Judgement Day approaching fast for UAIR

[lowecur]

Unions refuse to discuss add'l cutbacks with CEO David Siegel. They want him out! Road Show is on hold. He will spend the next few weeks trying to figure out how the company can meet it's financial commitments without the union help. Notorious poor revenues in the industry for the first Q, will put them at risk.

The problems are the three covenants:

1. ATSB Loan - must maintain minimum "Cash" of $1B
2. Quarterly Earnings - through the 2nd Q of 2004, the amount of debt and lease be at least 7.5 times as large as earnings before interest, taxes, depreciation, amortization, and rentals - essentially the airlines cash flow.
3. Each Quarter the company's cash flow must remain above its fixed rental and interest costs.
   [/list=1]
   
   On Dec 18th, Chairman, David Bronner of the Alabama Retirement Pension, said if they cannot get Union help - he will liquidate the company and pay back the Loans, rather than let the company suffer a slow bleed over the next couple of years.
   
   I would assume that Bronner will meet with the Unions and see if they can strike a deal if Siegel goes. If not, I'm afraid UAIR is gone.
   
   http://www.post-gazette.com/pg/04007/258774.stm

 

[AA717driver]

It seems that Bronner will play hard ball faster than Siegel. Bronner has bigger fish to fry. The teachers are restless.TC

 

[Joe Peeoznotz]

Well, what are they going to do with all those 170's they ordered? There goes the EMB stock.

My guess is they sell off some of their prized gates at DCA, LGA, and BOS. They will sell off the left coast, and furlough half the troops. U will be a shell of it's former self, but they will never be liquidated in their entirety.

Bad news for the folks at U, but great news for SWA.

 

[PHXFLYR]

Hey Joseph;


re: "...... U will be a shell of it's former self....... half the employees furloughed......... bad news for U employees ,but great news for SWA........"

That is by far the sickest post I have ever read on this web board. Friendly competition is one thing, but to gloat about personal gains should USAirways fold is a little bit over the top and doesn't reflect favorably on either you or SW, assuming that is who you fly for. So next time, try showing a little compassion for your fellow aviator,OK?

PHXFLYR

 

[General Lee]

That was alittle rough. There are bound to be many many families hurt by this situation out there. I did talk to a USAir Capt and crew in SFO two weeks ago in a common hotel van and he said they were sick and tired of the situation, and that they would not take anymore cuts. He said they hopefully would pull out of this, or rather just "bury us and get it over with." I gulped aloud. It is scary. I keep saying this but it is true----atleast the economy is getting better--because if it was not--a lot more of us would be in dire straits. Good luck to them.

Bye Bye--General Lee

 

[lowecur]

Everyone

Sorry for the way that came out. Surely didn't mean any further bad tidings for U.

 

[lowecur]

Re: lowecur

And we all look forward to your next post with such blissful anticipation.

Gee, Thanks Father, eh I mean Cyclone. Maybe we can meet sometime and have tea, and discuss your next book.

 

[FurloughedAgain]

US Airways is already a shell of its former self. They have furloughed a greater percentage of pilots than any other company in the industry.

As for the slots at LGA and DCA, I dont believe they can be sold as they were used as collateral for the ATSB loan.

 

[Catbird]

Shoot this Festering Horse before they infect anymore pilot groups with the JFJ's Horse Poop. The added benefit will be the loss of Income for the Czars at Alpa National. Would not be surprised if the U MEC formulates a plan in which all W/O's employee's are required to pay a variable percentage of W2 wages to U pilots and other superior U workers to help subsidize the 2nd home or wife "Snukkums" Mink coat. Dancing in the streets in my neighborhood when this steaming pile is shoveled to the gutter. "Compassion for fellow aviators", I'm sure the superior class of aviators at U had that in mind when they formulated a plan to put a 20 year W/O pilot on the street and place a 5 year "Superior class U pilot" in his seat. The pilots at PI/Henson didn't ask to be bought. And sure the hell didn't pay Alpa to formulate a system without negotiation to place themselves on the unemployment line while ignoring Alpa's By Laws and Merger policy. "Compassion for fellow aviators". Keep believing that and you will be unemployed or bagging grocery's unless your the "Superior pilot class" according to Alpa and U.

 

[Joe Peeoznotz]

PHX

Hey Joseph;


re: "...... U will be a shell of it's former self....... half the employees furloughed......... bad news for U employees ,but great news for SWA........"

That is by far the sickest post I have ever read on this web board.

You don't get around much do you? This is a dog eat dog business, and although I support the U people in general, they have been living in a fantasy world for the past 10 years.

