Us Air Weighs Extra Measures To Help Finances

[BoeingBoy]

Dow Jones Business News
US Air Weighs Extra Measures to Help Finances
Monday February 2, 1:54 am ET

US Airways Group Inc. (U), which already is considering asset sales to avoid defaulting on a big bank loan this summer, is pursuing other steps to get its finances in order that could include reducing the number of jets on order and repaying a portion of its debt early, Monday's Wall Street Journal reported.

The company is exploring the idea of reducing the number of regional jets it has on firm order and offloading the extra planes to commuter carriers it doesn't own, said individuals briefed on the idea. Those planes might still operate on US Airways' behalf, but the carrier wouldn't have the financial burden of paying those leases.

Last spring US Airways ordered 170 small jets from two manufacturers, an order valued at $4.3 billion at list price and touted as key to the carrier's revitalization. People familiar with the matter said there have been discussions between US Airways and General Electric Co.'s (GE) GE Capital Aviation Services unit, which provided much of the lease financing. A GE spokesman declined to discuss conversations with the carrier.

Wall Street Journal Staff Reporter Susan Carey contributed to this report.

 

[Piedmont4US]

This scenario is becoming more likely, and I know for a fact that its no secret that GE and US have been talking more recently.

Personally I think Bombardier would get the short end of the stick on the rest of the CRJ-700s. As for Embraer, I just can't picture any carrier other then MDA operating the 170s, since it was a main focus of the plan. However the plan has changed and if they want new Airbuses, then I can see a possible unloading of up to half of the Embraer order to none other then our friend J.O.