Remarkably, Tilton has advocated increasing foreign ownership to 49% from
the 25% allowed by congress under existing law. According to newspaper
reports, presently, UAL is getting 50% of it's revenue from the
International routes. Air Canada is investing in the proposed US Airways-
America West merger. A real possibility is that 49% of UAL could wind up in
the hands of a foreign carrier - with the proviso that UAL shed some
International routes for reassignment to George W's airline-buddies in
Houston and Dallas. Remember, International routes are still regulated.
What's appears to be happening here, gentlemen, is a transfer of assets -
30% of which would have probably been assigned to the employees pension
funds if there had been a Chapter 7 liquidation.
An interesting side note: In the anthracite mines around Pittsburgh miners were given a share of the mine in exchange for lower wages. When the mine was played out all the miners got was the mine's shaft. That's how the term 'Getting the Shaft' found its way into the popular lexicon.
In response to the writer's letter below, and the question he poses, I would make an educated guess that there are buyers out there amongst the foreign carriers for the 49% of UAL that Tilton wants to sell off. Logically: the sale of 49% of UAL will fetch a better price if UAL dumps $9-billion in pension liabilities.
An interesting side note: In the anthracite mines around Pittsburgh miners were given a share of the mine in exchange for lower wages. When the mine was played out all the miners got was the mine's shaft. That's how the term 'Getting the Shaft' found its way into the popular lexicon.
In response to the writer's letter below, and the question he poses, I would make an educated guess that there are buyers out there amongst the foreign carriers for the 49% of UAL that Tilton wants to sell off. Logically: the sale of 49% of UAL will fetch a better price if UAL dumps $9-billion in pension liabilities.
My first year with the airlines I was at Yonkers raceway, on a NYC
layover, with a future MEC chairman. I told him the 7th race was fixed. A
young driver was in the same race with the two top drivers of the meet - who
happened to be his brothers. The kid ran last until the stretch - when the
whole field seemed to stop as the younger brother went around the outside of
the pack and won by four lengths. Our future MEC chairman missed out on a
sure bet and picked another horse in the race. The point: Our leader
couldn't spot a fixed race.
Stan Smilan