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9844
Topic Author
Posts: 194
Joined: Fri Nov 16, 2001 12:36 am

CO Assets

Tue Mar 22, 2005 1:36 am

Ok just inquiring.

If CO had to shed assets what would they be..

So far we hear the 737-500 will be leaving.

I think AirMic might be another assets they could part with.

Anything else?
 
CALMSP
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RE: CO Assets

Tue Mar 22, 2005 1:45 am

MIC? No way....that is too valuable
for us.
 
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American 767
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RE: CO Assets

Tue Mar 22, 2005 1:58 am

Quoting 9844 (Thread starter):
So far we hear the 737-500 will be leaving.

I don't think the 737-500's are leaving so soon. They are still young, the oldest one is only 11 years old. The 300's, yes, those are the ones to leave next now that the MD-80's are gone. The 737-300's are the oldest birds at Continental. Those are, among the aircraft in service with Continental today, the only ones having worn the meatball livery.

Perhaps the Cleveland hub will diminish in size, it will handle more express flights and fewer mainline flights.

Ben Soriano
Brussels Belgium
Ben Soriano
 
CALMSP
Posts: 3307
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RE: CO Assets

Tue Mar 22, 2005 2:06 am

actually.....we just brought a 733 back from the dessert........the 735s are a drain in our pocket books right now...that is why we are trying to add a little more revenue by adding 12 more coach seats by taking out 4 first class seats.
 
hawaijahaz
Posts: 328
Joined: Sat Oct 09, 2004 3:48 am

RE: CO Assets

Tue Mar 22, 2005 2:11 am

hmm... This sounds quite silly but what is AirMic? I'm thinking that it's a small airline that Continental owns?

Thanks,

PG
 
quickmover
Posts: 2201
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RE: CO Assets

Tue Mar 22, 2005 2:11 am

I understand that Continental owns the LGA terminal used by USAir. Wouldn't it make sense to sell that in light of the huge presence they have at EWR?
 
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EA CO AS
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RE: CO Assets

Tue Mar 22, 2005 2:18 am

Well, no one really has the money to buy ANYTHING right now. Everyone is bleeding - just some are bleeding more heavily than others.

The 735 fleet, for the most part, is LEASED; CO cannot sell it because they don't own it. They are, however, preparing to possibly sub-lease them to other airlines as part of more aggressive cost-cutting maneuvers in the event their tentative agreements with the collective bargaining units on the property do not pass.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
A999
Posts: 197
Joined: Thu Mar 18, 2004 6:28 am

RE: CO Assets

Tue Mar 22, 2005 2:46 am

AirMic=Continental Micronesia flying out of Guam.
 
9844
Topic Author
Posts: 194
Joined: Fri Nov 16, 2001 12:36 am

RE: CO Assets

Tue Mar 22, 2005 3:03 am

AirMic is operated out of Guam. point to point routes include Japan, Bali, Taipai,Honolulu, Philippines.Makes money
 
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EA CO AS
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RE: CO Assets

Tue Mar 22, 2005 3:13 am

Makes money


Yes it does - which is precisely why you don't sell it. That's like saying you're hacking off the healthy cells so you can afford to hang onto the cancerous ones.

[Edited 2005-03-21 19:13:48]
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
CALMSP
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RE: CO Assets

Tue Mar 22, 2005 3:22 am

exactly.....we barely compete against anyone out there.......we would be more likely to close CLE before we touch GUM
 
AA737-823
Posts: 5499
Joined: Wed Mar 01, 2000 11:10 am

RE: CO Assets

Tue Mar 22, 2005 3:44 am

I wouldn't be surprised to see the 735s start leaveing en masse. The operating costs are just too high--- note how few Southwest ever took. There's a reason for that.

I disagree, Ben. The 733s might be older, but they're cheaper to operate... move more fannies for very little additional fuel.

Ya'll read up on the various threads covering the "failure" of the 737-600... reason is, these short stubby variants are nearly as heavy (you're cutting away the LIGHTEST components of the airplane in a shrink- the skin! Hence Boeing abandoned the 777-100) and only burn an insignificantly smaller amount of fuel.

And we all know that the yields are NOT such that you can charge based on fewer seats available. SO- holding on to the 733s makes more sense, I think.

