Siegel says-SW to kill USAirways

[njcapt]

I'm going to go out on a limb here and say that USAirways CAN survive the upcoming PHL dogfight with Southwest. How ,you might ask .... Simple , put the company back into Chapter 11, install a new management from top to bottom( only young motivated outside the box thinkers need apply..... Harvard MBA not required!!!)

I may be wrong, but I was under the impression that if they declare bankruptcy again they default on the terms of their ATSB loan and would probably have to liquidate.

I had heard that this was why they came out of Bankruptcy so quickly before. This along with their ARC contract being on the verge of being terminated - leaving them unable to handle credit card purchases.

 

[Aplus9]

Nothing new

This sums it up. Quote from USA Today:

US Airways' management in spotlight: As the airline's Philadelphia feud with Southwest emerges into the national spotlight, US Airways' management faces a number of skeptics. Not the least among them is biz travel columnist Joe Brancatelli, who says US Airways CEO Dave Siegel acted too slowly keep the carrier out of financial oblivion. He offers "color commentary" on Siegel's video Web cast Wednesday, when he warned US Airways employees that Southwest was out to "kill" it. Observes Brancatelli: "As the video rolls on, however, you'll be thinking: My god, this speech should have been delivered four years ago. This is all so old news. If Siegel and his acolytes have just realized all this now, it's already too late to save US Airways." On the other side of the coin, Siegel and his supporters say management did all they thought they needed to slash cuts during US Airways' bankruptcy reorganization. But, they say, soaring fuel costs and a slower-than-expected corporate travel rebound have mad more cuts necessary. Posted at 12:25 p.m. ET

Aplus

 

[Hagar17]

Philadelphia, PA, right?

I think SWA is going to get a big surprise in PHL. I mean, especially you current and former USAir guys, PHL is a nightmare airport for any carrier, let alone one that relies on quick turn arounds and fast, efficient operation. There is nothing fast or efficient about PHL.

Having flown in and out of PHL countless time for two different airlines, and having commuted out of there my entire career, I have lost count of the times I have pushed back on time and spent 30-45 mins taxiing to the takeoff runway. Sometimes it takes you 30 mins just to get out of the ramp area, and this is when the wx is perfect. When the wx is even marginally bad, forget it. Waiting in line for 2 or 3 hours is par for the course. Taxiing to the ramp after landing is no better.

PHL has the worst airport layout, the worst ground controllers, the worst security (by far), and the most stubborn and lazy labor force of any major airport in the US. Every single one of my airline pilot friends says PHL is the worst airport in their system.

BTW, I am NOT a SWA hater. I just think they're in for a rude awakening in the City of Brotherly Love.

Hag

 

[Ted Striker]

Re: Philadelphia, PA, right?

and the most stubborn and lazy labor force of any major airport in the US. Hag [/B]

You HAVE been to ATL, right? Come check out the wicked effectiveness and efficiency of ASA's Atlanta operation. I'll pit them against PHL anyday. It would be like watching a slow bicycle race.

 

[canyonblue]

Re: Philadelphia, PA, right?

I think SWA is going to get a big surprise in PHL.

But these go to 11.

 

[T-Bags]

What is "Spinal Tap", Alex...

 

[canyonblue]

Excellent T-bags for a thousand!

 

[dlredline]

I may be wrong, but I was under the impression that if they declare bankruptcy again they default on the terms of their ATSB loan and would probably have to liquidate.

I had heard that this was why they came out of Bankruptcy so quickly before. This along with their ARC contract being on the verge of being terminated - leaving them unable to handle credit card purchases.

NJ,

Both statements are true. A second BK would put them in default of the ATSB loan covenants, although these can be renegotiated with the ATSB, similar to the recent early $250 million prepayment.

However, it is unlikely they'll file Chapter 11 a second time BEFORE the RSA liquidates U. If the ATSB "calls" the loan and USAirways defaults, the government stands first in line for repayment as assets are sold to satisfy the ATSB loan. On the other hand, if the RSA decides to voluntarily liquidate the company, they stand in line first for repayment of
their investment before the governement, thus insuring at least a partial return on their "investment".

Not sure what will happen, but time (and choices) are running out for USAirways.

Red

 

[njcapt]

However, it is unlikely they'll file Chapter 11 a second time BEFORE the RSA liquidates U. If the ATSB "calls" the loan and USAirways defaults, the government stands first in line for repayment as assets are sold to satisfy the ATSB loan. On the other hand, if the RSA decides to voluntarily liquidate the company, they stand in line first for repayment of
their investment before the governement, thus insuring at least a partial return on their "investment".

Red

Good point. The pension folks have one thing on their mind - guarding their investment. If it appears that investment is on the verge of tanking, expect that they will fold the tent and take the circus to another town.

 

[Hagar17]

Re: Re: Philadelphia, PA, right?

But these go to 11.

Touche'. If anyone can make it work, it's Herbie.

Hag