USAirways Could Become "Bama Air" Says Chairman (Jerk)

[On Your Six]

Note Bronner's quote in the article about potential Chap. 7 Liquidation by Sept. 30th:

"Bronner told the newspaper that he and other investors potentially would be better off if US Airways liquidated, because they could buy its planes, gates and routes at cheap prices, and not have to take on labor contracts. US Airways has higher operating costs than many discount carriers.

"It's a whole lot cheaper for me to have the assets and start over than to have the liabilities," Bronner said. The newspaper said he joked that the remains of US Airways could be used to start a new carrier named "Bama Air" in tribute to his home state of Alabama. But he said liquidation is "what you want to avoid.""


Hmmmmm. Nice guy - a real compassionate comedian... I wouldn't feel safe now as a USAirways employee by any means - this guy is ruthless... Would you want to work for this guy at USAirways #2 (Bama Air)? I wouldn't.... I'll bet you he would make Richard Branson seem super generous in terms of employee pay. Does not look like a good situation at all - seems like he is already strongly considering the so-called "benefits" of liquidation and canceling labor contracts...

 

[blzr]

I totally agree with you about ruthless, but given his past he knows how to make money. He has certainly taken care of all state retirees in Alabama. Unlike Airline CEO's that would have cut and run by now, Bronner has stayed in the game to try and make Airways work. (being a former express guy, I don't agree with solely blaming the labor groups either.) He will not take a loss for the RSA and its retirees. If BAMA AIR ever see's the light of day the pilots would be better off with Bronner at the helm than ANY of the legacy carrier ceo's.

Bottom line, I might be willing to see what his plans would be for a new airline. Sure, no 220k pilot jobs, but at least the prospect of a long term job with a retirement at the end.

As we have all seen, the gravy train has run dry. It totally sux for the pilots and all of labor but the show must go on.

later

 

[LoveGun]

I think Bronner is running out of patience. You can choose a cliche to describe the US Airways unions "they don't have a leg to stand on" "they've got their backs against the wall" "they've been dealt a losing hand." There is really no choice to be made by the unions. Either they give in to management demands or Bronner takes UsAir chapter 7. I wouldn't doubt if Bronner has a plan to buy key assets of U while in Bankrupcy and start a new airline that is just a shadow of US Airways. Bankrupcy gives Bronner the chance to dump the old Boeings , get all new contracts from the various labor groups, and start everyone at day one seniority. I can't say I like Bronner, but he is a very savy businessman.

 

[On Your Six]

Something tells me Bronner will make Ornstein at Mesa look like Jesus Christ. Bronner picked the wrong business if he expected labor to be pushovers... I am not sure how this will pan out because I think the USAirways people are tired of being bashed around and, in the end, the entire industry will suffer because the bar will continue to be lowered and lowered and lowered to satisfy execs like Bronner who need to improve slimmer and slimmer margins in this competitive environment...

I wish all the USAirways people good luck but I don't think things will end up on a positive note because high fuel prices continue to batter everyone and time is running out...

 

[lowecur]

I wouldn't doubt if Bronner has a plan to buy key assets of U while in Bankrupcy and start a new airline that is just a shadow of US Airways. Bankrupcy gives Bronner the chance to dump the old Boeings , get all new contracts from the various labor groups, and start everyone at day one seniority. I can't say I like Bronner, but he is a very savy businessman.

You think he is going to be the only bidder for UAIR property in liquidation? Mr. Bronner will find himself up against Mr. Branson and a few other vultures looking to steal a piece of the pie. The biggest value is the Shuttle, International, Gates/Slots at their various strongholds. Airbus will retake their airplanes and sell or lease to the highest bidder. So will GECAS with the 170's and CRJ's. He's bluffing.

 

[9rj9]

what an azz

Bronner said that if cost-saving pacts could not be reached with employees before Sept. 30, he will not invest more money into the carrier. "Why would you put new money in, if they don't make a deal?" the chairman asked his interviewer, presumably rhetorically. Bronner then pointed out that he and other investors could well be better off if US Airways did indeed liquidate, as they could buy the carrier's aircraft, gates and routes dirt cheap--and wouldn't be belabored with labor contracts. "It's a whole lot cheaper for me to have the assets and start over, than to have the liabilities," he declared. The newspaper said the chairman then enjoyed a witticism on the matter. He joked that the remains of US Airways could be used to start a new carrier named "'Bama Air," in tribute to his home state of Alabama

 

[dlredline]

. . Bottom line, I might be willing to see what his plans would be for a new airline. Sure, no 220k pilot jobs, but at least the prospect of a long term job with a retirement at the end. . . .

Uh, your joking, right?????

. . . The newspaper said the chairman then enjoyed a witticism on the matter. He joked that the remains of US Airways could be used to start a new carrier named "'Bama Air," in tribute to his home state of Alabama . . .

I'm sorry, Bear Bryant, but would you clue me in on what's funny about this whole mess you've put a lot of people in?

