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On 1/21/2003 2
14 PM mrplanes wrote:
"Forget what Dave said"? what the heck. How am I supposed to forget what he said. Read this:
By DEBORAH ECKERT
Of DOW JONES NEWSWIRES
WASHINGTON -- US Airways Group Inc. (UAWGQ) revised upward its projections for operating revenue and net income for 2003 through 2009, according to court papers obtained Monday by Dow Jones Newswires.
The airline, which filed for Chapter 11 bankruptcy protection in August, said in the documents filed Friday that it expects to swing to a net income of $127 million on revenue of $8.24 billion in 2004 from a projected $225 million loss on revenue of $7.22 billion in 2003.
In projections filed with the court last month, the airline had estimated net income of $122 million on revenue of $8.11 billion for 2004, compared to a $229 million loss on revenue of $7.13 billion in 2003.
US Airways has said it's aiming to emerge from Chapter 11 on March 31.
A spokesman for the company couldn't be reached Monday for comment on the improved projections.
US Airways included the adjusted projections in a new Chapter 11 plan disclosure statement it filed with the U.S. Bankruptcy Court in Alexandria, Va. on Friday. In the projections, US Air said its net will continue to grow through 2007 - when it would reach $405 million - and then decrease slightly to $362 million in 2008 and $344 million in 2009.
It also predicts revenue will grow to $8.81 billion in 2005, and continue to grow through 2009, when it would reach $9.68 billion.
Friday's court filing also estimates that the company's equity value will range between $400 million and $670 million after it emerges from Chapter 11. This implies a value of $8.30 a share for the new Class A common stock it will issue under the plan, the filing said.
In a court filing last month, US Airways predicted an equity value of between $425 million and $645 million, implying a value of $8.38 per Class A common share.
As reported, U.S. Bankruptcy Judge Stephen Mitchell approved US Airways' amended disclosure statement Friday, giving the company the green light to send the plan out to creditors for their approval. Judge Mitchell is scheduled to consider approving the plan at a hearing March 18.
Also in Friday's filing, US Airways said it will seek to resolve issues related to its pension plan - to which it may need to contribute $3.1 billion from 2003 through 2009 - both through legislation and negotiations with the union representing its pilots.
The airline said that both alternatives would result in average annual funding requirements of $325 million. US Airways previously has said it will be required to contribute $3.1 billion into pension plans from 2003 through 2009, including $126 million in 2003 and $890 million in 2004.
US Airways said on Friday that it's pursuing a legislative solution in cooperation with its pilots union to implement an amortized pension funding plan.
"If those efforts are unsuccessful, the company will have no choice but to terminate the existing pilot pension program and begin formal negotiations with the Air Line Pilots Association on an agreeable replacement plan, with an anticipated completion of March 2003," the company said in a press release.
The company recently failed to secure approval from the Pension Benefit Guaranty Corp. - a federal pension insurer that guarantees payment of basic pension benefits for workers - to stretch out its pension payments over 30 years. US Airways later moved to achieve the same result through the introduction of a Senate bill by two Pennsylvania Republicans.
US Airways said the PBGC has filed 21 claims against it and its affiliates, totaling $3.8 billion. The claims relate to seven defined-benefit plans sponsored by the companies, and represent a potential unfunded pension liability that could arise if the plans are ended.
US Airways said it's negotiating with the PBGC over the claims and that it believes the claim amounts will be "significantly less" than the amount now being requested in the claims.
But the company did say the ultimate resolution of the claims could "materially and adversely affect" the amount of recovery its other unsecured creditors wind up getting under its reorganization.
- Deborah Eckert; Dow Jones Newswires; 202-628-7675; deborah.eckert@dowjones.com
Updated January 20, 2003 3:51 p.m. EST
According to that he will put in 325 mill per year into to the plan. Where is that coming from? Its called revenue. And if he doesn't put it in to the plan, guess where it goes. Point is that he has the money available to do EXACTLY what he told us he would do and now he is trying to wiggle out of it. That won't stand. Pilots understand business. We also understand when we are getting hosed vs. legitimate needs of the corporation. We have done our part. It is time for Dave to live up to his committment. If he does, we will have a kick *** airline. If he doesn't, we may not have an airline at all. We are solidified on this issue pitguy. We have given Dave what he asked. Now he needs to follow up on his committment.
mr
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Reading the above...WOW! What an epiphany! What happened to the "doom and gloom", almost off the cliff airline, and straight to liquidation? We have all been Hosed...you are not alone on that thought.
