Revised Ge Agreement
- Thread starter BoeingBoy
- Start date
USA320Pilot
Veteran
- Joined
- May 18, 2003
- Messages
- 8,175
- Reaction score
- 1,539
US Airways and GECAS have agreed to modify aircraft and engine leases in order to facilitate the proposed merger with America West and the latest change is the fourth revision since the airline and financier first modified aircraft lease terms on December 17, 2004.
According to court documents, GECAS finances or leases 111 US Airways mainline jets and 39 US Airways (PSA & MDA) RJs and the firm is US Airways’ largest creditor behind the ATSB.
The aircraft return revision enables US Airways to "realize significant cost savings and liquidity, further rationalize (its) fleet and insure the consummation of the merger with America West and the successful emergence from (bankruptcy)," the company said in its bankruptcy court motion.
The GECAS "memorandum of understanding" would enable US Airways to shed leases and return aircraft to GECAS sooner than previously agreed, reduce rental rates on mainline and regional jets, and shift leases and financing (RJ) agreements (on 25 active EMB-170s and 3 EMB-170s awaiting delivery from MDA to Republic), according to the Pittsburgh Tribune Review.
See Story
Reuters reported the agreement accelerates a reduction in aircraft rental rates and extends the timeline for credit line payments, which should improve the company’s finances.
See Story
It is expected US Airways and Republic will complete their previously announced transaction regarding MDA assets. US Airways will boost liquidity and obtain $110 million for the sale/lease back of 137 East Coast commuter slots at Washington Reagan National and LaGuardia airports and the transfer of 25 current and 3 other assigned EMB-170s to Republic.
The company said in its filing without the GECAS agreements, US Airways' merger and emergence from bankruptcy "would be severely compromised and jeopardized."
The new fleet plan lowlights include:
According to the Charlotte Observer, the return of 49 planes will reduce the mainline fleet (from 282 to 210 aircraft by the end of 2009). That figure includes 2 A319s and 4 A320s due to be returned between September 30 and November 1 of this year; 24 Boeing B737s between June 2005 and February 2006; and 11 Boeing B737s due in 2009 that have an option for GECAS to take them back earlier.
See Story
Specific tail numbers have been identified and they are included in the confidential motion, but are excluded from the hyperlinked filing below and will likely be included in the POR later this month.
Per the bankruptcy court motion the specific aircraft reductions by month are:
June 2005 – 1 B737 (1 total)
July 2005 – 1 B737 (1 total)
September 2005 – 1 A319 & 1 B737 (2 total)
October 2005 – 2 A320s & 3 B737s (5 total)
November 2005 - 1 A319, 2 A320s, & 2 B737s (5 total)
December 2005 – 5 B737s (5 total)
January 2006 – 7 B737s (6 total - 7 aircraft leave, but 1 is on Jan. 31 & for pilot bidding leaves in Feb.)
February 2006 – 4 B737s (4 total) (for bidding purposes 5 aircraft will depart with 1 leaving on Jan. 31)
There are no further aircraft reductions scheduled from March 2006 through 2008. 11 Boeing B737s are due to be returned to GECAS in 2009, but GE has an option to take them back earlier per the schedule listed below:
June 2007 - 1 B737 (1 total)
October 2007 - 1 B737 (1 total)
November 2007 - 2 B737 (2 total)
December 2007 - 1 B737 (1 total)
January 2008 - 1 B737 (1 total)
February 2008 - 1 B737 (1 total)
March 2008 - 1 B737 (1 total)
April 2008 - 1 B737 (1 total)
May 2008 - 1 B737 (1 total)
June 2008 - 1 B737 (1 total)
See Story
On May 19 US Airways announced it projected "returning 25 additional aircraft by the end of 2006, in addition to the 46 aircraft that US Airways already has announced it plans to return. Nearly all of the aircraft are being returned to GECAS, thus that’s a total of 71 aircraft returned from the pre-bankruptcy count of 282 aircraft. In addition, it’s my understanding that one additional aircraft was disposed.
