DC-USCP-UAPE

God forbid, but if US went CH7 - what would happen?

Any chance one of the other biggies would pick up US via a pre-arranged bankrupcy (like AA picked up TWA)? UA is probably too weak, but would be the most logical. I can't image the FAA putting up the same anti-trust concerns that they did before (it's an election year, after all).

Obviously, there are some real assets - the shuttle, overseas slots, certain airport slots, etc... Will these all be sold piecemeal? Will it be an auction? Or will the FAA step in and resell the slots?

One more thought. Ford spun off Visteon (the parts company), so they could offload the expensive union force and purchase from any vendor that can come up with cheaper parts. Airlines tend to be inefficient vertical companies. Any chance US would become 'virtual'? Spin off the mechanics, the baggage handlers, the reservation center, etc., etc.. Each of these companies could then bid on competitor's work. It would be a lot more efficient if you had one company handling all bagage off loading at a small airport, rather than mutliple work forces from multiple airlines. Meanwhile, USAirways, as a virtual company, could persue whatever contracts are most cost effective - giving them the latitude to reduce costs. Any chance of this happening?

Any thoughts?

jimcfsus

I haven't asked this publicly before, though I've pondered this a lot... why can't US legally break the unions, especially the ones that don't want to play along with their wishes? I think this could be the idea the OP has, but hasn't directly come out and said it. Could US just spin those off into another subsidary and either create a new one or bring into it people from the old one that they want (i.e. selectively keep people)?

I'm by no means a business expert, but is there a legal way to dissolve unions? This will create some discussion, I'm sure.

TomBascom

The contracts have language forbidding "alter-ego" business entities and defining the scope of coverage for each union. And bankruptcy laws got a lot tighter on that sort of thing after Lorenzo used them to break the unions back in the 80s.

If it were easy they'd have already done it. As it is they appear to be trying to do the next best thing -- make conditions so unbearable that the workers leave on their own. Which they would probably do in droves if there was any kind of palatable severance package being offered. But management only understands sticks -- carrots don't make it onto their radar.

zrs70

I have a life membership in the US Club. I really hope someone will come along and court me!

TomBascom

As a point of reference -- I believe that when AA picked up TWA they gave TWA lifers 3 years.

zrs70

They gave us two years with the promise that any renewal will be at the reduced elite level ,so long as we don't drop membership.