Chapter 11 Soon?

[USA320Pilot]

Let's look at what we know to be the facts:

1. On August 4 the company filed a SEC 10Q report warning investors the airline could file for bankruptcy in the not-so-distant future if it was unable to implement its "Transformation Plan".

2. The company is scheduled to make $110 million in pension payments to the IAM and AFA on September 15. The only way to avoid paying those payments is to file for bankruptcy or pull a United Airlines, which the PBGC says is illegal.

3. The company indicated "it anticipates risk of failing to comply with the (ATSB) covenants as of September 30."

4. The company stressed the need to achieve its Transformation Plan during the third quarter "in light of the potential loss of financing for new regional jets, violation of debt covenants and significant collateralization events under certain credit card processing agreements."

This would require US Airways to have new agreements in place by September 30, which the airline previously indicated was the final date for ratified labor accords.

Therefore, if the date is true, I understand the company's motivation to execute its pre-packaged bankruptcy before September 15 to not pay the pension payments. However, a mid-September filing would occur before the airline violates the loan guarantee covenants, the company would still have RJ financing in place, and not have met its deadline for new labor accords.

Therefore, in my opinion only, instead of a September 12 filing, if there is a deal with ALPA, the company will not pay the AFA and IAM payments (similar to United's decision) and then wait to violate the ATSB covenants on September 30. Then on Sunday, October 3, an involuntary bankruptcy filing for US Airways could be filed and in coordination with the Company, the ATSB and other creditors could help the airline reorganize again under Chapter 11.

Respectfully,

USA320Pilot

 

[700UW]

Is it me or does he take joy in the fact the company will go back into bankruptcy?

 

[SpinDoc]

I just have two questions for someone that has all the answers. Why must we accept 13.10 per hour, when there are many LCC that top out at a higher amount. And if it is true the Pit and Winston res offices COULD close, then the company must have a plan in the works already. An airline could not function without some reservations offices. I would love to know what that plan consists of.

[post="166826"][/post]​

You don't have to accept 13.10 per hour.
There is such a thing as moving on to
one of those airlines that pay more if
that is what motivates you.

The plan for reservations is simple.
Move customers away from telephone sales
to the US web site and travel agencies.
Once the fares are rationalized across the
system, the web booking engine will
be pretty easy to use, just like WN and HP.
Heck, even WN closed a reservations
center recently because of lower demand
and higher web site bookings.

 

[PITbull]

Rob,

I don't think that U has any kind of huge class action against them as the company you cited.

Only thing they are squaking about is a damn pension payment OF A LITTLE OVER $100 MILLION,THAT THEY CAN MAKE, BUT THEY DON'T WANT TO GIVE.

Give me a break. They profited $34 million this past quarter which adds to their cash. They claim and project the next two quarters as "troublesome",

BUT, ITS A DAMN ELELCTION YEAR! You know as sure as we both are sitting here the "controling Republicans" will bring those fuel prices down starting in October.

Our loads are breaking historical records...where's the 9/11 effect, huh?

Damn GOFARES are NOT in every city, so U is still getting decent money off their tickets. Concessions are kicking in, and they still run to the world and cry..doom and gloom, they even have all the loyal customers convinced that the situation is dire, but I'm sure if I were a flyonthewall at the "fest" I would know exactly some of the great things and inovative ideas that are coming down the pike for the customer and improving our product.

Again they need Labor's livlihoods to do it.

I KNOW THIS!!!

 

[to much time to quit]

There is now reason to believe that if US Airways does not have new labor accords in place by Saturday, September 11, the company will file for Chapter 11 bankruptcy on Sunday, September 12.


USA320Pilot

[post="166797"][/post]​

[/quote]
But that date is opening day of the NFL. Could you look deeper into your crystal ball and let me know if any non-rev seats will be available from clt to pit on that day. I plan on attending the 1st Steeler game of the 2004 season at Heinz field against their age old rivals, the Oakland Raiders and I would rather not drive to get there. GO STEELERS!!!

 

[oldiebutgoody]

I also read that the PBGC an other agencies have stated that United's actions concerning their pensions was ILLEGAL, and will likely go to court to force the payment. You can bet that he AFL-CIO will pursue this as well. I hope that the legal department is up to the challenge if they attempt this.

 

[Rob]

PITbull, I know US doesn't have any class action pending; I used Armstrong as an example of a profitable company declaring bankruptcy.

As an outsider, I can see validity on both sides of the labor debate and try not to show any bias one way or the other on the particulars. Just wanted to point out that a company doesn't have to be broke to declare bankruptcy.

 

[Jetlaagd]

After Sept 11 when USAIR files for BK,I am sure the speculation from USAIR320pilot,will be about the UCT !...My my my what b-s will he spew next?

