Usairway's Sales Of 737 To Fed-ex Done Deal

[ClueByFour]

Don't the ALPA and IAM CBAs both require a minimum mainline fleet count of 279?

Somehow, I don't see this happening, as US would immediately get sued again (and lose) over the CBA violation (since the current credit rating is probably not going to allow for 50+ replacement airbus aircraft to be obtained).

 

[Cosmo]

Two comments:

1.) If it's true that the B737s are going to Fedex (or anyone else, for that matter), it must mean that ALPA caved on the 279 aircraft minimum fleet by either allowing that number to be reduced outright or allowing the EMB-170s to count toward that total, or both. This would address Clue's point above.

2.) To the extent US Airways still owns any of the B737s that presumably would go to Fedex, US Airways will only receive 25% of the sale proceeds with the rest going to pay down the ATSB-guaranteed loan. After all, an aircraft is just as much of an asset as is a DCA slot, a BOS gate or PSA, and the ATSB has first call on the funds generated by any asset sale.

 

[RowUnderDCA]

That WOULD be the other shoe, wouldn't it?

ALPA agrees to change scope to ALLOW the selling of the EMB-170, but with the other hand (mixing metophors. Perhaps the previous sentence shoud reference an 'other glove') requires that some be counted toward the 279.

But it's still a slap in the face (with the newly gloveless hand, no doubt)! Or maybe it's a kick in the pants, without a shoe.. .......

 

[Light Years]

If the 170s were to be counted as mainline, they would need to produce 80 of them in the next few weeks to make up for the lost 737s. I also thought the contract said that MAA a/c couldnt be counted.

And meanwhile, they might agree to contract them out?

Perhaps this explains the surprise furloughed F/As have been getting, recieving thier mainline manual and recurrent materials in the mail for "Embraer Division" training. Does it say anywhere in the contract that those mainline a/c have to be at mainline pay?

 

[757fixer]

I just got done talking to my brother,a FEDEX Lead Mechanic.It's true.FEDEX has agreed to buy 50 737's.A combination of 300 and 400's.They are presently taking bids for the cargo conversion.Their plan is to have these and place an order with Boeing for 737-900 freighters.

 

[Zeus]

This smells like another chat room rumor.

This rumor is false. There is a 279 a/c commitment.

 

[NeedForSpeedNFS]

This rumor is false. There is a 279 a/c commitment.

GUYS, get off the 279 aircraft committment!! you think that means anything????? they are not committed to our contracts, they are committed to ATSB, GE, BRONNER!! I still cant believe some of you guys dont get this!! What is so hard to understand??All "contracts" mean NOTHING. These guys are going to do what they have to do. We are left holding the crumbs that fall from their deals...........GOOD DAY........MORE LATER

 

[PITbull]

yes I agree you can't buy something you don't own
but can't fedex take over the leases?

You can sell the leases. And U got the leases renegotiated at great rates in BK, so they can sell the leases to be taken over by FedEx or anyone.

 

[PITbull]

This rumor is false. There is a 279 a/c commitment.

You can replace the boeings with the airbuses in the desert could you not, Zeus?

 

[airknocker]

Go to cactuswings.com, search USAIRWAYS and over 40 737s at various desert locations are in storage. By the way the cargo conversion on 737 is held by Pemco Aviation in Dothan, ALABAMA!

 

[autofixer]

Is this where the cash came from to pay down the ATSB loan?

 

[JayBrian]

Go to cactuswings.com, search USAIRWAYS and over 40 737s at various desert locations are in storage. By the way the cargo conversion on 737 is held by Pemco Aviation in Dothan, ALABAMA!

Its not likely that many if any of the aircraft in the desert are still owned or leased by USAirways, however some may be available for low rates.

 

[pitguy]

If memory serves me correctly under the Wolf regime the airline sold airplane/leases that they had at lower more favorable rates to raise cash then they redid leases at a higher rate. Maybe someone will recall more details on this and post them.

 

[USFlyer]

If memory serves me correctly under the Wolf regime the airline sold airplane/leases that they had at lower more favorable rates to raise cash then they redid leases at a higher rate. Maybe someone will recall more details on this and post them.

With the Airbuses, US bought them outright from Airbus at Wolf's negotiated rate, then sold them to a leasing company then leased them back from the leasing company. This partially explains why US's cash balance never changed much despite posting losses every quarter.

 

[ITRADE]

Sales and leasebacks are pretty common in commercial aviation.