Dark Wrench
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- Aug 30, 2002
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QEC=Quick Engine Change
US Air Reaches Pact With GE Capital; Includes Financing
- Thread starter pitguy
- Start date
C
chipmunn
Guest
US Airways holds EMB-170 and EMB-175 delivery positions for I believe the fourth quarter, GECAS will finance the acquisition, the deal will be announced post bankruptcy, and the equipment is scheduled for delivery in the new MDA mainline division. In addition, provided new labor agreements can be obtained with the "wholly owned" airlines, the GECAS deal would provide RJ financing for the other US Airways Group Express operators. [BR][BR]Chip
Sidelined_03
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- Dec 9, 2002
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[FONT face="Courier New" size=1]One has to ask would GECAS lend this kind of money to an airline in immediate liquidation danger?[BR][BR]A deal like this doesnt gel overnight.Awfully odd that management would threaten to close the place while working on a deal with GECAS.[BR][BR][/FONT]
C
chipmunn
Guest
Sideline:
The GECAS agreement requires US Airways to emerge from bankruptcy by July 1 and avoid defaulting on its bankruptcy financing agreements.
If any union does not ratify their TA this could make the RSA DIP financing, RSA equity investment, and loan guarantee null and void; as well as preventing the recent GECAS agreement from being completed.
These investors are not going to risk their capital over labor. They want a ROI and people like Jim Root are putting the whole airline and risk of liquidation, which may occur sooner than later.
GECAS isn't dumb and they protected their investment.
Chip
The GECAS agreement requires US Airways to emerge from bankruptcy by July 1 and avoid defaulting on its bankruptcy financing agreements.
If any union does not ratify their TA this could make the RSA DIP financing, RSA equity investment, and loan guarantee null and void; as well as preventing the recent GECAS agreement from being completed.
These investors are not going to risk their capital over labor. They want a ROI and people like Jim Root are putting the whole airline and risk of liquidation, which may occur sooner than later.
GECAS isn't dumb and they protected their investment.
Chip
[P class=MsoNormal style="MARGIN: 0in 0in 0pt"][FONT face="Times New Roman" color=#000000 size=3]I can understand the need to reduce costs but if U is asking the Mechanics to vote themselves out of a job, PERMANENTLY, why would they at least not give them the facts-straight up-and honor such a choice with a severance package and some type of benefits that realize the sacrifice U is asking these guys to make?[BR][BR]Cash may be tight but even RSA has to realize that asking someone to place themselves against the wall and then giving the order to FIRE is a little much.[BR][BR]GE performing the servicing of airframes and engines is an exponential step beyond simply taking in an engine an shipping back a servicable one. The servicing of airframes and engines is the routine daily maintenance performed by Line Mechanics throughout the Air Carrier Industry; not the specialized modification, repair or alteration of engines or airframes that is customarily outsourced, in varying degrees, by all of the major US Carriers.[BR]---------------------------------------------------------------------------------------------------------------------------------------------[BR]US Airways Reaches Post-Bankruptcy Pact [/FONT][/P]
[P][FONT face="Times New Roman" color=#666666 size=3]WASHINGTON, Jan 02, 2003 (AP Online via COMTEX) -- US Airways Group Inc. and its largest creditor, General Electric Capital Corp., announced Thursday they have reached a deal that the airline said could finance "a significant portion" of its capital needs after emerging from Chapter 11. [/FONT][/P]
[P][FONT face="Times New Roman" color=#666666 size=3]In papers filed Dec. 27 with the U.S. Bankruptcy Court in Alexandria, Va., US Airways said the parties have reached a global settlement to resolve all their issues. [/FONT][/P]
