Us Airways Ceo 'upbeat' On Progress

[BoeingBoy]

-- A division of Citigroup recently assumed the "at risk" portion of the loan guarantee from BOA.

[post="238048"][/post]​

Wrong, Citi assumed the "no-risk" portion of the loan guarantee - the Tranche A loan is backed by the taxpayers so there is zero risk.

[post="238059"][/post]​

I made an error here in the post above. In the filings that I've seen, Citi took over as Tranche A alternate lender from BOA - Govco took over as primary lender. My apologies for the mistake.

Now, if there is some new agreement for Citi to take over BOA's portion of the Tranche B loan (the "at risk" portion), I haven't seen it and it's not on the website with the court filings - and it will have to go before the court for approval.

Jim

 

[USA320Pilot]

BoeingBoy:

I had forgotten the specific language regarding further bankruptcy financial community support and I elected to find the information. Regardless, Govco and Citigroup have committed to help support US Airways. Here's part of a news commentary:

US Airways Asks OK on New Banks for $645M Loan

ARLINGTON (DW Jones) - US Airways Group Inc. (UAIRQ) has asked bankruptcy court permission to swap lenders on a $645.8 million piece of its federally-backed financing.

Replacing the current lenders would head off an interest rate hike on the loan, according to papers filed Monday with the U.S. Bankruptcy Court in Alexandria, Va., and reviewed Tuesday by Dow Jones Newswires.

US Airways' bankruptcy filing triggered a default in the loan which allowed lenders to ask the Airline Transportation Stabilization Board to pay them off, court papers say.

If the ATSB pays the lenders, US Airways' interest rate rises from the equivalent of the rate for AAA-rated commercial paper plus 30 basis points to a rate that is equal to the London interbank offered rate plus 40 basis points.

To avoid that escalation in its cost of funds, the airline is asking to replace YC SUSI Trust with Govco Inc. as primary lender, and trade Bank of America for Citibank N.A. as alternate lender.

All lenders have agreed to the trade-out, court papers say.

The motion affects only Tranche A of US Airways' ATSB-backed loan, which had about $717.6 million outstanding on Sept. 12 when the airline sought bankruptcy protection.

Court papers say the lender change will allow US Airways to hold on to the lower interest rate on the ATSB loan beyond the bankruptcy, since it runs to October 2009.

Regards,

USA320Pilot

 

[BoeingBoy]

Hey, I made an error also and had to go back to the filing to get the correct info.

At any rate, I don't know how much "support" is involved when there's zero risk. Heck, I'd loan a wino in the gutter money if the government would guarantee that I'd be paid back - doesn't mean I support him or think he's doing the right thing.

Jim

 

[ClueByFour]

At any rate, I don't know how much "support" is involved when there's zero risk. Heck, I'd loan a wino in the gutter money if the government would guarantee that I'd be paid back - doesn't mean I support him or think he's doing the right thing.

[post="238111"][/post]​

That nuance is often lost on those whose postings are spinning at a higher RPM than the #2 engine of the last airbus they've flown.....

 

[mweiss]

I was personally involved in Braniff with its first bankruptcy and sudden closure...I don't hear anything that far down in this or other sites.

[post="238097"][/post]​

As bad as US is, it's not as poorly managed as BN was post-dereg.

In fairness, BN management didn't believe that dereg would survive long, and wanted to establish as many routes as possible in order to be grandfathered in when the industry was reregulated. It was a huge bet, and turned out to be the wrong one.

US's management problems stemmed from not changing the business plan to address the changes that occurred in the market between the late 80s and today. Whether it's because they didn't want to, didn't know how, or didn't even realize it was necessary, the fundamental plan didn't really change.

So US isn't sinking anywhere near as quickly as BN. That doesn't mean that the company's future is rosy.

 

[Smartest Loser]

Here's the new catch phase:

"depressed revenue".....coming to a USAirways Daily near you.

SL

 

[AP Tech]

I'm really glad he is upbeat!!!! Check out the November stats, U ranked near the top of everything bad....complaints, mishandled baggage, denied boarding, ect and near the bottom of on time performance. Does Bruce and company realize we have a morale problem? Do any of them have a clue?

 

[Smartest Loser]

I am convinced....They don't.

The Harvard School of Business is running the show. This column needs to equal this column. Period.

SL

 

[mweiss]

There's nothing inherently wrong with HBS grads running the show...well, aside from the historical evidence that they make bad upper managers.

The columns do have to be equal.

What differentiates a good upper manager from a bad one is that a good manager knows how to get the assets and shareholder equity columns to increase.

 

[Smartest Loser]

Also, what those grads don't know is this business is very cycle generated. Ups & downs are part of it and you don't cut and run at the first sign of trouble.

Its kinda like the USA signing the surrender papers the day after Pearl Harbor…!!!

SL

 

[Finish or Ignore]

I'm really glad he is upbeat!!!! Check out the November stats, U ranked near the top of everything bad....complaints, mishandled baggage, denied boarding, ect and near the bottom of on time performance. Does Bruce and company realize we have a morale problem? Do any of them have a clue?

[post="238275"][/post]​

Does management see a problem here? Sure they do! They are very concerned about the on time numbers. And the kiosk numbers. All that other stuff can go to hell. It is best in life to try to be upbeat, but, if USA320 were to work the ticket counter or Baggage service office for 2 weeks he would probably resign.