General Lee, Spin This.......

[AV8700]

What kind of affect will this have on ASA and/or Comair?

Skip Barnett announced today that he is leaving Sept 1

 

[FL000]

What kind of affect will this have on ASA and/or Comair?

I just typed out a lengthy reply, but it got zapped. In summary, don't worry about your class. You are still needed, and then some.

 

[jetflyer]

Anyone know:CAN COMAIR or ASA be SOLD/IPO'd after Delta enters BANKRUPTCY?????

Jet

 

[Mikes Apartment]

Jet,


Look at USAir. Did they have to sell Piedmont or Allegahny? No. Did they sell MDA? Yes. To get cash and get rid of debt. Comair and ASA will be sold to increase some liquidity and get rid of debt. Some of that liquidity will probably be used to pay off some creditors also I bet. Mesa will get Comair and Skywest will get ASA, and all of the pilots will get the shaft. Peace out.

 

[jetflyer]

Thank you Mike,

So MDA was sold while US Airways was in BK. I didn't know that.

That gives me hope.

Jet

 

[G4G5]

This doesn't hurt DAL all that much. What it does it place an extreme amount of pressure on CAL and UAL.

DAL can go into CH11 along with NWA and reorganize under the existing laws. The key to any BK filing is to have exit financing in place. This is where AMR and CAL have ot be careful. You don't want to be the last one left (not going CH11) because their are very few major banks willing to finance a CH11 airline and even fewer willing to finance two.

Most major banks will align with their FF partners for survival. AMEX-DAL AA-Citi. This is where the problem is. UAL had BankOne as a FF partner, CAL has Chase. While with the advent of the big bank mergers JPMorgan Chase and Bankone are now all the same. JPMorgan will have to make a decision, they will not go to bed with both.

Their creditors are in essence a lot of the same players, those players will now have to choose who lives and who doesn't. They will have no interest in supporting 3 CH11 airlines for an additional 3 plus years. Tremendous pressure will be based upon the financial soundness of their exit plans, so far UAL has impressed no one with thier exit plans.

Three years is a long time, now as others begin to enter CH11 the presure will be on UAL to exit. They will have to exit first and operate outside CH11 protection while the others operate under CH11 (the shoe is on the other foot). The problem becomes two fold, if they emerge too quickly or if they can't compete with the other CH11 carriers and have to re enter Ch11, then they will be doing it under the new rules.

 

[AAflyer]

Very wise man. Yes, the government has largely caused the weakness in DAL and NWA. If they had allowed the market to rule, UAL and USAir would likely be gone now and the rest of the airlines stronger. To a certain extent, Delta is being penalized for trying to do the right thing and stay out of BK.

You are also correct in your assesment on the affects on AirTran. Like it or not folks, Delta is going no where. The employees will take more cuts, the airline will shrink a little more, but in the end Delta will survive. And while in BK, it will be able to hurt Airtran.

So is AMR and CAL, what do you think will happen when DAL and NWA go BK?

The sad thing that many do not know about the BK rules being changed, top executives can not doll out retention bonuses without the courts approval and other stipulations. This going BK early is for the greedy execs that will keep their pension, retention bonuses, and RAPE the employees from what little they have left.

Notice to LCC guys and SWA, if all legacy carriers go BK YOUR pay and benefits will be on the chopping block. This is an all out urban assault on airline employees. Let's bury the the LCC, Legacy, my airlines is better than yours garbage and band together, otherwise it will be our demise.

AA

 

[Mikes Apartment]

I want to move on to the legacies some day, because if they're benefits go down, it will get worse over here on the regional side as well. They will always have better pay, and that means we won't get any better. And then Jetblue brings the bar down even lower for us with their crackpot embraer rates. Wow. I can't wait to fly over there, not. Peace out.

 

[miles otoole]

I want to move on to the legacies some day, because if they're benefits go down, it will get worse over here on the regional side as well. They will always have better pay, and that means we won't get any better. And then Jetblue brings the bar down even lower for us with their crackpot embraer rates. Wow. I can't wait to fly over there, not. Peace out.

I guess the same argument can be made regarding Southwest and the legacies in the 70s, 80, and 90s. Now, they are among the highest paid pilots.