See Story
Therefore, it appears the new fleet count at the end of the modified reductions will be 210 aircraft, which is the same number of aircraft previously projected by the three previous aircraft reduction announcements.
Therefore, the mainline fleet count at the end of February 2006 should be 221 aircraft. Previous plans called for the fleet count to drop to 2015 aircraft by the end of 2006, but it appears that by the end of 2006 US Airways will have 221 aircraft, which is 6 more than previously disclosed.
Furthermore, the 5 2007 B737 reductions have been delayed until 2009, but GECAS can take them back earlier per the schedule listed above.
See Story
If true, it appears the 35 aircraft projected for return after pilot bid 05-03 from October 1 through the end of 2006 has been accelerated to occur at the end of 2005 and the beginning of 2006 per the court motion.
See Story
In summary, it appears that 24 aircraft will be returned to GE from October 1 through February 10, 2006, no aircraft returned for the remaining 10 months of 2006, and possibly no aircraft returned in 2007 and 2008. However, GE has the right to take back 11 B737s scheduled for return in 2009 from June 2007 through June 2008.
In regard to pilot staffing, the biggest position reduction that has not been bid yet will occur from October 2005 through February 2006 and then level off with no further aircraft reductions for at least 15 months and possibly for about 2 additional years. US Airways currently staffs its fleet with about 10.5 pilots per aircraft thus, about 252 pilot positions could be eliminated during the next five bid months.
It’s clear US Airways is understaffed and today, the middle of the month and the middle of the week, CATCREW indicated there was a total of 10 First Officers available for duty and none available on the B737. It is clear US Airways has managed the airline for future aircraft reductions, but management needs to hope there are no thunderstorms or rain because flight cancellations will occur and revenue will be lost due to significant pilot understaffing when weather problems happen.
Meanwhile, there has been a net reduction of about 22 pilots per month per the last two pilot system permanent bids that cover June through September per the table below:
Category/Bid 05-02 for June/ Bid 05-03 for Aug. & Sept/ Total
Age 60/8/21/29
Early retirement/10/29/39
Medical/6/18/24
Attrition/9/25/34
LOA/2/5/7
Return to line/5/17/22
Net reduction/30/81/111
LOA 93 requires US Airways to offer an enhanced VLA and an early retirement incentive program with furlough pay and sick bank cash out prior to any furlough.
With the airline clearly understaffed, about 22 pilots per month leaving the airline, the VLA before and early retirement incentive/sick bank cash out programs, and the return of aircraft no longer happening after February for at least 15 months and possibly longer, in my opinion a pilot furlough will most likely not occur. However, there will be stagnation and possibly "down bids" for the next 6 to 9 months before attrition resumes and pilots proceed back up the seniority list.
Key US Airways bankruptcy court hearings
June 23: Court hearing on new GECAS agreement
June 30: Deadline for US Airways to submit a plan of reorganization (POR) to the court that should include additional financial details
June 30: Proxy on the proposed merger with America West is expected to be filed and more merger details should be made public
July 1: Deadline for rival bids for US Airways assets
July 7: Court hearing for approval of merger (or rival bids)
July 31: Bankruptcy court approval of America West merger
October 31: Bankruptcy exit and US Airways & America West consummate their merger
Regards,
USA320Pilot
According to court documents, GECAS finances or leases 111 US Airways mainline jets and 39 US Airways (PSA & MDA) RJs and the firm is US Airways’ largest creditor behind the ATSB.
The aircraft return revision enables US Airways to "realize significant cost savings and liquidity, further rationalize (its) fleet and insure the consummation of the merger with America West and the successful emergence from (bankruptcy)," the company said in its bankruptcy court motion.
