Us Airways And Atsb Restructure Loan

[USA320Pilot]

Just one more point...

The press release subtitle said, "Agreement Allows Time for Company to Finalize and Implement Transformation Plan by Midyear."

Is it coincidental that June 30 is Midyear and the same day that United Airlines has said it wants to emerge from bankruptcy protection?

Hummm...something to think about...

Regards,

USA320Pilot

 

[funguy2]

By the way:

pit_needs_help: I concur.

mwereplanes and 7.5: I concur... But, this company does need to stop the leaks first... Unfortunately, the only solution this management team has come up with is buying more buckets. It is now at the point where, since the "Going Forward Plan" was needed last year, so bring in a new management team today won't produce any results for at least a year... By the time Seigel and team could be ousted, a new management put in place and understand the business, well, I just don't think US Airways would be around to see it. The company would be so focused on replacing the management team that nobody would actually run the airline, much less run it well. For that reason, I think you are stuck with the management team you have.

 

[cavalier]

Only a competent management can do that. That is what the "Going Forward Plan" needs to address. Any further employee participation should be linked to replacing Siegel. Then maybe you can finally see your UCT come to fruition.

mr

YES!

I believe if any further concessions are to be even considered, then this MUST happen, or the place will become eastern 2.

Tis Life

 

[700UW]

Give it a rest with your imaginary corporate transaction.

Second, how many times do you have to be told that there is no Shuttle, Shuttle is part of mainline, there are no more Shuttle planes, Mainline planes fly the former Shuttle routes. The only thing that US could sell is the slots at LGA to give someone more flights.

Oh by the way the IAM members on this board are still waiting for your explanation of the "Painful" clause in the IAM Mechanic and Related contract. And before you say this thread has no bearing on what I have posted, it goes to your credibility or shall I say lack of?

 

[USA320Pilot]

Funnyguy2:

You're missing the point. US Airways cannot buy anything, but RSA can. Will it happen? Maybe, maybe not, however, it appears US Airways has M&A options -- for example, maybe Northwest Airlines.

It's too early to tell what will happen and you could see a company like Northwest acquire US Airways, a KLM-AF type of deal with United, or a merger with United.

Who will finance it? Bronner and has publicly indicated on four occasions he would do just that.

If US Airways and its employees reach agreement on the "Going Forward Plan", then Bronner may elect to be United's equity plan sponsor, which would be a means to bring the company out of Chapter 11 bankruptcy.

Again, it's Bronner and Siegel who are making the M&A overtures, not me. Moreover, it's RSA that had the money. It will only require another $226 loan guarantee payment, which much of that money coming from "wholly owned" assets sales and RJ delivery positions to hit the $500 million ATSB M&A target.

However, for this to occur it’s going to require labor participation in the "Going Forward Plan".

Regards,

USA320Pilot

 

[USA320Pilot]

700UW:

You're wrong on the Shuttle and I am not free to discuss the "painful" issue, but without a deal you'll see because it's already in the IAM contract.

Regards,

USA320Pilot

 

[700UW]

You're missing the point. US Airways cannot buy anything, but RSA can. Will it happen? Maybe, maybe not, however, it appears US Airways has M&A options -- for example, maybe Northwest Airlines.
Regards,
USA320Pilot

Last time I checked the RSA is a pension fund not an airline, they can buy assets and then sell them or lease them to US Airways, but if they buy them and do nothing with them they become worthless.

Ah here it is, the UAL fairy tale is over so now it is NWA, when that dies who will it be next DL, CO, HP?

 

[funguy2]

Just one more point...

The press release subtitle said, "Agreement Allows Time for Company to Finalize and Implement Transformation Plan by Midyear."

Is it coincidental that June 30 is Midyear and the same day that United Airlines has said it wants to emerge from bankruptcy protection?

Hummm...something to think about...

Regards,

USA320Pilot

Two problems with that statement:

1) How many times recently has this company actually acheived a stated goal. I count one: backruptcy emergence, and that only occured because the credit card processor would have cut US Airways off if they did not emerge on March 31. So I do not believe than any meaningful "transformation" will have taken place by June 30. The only thing US Airways can hope to have in place by June 30 is Employee Concessions Round 3. There will be no fleet simplifcation, route restructure, Express Carrier restructure complete in 3.5 months.

2) How many times has UAL extended its bankruptcy exit? I thought UAL is on a rolling one-month deadline to submit their EXIT PLAN. Do you really think that they can submit their EXIT PLAN, and then execute it in 3.5 months? I think that is a stretch, given the way things have been going at UAL.

 

[700UW]

700UW:

You're wrong on the Shuttle and I am not free to discuss the "painful" issue, but without a deal you'll see because it's already in the IAM contract.

Regards,

USA320Pilot

Ok tell me is the Shuttle a seperate company?
NO!

