USAIRS Break Up?

[FLYMY767]

Looks to me like Wolf at U is trying very hard to cause trouble with ALPA and with almost all its employees groups.

What is Wolf's real motive? Is he trying to convince his board of directors that a break up is the only way out?

Would Wolf profit from a fragmentated U?

Would their be a list of airlines ready to buy lets say; the Shuttle or the PIT or CLT
Hubs?

Did CAL not raise more cash last Friday with a 1.8 Billion shelf offering?...If the money is to buy airplanes then where is the order?

Midway is about to run out of cash. Who gets the DCA and LGA slots?

The airline sector is very quiet on Wall St.
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[ 08-23-2001: Message edited by: FLYMY767 ]

[ 08-23-2001: Message edited by: FLYMY767 ]

[airwiz]

Hey FyMy:
No, I’m not posting from the hereafter, they “delayed” my operation…I love it…Remember just a few months ago, Wolf was telling everyone from Congress to government regulators to Wall Street analysts that if its merger with United Airlines did'nt go through, US Airways could'nt survive on its own and would eventually belly up. The merger, --as most of us brilliant analysts here at CREWSTART RUMOR CENTRAL guessed whould happen from the beginning-- never even got out of the hangar, and so this week the "brains" at US Airways have finally let the rest of us in on their "Plan B" — by which US Airlines will not only survive on its own, but thrive...Oh Brother!! From the looks of it, Wolf has merely sped up his own death prediction by a few years: US Airways now wants to compete in the most viciously competitive part of the air travel market — the low-cost segment now patrolled by the likes of Southwest and JetBlue. US Airways has long carried the highest costs in the industry; Southwest and JetBlue are the lowest-cost, highest-efficiency sharks in the water.

Perhaps US Airways’ prospects wouldn’t look quite so bad if the dummies hadn’t tried this before. In fact, part of the new --Plan B --is cutting back on operations by Metrojet — which it started to "scare" Southwest out of the Southeastern market. Yeah...Steve Wolf is gonna scare Herb Kelleher (at that time)! To save money, Metrojet flies only Boeing 737 planes just like Southwest, and often flies to secondary airports, just like Southwest. US Airways even made a smart leadership move — in a surprising break with tradition — and negotiated special arrangements with the unions in order to lower costs at Metrojet, so it could compete directly against... Southwest.

But now US Airways says Metrojet IS DOING SO BADLY THEY MIGHT KILL IT OFF TO SAVE MONEY...JESUS! If you can't make money with an airline designed especially for the job, what do you think can be achieved with the parent carrier?

Some of what US Airways wants to do, like exchanging larger aircraft for smaller regional jets, makes sense — except that that move comes about a DECADE TOO LATE!!
While United and Delta were spending millions in the 90’s on integrating regional jets into their operations, US Airways was twiddling its thumbs. Now, just after pilots' unions at those two master carriers have walked away with industry-leading contracts, US Airways is telling its pilots to hunch over and fly smaller planes at less pay. Hardly an enticing offer — for the pilots or their unions — and hardly a promising way to slim down an airline that’s long been too bloated to keep its profits above sea level.

Then there’s the plan to find, instead of the "marriage partner" that United was supposed to be, a good friend to set up an alliance with. This EVERYONE ALMOST LAUGH OUT LOUD — not because a partnership wouldn’t help US Airways, but because the carrier, Under Woilf's self-aggrandizing leadership has become less than the sum of its parts. According to analysts, airline CEOs might covet some of US Airways routes, as United did. But they don't have any interest in joining forces as independents and allowing Wolf and his pocketbook-padding cronies to keep running things. In fact, some industry observers are surprised that Wolf, who heavily promoted the merger with United and has presided over a huge drop in the stock price over the last year, hasn't simply quit. (WOULDN'T IT BE GREAT IF THAT IS PLAN “C”!!
But you gotta know that Wolf wont go until he’s siphoned every last buck he can into his Golden Parachute fund. Can you imagine the interest he’s accruing if only half of his United severence was in a Money Market?

best wishes to all from my seat in the doctor's waiting room...and waiting...and waiting..(I think they finally discovered I dont HAVE heart!)

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El wiz

[airwiz]

Hey CO folks....for even more on the continuing Saga of US air, see the post under Galley Gossip and Jumpseat news...you aren't going to believe the numbers...it'll make you like Gordon even more, while wanting to cry for our brethren at USScareways!!

wiz images/icons/mad.gif images/icons/mad.gif

[CO/HNL-IAH]

Did CAL not raise more cash last Friday with a 1.8 Billion shelf offering?...If the money is to buy airplanes then where is the order?

If you're talking about the IPO for COEX, (to be called "Express Jet") the money raised will be used to pay-down, or even eliminate, the debt incurred by the transition to an all-jet fleet.

Since the demise of the UA/USAir merger, wouldn't it be great if they bought USAir instead??

[FLYMY767]

<BLOCKQUOTE><font size="1" face="Arial, Verdana ">quote:<HR>Originally posted by CO/HNL-IAH:
Did CAL not raise more cash last Friday with a 1.8 Billion shelf offering?...If the money is to buy airplanes then where is the order?

If you're talking about the IPO for COEX, (to be called "Express Jet") the money raised will be used to pay-down, or even eliminate, the debt incurred by the transition to an all-jet fleet.

Since the demise of the UA/USAir merger, wouldn't it be great if they bought USAir instead??<HR></BLOCKQUOTE>
Hi HNL/IAH, no I was not referring to that. The IPO money is seperate. So why do we have sooo much cash?

It would be great if we bought anything. We need to grow and we need another 2 U.S. HUBS.
The lastest at Usair is that there are two important stockholders that are suing their own company over the (ceo & co's) benefits from the U/UAL merger. They are getting like $45 million. All that compensation and no merger...I would also sue.

We have been also quoted yesterday as trying to buy Transbrasil. We will see
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[FLYMY767]

BTW with reference to buying Usair. We could only bid for certain assets. The Charlotte Hub, because EWR is to close to the other "U" Hubs, The Shuttle with its slots and facilities at DCA,LGA(The Terminal U currently has belongs to CAL via Eastern and is on lease until 2017) and BOS. Give or take a few gates here and there; ORD,LAX, etc, etc...