The GECAS "memorandum of understanding" would enable US Airways to shed leases and return aircraft to GECAS sooner than previously agreed, reduce rental rates on mainline and regional jets, and shift leases and financing (RJ) agreements (on 25 active EMB-170s and 3 EMB-170s awaiting delivery from MDA to Republic), according to the Pittsburgh Tribune Review.
See Story
Reuters reported the agreement accelerates a reduction in aircraft rental rates and extends the timeline for credit line payments, which should improve the company’s finances.
See Story
It is expected US Airways and Republic will complete their previously announced transaction regarding MDA assets. US Airways will boost liquidity and obtain $110 million for the sale/lease back of 137 East Coast commuter slots at Washington Reagan National and LaGuardia airports and the transfer of 25 current and 3 other assigned EMB-170s to Republic.
The company said in its filing without the GECAS agreements, US Airways' merger and emergence from bankruptcy "would be severely compromised and jeopardized."
The new fleet plan lowlights include:
According to the Charlotte Observer, the return of 49 planes will reduce the mainline fleet (from 282 to 210 aircraft by the end of 2009). That figure includes 2 A319s and 4 A320s due to be returned between September 30 and November 1 of this year; 24 Boeing B737s between June 2005 and February 2006; and 11 Boeing B737s due in 2009 that have an option for GECAS to take them back earlier.
See Story
Specific tail numbers have been identified and they are included in the confidential motion, but are excluded from the hyperlinked filing below and will likely be included in the POR later this month.
Per the bankruptcy court motion the specific aircraft reductions by month are:
June 2005 – 1 B737 (1 total)
July 2005 – 1 B737 (1 total)
September 2005 – 1 A319 & 1 B737 (2 total)
October 2005 – 2 A320s & 3 B737s (5 total)
November 2005 - 1 A319, 2 A320s, & 2 B737s (5 total)
December 2005 – 5 B737s (5 total)
January 2006 – 7 B737s (6 total - 7 aircraft leave, but 1 is on Jan. 31 & for pilot bidding leaves in Feb.)
February 2006 – 4 B737s (4 total) (for bidding purposes 5 aircraft will depart with 1 leaving on Jan. 31)
There are no further aircraft reductions scheduled from March 2006 through 2008. 11 Boeing B737s are due to be returned to GECAS in 2009, but GE has an option to take them back earlier per the schedule listed below:
June 2007 - 1 B737 (1 total)
October 2007 - 1 B737 (1 total)
November 2007 - 2 B737 (2 total)
December 2007 - 1 B737 (1 total)
January 2008 - 1 B737 (1 total)
February 2008 - 1 B737 (1 total)
March 2008 - 1 B737 (1 total)
April 2008 - 1 B737 (1 total)
May 2008 - 1 B737 (1 total)
June 2008 - 1 B737 (1 total)
See Story
On May 19 US Airways announced it projected "returning 25 additional aircraft by the end of 2006, in addition to the 46 aircraft that US Airways already has announced it plans to return. Nearly all of the aircraft are being returned to GECAS, thus that’s a total of 71 aircraft returned from the pre-bankruptcy count of 282 aircraft. In addition, it’s my understanding that one additional aircraft was disposed.
See Story
Therefore, it appears the new fleet count at the end of the modified reductions will be 210 aircraft, which is the same number of aircraft previously projected by the three previous aircraft reduction announcements.
Therefore, the mainline fleet count at the end of February 2006 should be 221 aircraft. Previous plans called for the fleet count to drop to 2015 aircraft by the end of 2006, but it appears that by the end of 2006 US Airways will have 221 aircraft, which is 6 more than previously disclosed.
Furthermore, the 5 2007 B737 reductions have been delayed until 2009, but GECAS can take them back earlier per the schedule listed above.
See Story
If true, it appears the 35 aircraft projected for return after pilot bid 05-03 from October 1 through the end of 2006 has been accelerated to occur at the end of 2005 and the beginning of 2006 per the court motion.
