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Midwest CEO gets reamed during Q2 conference call

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maxblast72

Well-known member
Joined
Jun 5, 2006
Posts
931
I have never heard a CEO get hammered as hard as Tim H did during today's earning conference call. He could not provide any numbers for showing how Midwest stand alone business plan would ever bring the shareholder $15 a share, and the analyst (Jamie) would let him bullsh*t his way out of it. The next three analysts questions were all of Airtran variety and that is how the call ended with no further info on Midwest can do.

On a side note, I never realized that 50 seat RJs flown by Skywest could save an airline (I wonder why the majors haven't tried that).
 
maxblast72 said:
I have never heard a CEO get hammered as hard as Tim H did during today's earning conference call. He could not provide any numbers for showing how Midwest stand alone business plan would ever bring the shareholder $15 a share, and the analyst (Jamie) would let him bullsh*t his way out of it. The next three analysts questions were all of Airtran variety and that is how the call ended with no further info on Midwest can do.

On a side note, I never realized that 50 seat RJs flown by Skywest could save an airline (I wonder why the majors haven't tried that).
Click to expand...

He deserves it. He should think about more than just his own executive suite. What ever happened to driving shareholder value???????????
 
Timmy better wise up quick. As Chairman, he could easily become the target of a lawsuit if the shareholders finally have enough of his games.
 
I'd love to see Joe and his henchmen's hostile takeover attempt go down in flames. He and the hedge funds who bought Midwest stock on the takeover offer have been constantly assalting Midwest with PR releases and flooding the MKE market. Maybe someone will launch a hostile takeover on Airtran and send Joe out to pasture.
 
Wow.... That made the NPA conference call look like a walk through candy land... Holly chit the stockholders are pissed... Timmey had absolutly no answers to any of the shareholders questions.. Only that Midwest won't reach thier $1.70 per share goal.. He had no predictions for next quarter let alone next year. I knew the shareholders wanted this deal to go through, but I had no idea they were that pissed............ Noserider. You are right, AAI has been assaulting MEH with press releases.. However, you will notice that none of what AAI has said isn't true. MEH made less money for Q2 2007 then Q2 2006.... MEH has said that there is more value in the stand alone plan, yet, they can't prove that, plus, they are already no making thier own predictions on profits.. Wether you like the hostile takeover or you don't, this is business, and MEH's business plan isn't working. Shareholders want to make money with their investments, and its ovbious that MEH will never bring more value to their shares than what AAI is offering...... But also, don't forgett, before all the bad press releases by AAI started, Timmey and Carol started spouting off becasue AAI lost money in Q4. Timmey and Carol are the ones who started blasting AAI first, now, they are getting their @sses handed to them...... Remember, never start a fight you can't finish. Timmey and Carol did that, and now they can't finish it....
 
maxblast72 said:
I have never heard a CEO get hammered as hard as Tim H did during today's earning conference call. He could not provide any numbers for showing how Midwest stand alone business plan would ever bring the shareholder $15 a share, and the analyst (Jamie) would let him bullsh*t his way out of it. The next three analysts questions were all of Airtran variety and that is how the call ended with no further info on Midwest can do.

On a side note, I never realized that 50 seat RJs flown by Skywest could save an airline (I wonder why the majors haven't tried that).
Click to expand...

bad news today, no doubt, but.....

Jamie is no "analyst". Or was it Todd Lanella (sp?) since thats who dialed in and they decided who would "take the call" as you can clearly hear this. Lightspeed is simply a shareholder barking about this deal so they can make their quick buck. no different than the monthly Octavian press releases stating the same, except this one was with an annoying northeastern accent. The only analyst on the call was the first caller from JP Morgan, I believe. you can also bet as part of the PR war these were possibly plants, turning up the heat.

congrats though on the record profits at AAI. glad they state YOU, the employees, are the reason for it, yet their actions (TA) show this not to be true. aai's stock isn't producing a lot of "value" (if thats simply what midwest is all about, a share price) with its stock heading towards a 52wk low. expect this excuse to you as they explain why they need industry low FO wages and concessions.

good luck lear70, we're all counting on you.
 
