Uals Business Partner Survival?

ohcaptainron

Member
Sep 12, 2002
98
1
Well Mr. Munns long standing prognostication of a unique corporate transaction are about to unfold, not surprisingly not quite the way he invisioned it, but a transaction none the less.
I would really like to slam Chip right now, God knows he deserves it, for the countless thoughtless missives he aimed at UAL, but out of respect and concern for my many friends at US AIRWAYS I will refrain. Good luck and all the best.

Ron


US Airways Said to Be Pursuing Big Asset Sales

By MICHELINE MAYNARD and ANDREW ROSS SORKIN

Published: January 8, 2004


ess than a year after it emerged from bankruptcy protection, and facing stiff competition from low-fare competitors, US Airways is seeking buyers for a number of its assets, including its East Coast shuttle and possibly one of its three hubs, people who have been briefed on the airline's plans said last night.

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The move comes as US Airways has failed to obtain the support of its unions for revisions in its business plan, which would supplant the restructuring plan it completed last April.

As a result, the airline is considering selling assets, those briefed on the plans said. Among them are its shuttle serving Boston, Washington and New York, which operates out of La Guardia Airport; additional gates at La Guardia and Logan Airport in Boston; its regional operation, US Airways Express; and a hub, either Pittsburgh, Philadelphia or Charlotte. A spokesman for US Airways declined to comment.

The airline has retained Morgan Stanley to gauge interest and find potential suitors. A spokesman for Morgan Stanley declined to comment last night.

The airline, the country's seventh largest, filed for bankruptcy protection in August 2002, citing a slump in travel after the September 2001 terrorist attacks.

As part of its restructuring, US Airways' unions agreed to two sets of concessions, which the airline used to obtain $500 million in financing from the Retirement Systems of Alabama, whose chief executive, David G. Bronner, is now the airline's chairman.

But last month, the chief executive of US Airways, David Siegel, said the airline would be forced to revise the business plan on which it based its emergence from bankruptcy last spring. Specifically, he cited a decision by Southwest Airlines to begin operations in May from Philadelphia, one of US Airways' hubs.

Mr. Siegel warned that Southwest's arrival would most likely prompt fares to drop 30 percent and said the airline had to cut its costs in advance so that it could lower its own ticket prices. In addition, US Airways must make debt payments in June to meet covenants of $900 million in federal loan guarantees, which it received when it emerged from bankruptcy.

US Airways lost $90 million in the third quarter, when other carriers posted small profits, buoyed by healthy summer traffic and refunds of federal security fees. The airline has about $1 billion in cash, less than half that of its bigger rivals.

The airline has said every aspect of its operations is under review, from labor costs to schedules to routes, as part of its cost-cutting. But selling assets would be a faster and presumably simpler way for the airline to raise money, depending on the bids it received.

Mr. Siegel's candor about the airline's problems has led to widespread speculation within the airline industry that US Airways might have to seek bankruptcy protection once again. US Airways executives have flatly denied they have any plans for a second bankruptcy filing.

But the chief executive of one airline, who spoke in the condition of anonymity, said last week that Mr. Siegel faced a difficult situation, not only because of Southwest's arrival in Philadelphia, but because low-fare competition is heating up all around US Airways.

Referring to Southwest's plans to begin service at Philadelphia, the executive said, "They're thinking, 'If US Airways goes out of business, we want to be there.' "

Mr. Siegel had met late last year with officials of the company's unions, in a bid to win their support for further cuts. He had characterized the meetings as positive. But last month, leaders of US Airways' pilots union called for Mr. Siegel to step down, contending he had lost the faith of airline employees. Meanwhile officials of its mechanics union refused to grant further cuts, saying, "the concessions stand is closed."

The airline decided to go ahead with drafting its cost-cutting plan and said it would outline it this quarter. But on Tuesday, it postponed a series of meetings with employees that it had planned over the next few weeks.

In a recorded phone message, Mr. Siegel said leaders of the company's unions said they had "no interest in hearing the revised business plan or even having discussions with management on work rule and productivity changes."
 
All the best to USAirways' employees during this stressful time (including Mr. Munn). I've been furloughed from UAL for almost two years (what an emotional roller coaster ride it's been), so I can definitely empathize with all of USAirways' employees fears and concerns.

To all USAirways and UAL employees, I request that you concentrate on giving customers the very best product out there. Treat every customer as if they were your family (unless you've got issues with your relatives :D ) and give them the very best possible experience. Give them a great product and they WILL return.

I have been extremely impressed with UAL's CSRs and FAs over the last year (I've reved and nonreved quite a bit). I know that CSRs and FAs aren't compensated nearly as much as they should be. CSRs and FAs have a hundredfold greater effect on customer satisfaction than I (a pilot) or any other UAL employee that doesn't inferface with the customer. Keep up the great work; I look forward to returning to UAL and working alongside all of the professionals at UAL.
 
ohcaptainron said:
Well Mr. Munns long standing prognostication of a unique corporate transaction are about to unfold, not surprisingly not quite the way he invisioned it, but a transaction none the less.
Even still he is droning on about an "opportunity for U to move assets westward" in one of his posts today. But I don't want to kick anyone when they are down.

It is very sad what they are going through right now. I hope they pull through somehow but frankly I don't see many options. I think Bronner is over playing the "Airline CEO Game" and is looking for any excuse to cut his losses and move on.
 
ohcaptainron said:
I would really like to slam Chip right now, God knows he deserves it, for the countless thoughtless missives he aimed at UAL, but out of respect and concern for my many friends at US AIRWAYS I will refrain. Good luck and all the best.
Well Said! My thoughts exactly.