See Story
In summary, it appears that 24 aircraft will be returned to GE from October 1 through February 10, 2006, no aircraft returned for the remaining 10 months of 2006, and possibly no aircraft returned in 2007 and 2008. However, GE has the right to take back 11 B737s scheduled for return in 2009 from June 2007 through June 2008.
In regard to pilot staffing, the biggest position reduction that has not been bid yet will occur from October 2005 through February 2006 and then level off with no further aircraft reductions for at least 15 months and possibly for about 2 additional years. US Airways currently staffs its fleet with about 10.5 pilots per aircraft thus, about 252 pilot positions could be eliminated during the next five bid months.
It’s clear US Airways is understaffed and today, the middle of the month and the middle of the week, CATCREW indicated there was a total of 10 First Officers available for duty and none available on the B737. It is clear US Airways has managed the airline for future aircraft reductions, but management needs to hope there are no thunderstorms or rain because flight cancellations will occur and revenue will be lost due to significant pilot understaffing when weather problems happen.
Meanwhile, there has been a net reduction of about 22 pilots per month per the last two pilot system permanent bids that cover June through September per the table below:
Category/Bid 05-02 for June/ Bid 05-03 for Aug. & Sept/ Total
Age 60/8/21/29
Early retirement/10/29/39
Medical/6/18/24
Attrition/9/25/34
LOA/2/5/7
Return to line/5/17/22
Net reduction/30/81/111
LOA 93 requires US Airways to offer an enhanced VLA and an early retirement incentive program with furlough pay and sick bank cash out prior to any furlough.
With the airline clearly understaffed, about 22 pilots per month leaving the airline, the VLA before and early retirement incentive/sick bank cash out programs, and the return of aircraft no longer happening after February for at least 15 months and possibly longer, in my opinion a pilot furlough will most likely not occur. However, there will be stagnation and possibly "down bids" for the next 6 to 9 months before attrition resumes and pilots proceed back up the seniority list.
Key US Airways bankruptcy court hearings
June 23: Court hearing on new GECAS agreement
June 30: Deadline for US Airways to submit a plan of reorganization (POR) to the court that should include additional financial details
June 30: Proxy on the proposed merger with America West is expected to be filed and more merger details should be made public
July 1: Deadline for rival bids for US Airways assets
July 7: Court hearing for approval of merger (or rival bids)
July 31: Bankruptcy court approval of America West merger
October 31: Bankruptcy exit and US Airways & America West consummate their merger
Regards,
USA320Pilot
robbedagain
Veteran
- Joined
- Oct 13, 2003
- Messages
- 11,125
- Reaction score
- 2,676
how many more employees will get the ax when this is all said and done? also how many AMW will get laid off when they return 10 of their planes? Good Luck to Each And Everyone of yuo folks at usair and amw
usair_begins_with_u
Veteran
- Joined
- May 9, 2004
- Messages
- 623
- Reaction score
- 0
LOL... I can't believe how many of you are surpised. This is not a merger, its a liquidation/fire sale. I guess only the people who get canned will believe it? 🙁
StewGuy86
Senior
That's a lot of shrinkage. I don't think attrition can keep up with that pace of reduction in the size of the airline.
deltawatch
Veteran
- Joined
- Aug 20, 2002
- Messages
- 887
- Reaction score
- 0
Do you think any HP a/c and crews will fill gaps in the east after October 2005?
All these a/c going away while we are running an 80% load factor, we even made a little money in Mar and Apr. I guess we will turn EVEN more over to Delta. They (Delta) sure are adding alot a flights in the mid-atlantic these days.
All these a/c going away while we are running an 80% load factor, we even made a little money in Mar and Apr. I guess we will turn EVEN more over to Delta. They (Delta) sure are adding alot a flights in the mid-atlantic these days.
