Us Airways Sells 10 Jets Stationed In Pittsburgh

[USA320Pilot]

Deltawatch:

USA320Pilot said: “At the end of 2005 US Airways (pre-merger) will have 232 mainline aircraft, at the end of February 221 aircraft, and at the end of 2009 210 aircraft.â€￾

Deltawatch asked: “So are you saying that 4 years from now US Airways and America West will still be operating separately???? Heck of a merger plan…â€￾

USA320Pilot responds: This week US Airways filed a bankruptcy court motion docket number #2230, which indicated the parties intend to close the merger on October 31. The new US Airways expects the operational integration to complete in two to three years, therefore, sometime in 2008 the merger should be complete.

USA320Pilot answers: Yesterday the company filed a separate motion and informed the court it agreed to sell 10 B737s. These aircraft have been previously identified for removal and are not additional aircraft.

Both motions include aircraft previously identified. It is my understanding management still expects “the combined airline to operate a mainline fleet of 361 planes (supported by 239 regional jets and 57 turboprops for feed into the mainline system), down from a total of 419 mainline aircraft operated by both airlines at the beginning of 2005.â€￾

Expect more news in the not-to-distant future on the announcement that “the combined airline will take delivery of 13 Airbus A320 family aircraft previously ordered by America West Airlines. Airbus has also agreed to reschedule and reconfirm 30 narrow body A320-family aircraft deliveries from 2006 - 2008 to 2009 - 2010. To rationalize international flying, the merged company will work with Airbus to transition to an all-Airbus international fleet of A330 aircraft and, beginning in 2011, A350 aircraft.â€￾

Regards,

USA320Pilot

 

[deltawatch]

Just seems odd to me that they are talking about removing "Usairways" aircraft in 2009. By then all the aircraft and employee groups should be one ...I hope?

 

[USA320Pilot]

Deltawatch:

GECAS cannot negotiate with the combined company until US Airways emerges from bankruptcy and the new US Airways is born. Both America West and US Airways must independently negotiate with their creditors until the corporate combination is complete.

Regards,

USA320Pilot

 

[CaptianBoomer]

A320:

Some merger success. In 2009, SWA and JB will have 500 and 210 aircraft at a minimum.....why is it that U/AWA intend on shrinking for the next 4 years?

Boomer

 

[bluetoad]

Boomer,
Get some mentoring. 0440 in the morning is to early to be asking 320 these deep questions.

 

[deltawatch]

A320:

Some merger success. In 2009, SWA and JB will have 500 and 210 aircraft at a minimum.....why is it that U/AWA intend on shrinking for the next 4 years?

Boomer

[post="277665"][/post]​

Don't worry Boomer, the NEW and improved USAirways will have 810 by then.

10 airbus
200 rj's
200 crj's
200 170's
200 190's
_________
810

 

[BoeingBoy]

On June 2, 2005, AWA issued investor guidance that indicated their fleet would remain at 143 airplanes thru 2007.

Jim

 

[SVQLBA]

Deltawatch et al

Seems like its worth a recap on what happens when in a typical airline merger. Until the deal officially "closes" (money changes hand, legal documents signed, etc.) anti-trust regs etc. limit how much joint planning HP and US can do. There can be some joint contact discussions, but anything getting into key areas such as pricing, scheduling etc. is off limits. Both airlines have to keep planning as though they were going to continue to remain separate, as well as planning for the merger. Hence the guidance (e.g., on HP's fleet, or aircraft leaving US's fleet). Obviously their is some coordination, but they have to stay withink legal limits until they have all the approvals and the deal closes.

Once it closes and you can get planning full steam ahead, the IT in particular is a ***** to integrated. Expect code sharing and FFP reciprocity in 3-6 months, but full fleet integration (moving all aircraft onto one operating certificate and maintenance program) can take several years (took AA almost 3 when they acquired TW I think).

There are lots of details about the merger (timelines, key milestones for customer and ops) that it will not be possible to set until after the close of the deal.