Go to finance.yahoo.com and type in MEH. On the next page, you can still listen to the conference previously recorded. I think this will work for a day or two.
 
CitationLover,

Trust me, you are right, FO PAY SUKS here. I don't blame you for not wanting to enter the ranks. And the quick upgrade is a lie. With the new contract, it will only get worse for FO's. Who will support inreases in fo pay, the scabs or the capt's that came here with zero PIC turbine time? Just ask Hobday, the pu$$y that sold FO pay away, oh wait, he is now upgrading I see. Where is the industry standard 2/3 of capt pay? It will never be here.
 
CitationLover said:
good luck lear70, we're all counting on you.
Click to expand...
For what? I wouldn't roll over and sign off on their ideas so they kicked me off the PAC and sent out a highly slanderous blast email to the pilot group naming me specifically for "putting my personal agenda ahead of the interests of the pilot group", although he failed to specify how, nor did he give any good reasons during the conference call the next evening when I confronted him specifically.

Nothing good will come of the pilot contract here until every single one of the people involved with this T.A. are replaced. In my opinion, they're negotiating for a small niche group in the seniority list and selling everyone else down the river.

Whoever talked about upgrade times lengthening has it exactly right. The MEH acquisition will, in all likelihood, only increase that time.
 
Lear70 said:
Whoever talked about upgrade times lengthening has it exactly right. The MEH acquisition will, in all likelihood, only increase that time.
Click to expand...

well mathematically if you have 400 pilots and keep the same a/c order then it appears the upgrade time lengthened by at least 200...

i am sorry to hear they shoved you out of their playpen. good luck on the recall effort.
 
CitationLover said:
well mathematically if you have 400 pilots and keep the same a/c order then it appears the upgrade time lengthened by at least 200...

i am sorry to hear they shoved you out of their playpen. good luck on the recall effort.
Click to expand...
Yes, upgrade times will lengthen for some people, depending on the way the list is integrated.

With a slotted seniority integration, you can go to a straight slot or a percentage slot, then fence them for 3, 4, or 5 years to protect upgrades.

In a straight slot, the #1 MEH F/O would be slotted right behind the #1 AAI F/O, the #2 MEH F/O would be slotted right behind the #2 AAI F/O, and so on and so forth until they got all 200 guys accounted for. This would put 200 MEH pilots at the top 200 of the seniority list and would depress the upgrade expectations of the bottom 600-700 AAI F/O's once the fences ran out - a pretty crappy way to do it unless you're a MEH F/O, then you just got super-senior overnight.

In a percentage slot, the #1 MEH F/O would be slotted right behind the #1 AAI F/O, then the #2 MEH F/O who is #2 of 200 at MEH goes in behind the same percentage seniority-wise as the #2 of 900 AAI F/O, the #7 AAI F/O slot, making the #2 MEH guy #8 on the combined seniority list, and so on until the most junior MEH F/O is under the most junior AAI F/O. This is, by far, the most fair scenario, as it doesn't give a MEH new-hire super-senior bidding status at the top 20% of the combined F/O list overnight, but puts them just as senior or junior with a combined airline as they were pre-merger with equivalent bidding rights for monthly lines, vacation, and base changes.

Either way, fences for 4-5 years or whatever they work out keeps MEH guys upgrading only for their own ranks' attrition (the growth they expected pre-merger) and the AAI guys upgrade with new deliveries (the growth they expected pre-merger) until the fences come down.

In my perfect world, fences stay up long enough to take deliveries of all the aircraft AAI currently has on order. Any orders that are announced AFTER the seniority list is combined become fair game for all pilots to bid once they are delivered on-property.

In this scenario, they'd be using the existing seniority list as it existed on the date the acquisition agreement was signed which means, the longer it takes to get this done, the more pilots here can upgrade, the more that are on the seniority list, and the better off the senior F/O's will be.