[P][FONT face="Times New Roman" color=#666666 size=3]"The debtors cannot emphasize enough how important the global settlement is to their estates, creditors and other parties in interest," US Airways said. [/FONT][/P]
[P][FONT face="Times New Roman" color=#666666 size=3]The relationship between US Airways and General Electric Co.'s financial unit extends to aircraft financing, general debt financing,[EM][STRONG] and aircraft and engine servicing. [/STRONG][/EM][/FONT][/P]
[P][FONT face="Times New Roman" color=#666666 size=3]Under the settlement, GE Capital has agreed to provide the airline with $120 million in debtor-in-possession financing, a $360 million loan for use after it emerges from Chapter 11, and $350 million of lease equity for the leveraged lease financing of regional jet aircraft. [/FONT][/P]
[P][FONT face="Times New Roman" color=#666666 size=3]GE Capital would get 3.8 million warrants to buy Class A common shares of the reorganized company - representing 5 percent of the shares if all warrants issued under the plan were exercised - along with 3.8 million shares of Class A preferred stock. [/FONT][/P]
[P][FONT face="Times New Roman" color=#666666 size=3]U.S. Bankruptcy Judge Stephen S. Mitchell has scheduled a hearing on Jan. 16 to consider approving the settlement, which requires US Airways to emerge from Chapter 11 by the first of July. [/FONT][/P]
[P][FONT face="Times New Roman" color=#666666 size=3]US Airways said its post-petition lenders have signed off on the request and agreed it was permitted under the parties' current $500 million post-petition loan. [/FONT][/P]
[P][FONT color=#666666][FONT size=3][FONT face="Times New Roman"] [?xml:namespace prefix = o ns = "urn:schemas-microsoft-com
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[P][FONT face="Times New Roman" color=#666666 size=3]WASHINGTON, Jan 02, 2003 (AP Online via COMTEX) -- US Airways Group Inc. and its largest creditor, General Electric Capital Corp., announced Thursday they have reached a deal that the airline said could finance "a significant portion" of its capital needs after emerging from Chapter 11. [/FONT][/P]
[P][FONT face="Times New Roman" color=#666666 size=3]In papers filed Dec. 27 with the U.S. Bankruptcy Court in Alexandria, Va., US Airways said the parties have reached a global settlement to resolve all their issues. [/FONT][/P]
[P][FONT face="Times New Roman" color=#666666 size=3]"The debtors cannot emphasize enough how important the global settlement is to their estates, creditors and other parties in interest," US Airways said. [/FONT][/P]
[P][FONT face="Times New Roman" color=#666666 size=3]The relationship between US Airways and General Electric Co.'s financial unit extends to aircraft financing, general debt financing,[EM][STRONG] and aircraft and engine servicing. [/STRONG][/EM][/FONT][/P]
[P][FONT face="Times New Roman" color=#666666 size=3]Under the settlement, GE Capital has agreed to provide the airline with $120 million in debtor-in-possession financing, a $360 million loan for use after it emerges from Chapter 11, and $350 million of lease equity for the leveraged lease financing of regional jet aircraft. [/FONT][/P]
[P][FONT face="Times New Roman" color=#666666 size=3]GE Capital would get 3.8 million warrants to buy Class A common shares of the reorganized company - representing 5 percent of the shares if all warrants issued under the plan were exercised - along with 3.8 million shares of Class A preferred stock. [/FONT][/P]
[P][FONT face="Times New Roman" color=#666666 size=3]U.S. Bankruptcy Judge Stephen S. Mitchell has scheduled a hearing on Jan. 16 to consider approving the settlement, which requires US Airways to emerge from Chapter 11 by the first of July. [/FONT][/P]
[P][FONT face="Times New Roman" color=#666666 size=3]US Airways said its post-petition lenders have signed off on the request and agreed it was permitted under the parties' current $500 million post-petition loan. [/FONT][/P]
[P][FONT color=#666666][FONT size=3][FONT face="Times New Roman"] [?xml:namespace prefix = o ns = "urn:schemas-microsoft-com