God knows I've had more than my fare share of verbal sparrings with Chip, and would love to give him a proverbial kick in the pants, but my thoughts are more with the other 99.9% of US employees who have to go throught this.

I am also concerned on a more personal note how this turn of events could effect UA's code share revenue and ATSB application.
 
As a Furloughed F/A with US AIr, today my heart sank when i read the article in NY times. No matter how we feel about the history of our airline the writting is on the wall for all of us. Both Pan-Am and Eastern walk this road that we are on. I would like to thank all the UAL employees for their kind words to us. Hopefully when we are gone your company can bring back all the employees on furlough. Good Luck to us all.
 
The above posts really reflect just how cruel and thoughtless the captain certainly is from U. Although he has never failed to try to make us feel horrible, vulnerable, sickened, scared, etc, etc, etc.....just look at you guys! :up: Compassion! I'm sure he feels pretty defenseless right now but I also realize that if this were an asset sale from United, he would be the first one to start picking at the almost dead carcass of United.

To all the employees of US......don't give up yet, this is certainly NOT a done deal! Quite possibly another scare tactic....

To the captain............HA, hope it feels like sh*$
 
767jetz said:
I am also concerned on a more personal note how this turn of events could effect UA's code share revenue and ATSB application.
Very good point. I still think UAL will get its loan guarantee, but having US go thru this will certainly not make it any easier. That being said, don't be surprised if UAL modifies its application again and asks for more funds to pick up some US assets. You guys need more east coast N/S presence, and I still think CLT would work well for you as true competition to DL in ATL. Plus, CLT is truly a great facility.
 
Charlotte is a very nice airport and I really have enjoyed my flights on both carriers, if true it will be extremely sad to USAir fold

As for US Air assets United would do very well to aquire the Shuttle and Charlotte ops. The Philly hub is also every nice and could be used in tandem with Dulles (which really isn't much of a hub).
 
Hang in there USAir folks, it'll get better. I personally think it's a scare tactic, but what the hell do I know.


I'm rootin for you guys.

737

P.S. Chip, fly pretty much summed it up for me. I hope you've got a big pucker factor going on. You wouldn't hesitate to rub this in our faces if this was happening to UAL. I hope you are taking notice of our concern for your company.
 
I have to agree with all the compassion in this thread. Its never easy to watch a business fail, whether its a mom-and-pop coffee shop or an airline that once employeed 50,000 people.

Best wishes to all affected by this awful mess, even Chip.

P.S. ohcaptainron, loved the title, placement etc.
 
Thanks to all of you good people at UA for your kind words and concerns about us.

I know you have been brow-beaten plenty of times by a certain U Captain...and in retrospect have every reason to gloat or rub it in , based on what has directed your way so many times. The fact that you aren't taking advantage of this so-called news only lends to the fact that UA is a class act to follow.

Many if not all at U view these recent news releases as nothing more than another scare tactic to get the unions back to the negotiation table for yet another round of concessions from the employees.

A number of people have been quick to point out some very sadening facts too. U cannot be saved based on the employees giving to the point that we would be working for nothing. Until the business model itself is repaired....no amount of givebacks , goverment loans , tax breaks or renegotiated leases will turn this company around.

We as employees continuing to give back will only ruin this industry from a labor standpoint for those whom are fotunate enough to survive this downturn.

My strongest belief is this. U can survive , regardless of what certain circling sharks and vultures may think or be counting on. Like UA , we as individuals have the grits and the wherewithall to stand up to what the real problems are.....the issue is getting those whom control the purse strings to see the difference and act accordingly


Thanks again for the compassion you've shown us....and the majority of us are always pulling for you in the same fashion....but I think you know that already , when you visit the U board. A certain A320 driver is definatley in the self-serving minority at U .
 
Best wishes to all at US Airways. May this storm pass and allow bountiful future for us all.

Chip, what can we say that has not already been said. Good Luck and may this bring a peace and understanding to you that may not have been there before.
 
I don't think UA is in any a very advantageous position to pickup US Airways assets, given the fact that we're still in bankruptcy. It would be not only a tough sell to the employees, but more so to the bankruptcy judge and creditor's committee. UA instead needs to focus on finishing up the 1110 process, replacing ACA at IAD, and solving the pension issue, as well as honing their business plan for a mid-year bankruptcy exit. Granted some of the US assets mentioned would fit nicely into our network, I just don't see that we're in a position to go after them.
 
Good on you fine and gentle folk of United. After the billingsgate, calumny, invective, generally scurrilous language, and portentions of doom that have emanated from the pen of Mr. Munn, I could well understand your initial urge to show him the door. Even I have fallen victim to his ill sentiment through the manifest damage that he has wrought upon the native tongue. He seemed to have known no bounds in his schadenfreude.
Yet, however, I witness the good corps of United posters spring from their saddle when the foe has been rendered hors de combat to provide all aid and succor. You bespeak well unto your profession through your magnanimous behavior.
Well played. Well played indeed.
 
I think that UA should look at picking up some of USAir's assests. Granted UAL is still in Ch.11 but to all your competitors to buy out one of your partners without doing anything wouldn't make since.

UA needs to make a bold business decisions that will benifit the airline in the long run. Explain to the employees why the buyout of US Air assests would be advantagous for United. I think the employees would listen and support a good rational arguement for aquiring the Shuttle and some other assests.

BTW- Best of luck to USAir... Everytime I have flown you it has been great.
 

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