 

[USA320Pilot]

SpinDoc & Oldie:

SpinDoc said: “The plan for reservations is simple. Move customers away from telephone sales to the US web site and travel agencies. Once the fares are rationalized across the system, the web booking engine will be pretty easy to use, just like WN and HP. Heck, even WN closed a reservations center recently because of lower demand and higher web site bookings.

Oldie said: “also read that the PBGC an other agencies have stated that United's actions concerning their pensions was ILLEGAL, and will likely go to court to force the payment. You can bet that he AFL-CIO will pursue this as well. I hope that the legal department is up to the challenge if they attempt this.â€

USA320Pilot comments: SpinDoc, our comment above is accurate and personally I do not like what is happening to Rez. Whether I call Dell Computer, Time Warner Cable, or Verizon Wireless, I want to immediately talk with a U.S., well spoken, English speaking Customer Service Rep, but that ‘s not what the world is moving too. US Airways wants to keep as many Reservation Sales Agents employed as possible, but they must do it cost effectively. That ‘s no different for my employee group who is looking at a LCC type of contract or no contract.

Oldie, I agree, but any litigation over the potential pension default would take time and then permit US Airways to have an involuntary filing on October 3. In the case of United, the PBGC sent the company a letter disagreeing with the company’s position, the PBGC and United officials met, and the IAM has filed two lawsuits. Thus, what’s happened? Basically nothing.

It’s cruel, it s_cks, but it’s reality.

Separately, every employee group can save their jobs, but it’s going to require immediate TA’s and then rank-and-file ratified agreements. The PIT/INT Rez & PIT/CLT Maintenance facilities can be saved, but the company will require new labor accords from the appropriate unions. If what I am hearing is true, every union will get a last, best offer or be given the chance to come up with their own plan to meet the cost cut targets in the not-so-distant future.

Respectfully,

USA320Pilot

 

[usresagentwhatevamadeusaythat]

I am bored with all the threats, if management wants to take her down, we can help. Too many employees have invested too much and given up too much over the years to hand it over and say, sure I would like to work for $13.10 per hour. The difference in our USA320 commenter and our (res) employee group is the cuts to us will mean an extreme standard of living change, like being able to pay for the basics. A sample paystub has been given to us of our new payrate and it is a joke. $439 take home per biweekly pay period. If I am going to work for that, it will not be for US Airways. Because as bad as it is now, like going to the bathroom too many times in one day will get a hardcopy put in your box, etc etc, the new $13.10 rate will supposedly be a much smaller workforce (25% of our staff to be cut with packages, if I understand correctly) so the working conditions can only get worse! Not to mention the long hold times passengers are experiencing now. I would say 8 out of 10 callers has to complain about the long hold time and ridiculous menu for about the first 1 minute of the call! Not to mention the wonderful automated Alan, who the passengers say is a sick sick robot.....But thanks for the offer!!!

 

[hp_fa]

Is it me or does he take joy in the fact the company will go back into bankruptcy?

[post="166829"][/post]​

IMO, it is NOT you.

 

[hp_fa]

How do you have a pre-packaged involuntary bankruptcy?

 

[Walmartgreeter]

Thanks 320. Your bumbling on this entire subject, whether true or not, has pretty much tanked management's ability to get concessions from any group. Sept 11? Is that a joke, or a really sick reference. You should be ashamed. By the way, we all look forward to our time on the stand at the trial...even though you stand no chance of ever being convicted due to mental issues. Somebody will soon write a book on you. My sincere apologies to the moderaters, but I had to say something. This is beyond comprehension that someone would actually post a "date" of supposed failure. Perhaps the website needs to protect itself, and delete the post. Best to the rest of you, Greeter.

 

[USA320Pilot]

Walmartgreeter:

I do not like this situation any more than anybody else. It sucks, but Sunday, September 12 is the last weekend day before the company is required to make over $100 million in pension payments to the IAM and AFA on September 15. Do you think I enjoy the fact that any work group has to lose more pay and benefits and go to LCC levels? Do you think I like the fact that more or all of our colleagues could lose their job shortly after Labor Day?

If you do, then can I sell you some swamp land?

The last time the company filed for bankruptcy the airline did so on a Sunday, to limit its exposure, so if you do not like the potential date than I suggest you voice your complaint to the Legal Department.

Regardless, the company recently warned the SEC and ATSB a bankruptcy filing could occur and the date is rapidly approaching, whether you or I like it or not. I have been told it will occur on September 12. Could that change? Maybe, maybe not.

Respectfully,

USA320Pilot

 

[Light Years]

Hey hp fa, cool avatar!