Bluestreak:
Bluestreak asked: "Why would management need relief on the 50/50 ratio for PSA's CRJ-700s? If we're going to be sold, then it is no longer an issue, ALPA has already agreed to a 50/50 ratio on the CRJ700 for the contract carriers."
USA320Pilot answers: The US ALPA Mainline contract requires those specific jets be flown by a participating (J4J) wholly owned carrier. The mainline contract limits the number of affiliate and wholly owned CRJ-700s with a specific contract carve out. If PSA is sold, the company will no longer be a wholly owned airline. Thus, US Airways CRJ-700 delivery positions could only then be flown at Allegheny/Piedmont, which at this point will not occur.
Furthermore, the PSA pilots have not agreed to the 100% APL staffing for the first 25 CRJ-700s, even though they could have had 100% of the first CRJ-200s pilot seats.
Interestingly, the refusal of the PSA pilots to agree to the APL pilots having 100% of the first 25 CRJ-700 positions, could contribute to PSA being "spun off". This is somewhat of a minor point, with the biggest need to sell PSA is to raise liquidity to pay down the loan guarantee.
I have been told by senior management that the company is in discussion with the ATSB to renegotiate the Earnings Before Interest, Tax, Depreciation, Amortization and Rent (EBITDAR) covenants, which take effect June 30. US Airways will maintain the $1 billion minimum unrestricted cash requirement through the second quarter, but the biggest problem is the covenant that limits the ratio of debt-to- cash-flow. This restriction places a cap of 7.5 percent on the ratio of debt to EBITDAR, which US Airways board member Bruce Lakefield told ALPA "is one of the stumbling blocks." By selling non-core assets such as PSA and Allegheny/Piedmont, US Airways can pay down the loan guarantee, help GECAS diversify its US Airways risk, reduce US Airways debt going forward, and keep RJ revenue for the Arlington-based airline. Negotiations are now going on with the ATSB to accomplish this taks with the intent to gain time to fully implement the "Going Forward Plan."
Regards,
USA320Pilot