Us Airways Said To Be Pursuing Big Asset Sales

[USFlyer]

Not quite. The point is to get enough cash to pay the first few installments of the loan while also maintaining the required "cash on hand" balances. That, from my understanding, is the major issue facing US at this point.

 

[28yearsnojob]

:huh: It will all be over very soon unless you get 15 % from mainline express
and 20 to 24% from mainline. That is whats left of them.

 

[700UW]

The LGA and DCA slots ARE COLLATERAL for the loans, go read the documents, they cannot sell or buy assets unless the loan principal is paid down at least 50%.

 

[CLT-Douglas]

Make way for VirginUSA, if assests are truly going up for sale.

 

[whatkindoffreshhell]

Nobody is buying anything. Just because an item is for sale doesn't mean the merchandise will be purchased. Just ask Ted.

Haven't you people learned anything?

To all the good people at USAir: thank you, good luck and good health.

 

[luv2fly]

But the employee groups at both DL And NW would rather wait until that cash is gone before making any concessions. Go figure.

Other than the pilots, Delta could unilaterally impose wage cuts tomorrow on all of its employee groups if it wanted to. Why haven't they done so??

7.5, do you work for DL?

 

[phillyguy]

If U is that close to the brink, would it not make sense for the other 6 to just wait and not buy any of the assets. If U folds completely, then they can scoop them up.

Just a different strategy

 

[insp89]

If U is that close to the brink, would it not make sense for the other 6 to just wait and not buy any of the assets. If U folds completely, then they can scoop them up.

Just a different strategy

Hey phillyguy, You don't belong on this post, Because you make too much sense !! But the problem in the way you see things is that there is no DRAMA if the potential buyers of assets (if there are any) just wait until liquidation, and GET A BETTER DEAL.

 

[L1011Ret]

Before anyone draws the proverbial line in the sand and stands up and declares with finality that the "concession stand is closed", it would seem prudent to hear the "plan" and what it means to everyone. The employees must be allowed to make up their collective minds which may conflict severely with the pride of some union leaders. Nobody likes give backs of any form or anything that results in fewer employees, but I think you owe it to yourselves to have a good idea what you are being asked for. So far, all that seems to be available in the way of information would appear to be rumors and posturing. Nothing new here, sometimes as the saying goes you have to hit the donkey in the butt with a 2 X 4 to get his attention.

 

[Light Years]

US Airways selling "a hub and the Shuttle" is like Helen Keller selling her arms and legs.

 

[ktflyhome]

yes, I am a newbie, but what I have read in the last few days....Ligt Years makes the most sense of all.

 

[cavalier]

Nobody likes give backs of any form or anything that results in fewer employees, but I think you owe it to yourselves to have a good idea what you are being asked for.

It doesn't matter. You don't get it! We gave not once but twice to the tune of millions and millions and many many jobs. Why should anyone care anymore. I know I don't. They can stick it right where the sun don't shine. Your attitude is beyond reasonable, if this sick pup is going to die regardless, let it die and set us free.

 

[USFlyer]

Your attitude is beyond reasonable, if this sick pup is going to die regardless, let it die and set us free.

Umm, not taking sides here, but ... you're free now if you want to leave to find something new. If US goes Chapter 7, don't expect any severance pay either. I believe all they are obligated to pay is wages for work already done, assuming enough cash remains on hand.

 

[ITRADE]

Your attitude is beyond reasonable, if this sick pup is going to die regardless, let it die and set us free.

Ummm Cav, there is a thing called the Thirteenth Amendment. You are not a slave. You can quit your job. Any. Time. You. Want.

 

[funguy2]

you've hit it dead on, funguy2, on all five points. Although US' assets are diminishing in value, they do have value to other legacy airlines who will be able to figure out a way to acquire those assets. DL and NW both have way more cash on hand than they need now, although DL would probably be cautious about spending money while they are still losing it. On the other hand, a US failure will go along way towards helping DL recover. I see AA as probably the most likely acquirer of US assets from a strategic standpoint but I'm not sure they are capable of doing it. If any legacy airlines buy US' assets, it will undoubtedly cause the alliances that have been forged to be rethought.

Thanks for the complement!

I also think that selling the assets pre-bankruptcy is a benefit to US and the acquiring carrier... US gets more control over the money generated + a small premium for selling something whole and intact vs. an auction of individual items (i.e. auction of the CLT gate leases, auction of the CLT hanger lease, auction of INT rez, auction of each aircraft one at a time, etc). Plus, the cost of selling outside of BK court should be less than getting all the BK lawyers and courts involved.

The acquiring airline gets the benefit of knowing they get everything they need for one lump price, as opposed to being forced to bid competitively for each individual item and having one critical piece fall to another carrier, or other shenanigans.