Hope that made sense.
 
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the percentage slot seems to me the "fairest".

my understanding then is they would list the bottom MEH FO by name in the agreement and then when he/she upgraded the fence would simply disappear, correct?
 
IF they did it that way, they would probably make a final list, sign off on it, and everyone would know their relative seniority at DOS.

Fences would probably be measured in years rather than by a certain person's upgrade (what happens if that person goes to Southwest?), and would be congruent with the delivery of the last 737 that's currently on the books at DOS.

If they take early deliveries on those aircraft, people upgrade sooner so the fences don't really matter. If they push those deliveries back, the AAI F/O's could miss an upgrade opportunity if the fences come down before they were to upgrade. It would suck for those guys, but there's no "perfect" solution, and that's life.
 
If we don't elect some new NPA leadership, they will probably sell us AAI FOs down the river as they work out the integration.

Looking at the TA they are still trying to polish, they already have shown they
a. couldn't care less about us
b. have a real hard time with math
c. can't tell a concession from a hole in the ground
 
Lear70 said:
IF they did it that way, they would probably make a final list, sign off on it, and everyone would know their relative seniority at DOS.

Fences would probably be measured in years rather than by a certain person's upgrade (what happens if that person goes to Southwest?), and would be congruent with the delivery of the last 737 that's currently on the books at DOS.

If they take early deliveries on those aircraft, people upgrade sooner so the fences don't really matter. If they push those deliveries back, the AAI F/O's could miss an upgrade opportunity if the fences come down before they were to upgrade. It would suck for those guys, but there's no "perfect" solution, and that's life.
Click to expand...

ok just trying to look at it from both sides.....

what if most deliveries get shifted to ATL or MKE, wouldn't one side of the fence be neglected as i imagine most of the immediate future growth would be MKE (since ATL is already established). i would imagine this is an undesirable outcome for the aai pilots (and the current fear selling point of the crappy TA).

thanks for the info again.
 
On Your Six said:
He deserves it. He should think about more than just his own executive suite. What ever happened to driving shareholder value???????????
Click to expand...

It's called a CEO ego. And he can't let go. But the shareholders will eventually prevail.

Geez...MEH can't even frigging produce earnings guidance. The home-town airline can't even get that together...give me a break.
 
Wow... I just listed to the grilling on the conference call. Tim H. gets his feet held to the fire, and he quickly turns to Jell-O:

"Uh, uh, uh..."
"Well, um, uh..."
"Focus on value, um..."
"And and and and and, um..."
"Uh, well, um, uh, can you restate the question?"
"Uh, uh, uh..."
"Focus on value, um..."
"Well, well, well, well, um, uh..."

There's a CEO who is representative of a multimillion dollar pay package. A conference call that restates the past, and offers no insight into the future. What leadership.
 
jetflier said:
When is the official deadline for the merger.
Click to expand...

Aug 10. If no action is taken i would imagine it will simply be extended until next year in conjunction with the BoD election as if they get 3 more (2 actually) elected their candidates would have a majority.

DH106 no question he was bombarded by loud minority shareholders who want to make their quick buck. octavian sends out its press release every month saying the same thing. nothing is stopping air tran from buying Jamie's funds shares right now.
 
DH106 said:
Wow... I just listed to the grilling on the conference call. Tim H. gets his feet held to the fire, and he quickly turns to Jell-O:

"Uh, uh, uh..."
"Well, um, uh..."
"Focus on value, um..."
"And and and and and, um..."
"Uh, well, um, uh, can you restate the question?"
"Uh, uh, uh..."
"Focus on value, um..."
"Well, well, well, well, um, uh..."
Click to expand...

He really didn't say all that, did he???

I know for a fact that CC's are fairly well rehearsed with respect to possible call-in questions. I can't believe he was asked something completely out in left field causing all that studering..I mean, 'cmon!
 

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