The Plan for US Airways

[lowecur]

So what's taking JO so long to make an announcement that he is joining with the other regional carriers? It's simple folks, it's my opinion JO is in discussions with an investor to offer his own reorganization plan after 4/15/05.

I'm betting he is talking with the other carriers about how to split up the regional flying, but that's just in case his investor partner gets cold feet. This guy has such a huge ego and is such a control freak, that a three way power struggle is not what he wants at US Airways. He wants to run US Airways and bring Mesa in as the dominant regional carrier. If he brings a billion or more, he just may get his wish.

 

[Swaayze]

Well then he's an idiot. U has exclusivity and will obtain enough financing to emerge with or without him. If he's betting on total control alone then he's jeopardizing MAG and the stockholders will be angry.

 

[blzr]

Yeah!!! What he said!!!

 

[ultrarunner]

AHH, the USAir plan. Now, which plan is this? They have a plan?

TWA BK issues all over again. You watch. Judges and creditors will only let this company die when THEY decide. Nice slow death. U's plan is meaningless, in the grand scheme of things.

 

[lowecur]

Well then he's an idiot. U has exclusivity and will obtain enough financing to emerge with or without him. If he's betting on total control alone then he's jeopardizing MAG and the stockholders will be angry.

From what I've read, the exclusivity ends on April 15th, when the judge has said he will accept reorganization plans from outside the company. What is MAG?

 

[cl65capt]

What is MAG?

MAG= Mesa Air Group

 

[CitationLover]

What is MAG?

MAG is the arm of the antichrist himself.....JO and his fire breathing 15 motorcycles.

 

[Swaayze]

U will have the money when it's required. $100 million is nothing to some people. Will it happen by 4/15? Who knows, if not they'll just get another extension. Creditors are more than willing to extend when it keeps alive the dream of seeing their previous monies again.

And I don't know why, but now they're running a newhire class for MidAtlantic pilots in a couple of weeks. Last rumor I heard very recently is that they were overstaffed by 70. Things that make you go....hmmmm.

 

[dirkdigler]

Here's my thoughts on US Airways situation...

1) US Airways has historically always had a posture of taking "me too" strategy in their business planning. Examples: the Tomato Jet that they tried to launch way back when, their failure to capture the regional market (that's really bad when the very nature of the company's business is regional,) especially when their leaders said they wanted to see how it was going to work for other airlines before making their decision, while this whole RJ market was exploding, etc., to name a few.

2) US Airways lacks leadership who has good long term vision, who can identify niche market and recognizes that niches are not constant but always evolving. Of course, it requires an ability to identify such talent. Hiring celebrity or good-ol'-boys-club execs was the worst thing they have done to themselves especially when the company was at such critical juncture.

3) It makes too many of repeated mistakes. Fort Lauderdale situation is a good example.

3) I think everyone would probably agree that the math has to start working at some point. Can't keep taking money from outside. I just can't realistically see that happening in reasonable amount of time. Even if it manages to turn itself around and even make some money at a point, the company has inherent flaws in that i) it's business is still regional in nature, ii) it's business plan still is "me-too" in nature and iii) it lacks leadership who has good long term vision, who has ability to think "outside the mold" and who has balls to implement that vision.

OK. Now it's all off my chest.....

 

[DDpaysoff]

The title of this thread is an oxymoron. 160 airlines have entered ch.11, two have survived. Do you think this managment team is more capable then the other 158? Good luck.

 

[Thunderchief]

MAG is the arm of the antichrist himself.....JO and his fire breathing 15 motorcycles.

That is the definition I have too...

 

[Freddie Spencer]

Hey lowecur,

Need an insurance quote for Chevy Suburban -05 4wd, 30k/year, no tickets. Hopefully you can get back to me ASAP, or I'll have go back to my old insurance salesman.

Thanks,

 

[Dizel8]

Plan? There actually is a plan a plan for U? Wow!

 

[lowecur]

Hey lowecur,

Need an insurance quote for Chevy Suburban -05 4wd, 30k/year, no tickets. Hopefully you can get back to me ASAP, or I'll have go back to my old insurance salesman.

Thanks,

No charge, just a couple of mouthfuls.

 

[WMUSIGPI]

The title of this thread is an oxymoron. 160 airlines have entered ch.11, two have survived. Do you think this managment team is more capable then the other 158? Good luck.

are the two Continental and America West?

 

[BeCareful!]

U filed to extend the exclusivity period through 5/31/05.

"BACK, Jhonny O, BACK!!!!!!!"

For those who say U has no plan, I disagree. Hammer labor costs, whipsaw like never before, and alter but not destroy your route structure....it's a plan. I'm not saying it's the best possible plan, but I like it better than SONG, TED, and the wait-for-your-competitor-to-tank plan, which doesn't appear to be working so well for UAL and DAL.