Us Airways Can Successfully Reorganize, Airline Co

[jB-Rocks]

"The founder of airline consulting firm Seabury said airlines can successfully restructure if they recognize their problems and create plans to deal with them. John Luth, who advises airlines on aircraft financing, said US Airways can reorganize and exit bankruptcy protection if it meets its goals to reduce labor costs. Financial Times (London) (subscription required) (12/9)"See Story

 

[Winglet]

How about . . . .

Anyone who is a student of this industry will recognise it was the most broken of all legacy carriers and was the biggest challenge. It had the largest loss margins and the most vulnerable network and was projecting a negative 20 per cent margin for 2004, with a cash loss of $1.4bn. The cash loss is now less than $400m which, with higher fuel prices, was a substantial improvement given the hand we were dealt. . . . . .

The failure of US Airways to reorganise, I don't think will have any material affect on our reputation.

 

[Long Gone]

Mr. Luth will sure take your investment or "Consultant" money Mr jb. Mail him a check post haste so you and the rest of the over achievers can enjoy his expertise. I wonder if Mr Luth did any "Consultant" work at Enron or Mesa Air Group?

 

[USA320Pilot]

John Luth, of investment boutique the Seabury Group said, "US Airways can reorganize and exit bankruptcy protection if it meets its goals to reduce labor costs.

USA320Pilot comments: Surprised? US Airways must have costs across-the-board to compete in today's brutally competitive business or it will simply fail as former CFO Dave Davis indicated in testimony yesterday.

Regards,

USA320Pilot

 

[ClueByFour]

John Luth, of investment boutique the Seabury Group said, "US Airways can reorganize and exit bankruptcy protection if it meets its goals to reduce labor costs.

USA320Pilot comments: Surprised? US Airways must have costs across-the-board to compete in today's brutally competitive business or it will simply fail as former CFO Dave Davis indicated in testimony yesterday.

Regards,

USA320Pilot

[post="227701"][/post]​

Don't forget that Davis indicated it could fail anyway, regardless of how much labor is whacked.

 

[Finish or Ignore]

"The founder of airline consulting firm Seabury said airlines can successfully restructure if they recognize their problems and create plans to deal with them.

There's always a fly in the ointment.

 

[USA320Pilot]

What else is Dave Davis going to say when the company has asked the court to "impose" pay, benefit, and retirement cuts?

Does Judge Mitchell enjoy this process?

If Davis agreed with John Luth's comments it would make it more difficult for Mitchell to "impose" cuts, which is why some people are clueless.

Every legacy carrier is losing millions of dollars due to industry fundamentals and I wish US Airways employees did not have to experience cuts, but the only companies making money are the LCC's and RJ operators. Thus, US Airways is comparing its labor cuts to the LCC's in court. Do I like it? No, of course not, but I understand the argument and business plan.

Best regards,

USA320Pilot

 

[RowUnderDCA]

Ok, I agree that any CFO isn't going to belittle his profession and his fellow financial guys by saying 'with these labor costs ANYBODY could succeed! I could do it in my sleep! It's like falling off a log! It's as easy as pie!" Obviously, a former CEO is going to PLAY UP the challenges. And even more so before a bankruptcy judge. Having said that, the Davis testimony is damaging, and it MIGHT be accurate.