 

[gso-crew]

Here in GSO we are down to three mainline flights..... Since the merger was announced many former USAir FT’ers that booked away because of concerns about our long term future are trying to come back from Delta. We just don't have enough service to recapture market. Flights are full and we are turning away business. With all these airplanes going back what's the plan, force them to stick with Delta? Delta has 11 MD-80 flights to ATL and dozens of rj's flying non-stop all over the place. Delta is putting in a Comair maintenance hanger and a crew base with over 100 crew members here.

 

[USA320Pilot]

BoeingBoy said: “On June 2, 2005, AWA issued investor guidance that indicated their fleet would remain at 143 airplanes thru 2007.â€￾

USA320Pilot comments: At last week’s ALPA meeting the MEC was briefed that America West would add 5 jets to their fleet. I believe the Arizona-based airline currently operates 138 aircraft, thus America West should take delivery of 5 of the 13 A320 family aircraft scheduled for delivery to the new US Airways.

In its merger press release US Airways said, “The combined airline also will take delivery of 13 Airbus A320 family aircraft previously ordered by America West Airlines."

It’s unclear where the other 8 A320 aircraft previously ordered for America West could be delivered, but with near-term orders on the books they could be added to the pre-US Airways flying since both airline’s said they would be added to the “combined airlineâ€￾.

Regards,

USA320Pilot

 

[BoeingBoy]

To flesh out my previous comment about AWA's fleet plan, here is their breakdown as given in the investor guidance:

AWA FLEET PLAN as of 6/2/05:
1Q05 - 138 (37 737's, 33 A319's, 55 A320's, 13 757's)
2Q05 - 143 (add 1 A319 & 4 A320's)
3Q05 - 140 (subtract 2 A319's & 1 A320)
4Q05 - 143 (add 3 A319's)
FY06 - 143 (subtract 2 737's, add 2 A319's)
FY07 - 143 (no changes)

So there's 10 new A319/320's in their forecast, but only 5 are "growth" aircraft (starting with 1Q05 as the reference).

Perhaps the descrepancy is best explained by their annual report, where they reported 13 firm deliveries for all of 2005 and 1 for 2006 (on the end of 2004 reference point of 138 planes - 1 B737-200, 37 B737-300's, 33 A319's, 54 A320's, & 13 757's). So in addition to the 10 deliveries included in the investor guidance, there appears to have been at least 1 A320 delivery in the 1Q05 that replaced the last 737-200 that was retired.

They have 8 leases expiring in 2005, 9 in 2006, 21 in 2007, 15 in 2008, and 5 in 2009. In addition, they have what they call "lessor call options" (the lessor can demand early return of the aircraft) on 9 aircraft in 2005, 7 in 2006, 7 in 2007, and 1 in 2008. Partially balancing this, they have "lessor put options" (the lessor can demand extension of the lease for about 15 months) on 2 aircraft in 2005 and 4 in 2006.

They summed it up this way - "Assuming the exercise of all put options, as of December 31, 2004, 52 aircraft have lease expirations prior to the end of 2008."

But, hey, what do I know? I only use "public" information! It does, however, come from the people who should know as opposed to 2nd and 3rd hand info from this or that briefing.....

Jim

 

[USFlyer]

Deltawatch et al

Seems like its worth a recap on what happens when in a typical airline merger.  Until the deal officially "closes" (money changes hand, legal documents signed, etc.) anti-trust regs etc. limit how much joint planning HP and US can do.

[post="277960"][/post]​

I'm on a merger integration committee now for a different company in a different industry. We're permitted to discuss everything except pricing, contracts and salaries. IT-wise, corporate organization, who is being laid off, etc. are all charging full steam ahead.

 

[SVQLBA]

I'm on a merger integration committee now for a different company in a different industry. We're permitted to discuss everything except pricing, contracts and salaries. IT-wise, corporate organization, who is being laid off, etc. are all charging full steam ahead.

[post="277990"][/post]​

Airlines area little more complex I believe because DOT and DOJ both get involved. It also helps if your company has a good legal dept that doesn't just cover its ass by saying what you can't do, but helps airline mgt understand the full potential of what they can do at each stage without overstepping the line.

Also, especially in US's situation, they may well be limited in the number of staff they can free up to do work on integration planning teams. It really needs dedicated resources, especially early on, which can be tough for an airline in US's condition with high turnovergoing on -- they have to keep the wings on the airline before it merges.