Deal May Foreshadow A Us Airways Sell-off

[usfliboi]

well lets see what we can do about you and your fun night?

 

[Todd B]

This topic is drifting -- Please try to keep it focused or it will be closed. Thanks.

 

[Dizel8]

Thanks Mr. Glass, ehh I mean USfliboi, I would love to be educated!

(Sorry Todd)

 

[EyeInTheSky]

So, they are going to sell a couple of commuters...whoopdeedoo. USA320Pilot please tell us something we already haven't discussed. You're boring me man.

 

[Dizel8]

Or maybe the shuttle. A few more pushenpullerwerkers to the slaughter!

 

[USA320Pilot]

Still on Watch

ARLINGTON (theHub.com) - Standard & Poor's yesterday said that US Airways Group Inc. remains on its credit watch with "negative implications," meaning a further downgrade of the rating is possible.

Despite last week's restructuring of a federally backed $1 billion loan, S&P said US Airways still faces losses and competition from low-cost carriers. S&P's Ratings Services currently rates the long-term corporate credit of US Airways Group and US Airways Inc., as a "B-minus," the sixth highest junk rating.

"The loan restructuring averts a potential near-term covenant default, and buys time for the airline to pursue urgently needed cost reductions," said S&P analyst Philip Baggaley.

"US Airways emerged from bankruptcy March 31, 2003, with an improved operating cost structure and reduced debt burden, but has been unprofitable (excluding special items) since then and needs to further lower costs in the face of a still-weak airline industry environment and rapidly rising competition from low-cost airlines," he said.

Regards,

USA320Pilot

 

[BoeingBoy]

Yes, lower the costs. Specifically those non-labor costs that have continued to increase since entering bankruptcy. It's the business model that's sinking U, not the employees.

Jim