 

[On Your Six]

You think he is going to be the only bidder for UAIR property in liquidation? Mr. Bronner will find himself up against Mr. Branson and a few other vultures looking to steal a piece of the pie. The biggest value is the Shuttle, International, Gates/Slots at their various strongholds. Airbus will retake their airplanes and sell or lease to the highest bidder. So will GECAS with the 170's and CRJ's. He's bluffing.

I agree - he's bluffing big time.

He will want to sell the pieces to the highest bidder to recoup some of his investment. The business will be more valuable in pieces without the labor issues. I think he is seriously concerned about his decision to enter this labor-intensive business. You can't just move this airline to China to improve your margins like you can with a factory.... The problem is that things will only get more difficult for USAirways as the slower fall season approaches (fewer vacationers), SWA and Independence Air continue their assaults on USAirways hub cities and as fuel prices remain at record highs...

The unions would have to fork over SERIOUS cash - but that may still not even be good enough because of the other variables at play...

 

[SDF2BUF2MCO]

My brother in law is associated with the AL teacher's pension fund and told me a couple of weeks ago that there was talk about U building a hub in Bama. Apparently the guy heading it up has made comments how Bama is the wave of the future and wants U to be part of it. Aren't rumors great?

 

[climbhappy]

onyoursix quote: Bronner picked the wrong business if he thought labor to be pushovers.

they may not be pushovers, but kenny rogers said, "ya gotta know when to fold 'em."

Organized airline labor has done well in the past. It's over now, a new ballgame.

Look at Jetblue with their 5 year deal. The line of pilots wanting the job you have is around the block and into the next county. the sooner labor realizes that, the better.

 

[Ty Webb]

I didn't realize that he had this degree of brinksmanship in him. He is definitely putting the employees on notice, but I htink it is the machinists union that has held out thus far.


As for his comments regarding buying the assets and starting over, I would take that with a huge grain of salt. Bronner isn;t in the start-up airline business. He is a fund manager. I think those comments ("Bama Air") were probably taken out of context. . . . . A reporter says, "And if you bought the pieces, and put them together, what would you call it?" etc.

To any USAirways employee, though, I am sure it seems like a real slap in the face to read crap like this.

Best of luck, guys. Hope it doesn't come to this.

 

[AlbieF15]

I'll bet anyone who was at Piedmont would gladly split off from U and again work the Carolinas and East Tennesse hard. Everyone laughes at "Bama Air", but the old Southern, Ozark, and Piedmont all had loyal customers. Whatever U morphs into in the future, they need to "brand" their product and try to win back some loyalty from customers. Unions and mgt can fight over the pie, but if everyone prefers flying on other carriers the whole argument in moot.

 

[Heavy Set]

Ridiculous! Great idea having a fund manager from bama try to muscle labor unions into bending to his will... His comments about liquidation and his bama "joke" are pretty insensitive (no surprise)...

 

[Mr. Irrelevant]

If this airline goes into Charpter 7, hw can't sell off the assets!! The RSA is a stockholder, not a debtholder. They get first dibs. No offense blzr, but what the hell does this guy know about running an airline??....... Nothing!!! He runs a Pension Plan. What does he know about operations management??? NADA!! NYET! Lowecur is right! He's a bluffer!!

Mr. I.

 

[OPECJet]

hhmm.. Let's see, I'll lose my job, and my mother may lose some of her retirement. My oh my! What a fun time for the whole family....

 

[lowecur]

What Would Jimmy Buffett Do? Call Warren Buffett.

 

[Rogue5]

I guess this is how bad it is, not hiring street captains, but street CHIEF PILOTS:


Base Chief Pilot; USAirways

Minimum Qualifications:

Must possess an Airline Transport Pilot Certificate. Must be type rated in at least one Multi-Engine Transport Category Aircraft. Must be on the Affected Pilots (APL) or Combined Eligibility (CEL) seniority lists.


Preferred Qualifications:

Previous experience as Chief Pilot or Assistant Chief Pilot. Previous management experience. Minimum three (3) years experience, as a pilot in command of large multi-engine airplane operated under 121, 135 or military equivalent. Two years previous flight operations management/pilot supervision.


Duties:

Assisting the System Chief Pilot in the planning and execution of programs involving personnel, equipment, policies and procedures required of the Flight Department in maintaining Company objective of providing safe, efficient, and profitable air transportation. Ensuring pilot performance, appearance and conduct within regulations, Company standards and policies. Conduct performance reviews. Assisting in the monitoring and administration of daily flight operations and associated activities.

US AIRWAYS IS AN EQUAL OPPORTUNITY EMPLOYER M/F/D/V.

 

[stb]

The position is for...

the MDA, PHL base chief pilot position.
Nobody at MDA wants it because they want time in the plane and be current to basicly leave MDA.
15%-20% of the pilots at MDA have left since March 2004.

Minimum Qualifications:

Must possess an Airline Transport Pilot Certificate. Must be type rated in at least one Multi-Engine Transport Category Aircraft. Must be on the Affected Pilots (APL) or Combined Eligibility (CEL) seniority lists.