Us Airways Special Bulletin

USA320Pilot

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May 18, 2003
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All US Airways/US Airways Express Employees

Please Post ... Special Bulletin


While there have been sporadic news media reports about speculation that the company is in discussions with other airlines and potential financial investors, this morning's news coverage is much more extensive.

As you will note, we have not commented on any such rumors or speculation. However, you should assume that as we work to finalize a new business plan and related Plan of Reorganization to exit Chapter 11 and most importantly, seek to raise new capital through a substantial equity investment that we have been in discussions with a number of interested parties over the past several months.

Our employees have worked right along side the management team throughout this process, and have made difficult choices and enormous sacrifices to help the company restructure. Our collective accomplishments and sacrifices are clearly recognized by potential business partners, as we are building an airline with a competitive cost structure to match our competitive market position.

I regret that I cannot be more specific, and acknowledge that this can be frustrating for those employees who want to know more about what might be going on. While this process continues, however, I encourage all employees to keep doing what you do best take care of our customers. Please stay focused on your work, with the comfort and safety of our passengers at the top of the list. We are heartened by the fact that planes are full, and we want to keep giving our customers a reason to fly US Airways.

When there is something specific that we can tell the public and our employees, we will use all available US Airways communications channels to share with you as much information as possible.

Sincerely,

Bruce R. Lakefield
 
Earlier today in its earnings conference call, America West CEO Doug Parker indicated that anything the airline regarding mergers would not involve current cash-on-hand. He further indicated that by the end of the year with current fundamentals the company would probably need further financing (for normal operations).

Separately, in a message to employees US Airways CEO Bruce Lakefield said, the company seeks “to raise new capital through a substantial equity investment.â€￾

Thus, if America West is not going to use current funds for M&A activity and US Airways is seeking a substantial equity investment, then how will a corporate transaction be funded and who will have the money, post emergence?

Regards,

USA320Pilot
 
US Airways executives "are more than happy to go back to playing golf as opposed to running an airline that is extremely difficult," Bronner said, calling America West managers "extremely capable people ... that are well-respected in the industry."

Did you ask Bruce when his tee-time is?
 
Can somebody explain to me what Bronner has been saying to the press all day? Looks like spin control (lipstick) again..... and again after Bronner opens his mouth.

These guys are clueless.
 
Regardless of who, or what, this company turns into, the one bright side is the fact that new management must come. The misfit's setting in CCY, who have no desire or interest, in running an airline, can happily return to their golf courses, country clubs, and beach homes, and spend the cash to their hearts content. It's a fact, we're at the bottom of the barrel when it comes to exec talent, it can only improve.
 
USA320Pilot said:
Earlier today in its earnings conference call, America West CEO Doug Parker indicated that anything the airline regarding mergers would not involve current cash-on-hand. He further indicated that by the end of the year with current fundamentals the company would probably need further financing (for normal operations).

Separately, in a message to employees US Airways CEO Bruce Lakefield said, the company seeks “to raise new capital through a substantial equity investment.â€￾

Thus, if America West is not going to use current funds for M&A activity and US Airways is seeking a substantial equity investment, then how will a corporate transaction be funded and who will have the money, post emergence?

Regards,

USA320Pilot
[post="263423"][/post]​

I believe Bronner may put his money where his big mouth has been sometime ago when he said he would consider investing more money if all of labor gave the concessions needed for the company's survival.

Then again, there is always MESA who wants to stay in the mix.
 
Ouch...

I just hit my head on my desk as I realized I was in agreement with PitBull. :blink:

I too have a feeling that Mesa will be involved in this someway somehow. IMO it will be a purchase of both PSA and PDT (and their flying), with the right to expand into 70/90 seat flying for US/AW granted in return for a drop in their contracted fee for departure agreement.
 
Nope, it split in half, now I have two end tables instead...

Damn martial arts training :lol:


And as for me, I am all smiles. Because it looks like yet another opportunity to prove the naysayers wrong is starting to develop.

What so many said would long since be dead..., Is now possibly headed towards become larger, stronger, and more competitive. :up:

Gotta love it when pessimism takes another shot to the shorts, eh doggy B)


have a nice day
 
PitBull said: “I believe Bronner may put his money where his big mouth has been sometime ago when he said he would consider investing more money if all of labor gave the concessions needed for the company's survival.â€￾

USA320Pilot comments: I agree.

Rico said: “I too have a feeling that Mesa will be involved in this someway somehow. IMO it will be a purchase of both PSA and PDT (and their flying), with the right to expand into 70/90 seat flying for US/AW granted in return for a drop in their contracted fee for departure agreement.â€￾

USA320Pilot comments: I agree.

USA320Pilot adds: I still believe a combined US & HP would need to develop the Mid-continent area of the country. In my opinion, two airports would work: STL or DEN. Dependent upon how much money is available, you could further downsize PIT, transfer PIT flying to either STL or DEN, and use Republic EMB-170/190s and CRJ-700/900s as additional lift to develop this part of the country.

At some point United's creditors could get uncomfortable with the company's labor issues and 2.5 years in bankruptcy. If there is enough investor(s) and money available, US Airways’ investor could go to Chicago and ask United how much money they want for DEN, some aircraft, and South American routes to help the company emerge from its judicial reorganization.

Regards,

USA320Pilot
 
USA320Pilot said:
USA320Pilot adds: I still believe a combined US & HP would need to develop the Mid-continent area of the country. In my opinion, two airports would work: STL or DEN. Dependent upon how much money is available, you could further downsize PIT, transfer PIT flying to either STL or DEN, and use Republic EMB-170/190s and CRJ-700/900s as additional lift to develop this part of the country.

AA still has a focus operation in STL. WN has a pretty nice presence in STL. No dice there.

DEN. I believe that you were a proponent of the move out of PIT, due to "high costs." DEN is $15/pax plus sky-high landing fees. These are greater than PIT, plus you have FRNT in Denver. While US may get chased out of PIT, it won't be seeing DEN anytime soon.

Consistancy is a hallmark of virtue.

At some point United's creditors could get uncomfortable with the company's labor issues and 2.5 years in bankruptcy. If there is enough investor(s) and money available, US Airways’ investor could go to Chicago and ask United how much money they want for DEN, some aircraft, and South American routes to help the company emerge from its judicial reorganization.

Note that United continues to get exclusivity on it's POR filing. US has to ask the government every 6 weeks to continue spending operating cash. Something tells me the odds of US buying anything from UA are not stellar.