How US Air was saved.....

[Traderd]

They are still a major, right?

http://www.thestreet.com/stocks/transportation/10275186.html

 

[Resume Writer]

Major status is defined by revenues of $1 billion or more, so yes, they are still a major.

 

[Redtailer]

Just one problem...

USAirways was not saved!!!

They died and were bought out by AWA. The surviving entity is the NEW USAirways because the CEO wanted the name and so they kept it, but make no mistake this was an acquistion NOT a merger.

USAirways is no more saved than TWA, the only difference being their pilots have a chance at a fair integration..

 

[sonny320]

USAirways was not saved!!!

They died and were bought out by AWA. The surviving entity is the NEW USAirways because the CEO wanted the name and so they kept it, but make no mistake this was an acquistion NOT a merger.

USAirways is no more saved than TWA, the only difference being their pilots have a chance at a fair integration..

FYI: AWA did not "buy" USAirways. Several outside investors put in millions. Because of this it benefited both airlines.

 

[Hawker dude]

Don't forget

the US government threw a bunch of cash in both their directions and they still haven't paid it back.

 

[DustyBottoms]

FYI: AWA did not "buy" USAirways. Several outside investors put in millions. Because of this it benefited both airlines.

Right! HP did not buy US.
America West was making money and expanding. US AIR was losing money and shrinking... and very close to liquidating. HP saw an opportunity to expand quickly, but didn't have to cash to buy US (let alone the cash to buy much of anything). Parker and co. approached investors to put money into a new, stronger, combined airline. So US was not bought by HP, but HP definitely saved US.

.....not this thread again

 

[FurloughedTwice]

Do the Air Wisconsin guys get DOH? Just kidding, I couldn't resist!!

 

[Redtailer]

Check ANY SEC filing and it will state that AWA ACQUIRED USAirways..

The whole merger BS is something that the CEO keeps putting out there to make the US guys feel good. Also half the media takes it and run with it too.

Some media outlets did read the filings and have referred to it as an acquistion, they didn't just pull it out of their backsides.


You guys are both correct though in how the deal was structured. However, it does not matter where the money came from or how it was done. The fact is that it was done.

The only reason why the whole financing thing is being thrown out there is because Parker is making it very public how it was done. Does anyone remember how NWA financed buying Republic? How about Business Exp? Even closer to home TWA? Does anyone care?

The answer is no.. Point is that it doesn't matter.

Because of this it benefited both airlines.

Contrary to popular belief, AWA was doing very well without US. The deal so far has not been much more than an anchor to the operation threatening to take down AWA along with US. On the AWA side there are now LESS airframes on the property than prior to the merger. The combined company is now reporting LOSSES where AWA was reporting PROFITS. Orders were put off and expansion plans curbed. So how was this a benefit to take on a company that was DAYS from LIQUIDATION?

 

[MCDU]

USAirways pilots should not get caught up in this discussion. Looking from the outside, America West is in far better shape then it was without this merger, which gave them an Airline and not some 1980 start up that happened to make a few million a few years ago. Delta, Northwest, Continental etc have all been where USAir was.

This is a typical straight out merger. It is part of aviation. Just look how United, American, Delta, Northwest became so big. Not by internal growth, but by seeking mergers.
Some people on this board are really clueless and are very shortsighted.

Peace
Marty in Ohio

 

[PHXFLYR]

Check ANY SEC filing and it will state that AWA ACQUIRED USAirways..

The whole merger BS is something that the CEO keeps putting out there to make the US guys feel good. Also half the media takes it and run with it too.

Some media outlets did read the filings and have referred to it as an acquistion, they didn't just pull it out of their backsides.


You guys are both correct though in how the deal was structured. However, it does not matter where the money came from or how it was done. The fact is that it was done.

The only reason why the whole financing thing is being thrown out there is because Parker is making it very public how it was done. Does anyone remember how NWA financed buying Republic? How about Business Exp? Even closer to home TWA? Does anyone care?

The answer is no.. Point is that it doesn't matter.



Contrary to popular belief, AWA was doing very well without US. The deal so far has not been much more than an anchor to the operation threatening to take down AWA along with US. On the AWA side there are now LESS airframes on the property than prior to the merger. The combined company is now reporting LOSSES where AWA was reporting PROFITS. Orders were put off and expansion plans curbed. So how was this a benefit to take on a company that was DAYS from LIQUIDATION?

That my friend is a question for the ages......


PHXFLYR

 

[Swaayze]

The loans have been paid back IIRC....

 

[Bringupthebird]

Metaphorically, Pollock offered to pick up the tab for lunch with the company. Then he gave them the pilot's credit card to get them on their feet. The company soon maxed it out and left the pilots to take out a second and third mortgage on their career earnings in order to pay the bill.

And he's a hero, why?

 

[FR8mastr]

Don't forget

the US government threw a bunch of cash in both their directions and they still haven't paid it back.

First the Gov. never gave a cent. they did however back the ATSB loans.
Second, the loans have been refinanced relieving the Gov. of any responsiblity.

 

[TWA Dude]

Check ANY SEC filing and it will state that AWA ACQUIRED USAirways...

You are correct about the SEC filing but apparently that's for accounting purposes only. Legally one airline had to be listed as an acquiree. Everybody knows that AWA didn't have enough money to buy anybody. The merger was funded by outside money. Why does this matter? Because for some reason pilots like to define other pilots' worth by the financial condition of their company. Calling it what is it, a merger, more accurately respects all the employees.

 

[Bringupthebird]

The surviving entity is the NEW USAirways because the CEO wanted the name and so they kept it, but make no mistake this was an acquistion NOT a merger.

The fatal flaw IMHO. The cost of placating the US people is far greater than establishing a new airline with a new name, especially since the airline relies on Travelocity, Orbitz, etc. so heavily and price, not brand name, rules the day there.

 

[accinelli]

USAirways was not saved!!!

They died and were bought out by AWA. The surviving entity is the NEW USAirways because the CEO wanted the name and so they kept it, but make no mistake this was an acquistion NOT a merger.

USAirways is no more saved than TWA, the only difference being their pilots have a chance at a fair integration..

Mergers don't work in the airline industry anyway. Just suck it up and be glad that you still have a job.