Us Airways' Week In Review

[BoeingBoy]

Philadelphia to buy jet bridges from US Airways

According to the Philadelphia Inquirer, US Airways has boosted its liquidity and has obtained another creditors financial support. The airline and the City of Philadelphia have reached agreement for the company to sell the city and then lease back 30 jetways. The city will buy 30 jetways on B and C concourse for $200,000 each for a total of $6 million. The airport would lease the bridges back to the airline month to month.

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Airports

Philly Buys US Air Gates, Saves Carrier $11 Million
By Kimberly Johnson
02/01/2005 09:51:04 AM

Philadelphia International is taking back control of 30 loading bridges from US Airways in a deal it says will net the bankrupt carrier $11 million in savings for the first quarter of 2005.

The deal, announced last week and subject to bankruptcy court approval, requires the airport to fork over $6 million to the carrier for the bridges, which will immediately be leased back to US Air. "The acquisition will give Philadelphia flexibility in making operating decisions for gate utilization in the ever-changing airline industry environment," the airport said.

US Air will also receive a $4.8 million credit for proprietary equipment rentals and reductions in rates and charges -- after the City of Philadelphia receives payment for its pre-petition bankruptcy claim. The carrier will net savings through $522,000 and $500,000 credits for law enforcement/canine programs and new international service promotional support, respectively.

"US Airways is experiencing financial challenges, and we want to do whatever is reasonable to support its viability," Charles Isdell, director of aviation at the airport, said of the carrier, which represents more than 60% of the facility's traffic.

The deal will bring the beleaguered airline current in its financial obligations with the airport. But it's not one the carrier is likely going to look to replicate at other airports. "When we went into bankruptcy, we began to look for ways to cut corners," said US Air spokesman David Castleveter. "We will continue to make our payments to the city in a timely manner, and we will remain current on those obligations," he said

 

[USAirBoyA330]

CCY is just inept and for lack of a better word STUPID. Now, SWA can lobby The City of Philadelphia to reallocate our gates when the leases are up! I mean we just handed SWA the silver platter that our gates will be handed over on.
Just dumb! :down:

 

[mweiss]

I suspect that CCY didn't have much of a choice in the matter.

 

[BoeingBoy]

What? You mean it doesn't show how much PHL is supporting the transformation plan and confident of our survival????



Jim

 

[Bear96]

I'm sure USA320pilot would take exception to that, and will be on here shortly spinning how this is a brilliant decision to use assets more wisely ...

 

[BoeingBoy]

Bear,

I was actually giving him a little poke in the ribs....

If you go back to the beginning of this thread, you'll see something like that. This is an old thread (for this forum), but Airports magazine had the blurb I posted today so I just added it here instead of starting a new topic.

Jim