US Air Says Delay Risks Credit Card Deal

[PITbull]

Well, there's the new "spin".

Is anyone speaking with these credit card companies and bothering to negotiate an EXTENSION. Why is it that companies can stay in BK for years and not even discuss a "credit card" acceptance issue.

If this pension issue wasn't such a "sad state of affairs", companies constant use of "trump cards" maybe even comical.

WHAT ELSE CAN THEY COME UP WITH??? Again, these "time lines" so TIGHT....another "do or die" scenerio crapola!

 

[Lou]

Reuters
US Air Says Delay Risks Credit Card Deal
Monday February 24, 3:37 pm ET
WASHINGTON (Reuters) - Bankrupt US Airways Group Inc.(OTC BB:UAWGQ.OB - News) testified on Monday that lengthy pilot pension talks could delay its reorganization past March and jeopardize its crucial ability to accept credit cards.
If we don't emerge (from bankruptcy) by March 31st the company will not have a credit card processor, Chief Financial Officer Neal Cohen told bankruptcy court. If the company has no processor -- the company will have to shut down.
http://biz.yahoo.com/rb/030224/airlines_us...sairways_2.html

 

[PITbull]

Ups,

That's like saying the interest rates are going to sustain low for infinity.

Fuel prices just recently spiked, and more than likely it will not be sustained at that level into the forwarding years. Even the consumer CAN NOT AFFORD those pump prices, and the average american worker ain't getting raises either.

I don't believe you should "throw out" the defined pension because the fuel prices are high this year.

It maybe hard to believe there is a conspiracy to "smash" labor, but we all here are living it. You just must ask yourslef "how much of this is economy driven and how much of this is purely competition driven, and the "art of union busting". Most of what is happening in the economy pertains strickly with public "uncertainty and that could change, as well.

I do not feel any emapthy with mangement on what kind of a situation they inherited. This mangement has "beat this save-the-company horse to death" and the present morale of the employees alone could finish us all off, and that is soley on managaement. This management is not accustomed to sitting down with labor and working out equitable solutions on any level in any capacity. There's is this constant "hurry, hurry" take what we tell you fast or ELSE!!! Need to get those 34 VPs off their azzes and find some better solutions to some of these delimmas.

 

[mrplanes]

This demonstrates how very important it is for Dave to live up to his committment to his pilots. He seems to want to live up to the committment he made to the credit card agency. Here come the deadlines and ultimatums once again.

Solve the problem Dave. You know what you have to do. And you know you have the means to do it or you would not have made the committment in December. You are banking on the BK judge and he is not the sure bet you thought. Now do the right thing and get this airline where it needs to be.

mr

 

[wts54]

"If we don't emerge (from bankruptcy) by March 31st the company will not have a credit card processor," Chief Financial Officer Neal Cohen told bankruptcy court. "If the company has no processor -- the company will have to shut down."

They are really grasping at any reason not to settle
the pension issue.What liars.

 

[Upsgnr]

mr-

Not to defend Dave, but didn't he inherit this mess that he is trying to fix? I don't know, maybe he did have a secret plan all along to screw the pilots. That's probably giving him too much credit for smarts.

Haven't fuel prices risen drastically and aren't they a huge part of the cost structure - You can't blame Dave for the cost of fuel? Who knew it was going to rise by 50%?

 

[mlt]

I never thought I would be defending this management team, but....the credit card issue has been on the table for months. All labor groups were notified of the time deadline and the need to have this issue resolved by March 31.

Having said that, I continue to hope there is an equitable solution.

 

[Mike W]

Upsgnr,
There's a reason why the pilot pension was left for last.Dave knew there was no way that he could negotiate acceptable terms of their pension as part of a concession package. Termination of their pension was the only outcome.It is no accident that Jerry Glass was hired. His forte is strong arming organized labor. Hell, his side job is consulting companies who are having labor problems or who are trying to bust their unions. Nothing happens with this management team without some forethought.Not to sound paranoid,but do you think it's coincidence that they missed their A330 lease payment the day before that went to bankruptcy court to testify in regards to terminating the pilot's pension.

 

[Upsgnr]

Actually, I think the strategy was to send a message to A330 captains the most senior, highest paid pilots, namely, "play ball or else".

 

[mlt]

Mike W.
Of course there was a reason why Dave brought his old buddy Jerry
Glass on the property, to accomplish what no other corporate leader had ever been able to do...bust the unions! Jerry's corporate bio states he has never had a work stoppage. While some might attribute this feat to incredible negotiating skills, those who have met him at the table realize skill has nothing to do with his record. His M.O. is reminiscent of the great Vito Coreleone..he makes an offer that can't be refused.

The only good thing that will come from this situation is for our employees to monitor where he goes after he decimates our contracts. Hopefully, our employees will ensure the next victims are given the information to thwart his attempts to gut their contracts.

 

[mrplanes]

If that is their strategy the "or else" will happen.

mr

 

[Upsgnr]

You all have a tough decision to make. Stick with your principles, and that's fine, labor solidarity is important and it's probably true that management is taking advantage of the situation.

But consider when all is said and done, Dave is going to walk away a winner no matter what. If Chapter 7, Dave walks away and his reputation is enhanced, "he held tough and turned things around but he inherited an impossible situation, so no one can blame him."

Or the alternative is that the airline turns around, he gets the credit, and his reputation is enhanced.

Consider what happens if the airline goes Chapter 7: a good possibility that USairways pilots will never fly mainline again due to current marketplace.

There is no right or wrong - only the choice you make, but it does have consequences both for yourself and others.

 

[Zephyr]

Liquidation is the new paradigm. (Silly me…I thought the best way to make money was to increase revenue!)

However, it does appear that fewer people are able to see the king’s clothes nowadays.

And I expect that no one will see his clothes when they finally have nothing left to liquidate over but the possible loss of corporate box seating at the Redskins home field.

Be vweery qwiet. We are hunting wrabbits.

 

[Hula Girl]

Go ahead and let them take the A330s. Meet their bluff. Do you think that there is a market for all of the overpriced management that will also be out on the street? I think they are all collectively holding their breath and crossing their fingers. This is too well mapped out for it to be an 'oh by the way, we also need your pensions' last ditch effort that wil REALLY save the company this time.

 

[PITbull]

If this co. liquidates, then our MAN won't find work either. Not as a CEO. Corporate America does not REWARD those who take companies into liquidation, for any reason. And he surely won't find work at another airline!

Notice, Corporate world hasn't heard from Boreman, Lrenzo or Ichan, to name a few.

Way I see it as Labor, this CEO and his mangement team had enough tools to make this company swing up, but there comes a point when zealous CEOs and Senior execs get too damn greedy,take it too far, and poof...blow the whole deal.

Haven't seen anything special about this CEO; only that he knows what threats weaken unions. period.

Greed and NOT having an understanding of the Human element kills these kinds of Execs, IMHO.