Us Air Weighs Extra Measures To Help Finances

[USA320Pilot]

US Air Weighs Extra Measures to Help Finances

Last spring US Airways ordered 170 small jets from two manufacturers

WASHINGTON (Dow Jones) - US Airways Group Inc. (U, news), 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.

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Dow Jones Newswires reported US Airways 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. Those planes might still operate on US Airways' behalf, but the carrier wouldn't have the financial burden of paying those leases.

USA320Pilot comments: Do not be surprised if there is a multi-part RJ agreement where the company unloads PSA, CRJ-200 aircraft, and some of the CRJ-700/EMB-170 delivery positions.

Potential suitors for the EMB-170 are TSA, Mesa, and Chautauqua, which could operate the aircraft under J4J as affiliate carriers. In addition, US Airways could provide an alternative for United Airlines to fix its Dulles problem prior to the pending corporate transaction. The alternative would help United obtain RJ feed and the deal could provide a transfer of Pittsburgh assets, which would help the Chicago-based carrier emerge from bankruptcy by over coming one of its key obstacles.

The combined move(s) would provide US Airways with a number of corporate benefits:

1. Obtain capital to pay down the ATSB loan guarantee early and obtain ATSB EBITDAR relief.

2. Reduce future debt service.

3. Provide GECAS relief as the financier diversifies its risk.

4. Take the pressure off of a potential S&P downgrade.

5. Provide affiliate carrier revenue to US Airways, without capital diversion.

6. Without RJ capital diversion, the company could have access to other financing to add A320 mainline family aircraft.

7. By "spinning off" the wholly owned airlines, US Airways would eliminate a potential United AFA scope problem, if the companies merge.

Respectfully,

USA320Pilot

 

[USA320Pilot]

Ambiguity at US Air begs for answers about Embraer 170s

Status of MidAtlantic appears as uncertain as ever

WASHINGTON (AIN Online) - Hopes for a first-quarter launch of US Airways’ MidAtlantic division dimmed to a flicker last month as pilots continued their dispute over payscales for new Embraer 170 positions and management took steps to sell off assets to meet minimum federal loan requirements.

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Respectfully,

USA320Pilot

 

[BoredToDeath]

USA320Pilot [/QUOTE]

Potential suitors for the EMB-170 are TSA, Mesa, and Chautauqua, which could operate the aircraft under J4J as affiliate carriers.

UALPA had a heart attack when the CRJ-705's were gonna be flown at a WO. Don't bet on scope being relaxed to now allow contract carriers to be able to fly the 170.

 

[USA320Pilot]

Bored:

With asset sales pending and the potential to add A320s, I believe ALPA would jump at the opportunity to trade EMB-170s for A320s, especially with a potential merger with United on the horizon.

In fact, now that I think about it, dependent upon the number of mainline jets added (if they arrive on the property), this could end MDA with all of the RJs flown by affiliate carriers.

Respectfully,

USA320Pilot

 

[ClueByFour]

USA320Pilot

UALPA had a heart attack when the CRJ-705's were gonna be flown at a WO. Don't bet on scope being relaxed to now allow contract carriers to be able to fly the 170. [/quote]
Exactly.

United can simply wait for U to go under, and then buy these assets at pennies on the dollar, which is a far more likely scenario.

 

[AOG-N-IT]

UALPA had a heart attack when the CRJ-705's were gonna be flown at a WO. Don't bet on scope being relaxed to now allow contract carriers to be able to fly the 170.

Exactly.

United can simply wait for U to go under, and then buy these assets at pennies on the dollar, which is a far more likely scenario. [/quote]
Lets not forget the post that Boeing Guy made today...and the link that stated that U was to be a "Stand Alone" Airline...Bronners words and Seigels as well...Ooops , it's a lie....we are going to be merged with UA

 

[USA320Pilot]

Clue:

Clue said: "United can simply wait for U to go under, and then buy these assets at pennies on the dollar, which is a far more likely scenario."