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][/o][/FONT][/FONT][/FONT][/P]Stranger in a Strange Land
Newbie
- Jan 2, 2003
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[P]
[BLOCKQUOTE][BR]----------------[BR]On 1/3/2003 8:09:34 PM Boomer wrote:
[P]Chip,[BR]Would you care to comment on this purported MAJOR change in the outsourcing of aircraft maintenance JOBS?[/P]----------------[/BLOCKQUOTE]
[P][/P][FONT face="Courier New"]There will be no comment.Dissension is not permitted on these boards.Chip speaks, the company backs him up and those who dare raise opposing voices are silenced.Why do you think chip always asks for names when backed into a corner on an issue? Its not to send a christmas card[/FONT]
[BLOCKQUOTE][BR]----------------[BR]On 1/3/2003 8:09:34 PM Boomer wrote:
[P]Chip,[BR]Would you care to comment on this purported MAJOR change in the outsourcing of aircraft maintenance JOBS?[/P]----------------[/BLOCKQUOTE]
[P][/P][FONT face="Courier New"]There will be no comment.Dissension is not permitted on these boards.Chip speaks, the company backs him up and those who dare raise opposing voices are silenced.Why do you think chip always asks for names when backed into a corner on an issue? Its not to send a christmas card[/FONT]
ANNother Voice
Member
- Jan 3, 2003
- 31
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There will be no comment.Dissension is not permitted on these boards.Chip speaks, the company backs him up and those who dare raise opposing voices are silenced.Why do you think chip always asks for names when backed into a corner on an issue? Its not to send a christmas card
___________
I like your style...and dry sense of humor. Maybe when we all lose our jobs, you can be my sugar daddy.
___________
I like your style...and dry sense of humor. Maybe when we all lose our jobs, you can be my sugar daddy.
C
chipmunn
Guest
Biff:
Biff said: GE all ready overhauls all the CFMs on the 737s and A320 family and Pratt & Whitney overhauls the A330 engines. This is nothing new and will not cause more maintenance jobs to be lost as our own maintenance does not do this work.
Chip comments: Biff, I agree. From my understnading under Stephen Wolf's tenure as CEO (after Rakesh Gangwal left the company) US Airways agreed to power-by-the-hour contracts.
GE simply confirmed its post bankruptcy agreement and contract with US Airways for engine maintenance on the B767, B737-300/400, and A-320 aircraft. GE will continue to perform all engine overhaul except for those Rolls Royce B757s and Pratt & Whitney A330s engines.
Chip
Biff said: GE all ready overhauls all the CFMs on the 737s and A320 family and Pratt & Whitney overhauls the A330 engines. This is nothing new and will not cause more maintenance jobs to be lost as our own maintenance does not do this work.
Chip comments: Biff, I agree. From my understnading under Stephen Wolf's tenure as CEO (after Rakesh Gangwal left the company) US Airways agreed to power-by-the-hour contracts.
GE simply confirmed its post bankruptcy agreement and contract with US Airways for engine maintenance on the B767, B737-300/400, and A-320 aircraft. GE will continue to perform all engine overhaul except for those Rolls Royce B757s and Pratt & Whitney A330s engines.
Chip
1/3/2003 8
01 PM
Biffeman
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GE all ready overhauls all the CFMs on the 737s and A320 family and Pratt & Whitney overhauls the A330 engines. This is nothing new and will not cause more maintenance jobs to be lost as our own maintenance does not do this work.
-----------------------------------------
1/4/2003 12
55 AM
chipmunn
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Biff:
Biff said: GE all ready overhauls all the CFMs on the 737s and A320 family and Pratt & Whitney overhauls the A330 engines. This is nothing new and will not cause more maintenance jobs to be lost as our own maintenance does not do this work.
Chip comments: Biff, I agree. From my understnading under Stephen Wolf's tenure as CEO (after Rakesh Gangwal left the company) US Airways agreed to power-by-the-hour contracts.
