Bailout Board May Have To Pull Plug On Us

[cavalier]

I still feel in my bones U is finished and why I moved on, if I really didn't feel that way I too would be holding on and praying, but I think even prayers are fruitless at this point. U has no leadership, no vision, nothing remotely in it’s favor and sadly the only true believes are the employees who feel that hope is all they have. The world will still turn but it will spin minus this once great company, it’s time has come and gone.


One small example: I was at a travel agency this morning and asked about how they are handling the U situation. They told me they are booking totally away from U afraid of screwing their customers with U’s dire situation, one small example and one of enough to bury U for good.

 

[funguy2]

Boeing Boy:

Thanks for the update... I have been on vacation, so I am fairly out-of-the-loop on the details...

As for the over-collateralized... That may be true, but its a moot point. For one, the collateral has been agreed upon... And two, UAIRQ cannot operate without the collateralized assets, and they cannot operate without the cash provided by the loan. So, any attempt by the ATSB to collect will result in the company's failure.

I suppose the ATSB/banks could agree to remove a few assets from the collateral, in order to allow US Airways to sell them, but that only furthers the "canibalization" of US Airways... (i.e. if they sell a few slots at LGA, maybe they need a few less airplanes (since transformation plan is centered on LGA), etc, and spiral begins). Once the company begins to sell its assets, I do believe it will be over quickly.

 

[BoeingBoy]

funguy,

Hope you had a good vacation - somewhere other than the southern caribbean....

The other option is that the ATSB continues to let the company dip further into the cash from the loan. What the chances are, I don't know.

Of course, if U can quickly get costs (in relation to revenues) down enough to not need to dip further into the cash than already allowed, and come up with another POR that is creditable, there is a chance (how slim?) that this can be pulled off. I wouldn't personally bet any money on it, though.

Jim

 

[mrman]

They told me they are booking totally away from U afraid of screwing their customers with U’s dire situation, one small example and one of enough to bury U for good.

[post="181004"][/post]​

[/quote]

U already started 'screwing their customers' by charging a fee to talk to a person when booking a ticket

 

[usfliboi]

No different fron the last time. Usiarways will survive!

 

[allegheny1]

Jim

Check out docket nmbr 6 pg 19.

states hard asset value at 800 mil. This does not include any cash accounts
which have also been secured. They sure aren t taking any chances but may
be strangling the avbl cash by to great an amount.

regards

 

[Doc]

UseYour Head:

UseYourHead said: "We can only save ourselves, no one else will. Labor needs to get on board and with the support of creditors we will have another chance to make a go of things. Duh....what has taken everyone so long to figure this out. Chest beating does not cut it...unless of course your one of those looking forward to unemployment."

USA320Pilot comments: Your points are valid. Moreover, the ATSB has agreed to work with US Airways during the bankruptcy proceeding and the airline is likely going to see a huge cost cut initiated next week.

Respectively,

USA320Pilot

[post="180807"][/post]​

I have asked you before and will ask you again how much of a cut should CWA take we make 20 an hour minus our health care and dental amounts to about 900 every two weeke and remember we have no pension and thats not putting into 401k so knuckle head what do you say I would really like you to give me a number how much I think we deserve an answer.............

 

[usfliboi]

You know, this is a mute point. All of our employees deserve to be the best paid in the industry. Reality is this company and soon most carriers arent gonna be able to afford high pay . I mean its that simple. Im sure your one heck of a worker, and dedicated, but at what point do you take control of you. If you feel your not being paid well, Im sure you deserve more and capable of being paid more. There are other jobs that pay more.

 

[funguy2]

BoeingBoy:

Thankfully, I was out of the way of the hurricanes...

I agree that an independent POR with reduced costs is a long-shot... So long, I didn't mention it. It is possible, but not probable.

However, I believe the BK court may allow UAIRQ to continue dipping into the ATSB funds, since they are "double collateralized" (once with unrestricted cash loan covenants (cash collateral) and once with asset collateral (i.e. slots, aircraft, engines, whatever it was).

However, as UAIRQ spends the ATSB funds, the likelihood of liquidation increases, unless UAIRQ can immediately profit from whatever those funds are spent on... which seems unlikely in an environment where AWA and AirTran are warning of losses, and Southwest and jetBlue are looking at slightly better than break-even results.

 

[Doc]

You know, this is a mute point. All of our employees deserve to be the best paid in the industry. Reality is this company and soon most carriers arent gonna be able to afford high pay . I mean its that simple. Im sure your one heck of a worker, and dedicated, but at what point do you take control of you. If you feel your not being paid well, Im sure you deserve more and capable of being paid more. There are other jobs that pay more.

[post="181055"][/post]​

I am paid well right now Im not asking for more but how much lower can we go no cost of living in I don't know how many years and I would stay at this scale untill things got better but I will not vote for a pay cut.....I could go elswhere and take care of my self but I like my job .......

 

[Winglet]

U will survive at least through the election. GW will give marching orders to keep it on life support so he doesn't have another huge corporation collapse just prior to voting. After that, he could care less . . . . just like Kerry.

 

[mrfish3726]

Winglet,

Get a clue, USAIR hasn't even been mentioned on either Kerrys or Bushs agenda. They don't care! Their strategy is going to be let the airline industry cure it's own ills. And if that means the lose of USAIr, UAL. or others than so be it. The governemnt doesn't care WINGLET.

 

[chele5]

I am not looking for something bad to happen and I certainly do not wish for anyone to lose their job.
However, we would be fools to put our heads in the sand and act like this will all blow over. The best thing we can do for ourselves is know that we have options and that education is the key.
Plan now.
Decide what other career you would love to do and go for it. Student loans, state aide, there are options.
Next, look at schools, talk to the unemployment office, make plans now while you can think relatively clear. Once the doors at U are closed - you may have a few days of brain freeze and that can be valuable time lost.

What about starting your own business? U has a very talented work force - I know some of you - and I would bet my last dollar that you would be successful.

There are options.... we have choices.

Good luck to all!

 

[jimntx]

However, I believe the BK court may allow UAIRQ to continue dipping into the ATSB funds, since they are "double collateralized" (once with unrestricted cash loan covenants (cash collateral) and once with asset collateral (i.e. slots, aircraft, engines, whatever it was).

[post="181058"][/post]​

There is this issue also...the non-ATSB-backed creditors. Particularly if there is a conversion to Ch. 7, their only hope of payment is going to be left over cash after the ATSB-backed loans are settled. As it stands right now, the sale of hard assets pledged to those loans (ATSB) would leave plenty of cash to pay off other creditors--at least, some "smaller amount on the dollar."

How long do you think the other creditors will wait as they see cash dwindle away? This may be a bigger problem for UAIR than the ATSB.

 

[BoeingBoy]

One of those is RSA - I'd think Bronner would be pretty patient. The other is BofA (based in CLT). I can't remember if they split the $100 million non-guaranteed portion 50-50 or 75-25, and of course the prepayments made so far reduced that.

Jim