Like I said last night, they will try and sell this thing off a piece at a time. Bad for them, but good for others in our business. Some will lose jobs and suffer, while others will gain their jobs and celebrate employment again.

 

[nhbizz]

Boy Catbird,

I know you just setting up flame bait, so I'll bite. You should be "shoveled to the corner" with drivell like that. You talk a tough game about how bad ALPA is, but I can guarantee you like the wages, work rules, rest requirements, etc they negotiate for you despite your bad attitude. Let's see what the RJDC will get you. Leave ALPA and start your own union. Then you won't have that poor self esteem issue hanging over your head. Then you can be the elitist and we can be the poor shlubs envying you.
People may be losing their jobs, have some compassion.

 

[Catbird]

"Start your own Union".

Will do that with the judgments from the courts if justice is achieved.

"Show some compassion, people are losing their job".


Sure will, I'll direct them to the local Jack in the Box. I'll even help them fill out the job application for the midnight shift work. I don't believe they have a "Association" which fabricates and endorses Supersenority.

 

[RUhiring?]

Catbird,

Name one J4J pilot that has taken away a job or a seat at PI/Henson....and name one PI/Henson pilot that has lost his job to a J4J pilot.

 

[Catbird]

RUhiring?- Looking at the fleet reduction so far after Beebe and Pollack had romanced old Duane Worthless with the JFJ's Horse Sh*t and the magical LOA 83 it doesn't take a moron to realize the future. The pilots furloughed most didn't come back to Piedmont with LOA and JFJ's jabbing them in the rear. The reduction in fleet with replacement jets at the JFJ's rear enders at MAG and PSA and the "Super senior class" of pilots at mainline filling the positions. The W/O's at ALG and PDT are history. Worthless and Beebe assured that before he assumed his Throne at the "Bath House" in Herndon. Do the math and read the contract.

 

[LearLove]

Catbird,

Name one J4J pilot that has taken away a job or a seat at PI/Henson....and name one PI/Henson pilot that has lost his job to a J4J pilot.

Brother you are way out of line here man. You need to take the blinders off.

 

[Boeingman]

So if you're one of the member of the ATSB's board and if USAir burns the gov't....anyone taking any bets on UAL's chances of getting the loan?

Of course this is assuming they get their pension quagmire resolved.

Back on track, I think U is finished. These types of press releases and stories drive away business and if they can sell anything they are cutting their revenue side of the house. Besides, I doubt anyone is going to pony up cash for these assets when, shortly, they may buy them for a song during a liquidation proceeding.


http://www.nytimes.com/2004/01/09/b...00&en=8696f95dc7c817b8&ei=5062&partner=GOOGLE

 

[Mugs]

So if you're one of the member of the ATSB's board and if USAir burns the gov't....anyone taking any bets on UAL's chances of getting the loan?

Back on track, I think .....

Regardless of the thread, it is always nice to see that Boeingman usually has UAL in mind. Another year of predictions? Perhaps he will do better than he did last year.

 

[Boeingman]

Regardless of the thread, it is always nice to see that Boeingman usually has UAL in mind. Another year of predictions? Perhaps he will do better than he did last year.

Now you're having difficulty with the differentation between a prediction and a hypothetical question. LOL, must of struck a nerve with you. As it should if you had a shred of concern and/or intelligence. But being the Brain Surgeon that you are.......................

Sorry I have to use such large words that seem to so easily confuse you.

 

[Mugs]

Back on track, I think U is finished

You mean that hypothetically, of course.

 

[satpak77]

visions of 1988 - MIA

what LUV is doing this May with Philly is the same thing Crandall did in MIA in 1988.

Crandall saw that Eastern was already on life support, and AMR determined "system wide" that if EAL shut down, of all areas, MIA would be most wide open.

Delta was too problematic at ATL for Crandall, so in late '88 he announced a new pilot base in MIA, getting the ball rolling in anticipation of the death of EAL (which later happened, AMR is THE US carrier out of MIA).

LUV is no dummy. LUV is likely "getting into position" at Philly (US Air's Main hub) in anticipation of the coming death.

Again, observe that LUV is entering the MAIN HUB of its competitor. Historically, LUV stays out of main hub locations and feeds outlying airports.

LUV has lots of smart people, smart lawyers, smart accountants working for them, the last 30 years has shown that to be true.

On a side note, LUV just signed contracts with 3 national professional Philly sports teams, home base at US Airways main city. How is this possible?

Is Siegel asleep at the wheel?