GE simply confirmed its post bankruptcy agreement and contract with US Airways for engine maintenance on the B767, B737-300/400, and A-320 aircraft. GE will continue to perform all engine overhaul except for those Rolls Royce B757s and Pratt & Whitney A330s engines.
Chip
------------------------------------------------------------
I hate to disagree with both of you but the definitions of OVERHAUL & SERVICING are completely different. Also the article to speaks of aircraft & engines which is a far cry from Power By The Hour contracts.
Under the language presented in the AP story, GE could deploy mobile field units (which they already have) to drive up to an aircraft on the gate, plug in the diagnostic unit and change out the LRU. Further, they could come into US Airways hangars and actually perform engine changes.
Both of these examples are huge changes in the way that maintenance is performed by air carriers and would result in further job losses for U mechanics and larger profits for GE.
If I'm wrong, it shouldn't be too difficult for either the IAM or U to present language to the mechanics in which case I'll be glad to come back and say I was wrong.
01 PM Biffeman
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GE all ready overhauls all the CFMs on the 737s and A320 family and Pratt & Whitney overhauls the A330 engines. This is nothing new and will not cause more maintenance jobs to be lost as our own maintenance does not do this work.
-----------------------------------------
1/4/2003 12
55 AM chipmunn
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Biff:
Biff said: GE all ready overhauls all the CFMs on the 737s and A320 family and Pratt & Whitney overhauls the A330 engines. This is nothing new and will not cause more maintenance jobs to be lost as our own maintenance does not do this work.
Chip comments: Biff, I agree. From my understnading under Stephen Wolf's tenure as CEO (after Rakesh Gangwal left the company) US Airways agreed to power-by-the-hour contracts.
GE simply confirmed its post bankruptcy agreement and contract with US Airways for engine maintenance on the B767, B737-300/400, and A-320 aircraft. GE will continue to perform all engine overhaul except for those Rolls Royce B757s and Pratt & Whitney A330s engines.
Chip
------------------------------------------------------------
I hate to disagree with both of you but the definitions of OVERHAUL & SERVICING are completely different. Also the article to speaks of aircraft & engines which is a far cry from Power By The Hour contracts.
Under the language presented in the AP story, GE could deploy mobile field units (which they already have) to drive up to an aircraft on the gate, plug in the diagnostic unit and change out the LRU. Further, they could come into US Airways hangars and actually perform engine changes.
Both of these examples are huge changes in the way that maintenance is performed by air carriers and would result in further job losses for U mechanics and larger profits for GE.
If I'm wrong, it shouldn't be too difficult for either the IAM or U to present language to the mechanics in which case I'll be glad to come back and say I was wrong.
[BLOCKQUOTE]----------------[BR]On 1/4/2003 12:49:55 PM Boomer wrote:
[P]1/3/2003 801 PM [BR][BR]Biffeman[BR]Member[BR][BR]Total Posts: 308[BR]Last Post: 1/4/2003[BR]Member Since: 11/25/2002[BR]Member #: 1316[BR][BR]Subscribe to this author[BR][BR]GE all ready overhauls all the CFMs on the 737s and A320 family and Pratt & Whitney overhauls the A330 engines. This is nothing new and will not cause more maintenance jobs to be lost as our own maintenance does not do this work.[BR]-----------------------------------------[BR]1/4/2003 1255 AM [BR][BR]chipmunn[BR]Member[BR][BR]Total Posts: 1,142[BR]Last Post: 1/4/2003[BR]Member Since: 8/20/2002[BR]Member #: 19[BR][BR]Subscribe to this author[BR][BR]Biff:[BR][BR]Biff said: GE all ready overhauls all the CFMs on the 737s and A320 family and Pratt & Whitney overhauls the A330 engines. This is nothing new and will not cause more maintenance jobs to be lost as our own maintenance does not do this work.[BR][BR]Chip comments: Biff, I agree. From my understnading under Stephen Wolf's tenure as CEO (after Rakesh Gangwal left the company) US Airways agreed to power-by-the-hour contracts.