Us Airways To Cut Hubs Further

[USA320Pilot]

US Airways to cut hubs further - Charlotte unaffected as other cities stress point-to-point flights

In any event, the analysts agree a second Chapter 11 filing would not necessarily be a disaster.

Mike Boyd of the Boyd Group in Evergreen, Colorado notes Continental Airlines Inc. went through that ringer twice and is doing well.

And Bill Warlick, an analyst with Fitch Investors Service (who audited every ATSB loan guarantee application) thinks US Airways has sufficient liquidity that its creditors would not force liquidation of the company. “I think they (US Airways) will be given a shot at (a formal) restructuring again," he said.

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Respectfully,

USA320Pilot

 

[USA320Pilot]

During the past couple of months I have discussed US Airways dual-track approach to its restructuring: a consensual restructuring with labor or a “judicial reorganizationâ€￾ with bankruptcy court assistance.

In the article to start this topic, Bill Warlick, an analyst with Fitch Investors Service (who audited every ATSB loan guarantee application) thinks US Airways has sufficient liquidity that its creditors would not force liquidation of the company. “I think they (US Airways) will be given a shot at (a formal) restructuring again," he said.

Moreover, US Airways has once again hired the Seabury Group and FTI Consulting to work with it through the next filing and the law firm of Arnold and Porter has been hired as legal advisors to the airline.

The company intends to keep the current equity (stock) in place, issue new stock to RSA, and work with the ATSB to obtain another waiver of the guaranteed loans while the company restructures. In addition, the carrier does not require DIP financing, which was echoed by Warlick.

What’s interesting is the news that the ATSB’s auditor, the man who personally audited every loan guarantee application, told the Charlotte Business Journal he thinks US Airways has sufficient liquidity and that its creditors would not force a liquidation of the company. “I think they (US Airways) will be given a shot at (a formal) restructuring again," he said.

Meanwhile, there is now news from the CWA that the Winston-Salem reservations center along with the Pittsburgh reservations and maintenance facilities.

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Moreover, I understand if the company does re-enter bankruptcy, the airline could reject the Charlotte maintenance facility too if the IAM does not agree to participate in the new business plan.

It appears that the company is continuing with its dual-track approach and unless there are new TA's with all labor groups in the not-so-distant future, the company will seek to set aside labor contracts, lease and facility agreements, to lower its unit costs to a competitive level.

Respectfully,

USA320Pilot

 

[robbedagain]

my question is: how all of this affect the iam members that are in the mainline express cities? or are they going after the mainline city cities?

 

[funguy2]

Also from your article:

"Bill Warlick, an analyst with Fitch Investors Service, says it is difficult to see how US Airways, under current conditions, can meet its cash requirements on crucial loan packages."

Sounds like he is talking about the current condition to me... Which, if the current condition continues, UAIR will likely bust its loan covenant, be forced to pay-down the ATSB-guaranteed loan, again, and then not have very much liquity left... Remember... UAIR will be forced to pay down the $700mil loan when they have $700mil unrestricted cash... Since those numbers are equal, I suspect that the loan could be called-in should UAIR's cash reserves get that low.

If the loan is called, UAIR has no unrestricted cash left, and the airline will stop operating immediately (my guess) as the airline will literally have no cash to pay for gas or wages (sobering thought). Therefore, it would be in UAIR's best interest to go BK prior to the loan being called, however, I suspect the loan will be called-in during the BK process and UAIR will then be forced to find a non-government back BK exit strategy... a rather daunting task in the face of $44bbl oil pricies (another sobering thought).

 

[cavalier]

my question is:

And my question is this: If the captain feels so damn confident that this management can make it without the IAM, then please explain why all the pleading to the IAM membership since we really don't matter anyway?

Given the actions by this management we obviously don't matter, therefore sitting down and voluntarily submitting to self mutilation doesn't matter either.

Now if I am wrong in my reasoning someone please enlighten me, set me on the proper course, protect me from my ignorance, please.

 

[USA320Pilot]

It's my understanding US Airways is in discussions with the ATSB to keep the guaranteed funds in place during the pre-packaged bankruptcy filing.

In regard to the IAM, the company would like to keep maintenance in-house, but the company will have no choice but to seek to set aside the IAM contracts and subcontract all overhaul if the IAM continues its position.

Nobody wants to re-enter bankruptcy, however, now the analysts and the ATSB's financial auditor have indicated the company can emerge from Chapter 11.

Bill Warlick, from Fitch Ratings and the ATSB's loan guarantee auditor, told the Charlotte Business Journal he thinks US Airways has sufficient liquidity that its creditors would not force liquidation of the company. “I think they (US Airways) will be given a shot at (a formal) restructuring again," he said.

Also noteworthy, David Bronner has said the restructuring will go forward "with or without employees."

Respectfully,

USA320Pilot

 

[AP Tech]

The man is a broken record!!!!!!! Nothing more than a waste of bandwidth!!!!!

 

[LGA Fleet Service]

Dennis Leary wrote a song about guys like you 320...

 

[CynicalResAgent]

Nobody wants to re-enter bankruptcy, however, now the analysts and the ATSB's financial auditor have indicated the company can emerge from Chapter 11.


Also noteworthy, David Bronner has said the restructuring will go forward "with or without employees."

Respectfully,

USA320Pilot

Hey USA3000Pilot, I used to think that the company should be negotiated with, I used to think, maybe I can give a little bit to help. That changed when they assumed that I would take a pay cut from 25k to 19k. I am sorry, I can't live like that. I'd love to see you try it too....If they can take us to Ch 11 then do it, don't threaten me. You repeat the same stuff over and over, why?

I hope this place closes down.....Take the res office, send it to someplace where they cant speak english, I don't care, I just want unemployment and my retraining benefits.

As it stands I will vote no for anything they send to me to vote on. I will do it just for spite now.

 

[OldGuyinPA]

Blah blah blah blah blah blah......It's getting old again...


Respectfully, Respectfully, Respectfully.

 

[hp_fa]

Dennis Leary wrote a song about guys like you 320...

Timothy Leary took drugs because of guys like him.