USA320Pilot asks: With what? United is in bankruptcy, it had the highest Q4 industry loss, it is not paying all of its bills, the company badly trails AA in RASM/CASM figures, and the carrier likely still does not qualify for the loan guarantee. US Airways' fate will be decided before United even submits its POR to the bankruptcy court, which will likely need another court extension.

Moreover, last week's pension legislative solution will likely not help United and if the IRS waiver is not obtained, which happened to US Airways, the Chicago-based airline will likely need to terminate its pension.

By the way, I talked with one Hedge Fund manager today who holds postions in airline stocks and he said he believes United may not emerge from bankruptcy. Why? ATSB rejection again.

Respectfully,

USA320Pilot

 

[USFlyer]

Oy, here we go again. If UA does not emerge from Chapter 11, US is sure to go Chapter 7. So perhaps we should just let things play out instead of posting the musings of all these random people who insist on remaining nameless. But, this is just my two cents ... everyone is free to post as they please.

 

[USA320Pilot]

USFlyer:

I agree. It's amazing that every time something is posted on this board about United, their employees come out of the wood work and "shoot the messenger".

Respectfully,

USA320Pilot

 

[BoeingBoy]

Personally, I'd be careful what you wish for. If the E-170's go to affiliates, remember that the E-190's are coming down the pike. I can hear the moans from CCY now - "JetBlue is getting them, we've got to have them to compete, and we can't compete with their cost structure unless these 190's go to the affiliates - or you fly them for $65 an hour."

Jim

 

[AOG-N-IT]

USFlyer:

I agree. It's amazing that every time something is posted on this board about United, their employees come out of the wood work and "shoot the messenger".

Respectfully,

USA320Pilot

We can only hope their aim gets better with time....you certainly provide them a maximum of degree to practice , Don't you ???

 

[USA320Pilot]

BoeingBoy:

Good point.

In fact, Dave Siegel said during his CRJ press conference in Canada that the EMB-190 "entered into the calculus" for the EMB-170 order to replace the B737s.

There is a lot in play here with a significant amount of daily news, but I find it interesting that there were a number of articles published on this topic today while the ALPA MEC is in session meeting with senior management.

Coincidental or purposely leaked?

However, if it's a trade to permit financing more A320s, then I suspect the MEC would authorize a trade of mainline A320s for MDA EMB-170s.

Separately, we should know more on Friday after this week's board meeting is complete and the "transformation plan" is finally released.

Respectfully,

USA320Pilot

 

[TheLarkAscending]

By the way, I talked with one Hedge Fund manager today who holds postions in airline stocks and he said he believes United may not emerge from bankruptcy. Why? ATSB rejection again.

Respectfully,

USA320Pilot

It is all subjective, USA320 -- my signifigant other runs a hedge fund on Wall Street, has for over 20 years. He believes otherwise.

Opinions are not facts and for you to cite one individual's belief as the broadbrush opinion of all those within the financial investment community is ridiculous and laughable.

 

[USA320Pilot]

AOG:

AOG said: "We can only hope their aim gets better with time....you certainly provide them a maximum of degree to practice , Don't you?"

USA320Pilot comments: AOG, just a couple of points.

First, I have no special interest in United and only care about our company. However, everything I have written about the Chicago-based company has been provided by reliable sources.

That's how I predicted the merger to the US Airways MEC on March 3, 2000, the AMR merger carve on December 23, 2000 (17 days before the official announcement), the April 2001 AMR ambivalence, the 21-day Hart-Scott-Rodino act notification (36 hours before it happened), the domestic alliance, and the Star alliance.

Personally, I would prefer to not merge with United because I believe their idea of pre-nuptial seniority agreements is wrong. In fact, if the UCT does occur -- which I believe will not with the parties now evaluating a true merger if United can emerge from bankruptcy -- would United employees like to be stapled in a fragmentation like American did to TWA employees?

Regardless, the information I have posted about United has been obtained from informed sources.

This post is not designed to enter into never ending debate with United employees and I am done commenting on this point in this thread.

Respectfully,

USA320Pilot

 

[USA320Pilot]

Let's get back to the topic -- MDA, EMB-170s, PSA, CRJ-200s/700s, etc. and potential deals.

Respectfully,

USA320Pilot