ouboy79
Posts: 4111
Joined: Sun Nov 18, 2001 1:48 pm

US Airways House Cleaning - CFO Gone! :)

Tue May 04, 2004 10:53 am

Good Ol' Neal Cohen finally is gone. Doc Bronner is continuing with the house cleaning...this move will be welcomed greatly by the unions. Now just Ben Baldenza and a few others need to go.

http://biz.yahoo.com/rc/040503/ba_airlines_usairways_cfo_2.html

Dave Davis will replace him. Prior to coming to US Airways in 2002...he was with Budget, Delta, and Northwest.

http://biz.yahoo.com/prnews/040503/dcm088_1.html
 
freshlove1
Posts: 1245
Joined: Thu Jan 15, 2004 1:38 pm

RE: US Airways House Cleaning - CFO Gone! :)

Tue May 04, 2004 12:27 pm

The turnaround is on, get rid of the upper people who put US in the position, hire better people with a sound business plan and lets get this thing rolling again like it was back in 1999/2000 I believe, but not exact, when US made a crazy amount of money. Profitibility is definatly in sight and I believe US will be there shortly
 
WMUPilot
Posts: 1428
Joined: Thu Jan 30, 2003 2:48 am

RE: US Airways House Cleaning - CFO Gone! :)

Tue May 04, 2004 1:11 pm

Not wait for the nay sayers to come in and say that this is the end of USAirways....

Good to see the virus is being fought and the good taking it's place. In my opinion this is something that needed to be done some time ago.
JetBlue - Bringing humanity back to air travel
 
rjpieces
Posts: 6849
Joined: Mon Nov 24, 2003 8:58 am

RE: US Airways House Cleaning - CFO Gone! :)

Tue May 04, 2004 1:14 pm

He was expected to leave. He would have lost a load of money if he stayed on.
"Millions long for immortality who do not know what to do with themselves on a rainy Sunday afternoon"
 
StevenUhl777
Posts: 3281
Joined: Sun Jul 08, 2001 11:02 am

RE: US Airways House Cleaning - CFO Gone! :)

Tue May 04, 2004 1:46 pm

A good strategy if you look at it from Bronner's worldview:

Unions hate the management and made a compelling enough case. Fine. He asks Siegel and Cohen (and others) to leave. With them gone, now the pressure gets put right back on the unions: more pay cuts/productivity gains or else. He's eliminating the biggest argument the unions have made about not making further cuts.
And the winner for best actress is....REESE WITHERSPOON for 'Walk the Line'!!!!!!!!
 
Logos
Posts: 607
Joined: Mon Jan 24, 2000 10:47 pm

RE: US Airways House Cleaning - CFO Gone! :)

Tue May 04, 2004 11:56 pm

lets get this thing rolling again like it was back in 1999/2000 I believe, but not exact, when US made a crazy amount of money. Profitibility is definatly in sight and I believe US will be there shortly

Unfortunately, it's not that easy. The main issues that US faces are the same as yesterday and they are labor cost & productivity. A new CFO does, as Steven pointed out, call the unions' bluff, but it does not magically produce the needed concessions.

A bunch of dot coms made a "crazy amount of money" in 1999 as well. Most of them no longer exist.

Cheers,
Dave in Orlando
Too many types flown to list
 
ScottB
Posts: 5447
Joined: Fri Jul 28, 2000 1:25 am

RE: US Airways House Cleaning - CFO Gone! :)

Wed May 05, 2004 12:54 am

I wouldn't exactly call this "house cleaning" -- Cohen had a provision in his contract allowing him to leave with a significant severance package; I believe that provision was tied to Siegel's departure. The subject actually came up in the earnings call last week (is Cohen going to leave?) and Lakefield danced around the subject at that time; the lack of a direct "no" at the time was a clear signal to me that Cohen was going to depart the company and take his golden parachute.

Look, unless the company's operation is revamped and costs are brought down through improved productivity and utilization, as well as some sort of additional savings from labor, this is little more than rearranging the deck chairs on the Titanic. The "new plans" announced by Lakefield in the last weeks are no different from what Siegel had been planning before his departure.

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