1 Billion In Financing For Merger

[JFK777]

An A350 order would make sense for Airbus as well as US/AW. For airbus it preserves a large US airline in its customer base after NW ordered 787's. For US/AW it provides new international range airpanes along with the A330's for two roles. More Europe, from Las Vegas and Phoenix AW doesn't fly to Europe. A350 also could open up Asia from Las Vegas and Phoenix to Japan.

Philadelphia to Tokyo's day has come and to ignore Asia at this juncture is ignorant. Tokyo is a city US should have flown to a long time ago. The A350 gives US an airplane that can fly to Asia since the A330 is great to Europe but its legs are limited. Good Luck .

 

[luvn737s]

A350 also could open up Asia from Las Vegas and Phoenix to Japan.

[post="269744"][/post]​

Phoenix to Japan...sore subject.

 

[USA320Pilot]

Report: US Airways, America West Near Loan

Sunday May 15, 6:26 pm ET

Report: US Airways, America West Could Land $250 Million Airbus Loan As Part of Jet Deal in Merger

See Story

Regards,

USA320pilot

 

[us0004us]

from the FT article in another topic....

"instead, the combined carrier - which will be called US Airways and will be headquartered in Phoenix - could emerge with significantly more than $2bn in total liquidity, making it one of the best-financed US airlines.

More than $1bn in new funding is expected to come from equity, a rights issue and debt, adding to the more than $1bn of restricted cash that the two companies had on their balance sheets at the end of March."


you gotta love this!

 

[us0004us]

and what about the A350?

 

[BoeingBoy]

As I said before, there are multiple investors involved in the talks, the financing will be stunning and could reach $1.5 billion, and the company will try to complete the transactions by September.

Regards,

USA320Pilot

[post="269728"][/post]​

I guess it depends on what it take to "stun" someone. Personally, $1-2 billion would be impressive, maybe even "stunning" at the upper end if it was a single investor. That would show that someone had a lot of confidence in "the plan".

$100 million here, $200 million there, is not "stunning" in my book - I intrepret that as no single investor willing to risk very much.

Jim

[post="269140"][/post]​

So what do we have so far:

Air Wisconsin - $125 million
Air Canada - maybe $100 - $150 million (in exchange for maintenance contracts?)
Par Capital + another hedge fund (TPG?) - $125 million
Republic - $110 million (Emb-170's & slot sales), more iffy

Airbus - $250 million loan, of which most or all will return to them within a couple of years as deposits/progress payments on 20 A350's ($2 billion plus) and renegotiating current orders (deposits/progress payments).

I haven't read all the articles - have I left out anyone?

Jim

 

[autofixer]

I guess you will hear the chainsaws firing up at UAL, AA & DL before long. It appears that their business plans of U not making it are not going to come to fruition. I for one am impressed!

 

[USFlyer]

I have to admit, if US-HP pull off something "big" and make it work, every other airline, from WN to AA, will be disappointed. My guess, however, is that UA will be happy: The more the partners in Star are stable, the better the whole alliance is in the end.

 

[skyflyr69]

I told ya Bronner is Brilliant! Now i hope this puts to rest the whiner employees and those trashing Usairways . i'll be coming back from AA as it really isn't that great over there.

Good luck to U! Can't wait to fly on you again.

 

[fr8tmastr]

Well since Airbus cant sell the 350 even at their discounted govt. subsidised rates they can have their own airline to fly them. Well at least I MIGHT, still have a job.

 

[Flufdriver]

This is an EXTREMELY sad day for both 700 and Winglet!!! I am STUNNED!!! Even Airbus steps up to the plate!~~~~~~~~It is time to "Move about the country"!!! USA320Pilot was right........

 

[robbedagain]

how soon could we expect to hear the details, usa320? i know they say this week but is there like a day or time?

 

[N924PS]

how soon could we expect to hear the details, usa320? i know they say this week but is there like a day or time?

[post="269786"][/post]​

9:58AM on Tuesday, May 17th.

 

[calibrator]

dude....chill......

[post="269743"][/post]​

There are many tiny Tims on board this board.....Like Joe Black said....BYE

 

[USA320Pilot]

Robbedagain:

Robbedagain asked: “how soon could we expect to hear the details, usa320? i know they say this week but is there like a day or time?â€￾

USA320Pilot answers: Good question. I was told the deal is virtually complete and now they’re trying to finalize a complex financing package that could have new financing much greater than the $1 billion figure provided by Financial Times. That’s why I said a few days ago people will be stunned by the amount of new equity.

Part of the problem is that there are so many people that want to invest in the new holding company. As soon as management thinks they have the deal complete another party wants to invest. It appears that happened to Republic. Once the financing terms/players have been picked by US Airways and America West, the deal will be announced. We’re close, very close but I am unsure of the exact timing. It could be any day now.

What's important here and the real message is that mutliple investors have reviewed the business plan and want to invest in the new holding company. That speaks well for US Airways and America West about what the financial community thinks about the strength of the business plan. These investors are putting their money where their mouth is.

Regards,

USA320Pilot