USA320Pilot
Veteran
- May 18, 2003
- 8,175
- 1,539
US Airways to learn of pay cut plan’s fate
A report justifying the extension said lack of access to the cash "would immediately and irreparably harm the debtors, their estates and their creditors".
The airline is also prohibited from using the cash to buy aircraft, cannot spend more than $25m on capital expenditure by the end of the year, must use any net cash from asset sales to pay down the ATSB loan and must also hit certain rolling earnings targets.
The terms reinforce the need for approval for the interim wage cuts, which the airline said could save $38m per month. Without this relief it could face liquidation by February.
US Airways' labour costs - accounting for about a third of its costs - are the second highest in the industry.
Complete Story
Respectfully,
USA320Pilot
A report justifying the extension said lack of access to the cash "would immediately and irreparably harm the debtors, their estates and their creditors".
The airline is also prohibited from using the cash to buy aircraft, cannot spend more than $25m on capital expenditure by the end of the year, must use any net cash from asset sales to pay down the ATSB loan and must also hit certain rolling earnings targets.
The terms reinforce the need for approval for the interim wage cuts, which the airline said could save $38m per month. Without this relief it could face liquidation by February.
US Airways' labour costs - accounting for about a third of its costs - are the second highest in the industry.
Complete Story
Respectfully,
USA320Pilot
