- Banned
- #1
US Airways Sees Sept. Ch. 11 Exit, Will Meet With DOJ This Month
Aviation Daily
06/07/2005,
Steven Lott
US Airways hopes to emerge from Chapter 11 bankruptcy protection by the end of September and simultaneously consummate the merger with America West as it works to win approval from regulators and authorities this summer.
"We hit a home run in finding a solution and a partner," said Bruce Ashby, executive VP-marketing and planning. "Everyone has expressed strong support for the deal." While both airlines hesitate to put firm deadlines or discuss timelines of emergence and finalizing the merger, Ashby recently told The DAILY in Japan after a Star Alliance meeting that he is shooting for a September approval of the reorganization plan and exit from bankruptcy. Once US Airways emerges, "there's a lot more work to be done," in terms of the integration plan with America West, he said.
Ashby, who is heading the merger team for US Airways, does not expect any more investors to join the initial group of partners. "We have a real strong and balanced group of initial people," he said. "We've met or exceeded our plan for raising money in every dimension." Wellington Management Co. recently became the fifth major partner to commit money to the merged carrier, bringing the total to $500 million. "That may be all the initial money," he said, adding that the carrier is always open to new proposals.
US Airways and America West have yet to have any official meetings to present their deal to the U.S. Justice Dept., but US Airways' lawyers have already met with DOJ to discuss process and timing. The airlines "in the next few weeks" will likely meet with DOJ, Ashby said. "This is a fairly easy transaction to review from most angles," he said. DOJ already has a packet of information describing the deal.
Following the Hart-Scott-Rodino Antitrust Improvements Act, the carriers officially notified DOJ, which started a 30-day clock for regulators to review the deal. Ashby said the deal is far different than the proposed US Airways-United deal that DOJ rejected several years ago as the structure is different and there is no overlap of the US Airways and America West networks. He said there are likely some questions he hasn't anticipated but "whatever concerns they have can be addressed." -SL
Aviation Daily
06/07/2005,
Steven Lott
US Airways hopes to emerge from Chapter 11 bankruptcy protection by the end of September and simultaneously consummate the merger with America West as it works to win approval from regulators and authorities this summer.
"We hit a home run in finding a solution and a partner," said Bruce Ashby, executive VP-marketing and planning. "Everyone has expressed strong support for the deal." While both airlines hesitate to put firm deadlines or discuss timelines of emergence and finalizing the merger, Ashby recently told The DAILY in Japan after a Star Alliance meeting that he is shooting for a September approval of the reorganization plan and exit from bankruptcy. Once US Airways emerges, "there's a lot more work to be done," in terms of the integration plan with America West, he said.
Ashby, who is heading the merger team for US Airways, does not expect any more investors to join the initial group of partners. "We have a real strong and balanced group of initial people," he said. "We've met or exceeded our plan for raising money in every dimension." Wellington Management Co. recently became the fifth major partner to commit money to the merged carrier, bringing the total to $500 million. "That may be all the initial money," he said, adding that the carrier is always open to new proposals.
US Airways and America West have yet to have any official meetings to present their deal to the U.S. Justice Dept., but US Airways' lawyers have already met with DOJ to discuss process and timing. The airlines "in the next few weeks" will likely meet with DOJ, Ashby said. "This is a fairly easy transaction to review from most angles," he said. DOJ already has a packet of information describing the deal.
Following the Hart-Scott-Rodino Antitrust Improvements Act, the carriers officially notified DOJ, which started a 30-day clock for regulators to review the deal. Ashby said the deal is far different than the proposed US Airways-United deal that DOJ rejected several years ago as the structure is different and there is no overlap of the US Airways and America West networks. He said there are likely some questions he hasn't anticipated but "whatever concerns they have can be addressed." -SL
