diff --git a/osc/commandline.py b/osc/commandline.py
index 01d20af9..8b9a3841 100644
--- a/osc/commandline.py
+++ b/osc/commandline.py
@@ -3370,9 +3370,6 @@ Please submit there instead, or use --nodevelproject to force direct submission.
     @cmdln.option('-c', '--current-dir', action='store_true',
                         help='place PACKAGE folder in the current directory' \
                              'instead of a PROJECT/PACKAGE directory')
-    @cmdln.option('-o', '--output-dir', metavar='outdir',
-                        help='place package in the specified directory' \
-                             'instead of a PROJECT/PACKAGE directory')
     @cmdln.option('-s', '--source-service-files', action='store_true',
                         help='Run source services.' )
     @cmdln.option('-S', '--server-side-source-service-files', action='store_true',
@@ -3461,13 +3458,9 @@ Please submit there instead, or use --nodevelproject to force direct submission.
             get_source_file(apiurl, project, package, filename, revision=rev, progress_obj=self.download_progress)
 
         elif package:
-            output_dir = None
             if opts.current_dir:
                 project_dir = None
-            if opts.output_dir:
-                project_dir = None
-                output_dir = getTransActPath(os.path.realpath(opts.output_dir))
-            checkout_package(apiurl, project, package, rev, output_dir, expand_link=expand_link, \
+            checkout_package(apiurl, project, package, rev, expand_link=expand_link, \
                              prj_dir=project_dir, service_files = opts.source_service_files, server_service_files=opts.server_side_source_service_files, progress_obj=self.download_progress, size_limit=opts.limit_size, meta=opts.meta)
             print_request_list(apiurl, project, package)
 
diff --git a/osc/core.py b/osc/core.py
index 9ff1c84a..bbcec50b 100644
--- a/osc/core.py
+++ b/osc/core.py
@@ -3976,30 +3976,29 @@ def make_dir(apiurl, project, package, pathname=None, prj_dir=None, package_trac
     #      and should rename this path component by appending '.proj'
     #      and give user a warning message, to discourage such clashes
 
-    path = pathname or getTransActPath(os.path.join(prj_dir, package))
+    pathname = pathname or getTransActPath(os.path.join(prj_dir, package))
+    if is_package_dir(prj_dir):
+        # we want this to become a project directory,
+        # but it already is a package directory.
+        raise oscerr.OscIOError(None, 'checkout_package: package/project clash. Moving myself away not implemented')
 
-    if not pathname:
-        if is_package_dir(prj_dir):
-            # we want this to become a project directory,
-            # but it already is a package directory.
-            raise oscerr.OscIOError(None, 'checkout_package: package/project clash. Moving myself away not implemented')
+    if not is_project_dir(prj_dir):
+        # this directory could exist as a parent direory for one of our earlier
+        # checked out sub-projects. in this case, we still need to initialize it.
+        print statfrmt('A', prj_dir)
+        Project.init_project(apiurl, prj_dir, project, package_tracking)
 
-        if not is_project_dir(prj_dir) and not pathname:
-            # this directory could exist as a parent direory for one of our earlier
-            # checked out sub-projects. in this case, we still need to initialize it.
-            print statfrmt('A', path)
-            Project.init_project(apiurl, prj_dir, project, package_tracking)
-
-    if is_project_dir(path):
+    if is_project_dir(os.path.join(prj_dir, package)):
         # the thing exists, but is a project directory and not a package directory
         # FIXME: this should be a warning message to discourage package/project clashes
         raise oscerr.OscIOError(None, 'checkout_package: package/project clash. Moving project away not implemented')
-    if not os.path.exists(path):
-        print statfrmt('A', path)
-        os.mkdir(path)
+
+    if not os.path.exists(os.path.join(prj_dir, package)):
+        print statfrmt('A', pathname)
+        os.mkdir(os.path.join(prj_dir, package))
 #        os.mkdir(os.path.join(prj_dir, package, store))
 
-    return path
+    return os.path.join(prj_dir, package)
 
 
 def checkout_package(apiurl, project, package,
@@ -4056,6 +4055,9 @@ def checkout_package(apiurl, project, package,
             print "found root of %s at %s" % (oldproj, root_dots)
         prj_dir = root_dots + prj_dir
 
+    if not pathname:
+        pathname = getTransActPath(os.path.join(prj_dir, package))
+
     # before we create directories and stuff, check if the package actually
     # exists
     show_package_meta(apiurl, project, package, meta)
@@ -4077,7 +4079,7 @@ def checkout_package(apiurl, project, package,
     p = Package.init_package(apiurl, project, package, directory, size_limit, meta, progress_obj)
     if isfrozen:
         p.mark_frozen()
-    if conf.config['do_package_tracking'] and not pathname:
+    if conf.config['do_package_tracking']:
         # check if we can re-use an existing project object
         if prj_obj is None:
             prj_obj = Project(prj_dir)