Mesa To Buy Us Airways

[funguy2]

I'm not throwing stones, but I bet the $2 billion in exit financing has a number of restrictions such as:

- Resolving the pension issue.

- Reaching an acceptable agreement with over 100 financiers on 174 EETCs.

- Resolving the antitrust investigation and finding a solution to the Dulles hub.

- Successfully defending the pending municipal bond litigation.

- Obtaining the loan guarantee.

If any of these are not resolved, then the financing will likely not occur. Furthermore, the lenders only have $400 million at risk with the lenders presumably requiring the ATSB to back the $1.6 billion.

Sounds remarkably like what US Airways had to do in order to obtain an ATSB-backed loan and emerge from bankrupcy...

- Resolve the pension issue... they did.

- Refinance aircraft... the did

- Find a solution to their Dulles, er I mean Pittsburgh problem... working on it.

So if US Airways could manage this, why can't UA? Hmmm... Makes you think.

737nCh11:

I agree with you... "Inevitable consolidation" could be CH7 liquidation and other carriers picking up the valuable assets... Of course, that route doesn't help Chip out any, so he is hoping for a UCT.

700UW:

While you say the UCT with Mesa is in jest... It seems more plausible that UAL acquring UAIR. Think about it... Mesa's cash balance will be greatly enhanced if the ACA acquisition occurs... (although probably still much less than what would be required to buy UAIR... they would need to find financing for such a deal) And then most of USAirways Express would be "wholly-owned" (i.e. Mesa + Air Midwest + ALG + PDT + PSA + Midway).

Somehow, this doesn't seem so crazy... But again, a Loooooong shot at best....

Wonder if JO has been looking at Wolfe's old house... LOL