $ 7.34 and I'm now sitting on 6 and change. I've got a reputation here!!
Dave S: OOHH, and one other little thing I forgot to mention, Southwest is coming to philly.
Dave B: YOU @#$%^$#!!!! I thought you said this plan would work!!!
Dave S: Now on his knees, please Dave , "Trust me" this plan will work, I've done it before.
Dave B: Everything is on the table now. Including CCY. I want a return on my investment
Dave S: Now with tears in his eyes, no Dave no not CCY I promised my family they wouldn't have to move again !!!
Dave B: You didn't care about all the employees who lost their jobs, or the countless number of employees who had to move theirs.
Dave S: "Trust me" this plan is gonna work as soon as I figure it out I'll let you know !!
To be cont.
Will management heed or continue to bleed !!!!!