wr_schwab
Aug 23, 04, 8:48 pm
My applogizes to anyone from the Bulletin of Atomic Scientists for borrowing their "clock", but I can't think of a better metaphore for US's current situation.
The clock is currently set at 3 minutes to midnight. If midnight actually strikes (and I really hope it never happens) US has permanently ceased operations.
I am setting the clock at this time time due to several factors that have been reported by various news agencies.
The first and most recently is the breakdown of talks between the pilots and management. As long as the two sides are talking there is hope progress can be made.
US went on the offensive on 8/23/04 with the offical announcement of a focus city FLL and international gateway to the carribbean and latin america. Source (http://www.usair.com/about/press/nw_04_0823.htm)
On 8/20/04 S&P cut US's credit rating to CCC - Source (http://cbs.marketwatch.com/news/story.asp?guid=%7BBD716CB4-CF97-41A3-A667-B51675C9DBC5%7D&siteid=google&dist=google) This means they feel US dependent upon favorable business, financial, and economic conditions to meet its financial commitments. I believe this was the third time this year their credit has been downgraded.
On 8/19/04 Robert Roach, of vice president of IAM said that the union would help the company save money but would not reopen the contracts. Source (http://www.nytimes.com/2004/08/19/business/19air.html)
Based upon everything that is being reported in the news it looks like they are at the beginning of a self fullfilling prophesy. The more talk of bankruptcy the fewer people that will make any long term plans to fly on the airline. The fewer people flying on the airline the greater the chance of bankruptcy.
If they do not get their house in order by 9/30, I think Chapter 7 is probably more likely then Chapter 11. If they do get all of their ducks in a row, and I may be reading way too much between the lines of Bronner, but
In the Forbes article quoted in this thread (http://www.flyertalk.com/forum/showthread.php?t=347644)
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.
I think he might be willing to let RSA bail them out IF they get the rest of the company in order. After all the greater the risk, the greater possible reward. Based on what I've read in various articles on him, he seems like enough of a radical to do something like this. Maybe it's just wishful thinking, or the fact I ENJOY FLYING US!!! and don't want to start over with another airline.
After attending Roachfest I am convinced that at least the E-commerce and marketing groups, given enough time could help put together something to be seen. The pricing group, well lets just say the E bucket mess they created tells me they need to look at everything as a coherent system and not individual pieces. Once they do that everything should start falling into place.
It is 3 minutes to midnight, there is still time to save US. The last couple of minutes are slowly ticking away and time is running out. It seems like everyone is sitting on the sidelines and the ball is in play. As long as both sides are willing to talk and work together there is hope, and with hope the possibilities are endless.
Hope is a state of mind, not of the world. Hope, in this deep and powerful sense, is not the same as joy that things are going well, or willingness to invest in enterprises that are obviously heading for success, but rather an ability to work for something because it is good. Vaclav Havel
The clock is currently set at 3 minutes to midnight. If midnight actually strikes (and I really hope it never happens) US has permanently ceased operations.
I am setting the clock at this time time due to several factors that have been reported by various news agencies.
The first and most recently is the breakdown of talks between the pilots and management. As long as the two sides are talking there is hope progress can be made.
US went on the offensive on 8/23/04 with the offical announcement of a focus city FLL and international gateway to the carribbean and latin america. Source (http://www.usair.com/about/press/nw_04_0823.htm)
On 8/20/04 S&P cut US's credit rating to CCC - Source (http://cbs.marketwatch.com/news/story.asp?guid=%7BBD716CB4-CF97-41A3-A667-B51675C9DBC5%7D&siteid=google&dist=google) This means they feel US dependent upon favorable business, financial, and economic conditions to meet its financial commitments. I believe this was the third time this year their credit has been downgraded.
On 8/19/04 Robert Roach, of vice president of IAM said that the union would help the company save money but would not reopen the contracts. Source (http://www.nytimes.com/2004/08/19/business/19air.html)
Based upon everything that is being reported in the news it looks like they are at the beginning of a self fullfilling prophesy. The more talk of bankruptcy the fewer people that will make any long term plans to fly on the airline. The fewer people flying on the airline the greater the chance of bankruptcy.
If they do not get their house in order by 9/30, I think Chapter 7 is probably more likely then Chapter 11. If they do get all of their ducks in a row, and I may be reading way too much between the lines of Bronner, but
In the Forbes article quoted in this thread (http://www.flyertalk.com/forum/showthread.php?t=347644)
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.
I think he might be willing to let RSA bail them out IF they get the rest of the company in order. After all the greater the risk, the greater possible reward. Based on what I've read in various articles on him, he seems like enough of a radical to do something like this. Maybe it's just wishful thinking, or the fact I ENJOY FLYING US!!! and don't want to start over with another airline.
After attending Roachfest I am convinced that at least the E-commerce and marketing groups, given enough time could help put together something to be seen. The pricing group, well lets just say the E bucket mess they created tells me they need to look at everything as a coherent system and not individual pieces. Once they do that everything should start falling into place.
It is 3 minutes to midnight, there is still time to save US. The last couple of minutes are slowly ticking away and time is running out. It seems like everyone is sitting on the sidelines and the ball is in play. As long as both sides are willing to talk and work together there is hope, and with hope the possibilities are endless.
Hope is a state of mind, not of the world. Hope, in this deep and powerful sense, is not the same as joy that things are going well, or willingness to invest in enterprises that are obviously heading for success, but rather an ability to work for something because it is good. Vaclav Havel