US Airways CEO: We don’t have to merge, but maybe it makes senseRead more here: http://www.charlotte
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Beancounter
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Yeah, all I can do is take an educated guess. I don't believe those individual numbers are made public. Only the company's internal accountants would have access.
Iclubbabyseals
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All the money came from, surprise, USAirways. Even the money to bail out AWA came from, wait for it, USAirways.
AWA was joined to the USAirways Group at a subsidiary point, a subsidiary of a subsidiary, as it were.
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Luth went after the companies that had something to gain from an investment in US Airways and America West. Aircraft maker Airbus agreed to provide $250 million in exchange for US Airways' pledge to buy dozens of A320 jets in the future. Regional commuter carrier Air Wisconsin Airlines made a $125 million investment in exchange for a jet services partnership. The Appleton, Wis.-based airline will fly for the merged carrier on a contract basis.
Credit card companies may provide $300 million in order to reach new customers. And once-bankrupt Air Canada offered $75 million, good for a 7 percent stake in the new company, in exchange for the rights to bid on the maintenance contract for the new carrier's fleet of 361 jets.
Read more: http://old.post-gazette.com/pg/05142/508153.stm#ixzz1ptg88WNj
Credit card companies may provide $300 million in order to reach new customers. And once-bankrupt Air Canada offered $75 million, good for a 7 percent stake in the new company, in exchange for the rights to bid on the maintenance contract for the new carrier's fleet of 361 jets.
Read more: http://old.post-gazette.com/pg/05142/508153.stm#ixzz1ptg88WNj
In other words, we don't have to merge, but we're doing it anyway:
http://www.bloomberg.com/news/2012-03-23/us-airways-said-to-brief-amr-creditors-on-takeover-plan.html?cmpid=yhoo
Phoenix
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He throws rocks at sitting ducks to watch them scurry, and you know that.
BoeingBoy
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Still says nowhere that it was "old" US that bought AWH. You see, "old" US had no more money than AWH - not enough to "lift US Airways out of bankruptcy." That is a fact that no one has disputed. You've got tunnel vision on who an article says lined up the investors, but that's beside the point. The investors didn't put money into "old" US - they invested in LCC stock, which didn't exist until "old" US had it's POR approved by the Court, exited BK II and subsequently merged with AWH.
Jim
im back..!!
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Very good points there Jim. And as your last sentence says, "subsequently merged with AWH".
So lets just get it clear, once and for all, as many in the east have stated.
America West did not buy Usairways.....
It was a merger, with the decision to have Usairways be the surviving carrier, for marketing/name recognition purposes..
(personally I question the logic in this, Usair had and still has a rather poor rep. in my opinion, but whatever)
If Usairways was bought by someone else, all of us still working and under 60 but over 50 (like I said all of us) would be able to draw our PBGC at this time, and according to the US Government, we can't, because we weren't.....
Just saying.....
PullUp
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So, when we change the name to AA-a wholly owned subsidiary of USAirways Holding Group, will we be able to tap the PBGC $$?
On a side note: If you haven't yet, please email your senators and representatives about the Pilot Equitable Treatment Act, which aims to reform PBGC rules to enhance your retirement paycheck.
Senate Bill S998 and House Bill HR1867 are the respective versions of the bill. Please see the GAC page on the USAPA website for more info.
Thanks.
Cheers.
BoeingBoy
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Merger: Putting two or more together to form one. (note that it says nothing about the financial end of things).
You are correct in that AWH didn't buy US. But look at who did and what they bought. How much of LCC did US stockholders end up with? How much of LCC did AWH stockholders end up with? How much of LCC did the "outside investors" end up with? How much of LCC did the unsecured creditors end up with?
Did the US stockholders vote on the merger proposal? Did the "outside investors" vote on the merger proposal? Did the AWH stockholders vote on the merger proposal? Did the unsecured creditors vote on the merger proposal?
The US Airways name of the holding company was kept for primarily one reason - to get around the CofC language in the East contract. As far as keeping it as the public name of the airline, hindsight is 20/20.
Yes it was a merger - the two companies were put together to form one company. Just like DL/NW, UA/CO, TW/AA, WN/FL, etc. Hence the SEC language about a reverse acquisition - the acquired company remained in existence while the acquiring company disappeared, which is generally the reverse of normal. Just look at the list of other mergers above and the acquiring company is the surviving company. The merger was accomplished by the outside investors putting money into the merged company, the AWH stockholders swapping their stock for stock in the merged company, and the unsecured creditors getting stock in the merged company as partial payment of what they were owed by US. The owners of AWH became partial owners of LCC...how much of LCC did the USG owners get?
Someone earlier asked why Parker/AWH would want to buy a company teetering on liquidation and the answer is both simple and has been given by Parker before. In a liquidation, AWH did not have the resources to compete for the good parts of US - slots, international route authorities, etc. But by buying it with money that would become available because of the merger, AWH could get it all and not have to outbid anyone else for the few valuable pieces.
The problem is that it appears many on the east think that US bought AWH since the name is still US Airways Group (then there's 700 who thinks Luth bought both companies I guess). Nothing could be further from the truth. AWH put it's stock in the pot (i.e. purchase by stock swap), the outside investors put their money in the pot, and the pot was used to both buy and merge with LCC. There is absolutely no valid argument for the proposition that USG bought AWH. There are valid arguments for the proposition that AWH bought at least part of LCC.
Jim
You are correct in that AWH didn't buy US. But look at who did and what they bought. How much of LCC did US stockholders end up with? How much of LCC did AWH stockholders end up with? How much of LCC did the "outside investors" end up with? How much of LCC did the unsecured creditors end up with?
Did the US stockholders vote on the merger proposal? Did the "outside investors" vote on the merger proposal? Did the AWH stockholders vote on the merger proposal? Did the unsecured creditors vote on the merger proposal?
The US Airways name of the holding company was kept for primarily one reason - to get around the CofC language in the East contract. As far as keeping it as the public name of the airline, hindsight is 20/20.
Yes it was a merger - the two companies were put together to form one company. Just like DL/NW, UA/CO, TW/AA, WN/FL, etc. Hence the SEC language about a reverse acquisition - the acquired company remained in existence while the acquiring company disappeared, which is generally the reverse of normal. Just look at the list of other mergers above and the acquiring company is the surviving company. The merger was accomplished by the outside investors putting money into the merged company, the AWH stockholders swapping their stock for stock in the merged company, and the unsecured creditors getting stock in the merged company as partial payment of what they were owed by US. The owners of AWH became partial owners of LCC...how much of LCC did the USG owners get?
Someone earlier asked why Parker/AWH would want to buy a company teetering on liquidation and the answer is both simple and has been given by Parker before. In a liquidation, AWH did not have the resources to compete for the good parts of US - slots, international route authorities, etc. But by buying it with money that would become available because of the merger, AWH could get it all and not have to outbid anyone else for the few valuable pieces.
The problem is that it appears many on the east think that US bought AWH since the name is still US Airways Group (then there's 700 who thinks Luth bought both companies I guess). Nothing could be further from the truth. AWH put it's stock in the pot (i.e. purchase by stock swap), the outside investors put their money in the pot, and the pot was used to both buy and merge with LCC. There is absolutely no valid argument for the proposition that USG bought AWH. There are valid arguments for the proposition that AWH bought at least part of LCC.
Jim
How about offering a little proof there, sport.
According to the SEC filings it was a reverse acquisition, the smaller company (AWA) buying the larger (UsAirways). Dig it up. I won't do the work for you. Ah, but you won't because you really don't want to know the truth.
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