How Us Airways/america West

[funguy2]

Oh, and U will be stuck with Air Wisconsin at cost + 5% for years. And will be buying Airbus 350s whether needed or not.

Beats the previous cost +8% contracts...

 

[Cosmo]

It's my understanding that Tilton did not want to participate in the UCT or ICT in 2003 because it would have lead to the fragmentation of United. I was told that if the Iraqi War or SARS would have lasted longer then US Airways, with RSA financing, would have made a hostile run at United's assets.

But you're forgetting one nagging little detail -- in 2003, United was already in bankruptcy proceedings with exclusive authority (which continues to this day with the approval of the creditor's committee) to come up with a POR. There would have been NO successful "hostile run at United's assets" by US Airways or anyone else in 2003.

 

[USA320Pilot]

Cosmo:

US Airways and United had discussions after the failed merger attempt that I called the UCT or ICT, but Dan Fitzpatrick said the companies called it Project Minnow. Glenn Tilton resisted the fragmentation of United and the company did not violate its DIP financing requirements.

If the Iraqi War or SARS would have lasted longer United’s revenue would have likely been further depressed. If that occurred US Airways believed that Judge Wedoff would not have permitted POR filing extensions and then other parties would have been able to bid on United assets.

United came very close to violating the DIP requirements while US Airways was out of bankruptcy and if the Chicago-based airline would have seen its revenue deteriorate further, US Airways’ chairman of the board publicly said he was interested in buying United assets for US Airways.

Regardless, the good news is that US Airways and Untied did not merge because I believe it would not have been in the best interests to do so, which is why US Airways’ “executive suiteâ€￾ shunned Tilton’s recent attempt to merge after the he learned about the significant amount of equity that has now been made available to US Airways.

Regards,

USA320Pilot

 

[FA Mikey]

Regardless, the good news is that US Airways and Untied did not merge because I believe it would not have been in the best interests to do so, which is why US Airways’ “executive suiteâ€￾ shunned Tilton’s recent attempt to merge after the he learned about the significant amount of equity that has now been made available to US Airways.

Regards,

USA320Pilot

[post="272390"][/post]​

I think you should say money made available to AWA in its take over of bankrupt Usairways.

 

[Dog Wonder]

A 320 Pilot says "Regardless, the good news is that US Airways and Untied did not merge because I believe it would not have been in the best interests to do so"

Well, it's a damn good thing you killed the deal.

 

[USA320Pilot]

FA Mikey:

A Holding Company is being created at all of the investment agreements were negotiated and obtained from one of US Airways' financial advisors and that was John Luth of the Seabury Group.

Regards,

USA320Pilot

 

[USA320Pilot]

Cosmo:

Tuesday's edition of the Pittsburgh Post-Gazette reitereated what I said earlier that "US Airways has been exploring merger opportunities since 2000, the year it began its failed attempt to merge with United Airlines; but the talk about a partnership with America West started 18 months ago. It fizzled in last spring and then heated back up in January, after US Airways squeezed more than $1 billion in concessions from its employees."

See Story

Regards,

USA320pilot

 

[BoeingBoy]

Oh, and U will be stuck with Air Wisconsin at cost + 5% for years. And will be buying Airbus 350s whether needed or not. And so forth. It's predatory lending on a grand scale. "Stunning," even.

[post="272139"][/post]​

Beats the previous cost +8% contracts...

[post="272277"][/post]​

Correct me if I'm wrong, but I don't think the profit margin built into the Air Wisconsin or Republic deal is public knowledge. The only thing I've seen is that the Chataugua ERJ's would be cut from cost + 8% to cost + 5% for as few as 15 airplanes, and I'd have to look to see if that was part of the equity agreement (gone, apparently) or Emb-170/slot agreement (still viable). IIRC, it was the latter, but don't hold me to that.

Assuming that the new agreements will have a lower profit margin than the old may not be safe, especially as U was panhandling for dollars when those agreements were reached.

Jim

 

[funguy2]

I think you should say money made available to AWA in its take over of bankrupt Usairways.

FA Mikey:

A Holding Company is being created at all of the investment agreements were negotiated and obtained from one of US Airways' financial advisors and that was John Luth of the Seabury Group.

Regards,

USA320Pilot

[post="272411"][/post]​

According to the information released, the new US Airways Holdings will be owned by the following:

45% of the New US Airways goes to America West stockholders
41% of the New US Airways goes to New Equity investors
14% of the New US Airways goes to current US Airways creditors

Furthermore, it seems clear that without the merger, US Airways or America West would be able to attract this level of financing. And since America West is in the driver's seat, and largely brought the financing to US Airways.

Indeed, while public perception will be muddied by the resulting company being branded as US Airways, make no mistake about it... America West is acquiring US Airways (with the help of third party financing).

FA Mikey's correction is correct.

 

[firstamendment]

AA mikey

What is your AX to grind with US?

 

[StewGuy86]

I couldn't agree more, firstamendment!! Nearly every AA poster, and most of the UA ones that come onto this board, have nothing but negative things to say about US. It seems to bug the #### of of them that we even exist and that any of us still have jobs and paychecks.