Article says US Airways has thinnest cash position of any major airline

[Old PSA]

I don't think US has any assets left to sell. Everything is mortgaged to the hilt, even the slots at LGA and DCA.

So, US enters Ch.11 bankruptcy and Republic keeps the slots they bought at LGA and DCA when they bought Mid-Atlantic. Republic then "cherry picks" the routes they think will make money and fly them as Frontier or someone else. They have the aircraft and the cash stream from other airlines they fly for to keep going while they start up. The heart of the US system East is broken and Tempe can't figure out what to do and no one wants to buy the airline, only pickup the pieces. The creditors decide to cut their losses. Airplanes are repo and Ch 7 is right behind it. In the middle of all this, the name calling starts between the unions and the company.

The vultures are already starting to gather. The creditors are starting to count the money and wait to jump. Tempe has gone just about as far as they can generating cash, now it's time to make it or break it. I think most of us think it's already broken. It just a question of who pulls the trigger. Wait, in the distance I see a man on a white horse riding to save an industry. No, I'm wrong, that was the finance and auto industries. My mistake, the airlines aren't on his list. The remains of the air transportation industry will eventually be sold to other countries like most of America.

 

[freedom]

I don't think US has any assets left to sell. Everything is mortgaged to the hilt, even the slots at LGA and DCA.

{so on and so forth }

My mistake, the airlines aren't on his list. The remains of the air transportation industry will eventually be sold to other countries like most of America.

The goverment will only save us if we get their attention ... As for the "remains" of us airways ... those planes can only leave if we ALLOW them to leave ....

 

[Dog Wonder]

Why would the government save any individual airline?

 

[freedom]

Why would the government save any individual airline?

because we got the chips baby! ...

 

[JAMAKE1]

The goverment will only save us if we get their attention ...

Mmm Hmmm. Just like they did with Braniff, Eastern, and Pan Am. <_<

 

[freedom]

Mmm Hmmm. Just like they did with Braniff, Eastern, and Pan Am. <_<

i'm sorry , who are they ? that's right , they just went into a coner and died quitely ... no one remembers them except for a few wishfull people ...

The fate of those airlines can be ours too , if that's what you want ....

 

[FutureUScapt]

Why would the government save any individual airline?

Maybe they would be considered TOO BIG too fail

 

[oscarjazz]

Why would the government save any individual airline?

Since every other carrier has reduced capacity, the industry has the ability to absorb the loss of LCC in a very short time. Consolidation down to 2 or 3 carriers is inevitable. At that time, each of the remaining carriers will probably be too big to fail. LCC is only a small percent of total market share now.

This is why the Delta pilots decided to make this merger work. Get big or get eaten.

 

[RowUnderDCA]

Sell most of DCA-LGA-BOS to AMR... no employees or aircraft... for whatever they are worth after liens.

Spin-off the USAirways name, Airbus and Embraer leases, PHL and PHX leases to NK in a structured public offering. Re-position USAirway as an Ryan Air allied carrier with some SA and Europe services and Asia potential.

Operate CLT with Boeings, under the Piedmont name, remaining in Star and make a go for UAL financed by Boeing in exchange for a big order of aircraft to replace the aging UAL and LCC/CLT fleet.

 

[US1YFARE]

because we got the chips baby! ...

Sun Chips maybe

 

[usa1]

On the other hand, those three signs in combination often tell of darker days to come. Indeed, US Airways has already seen the inside of a bankruptcy court twice, and Freddie Mac is limping along only after having been bailed out by Uncle Sam.

If a company is in debt, doesn't have enough assets to borrow against, and it isn't earning profits, then it's really only a matter of time before its debt holders get tired of financing its business. That's especially true now.

http://www.fool.com/investing/value/2009/0...ut-to-fail.aspx

 

[usa1]

ANALYST TAKE: JP Morgan analyst Jamie Baker compared the airlines' cash-raising options to the choices available in a pantry, and said AMR's pantry is still well-stocked. "Unlike the pantry at USAirways, which we consider bare, and the pantry at United, which is stocked with canned goods long past their expiration date.

http://www.forbes.com/feeds/ap/2009/07/17/ap6667601.html

It may be that some of the TARP funds will make it to carriers that cannot survive on their own. The risk of huge lay-offs could force the government's hand.

http://www.dailyfinance.com/2009/07/13/fat...ire-by-the-day/

 

[Bear96]

Deleted. [Oops - somehow posted in wrong thread.]

 

[fudgerunyard]

http://www.forbes.com/feeds/ap/2009/07/17/ap6667601.html



http://www.dailyfinance.com/2009/07/13/fat...ire-by-the-day/

By most all accounts, LCC is in the most dire straits of all the Legacy carriers, and has little, if anything, left to leverage as collateral...with the present cash-burn, what options does LCC truly have left...?

I would assume Ch. 11 is possible, but i'm not sure the creditors could get squeezed any more after having gone thru it twice in only 8 years...and we all know labor has been decimated, so no help there...what viable options does LCC truly have other than straight to Ch. 7? Other than pleading with another carrier to buy them out or merge, i fail to see a good outcome.

 

[beachboy]

They come back to us for one thing...screw em! This place doesn't deserve to survive if they even try and I have the sneaking suspicion they know it. Hey, bring it on baby but you can't wring water out of a dry rock.