Are there Shuttle planes?
NO!

Are there seperate Shuttle Employees?
NO!

Does Shuttle have its own Certificate?
NO!

So explain how the Shuttle is its own?

And your "I can't discuss it" is a bunch of horse manuere. I know my contract back and front, inside and out and if your so called "Painful" clause is in there I would know it and it would be public knowledge as the contract is a public document that thousands have seen. And the only deal is how many thousands if not hundreds of thousands of dollars the IAM Mechanic and Related members will be paid when the IAM wins the arbitration!

Maybe more of your cockpit chronicles with Dave fantasy tales?

Maybe we should contact the SEC and tell them a certain US Airways Pilot is posting inside information on the internet, I bet they would love to hear that!

Maybe you have been flying to many trips to this place?

 

[USA320Pilot]

FunnyGuy 2:

If it occurs, it will be with an Equity Plan Sponsor and part of a loan guarantee application. However, another airline may have something to say about this.

Regards,

USA320Pilot

 

[USA320Pilot]

700UW:

You're wrong.

The Shuttle can be carved out from the mainline as a separate entity with planes, gates, slots, and facilities divested, if desired. In fact, Delta has made overtures to Morgan Stanley to offer ideas on how to do that plus for the swap of LGA terminals. In all three markets and airports, we have dedicated facilaities and operations.

If you come up to New York sometime, I'll show you around and how it all works.

Regards,

USA320Pilot

 

[funguy2]

No USA320 Pilot, you are missing the point.

US Airways best hope is that it be acquired, not the other way around. Sorry.

Mr. Bronner has also said that he would not throw good money after bad. I believe merging two bankrupt companies would be a prime example of throwing good money after bad.

Furthermore, US Airways is only 1% of RSA's total holdings, and yet Mr. Bronner has spent a great deal of effort and time on it. I think eventually, Mr. Bronner will write off the 1% in order to focus on his primary responsibility, the RSA. Either the rest of the RSA runs itself, or Mr. Bronner and RSA are missing other, better investment opportunities, probably outside the aviation sector.

And for your comment about it only costs $226mil more to get to the $500mil M&A clause, i think you are mis-reading. I believe the clause to reduce the required unrestricted cash holdings from $700mil to $500 mil from convincing the auditors that the company is a "going concern", something they currently doubt. See quote:

US Airways also agreed to a loan covenant that its minimum unrestricted cash balance would not fall below the lower of $700 million and the outstanding balance of the loan at each month until its "going concern paragraph" is removed, at which point the unrestricted cash covenant will be reduced to $500 million.

You appear to be mixing and matching with the following statement, which appeared several paragrphs earlier than the cash balance info:

The company and the ATSB also agreed to modify other terms and provisions, including lifting certain restrictions on the company's ability to pursue asset sales.

Furthermore, you are asserting that the companuy should lose $425mil cash (i.e. the $925 on hand - the $500 "required for M&A activity") in order to begin asset sales! Wouldn't the company be better off trying to lose less cash AND keeping its assets? Your statements make no sense.

Lastly, the name is funguy2. If you were truly "respectful", you would get it right.

 

[700UW]

I was born and raised in NY and worked at LGA, and I am in LGA once a month. I know how things work very well. And US can't sell crap without keeping the fleet at 279 and DOJ will not let US sell the Shuttle to the only other real Shuttle operator out there. AE does not count in my book.

So try again, so what about "painful" clause?

 

[Cosmo]

Here's a couple of questions to ponder:

With the auditors' qualified opinion of US Airways as a "going concern" (as contained in the carrier's SEC Form 10-K filed today), will that prompt the ratings firms to again lower US Airways ratings another notch? And if so, will that induce GECAS to take its CRJ-700s and EMB-170s to United or another carrier, thereby causing US Airways' "Transformation Plan" to go up in smoke?

Hummm...something to think about...

 

[Flying Titan]

In addition, expect the Company and the Negotiating Committee to announce a RJ scope tentative agreement (TA) before the end of next week, which will permit the sale of PSA and transfer of CRJ-200 and CRJ-700 delivery positions, increase the number of CRJ-700 positions permitted to be flown in the US Airways Express network, a new MDA clause, and EMB-170 adjustments.

Do not be surprised if this agreement also provides provisions for Chautauqua, Republic, and Shuttle America.

Regards,

USA320Pilot

I understand that U may need to do this for the sake of raising cash, but I hope this doesn't happen. I believe this presents a host of long-term problems for U.

First, if mgmt and others who know this aircraft are to be believed, the E-170 will be a low-cost and profitable aircraft for U to operate. With its low cost structure, PSA certainly seems like it should be profitable for U to operate, as well. Selling off profit centers will only serve to magnify the problems caused by the parts of the operation that don't turn a profit.