Bofa Vp Says Usvisa Termination-united Takeover

[N628AU]

I don't know the exact numbers, but I think you are mistaken about US unrestricted cash.

Does anyone have the link to this info?

One other point, US is burning through more cash than UA every day.

From their 4Q results:

UAL Approx 1.73 billion unrestricted cash on 12/31
US Approx 1.29 billion unrestricted cash on 12/31

UAL reported 1.55 billion unrestricted cash (2.2 billion overall with $650 million restricted) at the end of January in it's BK court documents. I cannot locate any month to month information for US, anything there would be purely conjecture.

http://biz.yahoo.com/rb/040226/airlines_ual_1.html

 

[BoeingBoy]

FWIW, US Air has to maintain over $1 Billion thru June 30th to satisfy the ATSB covenents - it's not a "restriction" in the SEC reporting sense but a requirement none-the-less.

Jim

 

[Rob]

Restricted vs unrestricted. I got the info that the $650 million was unrestricted from the news item on the home page of USAviation. A correct report is as follows:

http://biz.yahoo.com/prnews/040226/cgth023_1.html

But notice, while the $650 million is the RESTRICTED portion, cash is DOWN by $131 million in January - that's a burn rate of over $4 million a day - a much greater burn rate than US has, even if you cut out the Machinists payment.

 

[phllax]

To further update, I spoke with the VP of the Westwood branch who told me that they are starting a new "rewards" type card in the coming weeks.

 

[USA320Pilot]

On December 31 US Airways had over $1.29 billion in unrestricted cash and $1.84 billion in total cash. For the fourth quarter, the Arlington-based airline had a net loss of $98 million.

Respectfully,

USA320Pilot

 

[ktflyhome]

USA320pilot....Tell me just how much money do we really have. I don't understand restricted and unrestricted and all that legal jargon. Just put it to me in layman terms. Yours truly Kt

 

[Fly]

Rob Posted on Mar 1 2004, 01:50 AM
Restricted vs unrestricted. I got the info that the $650 million was unrestricted from the news item on the home page of USAviation. A correct report is as follows:

http://biz.yahoo.com/prnews/040226/cgth023_1.html

But notice, while the $650 million is the RESTRICTED portion, cash is DOWN by $131 million in January - that's a burn rate of over $4 million a day - a much greater burn rate than US has, even if you cut out the Machinists payment.

OMG! You are comparing which airline is WORSE. Who cares......gee, my airline sucks, but yours sucks more :blink:

 

[USA320Pilot]

Restricted cash can be spent, but can only be spent on certain financial requirements. Unrestricted cash can be spent on any item.

US Airways had a total cash-on-hand balance on December 31 of $1.84 billion. The loan guarantee requires the company to maintain a minimum unrestricted cash balance of $1 billion through June 30, which management believes will be obtained.

The loan guarantee challenge will come after June 30 where the company could violate the ATSB EBITDAR requirements, however, management and the board are re-negotiating loan guarantee terms. It is expected the company will sell non-core assets and use the proceeds to pay down federal government guaranteed funds in exchange for ATSB EBITDAR covenant relief, which will provide the carrier with additional time to drive down its unit costs.

Also noteworthy, by spinning off the wholly owned airlines to pay down the loan guarantee, US Airways could eliminate a AFA scope clause issue, which was the final nail in the coffin of the previous failed US Airways - United Airlines merger. If you remember, during the last merger attempt between the business partners, United signed a MOU with Atlantic Coast Airlines to sell the US Airways Express wholly owned airlines for $200 million due to the United AFA scope clause requirement that all United flying be done by United F/A's.

Respectfully,

USA320Pilot

 

[ktflyhome]

USA320Pilot: Please explain further about the "further AFA scope clauses' which was the final nail in the coffin". In layman terms please. Thank you kt.

 

[ktflyhome]

Never mind. The rest of your post came through. Didn't see it all at once. Think I understand. Thanks. kt

 

[Fly]

United AFA Scope clause: All flying must be done by the United seniority list.

Remember the saying: Two wrongs don't make a right? Now apply the two airlines together and what have you got?

 

[ktflyhome]

Ok FLY- Apply the 2 airlines together and WHAT have you got?????? :blink: Seriously, what are you trying to get across.?????

 

[Fly]

I don't think it would be a good thing KT. I think it would be the end completely. Mergers are notoriously precarious in seniority integration. The anger alone would probably destroy the airline. I think that certain people (JUNIOR) would do the world's lousiest job until their last day (because with a merger THEY would be getting furloughed anyway) Sort of like "what's the difference" attitude.

 

[EyeInTheSky]

Fly, you are correct. United and US Airways won't be hooking up. I think people have been focusing on a UAL/US hookup and have been myopic to other possibilities. Seems US Airways may be getting a dance partner and funny thing is, they've danced before... Thaat's aall I caan saay.

 

[Fly]

Ok Eye - who? who? who?