[BR][BR]GE simply confirmed its post bankruptcy agreement and contract with US Airways for engine maintenance on the B767, B737-300/400, and A-320 aircraft. GE will continue to perform all engine overhaul except for those Rolls Royce B757s and Pratt & Whitney A330s engines.[BR][BR]Chip[BR]------------------------------------------------------------[BR][BR]I hate to disagree with both of you but the definitions of OVERHAUL & SERVICING are completely different. Also the article to speaks of aircraft & engines which is a far cry from Power By The Hour contracts.[BR][BR]Under the language presented in the AP story, GE could deploy mobile field units (which they already have) to drive up to an aircraft on the gate, plug in the diagnostic unit and change out the LRU. Further, they could come into US Airways hangars and actually perform engine changes. [BR][BR]Both of these examples are huge changes in the way that maintenance is performed by air carriers and would result in further job losses for U mechanics and larger profits for GE.[BR][BR]If I'm wrong, it shouldn't be too difficult for either the IAM or U to present language to the mechanics in which case I'll be glad to come back and say I was wrong.[/P]----------------[/BLOCKQUOTE]
[P]Boomer you are quite wrong on your assumptions, this is from our contract and has not changed:[BR][BR]Article 2 paragragh B[BR][BR][EM]The Company agrees that the following described work, wehere performed is recognized as coming within the jurisdiction of the IAMAW and is covered by this agreement: the making, assembling erecting, dismantling, and repair fo all machinery, mechanical equipment, engines and motors of all descriptions, incliding all work involved in dismantling, overhauling, repairing, fabricating, assembling, weldiong, and erecting all parts of airplanes, airplane engines, avionics equipment, electrical system, heating system, hydraulic system, and mchine tool work in connection therewith, including, allmaintenance, construction and inspection work in and around all shops, hangars, buildings and including the servicing, cleaning and polishing of airplanes and parts therof, and the servicing and handling of all ground equipment performed in abd about Company shops, Maintenance Bases, Aircraft Maintenance bases and Line servcie stations.[BR][BR]IT is understood that the Company reserves the right to continue to return to the manufacturer or its authorized agent, parts and subassemblies for repair or replacement that cannot be reparied on the property due to lack of equipment or because of warranty.[BR][BR][/EM]This language has not changed and even when contract maintenance does work on our aircraft that are broke at non-maintenance stations and it is not minor maintenance or parts were shipped to those stations and not repaired or replaced by US Airways' mechanics it is a grievance and they are paid accordingly.[BR][BR]The only place this does not apply is outside the continental US. We have sent mechanics to Canada and the Carribean numerous times to fix airplanes.[BR][BR][/P]
[P]
[BLOCKQUOTE][BR][/BLOCKQUOTE]
[P]1/3/2003 8
01 PM [BR][BR]Biffeman[BR]Member[BR][BR]Total Posts: 308[BR]Last Post: 1/4/2003[BR]Member Since: 11/25/2002[BR]Member #: 1316[BR][BR]Subscribe to this author[BR][BR]GE all ready overhauls all the CFMs on the 737s and A320 family and Pratt & Whitney overhauls the A330 engines. This is nothing new and will not cause more maintenance jobs to be lost as our own maintenance does not do this work.[BR]-----------------------------------------[BR]1/4/2003 1255 AM [BR][BR]chipmunn[BR]Member[BR][BR]Total Posts: 1,142[BR]Last Post: 1/4/2003[BR]Member Since: 8/20/2002[BR]Member #: 19[BR][BR]Subscribe to this author[BR][BR]Biff:[BR][BR]Biff said: GE all ready overhauls all the CFMs on the 737s and A320 family and Pratt & Whitney overhauls the A330 engines. This is nothing new and will not cause more maintenance jobs to be lost as our own maintenance does not do this work.[BR][BR]Chip comments: Biff, I agree. From my understnading under Stephen Wolf's tenure as CEO (after Rakesh Gangwal left the company) US Airways agreed to power-by-the-hour contracts.