Fitch: Stronger Fundamentals Won't Lead To Upgrade

[USA320Pilot]

Fitch: Stronger Fundamentals Won't Lead To Upgrades for U.S. Airlines

See Story

Chip comments: Fitch Rating, which has been contracted to audit all ATSB loan guarantee applications said, "Liquidity at the major U.S. airlines is adequate to stave off a cash crisis if revenues improve modestly next year, barring other major disruptions. Setting aside United Airlines, which is expected to exit Chapter 11 some time next year, each of the other five major network carriers has adequate cash on hand to meet its financial obligations next year."

Regards,

Chip

 

[whatkindoffreshhell]

Obviously Fitch had this report in the can prior to WN's Philly announcement.

(okay -- here was the setup pitch for one of this board's mysterious-but-knowledgeable newbie posters to ask the Chipster to explain it all)

 

[737nCH11]

Chip, please explain it all!!!! PLEASE, PLEASE, PLEASE!!!!!!!!!!!

 

[USA320Pilot]

In my opinion, the industry is slowing recovering, but the network airlines must continue to lower unit costs to complete long-term with the LCC's. For those carriers who have employees and management willing to work together to find solutions to the problems, I believe there can be a co-existence between the two business models.

Regards,

Chip

 

[tumbleweed]

By Keith L. Alexander
Washington Post Staff Writer
Thursday, December 11, 2003; Page E02


Standard & Poor's Ratings Services said yesterday that US Airways' credit rating was in danger of being downgraded because of the airline's continued problems with high operating costs and the increasing growth of low-cost competitors.



Standard & Poor's analyst Philip Baggaley placed Arlington-based US Airways' ratings on "credit watch" with "negative implications."

In his report, Baggaley said his review was based on US Airways' "weak financial profile, vulnerability to increasing competition from low-cost airlines, and a relatively limited route structure."
Last week, US Airways chairman and chief executive David N. Siegel told employees that more cutbacks would be necessary. Southwest Airlines added to the carrier's pressures last month by announcing that next year it would begin serving one of US Airways' largest hubs, Philadelphia International Airport.

In March, US Airways emerged from seven months of bankruptcy reorganization, during which it reduced its debt by about $1.9 billion. Employee concessions in pay, benefits and work rules accounted for more than $1.2 billion of the reduction. The rest came from agreements with the airline's major creditors, including aircraft lease holders, suppliers and airports.

US Airways lost $90 million in the third quarter, which is one of the most profitable periods for U.S. carriers.

Union leaders said recently that they have no plans to discuss further concessions. "Management has a lot of explaining and fixing to do before it gets anywhere with its workers," said Jeff Zack, a spokesman for the US Airways flight attendants' union.

 

[AP Tech]

Just maybe we could have all worked together at one time........but after all the deception I think that time is long gone!!!! If Bonner really wants to save what is left of this airline and wants the employees to work with him rather than against him a start would be ridding this airline of "DAVE".

 

[mrplanes]

AP tech:

You have hit the nail squarely on the head. And my sources inform me that very thing is not as unlikely to happen as some here believe. The employees of this airline are itching for a fight with Southwest. A fight we will win. As long as we have the right person in charge. That could happen much sooner than anyone can imagine.

ps: Do I sound enough like Chip?

mr