Republic Airways sets IPO at 5 mln shares
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LOA 91 permits the sale of PSA, with 50-50 J4J, and 60 CRJ-700 and 25 CRJ-200 aircraft/delivery positions.
LOA 91 also permits the sale of MDA, with 85 EMB-170/175 aircraft/delivery positions, the transfer of all current pilots, and 50-50 J4J.
Mesa Airlines currently operates the CRJs and Republic has ordered 13 EMB-170s, with operations to begin this summer.
Could Mesa buy PSA and Republic MDA? Then once the Allegheny/Piedmont merger be complete, could this combined business entity be sold too?
US Airways current loan guarantee balance is $726 million and in 2001, United Airlines reached an agreement with Atlantic Coast Airlines for the Dulles-based company to buy US Airways' three "wholly owned" airlines for $200 million, provided the United-US Airways merger was completed.
I'm not sure what the market value would be for PSA, Allegheny/Piedmont, MDA, and their delivery positions, but it could bring the outstanding loan guarantee balance down to about $500 million, which is the maximum amount of guaranteed funds the company can possess and complete a corporate transaction, without ATSB approval per the loan guarantee covenants.
The new agreement between ALPA and US Airways permits the company transfer the leases to express partners, which frees US Airways from paying for those regional jets, while keeping the aircraft in the US Airways Express family to feed the mainline via the code share agreements.
ALPA spokesman Captain Jack Stephen told the Pittsburgh Tribune-Review, "Going forward, the pilots recognized the reality of the situation and voted accordingly. Given the facts, they made the appropriate decision."
US Airways spokesman David Castelveter told the Pittsburgh Tribune-Review, "This favorable vote is a clear indication our pilots do understand the challenges the company faces, and again are taking the necessary steps to help us during this extremely difficult time."
"This is positive. It's a start," said Michael Boyd, head of The Boyd Group, an airline consultant in Evergreen, Colo. "The only cost savings left are things like work rules and scope clauses. It's up to management now to make it work," according to the Tribune-Review.
LOA 91 permits the company to more easily divest of its regioanl assets with no further labor interference at any airline (mainline or affiliate), permit the company to lower its short-term debt by paying down more of the loan guarantee, reduce aircraft acquisition long-term debt, keep the RJ revenue within US Airways Group, and eliminate potential M&A scope clause problems, if the company enters into a corporate transaction.
Respectfully,
USA320Pilot
See Story
LOA 91 permits the sale of PSA, with 50-50 J4J, and 60 CRJ-700 and 25 CRJ-200 aircraft/delivery positions.
LOA 91 also permits the sale of MDA, with 85 EMB-170/175 aircraft/delivery positions, the transfer of all current pilots, and 50-50 J4J.
Mesa Airlines currently operates the CRJs and Republic has ordered 13 EMB-170s, with operations to begin this summer.
Could Mesa buy PSA and Republic MDA? Then once the Allegheny/Piedmont merger be complete, could this combined business entity be sold too?
US Airways current loan guarantee balance is $726 million and in 2001, United Airlines reached an agreement with Atlantic Coast Airlines for the Dulles-based company to buy US Airways' three "wholly owned" airlines for $200 million, provided the United-US Airways merger was completed.
I'm not sure what the market value would be for PSA, Allegheny/Piedmont, MDA, and their delivery positions, but it could bring the outstanding loan guarantee balance down to about $500 million, which is the maximum amount of guaranteed funds the company can possess and complete a corporate transaction, without ATSB approval per the loan guarantee covenants.
The new agreement between ALPA and US Airways permits the company transfer the leases to express partners, which frees US Airways from paying for those regional jets, while keeping the aircraft in the US Airways Express family to feed the mainline via the code share agreements.
ALPA spokesman Captain Jack Stephen told the Pittsburgh Tribune-Review, "Going forward, the pilots recognized the reality of the situation and voted accordingly. Given the facts, they made the appropriate decision."
US Airways spokesman David Castelveter told the Pittsburgh Tribune-Review, "This favorable vote is a clear indication our pilots do understand the challenges the company faces, and again are taking the necessary steps to help us during this extremely difficult time."
"This is positive. It's a start," said Michael Boyd, head of The Boyd Group, an airline consultant in Evergreen, Colo. "The only cost savings left are things like work rules and scope clauses. It's up to management now to make it work," according to the Tribune-Review.
LOA 91 permits the company to more easily divest of its regioanl assets with no further labor interference at any airline (mainline or affiliate), permit the company to lower its short-term debt by paying down more of the loan guarantee, reduce aircraft acquisition long-term debt, keep the RJ revenue within US Airways Group, and eliminate potential M&A scope clause problems, if the company enters into a corporate transaction.
Respectfully,
USA320Pilot