I sure hope Conti pulls through- I wasn't worried about them until this week. Come on, unions, do something useful for once. You're gonna lose your paycheck, either voluntarily or through bankruptcy, which will screw the airline and the employees even worse.
 
globaldude
Posts: 173
Joined: Wed Sep 05, 2001 1:10 am

RE: CO Assets

Tue Mar 22, 2005 8:23 am

In a dire situaion CAL can sell Chelsea and 49% stake in Copa as well....two 737 flights a day to PTY hardly makes a connecting hub for CAL in Panama.
 
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EA CO AS
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RE: CO Assets

Tue Mar 22, 2005 8:26 am

CO benefits from having that stake in Copa far more than the limited amount of capital they could expect from the sale of the stake.

And Chelsea? It saves CO a ton. They won't sell it.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
AADC10
Posts: 1511
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RE: CO Assets

Tue Mar 22, 2005 9:14 am

Quoting 9844 (Reply 8):
AirMic is operated out of Guam. point to point routes include Japan, Bali, Taipai,Honolulu, Philippines.Makes money



Quoting EA CO AS (Reply 9):
Makes money

Yes it does - which is precisely why you don't sell it. That's like saying you're hacking off the healthy cells so you can afford to hang onto the cancerous ones.

Gee, maybe they should keep AirMic and sell the rest of CO.
 
ramerinianair
Posts: 1452
Joined: Tue Nov 11, 2003 6:03 am

RE: CO Assets

Tue Mar 22, 2005 12:28 pm

How did CO end up with the Title to the USAir Building at LGA??
Thanks,
Steven
W N = my Worst Nightmare!!!!!
 
toltommy
Posts: 2793
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RE: CO Assets

Tue Mar 22, 2005 12:32 pm

The USAirways Terminal at LGA was under construction to be the Eastern Terminal. Both EA and CO were owned by the same holding group, Texas Air. CO didn't need the building due to plans at EWR, so it was subleased to US. Texas Air was later renamed CO Holdings.
A300/A310/A319/A320/A321/A332/A333 / 707/712/727/732/733/734/735/738/739/752/753
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DeltaMIA
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RE: CO Assets

Tue Mar 22, 2005 1:31 pm

Quoting Quickmover (Reply 5):
I understand that Continental owns the LGA terminal used by USAir. Wouldn't it make sense to sell that in light of the huge presence they have at EWR?

Who would buy it? The current tenant doesn't exactly have the cash on hand to be investing in real estate. Maybe if US decides to stop using the terminal, by choice or some catostrophic event, then CO would consider selling it (to the Port Authority would be my only guess). Until then I am sure they are content on getting lease payments for it. Without US, DL would be more than happy to move over there, but as long as the cost isn't too high.
It's a big building with patients, but that's not important right now.
 
COSPN
Posts: 1830
Joined: Fri Oct 12, 2001 6:33 am

RE: CO Assets

Tue Mar 22, 2005 4:40 pm

Thanks CAL MSP....

We at Airmike dont want to be sold..???

Not Much to sell anyway....Just Slots at NRT not worth as much as before...

Domestic US is the looser,..International and Airmike make Money
 
masseybrown
Posts: 5547
Joined: Wed Dec 11, 2002 2:40 pm

RE: CO Assets

Wed Mar 23, 2005 12:09 am

The quandry over what assets to sell reminds me of discussions a couple years ago of what routes US Airways should sell or close. At a time when EVERY route was losing money, it was easily decided that none of them could possibly be sold, they were all too valuable.

When it comes to survival, it's all for sale.
 
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EA CO AS
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RE: CO Assets

Wed Mar 23, 2005 1:15 am

The USAirways Terminal at LGA was under construction to be the Eastern Terminal.

Slight correction - it had already been built and was the Eastern Air Shuttle terminal. EA's mainline ops were still in the CTB, but all shuttle ops were run from the newer shuttle terminal that US now occupies.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
FlyHoss
Posts: 534
Joined: Wed Feb 02, 2005 12:20 pm

RE: CO Assets

Wed Mar 23, 2005 1:59 am

Why sell (an asset) at all? Just use those assets as collateral for loans, as was done with Air Mike / CMI (CS) during the last bankruptcy ($300 million from GE). CO does have assets and has other means available to raise cash, but doesn't want to do so right now, as part of convincing the unions that the company is in a "severe cash crisis" (according to a recent video to the employees).
A little bit louder now, a lil bit louder now...
 
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EA CO AS
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RE: CO Assets

Wed Mar 23, 2005 2:28 am

Actually, since the vast majority of CO's fleet is leased, the company has very little they own and could leverage to raise cash like UA did with their EETCs.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group

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