PHXFLYR said:
Green,
I wouldn't be so quick to spout off that AWA is the stronger airline financially. Sure we made a profit last quarter, but that was because of our fuel hedge. Absent that we would have posted a $10 million dollar loss. Even though our yields and loads have increased considerably over the last several quarters I think from a financial point of view the company is just treading water, and as such we are all just 'whistling while walking past the grave yard." With that said ,I think what we ARE bringing to the merger is management "talent" (an oxymoron if I ever heard one !

) and access to credit;both of which are in extremely short supply at USAir . But to base your argument on us being the financially stronger of the two? I don't think so...
PHXFLYR
PHXFLYR,
I think you are starting to believe Parker's (the real one) speeches lately. Just two months ago he was saying that we were no where near bankruptcy and he had plenty of access to the financial markets for cash if we got into a crunch later in the year. He clearly needs to paint a dire picture at this point in order to get the ATSB and the Court to approve his merger.
Don't write off our profit just because it was based on fuel hedges. Southwest would have lost a significant amount of money if it weren't for their fuel hedges.
I would agree that we aren't in the best of financial shape, but I don't think we are as close to bankruptcy as Parker claims.
Our cash position has actually been building over the first six months. It doesn't matter that this is happening due to fuel hedges. We have more cash than we owe on our ATSB secured loan. USAir has significantly less cash than they owe on their loan. This balance sheet difference is substantial.
Would we be bankrupt in six months? Only Parker and his team have access to the books. Let's let our investment bankers determine if he is correct or not before you buy his line.
The recent statements by Parker are so opposed to what he has said in the past that you must question his motives.
As for the Doug Parker guy on this board. He's an ass to suggest a staple or anything unfair. He's no different though than the furloughed guys on here claiming some sort of career expectation to be in the top 5% in the next 5-10 years.
We need a fair and equitable list with fences. We have to all be able to work together when the dust settles. The only way this is going to happen is if we all sit back and let our merger committee's and/or and arbitrator work out a new list.
Who knows, maybe Southwest will offer a billion of their cash up for gates and planes and scuttle the deal. PLEASE Southwest, help us!