Wholly Owneds To Be Sold?

[USA320Pilot]

Turtle:

It is a valid business argument that the US Airways Express division could be sold, capital obtained, and then a MOU signed to code share the service. US Airways has done this with Mesa and CCAir/Midway and United did it with Air Wisconsin. Moreover, it would not surprise me if US Airways did this regardless of the "transformation plan" because Siegel has said he wants only 2 or 3 Express carriers.

In fact, from this observer's perch I think it could be a probable corporate transaction to lower unit costs and increase the combined business entity's profitability.

Regards,

USA320Pilot

P.S. US Airways recently informed employees -- that employees are banned from identifying themselves as US Airways employees online. Furthermore, employees are prohibited from identifying yourself as a company employee when posting comments on the internet or on other online services.

 

[BoredToDeath]

it could be a probable corporate transaction to lower unit costs and increase the combined business entity's profitability.

USA320Pilot,

I'm no numbers wizkid, so I fail to see how getting rid of the only parts of US Airways that operate in the BLACK could increase the "business entity's profitability".

 

[ClueByFour]

In fact, from this observer's perch I think it could be a probable corporate transaction to lower unit costs and increase the combined business entity's profitability.

I'm under the impression that the three Wholly Owned were the most profitable part of the company when viewed alone. If they are sold, you then find yourself in a "per departure" situation, which can be fatal if loads drop.

It would be foolish to do this (sell all three). Selling ALG and PDT might make some sense once/if PSA gets enough RJ lift, and then let whomever buys the other two handle any remaining turboprop flying.

 

[WSurf]

Please let them sell us, are you kinding! They way we have been treated over the years (Much like a red headed step-child). I can't wait to to be sold. My god, we are just a regional that was doing regional work for another big regional! Come on, 80% of US Airways flying could be done by RJ's!!!! They don't need us! Sell us, contract all the flying out. Let them just do a hand full of Europe and Island flying and thats it.



FREE AT LAST, FREE AT LAST, GOD ALMIGHT WE ARE FREE AT LAST... (Maybe)

 

[BoredToDeath]

P.S. US Airways recently informed employees -- that employees are banned from identifying themselves as US Airways employees online. Furthermore, employees are prohibited from identifying yourself as a company employee when posting comments on the internet or on other online services.

Oh and I almost forgot. Whats with this little P.S. at the bottom of your post. Your the one with the big bright "US Airways plane" for an avitar and "USA320Pilot" for a screen name!?!?

 

[USA320Pilot]

How do people know, without looking at the consolidated statement, if an affilate carrier or a "wholly owned" airline is more profitable?

I sure do not.

Regardless, US Airways has told the SEC and the news media the "wholly owned" airlines are for sale and if it's in the corporations best interest to "spin off" the "wholly owned" airlines, then I believe a deal will proceed, most likely in the not-so-distant future.

Meanwhile, this could be a tactic to get mainline employees attention, just like Stephen Wolf did to US Airways' business partner United Airlines when the company sold Air Wisconsin and then brought it back into the United Express network as an affiliate airline. Wolf did this to get the United employees attention to complete the ESOP.

Will it occur here? Maybe, maybe not...

Regards,

USA320Pilot

P.S. P.S. US Airways recently informed employees -- that employees are banned from identifying themselves as US Airways employees online. Furthermore, employees are prohibited from identifying yourself as a company employee when posting comments on the internet or on other online services.

 

[funguy2]

Dave Siegel has said he wants to have 2 or 3 Express operators presumably to rationalize the product, lower unit costs, and reduce US Airways Group's capital diversion from its core business.

Then why didn't Dave Seigel cancel some contracts with the existing carriers via Bankruptcy court, similar to what UAL is doing?

While I think this is a good idea, it is one which there has been no clear management focus on. If CCY really wanted to have less Express carriers, why did they add Shuttle America and Midway to the group in recent years?

 

[MarkMyWords]

Just a thought here......

What if we did sell off ALG and PDT to Mesa, then Mesa turns around and signs a better lease deal for the aircraft that we have already returned. UAL is still looking for a way to fill the void in IAD created by ACA's departure, so Mesa takes the ALG and PDT assests and utilizes them in IAD. How many aircraft do we still have at ALG and PDT? With nearly 5 RJ/SJ's arriving per month this spring, it wouldn't take long for US to phase that flying out.

So now Mesa owns the 2 wholly ownes and can fly thme in UAL colors and support UA's IAD operation in the NE.

Then by selling a division of the company, DaveX2 puff up their chests and point a boney finger at the mainline employees and say, "OK, what's next? Conceed or we continue to sell off parts of the company."

Never know.....I just find that the timing of a lot of these announcements suspect. Mesa withdrawals from the take over of ACA due to governement scrutiny, we have a new plan but it is a big secret, no one wants to hear the plan so we will change it, now we are going to sell assets......hmmm.

Just a thought......

 

[28yearsnojob]

YOur right lets get it over with already.Sell the whole thing , what left of it.

 

[MarkMyWords]

I am not advocating selling anything and I hope you didn't take that as my intention. I was just thinking out loud and trying to see rationalization in an unrationalized environment.

 

[28yearsnojob]

Smartest move dave could make sell them all but one and build up
PSA AND FORGET ABOUT MIDALTANTIC

 

[USA320Pilot]

US Airways will need a small turboprop operation and it's clear Allegheny & Piedmont are being consolidated, the question is what will be the end game? A merger between the two Dash-8 operators, one or both liquidated, or a spin off?

Interestingly, in a Dow Jones article (click here), Susan Carey reported US Airways could sell some regional jet operations that would indicate PSA could be sold, which I believe is likely.

Regards,

USA320Pilot

 

[ClueByFour]

How many jets does PSA actually have now? I suspect that number is very, very low.

Why would anyone want to buy those jets when they can wait on their own deliveries from Bombardier or Embraer, or wait until the possibile liquidation and get them sans any crews and other nasty (from a buyer's standpoint) stuff?

 

[28yearsnojob]

OK SELL PSA ALLEGHENY PIEDMONT AND START MIDATLANTIC CHIP

 

[skyguy25]

As for PSA- they are taking over alot of mainline routes and cities as they are concentrating on their point-to-point operations, which are long over due. ATL, MKE, CLE and several others have been added to PSA's cities served as well as BOS and LGA. They now have 9 jets and are receiving 4 or 5 a month as well as the delivery of the CRJ-700 dual class aircraft the last week of Feb first week of March. The financing is still in place and the deliveries are accelerating to FAA max. CFO of Airways said that PSA was the only profitable sect of the group and that they are placing alot of faith in their operation. IF they can help the whole, i am behind them 100%. I agree to halt MDA, liquidate or consolidate the other 2 and work with what we have. PSA is the least expensive operation in the group, it would not make sense to sell or shut down their operation- they are our LCC if you will. Rename them with their current contracts and new a/c and help this company.