[BR][BR]GE simply confirmed its post bankruptcy agreement and contract with US Airways for engine maintenance on the B767, B737-300/400, and A-320 aircraft. GE will continue to perform all engine overhaul except for those Rolls Royce B757s and Pratt & Whitney A330s engines.[BR][BR]Chip[BR]------------------------------------------------------------[BR][BR]I hate to disagree with both of you but the definitions of OVERHAUL & SERVICING are completely different. Also the article to speaks of aircraft & engines which is a far cry from Power By The Hour contracts.[BR][BR]Under the language presented in the AP story, GE could deploy mobile field units (which they already have) to drive up to an aircraft on the gate, plug in the diagnostic unit and change out the LRU. Further, they could come into US Airways hangars and actually perform engine changes. [BR][BR]Both of these examples are huge changes in the way that maintenance is performed by air carriers and would result in further job losses for U mechanics and larger profits for GE.[BR][BR]If I'm wrong, it shouldn't be too difficult for either the IAM or U to present language to the mechanics in which case I'll be glad to come back and say I was wrong.[/P]----------------[/BLOCKQUOTE][P]Boomer you are quite wrong on your assumptions, this is from our contract and has not changed:[BR][BR]Article 2 paragragh B[BR][BR][EM]The Company agrees that the following described work, wehere performed is recognized as coming within the jurisdiction of the IAMAW and is covered by this agreement: the making, assembling erecting, dismantling, and repair fo all machinery, mechanical equipment, engines and motors of all descriptions, incliding all work involved in dismantling, overhauling, repairing, fabricating, assembling, weldiong, and erecting all parts of airplanes, airplane engines, avionics equipment, electrical system, heating system, hydraulic system, and mchine tool work in connection therewith, including, allmaintenance, construction and inspection work in and around all shops, hangars, buildings and including the servicing, cleaning and polishing of airplanes and parts therof, and the servicing and handling of all ground equipment performed in abd about Company shops, Maintenance Bases, Aircraft Maintenance bases and Line servcie stations.[BR][BR]IT is understood that the Company reserves the right to continue to return to the manufacturer or its authorized agent, parts and subassemblies for repair or replacement that cannot be reparied on the property due to lack of equipment or because of warranty.[BR][BR][/EM]This language has not changed and even when contract maintenance does work on our aircraft that are broke at non-maintenance stations and it is not minor maintenance or parts were shipped to those stations and not repaired or replaced by US Airways' mechanics it is a grievance and they are paid accordingly.[BR][BR]The only place this does not apply is outside the continental US. We have sent mechanics to Canada and the Carribean numerous times to fix airplanes.[BR][BR][/P]
[P]
[BLOCKQUOTE][BR][/BLOCKQUOTE]
And we do millions of dollars of business with Boeing, Airbus, GE, Rolls and Pratt now. Boeing is not setup for contract overhaul yet, but Airbus is in Lake Charles, LA (EADS Aeroframe Services).[BR][BR]This is the same agreement that has been in place with GE, Rolls and Pratt numerous years, it is a reafermation of the existing engine overhaul contract (Power by the Hour), the reason nothing is put out about it is nothing has changed it is status quo, that is why the company is gonna park the first 14 A320 family aircraft so we dont have to do the heavy on them and they cannot contract it out.
Biffe,
That is your opinion relating to the contract and its' interpretation. Both GE and Boeing have been trying to get a foothold in the maintenance end of the business for years.
I'd still like to see something from either the IAM or U in writing stating that the status quo will be maintained. Just call me suspicious.
That is your opinion relating to the contract and its' interpretation. Both GE and Boeing have been trying to get a foothold in the maintenance end of the business for years.
I'd still like to see something from either the IAM or U in writing stating that the status quo will be maintained. Just call me suspicious.
