US Airways Stock in a free fall

[PITbull]

As an aside, the "brain washing" is remenicent? of the good old days of "Uncle Ed". Every thing was coming up roses for the old U. "Uncle Ed" was family and took care of his people. They printed money for themselves back then(a F/A reserve system where you were allowed to "pass" for whatever they did not have).
But it didn't turn out so well for "US Air" going back as far as the early '90s.
So this may serve as a cautionary tale about putting too much faith in one person. The cult of personality only gets you so far and "Uncle Ed" is still trying to rewrite history.

Uncle Ed is a retired CEO.
I would know...I was here for the last 11 years of his 25.
He was an exceptional CEO of his time and built the airline's foundation and East Coast franchise. He retired in 1992. The management that came after had one goal...and that was to maximise "share-holder value" to line their pockets with hefty executive contracts! There was NO intent to operate a well-run airline with a sound business plan. Doesn't take long to desroy a business, but U managed to hang in for the next 10 years, til 2002, with the first dance into BK. Infact, the mid 90's were the most profitable years for U that's with fuel prices at $40 a barrel, with labor costs and pensions intact, and a reserve system that was livable, growth at approx 10% year over year starting from 1995 and forward,with a fleet of over 420 wide body a/c, regional feeder system that was profitable, and employee-company loyalty unmatched. Once the three-year sought after mega-merger with United failed in 2001, a bunch of "ya-hoo", Harvard-get-rich quick execs were brought on the property...Plan B implemented to position the company for a "sell", and take their millions and stuff their pockets.

The airline operates today because of the employees that are left who love what they do and want to be in the industry hoping to make their airline a great airline. The execs are just collateral misfits who happen to be in the equation by appointment by the BOD.

One has to just shake their heads from the East, that such an airline like USAirways could be bought by a regional, mediocre airline like AWA with management that had no vision for foresight to operate a Legacy International airline. And the employees on the East were told repeatedly that it was a merger, not an acquisition...just to get the East to comply to emerge from BK without voting down yet a third concessionary agreement while in yet a second BK post 9/11.

Here's hoping Congress passes new/reformed labor legislation that give more rights to employees, shareholder scrutiny for exec non-performance based compensation, and pension oversight specifically when deceitful, greedy executives who seek to screw employees contracts and creditors, including wiping out shareholders dance into BK protection to get their "free pass.....

 

[usair_begins_with_u]

I'm giddy. I've never made so much money from a stock going down before. These last few days have been special. Market going up, LCC going down. Drink's on DoUgIe.

 

[FWAAA]

LCC down another 5.4% today, but UAUA and some others were down even more. UAUA down 8%, CAL down 6.6%, AMR down 4.8% and Alaska down 10.4%

Ouch.