BoeingBoy
Veteran
- Joined
- Nov 9, 2003
- Messages
- 16,512
- Reaction score
- 5,865
I guess this is about as close to "facts" as we can get in relation to fleet plans (at this specific point in time - subject to change of course). Keep in mind that earlier this month, AWA forecast their fleet remaining at 143 planes going forward. From the AWA proxie filed today:
"The combined airline is expected to operate a mainline fleet of 361 planes (supported by approximately 239 regional jets and approximately 57 turboprops that provide passenger feed into the mainline system), down from a total of 417 mainline aircraft operated by the two airlines as of March 31, 2005. US Airways Group has removed an additional 13 aircraft from its fleet through May 31, 2005 and projects removing an additional 35 aircraft by the end of 2006. The combined airline is also expected to take delivery by the end of February 2006 of seven Airbus A320 family aircraft previously ordered by America West Airlines, Inc. Airbus has also agreed to reconfirm 30 narrow body A320-family aircraft deliveries and reschedule those deliveries from the 2006 to 2008 period to the 2009 to 2010 period. To rationalize international flying, the merged company anticipates working with Airbus to begin transitioning to an all-Airbus widebody fleet of A350 aircraft in 2011."
"In anticipation of the merger, US Airways Group has negotiated a reduction to its existing fleet so that the fleet of the combined company suits the expected route network and so that the introduction of new aircraft will be timed to coincide with the expiration of existing aircraft leases. We believe that we will also be able to reschedule the combined fleet to better match aircraft size with consumer demand. For example, in some markets that US Airways Group currently serves with a Boeing 737 aircraft, we expect to replace that service with a 90-seat regional jet that is currently operated in the America West Holdings system. In addition, we expect to place America West Holdings new aircraft into service on flights out of current US Airways Group hubs."
"The combined airline is expected to operate a mainline fleet of 361 planes (supported by approximately 239 regional jets and approximately 57 turboprops that provide passenger feed into the mainline system), down from a total of 417 mainline aircraft operated by the two airlines as of March 31, 2005. US Airways Group has removed an additional 13 aircraft from its fleet through May 31, 2005 and projects removing an additional 35 aircraft by the end of 2006. The combined airline is also expected to take delivery by the end of February 2006 of seven Airbus A320 family aircraft previously ordered by America West Airlines, Inc. Airbus has also agreed to reconfirm 30 narrow body A320-family aircraft deliveries and reschedule those deliveries from the 2006 to 2008 period to the 2009 to 2010 period. To rationalize international flying, the merged company anticipates working with Airbus to begin transitioning to an all-Airbus widebody fleet of A350 aircraft in 2011."
"In anticipation of the merger, US Airways Group has negotiated a reduction to its existing fleet so that the fleet of the combined company suits the expected route network and so that the introduction of new aircraft will be timed to coincide with the expiration of existing aircraft leases. We believe that we will also be able to reschedule the combined fleet to better match aircraft size with consumer demand. For example, in some markets that US Airways Group currently serves with a Boeing 737 aircraft, we expect to replace that service with a 90-seat regional jet that is currently operated in the America West Holdings system. In addition, we expect to place America West Holdings new aircraft into service on flights out of current US Airways Group hubs."
robbedagain said:
If im not mistaken i think for F/As its around 15 per plane. So if you take away 71 aircraft then that would be around 1065 F/As that would be furloughed. Of course that would be if you take away all 71 at one time. If they add additional planes in the next few years like its stated and with the rate F/As are leaving...i don't think it will be that much of a problem.......but who knows!
Light Years
Veteran
- Joined
- Aug 27, 2002
- Messages
- 2,878
- Reaction score
- 0
cltflyguy said:
It has to be more than 15 per plane... they called back 24 per aircraft for the 170s and those are only staffed with two. I'd say it's between 20 and 30 for a narrowbody.
Similar threads
Latest posts
-
-
-
-
-
Alaska Airlines F/A's vote in favor of a new contract- Latest: Jalsporteam