S&p Downgrades Us Airways Again

[airlineorphan]

The Baby Ate My Dingo sneered:

But, of course, AO, lives in Utopia. Too bad message board poster isn't a listed profession, because AO would certainly be in upper management with all the ad nauseum typing and class warfare B.S.

Well Dingo,

Not much point in responding to the rest of your post because your contempt for people who clean up after you is startling.

As fer Utopia, nahhh, I just think we can do a whole lot better than the dystopia the corporate captains tell us we must accept.

And I would love to see a class warrior like Dingo try to survive in some "unskilled" job on the skills you gained in your higher education. Hey that would be a great new Survivor theme! Put a Harvard MBA in a job cleaning hotels or picking up garbage.... Now that would be entertainment!

Back to our regularly scheduled thread about the hammer the finance sector is wielding on US Airwyas and its employees... Nope, no class warfare here!

-Airlineorphan (Professional Utopian Message Board Poster--Certified by Dingo)

 

[FWAAA]

Could the last quarter loss have anything to do with the $250 million ATSB PREPAYMENT ????

As funguy2 said (more than once), NO.

Think of it this way. If paying back debt causes operating losses, then borrowing more money should increase your operating income, right? So if you just borrowed a billion each year you'd be rolling in slop, right? B)

WRONG. You would have cash, but your INCOME would not have grown. Financing activities like debt repayment and new borrowings have nothing to do with and do not impact the operating income of any business. They affect the level of debt and the amount of cash.

 

[funguy2]

Thanks FWAAA... I think I have used that example too... Although I've answered that question so many times.... well, I am running out of new ways to explain it.

 

[Doc]

Doc:

It's time to stop the posturing. The CWA will give or
everyone will lose. It's that simple. US Airways is
a seriously deficient concern right now and the only
way to fix this is to have union participation in the
going forward plan. I'm really tired of the "me, me,
me" attitude of the union posters on this board.
As it has been said many times, if you don't want
to participate in the going forward plan, then it is
time to move on and let those who do want to
participate handle the negotiations. If the company
is able to get costs to an acceptable level, 2 years
from now, US could be thriving like America West
is doing now, and some of the profits could be
given back to the employees. I think all of the
union posters on this board should understand
one basic business principle, it takes money to
make money. The company temporarily needs
money from the union contracts to position for
a long term future and when the profits are
realized, the money will be returned to the
unions.

You must be kidding......put that pip down......

we would have posted a profit if it weren't for the RJ's so stop saying the ship is sinking this is all put in the papers fromn the glass house ...the sky is falling the sky is falling....
GE is going no where it amazes me that they still try this crap...........

 

[Doc]

Pass that bong my way!!! Geez... read a few airline books Doc.... Profits would never come back to the employees no matter what they promise. (this guy ain't got no clue) Sniff some more glue!

pitbull wrote that not me get some glasses......

 

[funguy2]

we would have posted a profit if it weren't for the RJ's

Just like I have said to USA320Pilot....

PROVE IT

My case is made. The burden of proof is on you. If I am wrong, I will readily accept it. I am hear for knowledge and debate, not posturing.

 

[EyeInTheSky]

Obviously one of USA320 colleagues. I feel sorry for you kind of. Savy :down:

Nope. If I were you I'd be writing that resume. JetBlue is hiring at $8 an hour.

 

[savyinvestor]

Thanks for mentioning that, but I don't work for U. Actually, before the first Chapter 11 bought at $40. and sold at $70. Would have loved to buy again, but I'll sit this one one out for now and leave it to you and your relatives. Best of luck on the America West board. Savy

 

[USA320Pilot]

Credit Rating Lowered

ARLINGTON (theHub.com) - Standard & Poor's Ratings Services yesterday lowered its ratings on US Airways, including lowering the corporate credit rating to "CCC+" from "B-" with a rating outlook that is negative. "The downgrade was based on the difficult challenge faced by US Airways as it seeks to rapidly lower its operating expenses in response to mounting pressure from low-cost competitors," said S&P credit analyst Philip Baggaley. He said failure by the company to conclude cost-saving negotiations with labor groups over the next several quarters "could force US Airways to undertake significant asset sales and/or file for bankruptcy a second time." Baggaley said long-term prospects for US Airways "remain difficult," given the company's limited route network and increasing exposure to low-cost competition. "Accordingly, acquisition by another airline or some other form of close integration into a broader alliance remains the best ultimate solution for US Airways," he said.

In a statement, US Airways said, "In anticipation of this possible downgrade, we have been in discussions that are ongoing with GE Capital and the regional jet aircraft manufacturers to obtain either a waiver or an amendment to the provision that requires a B-level credit rating as a condition of continued financing."

Regards,

USA320Pilot