GE sees restructuring of US Airways finance deal

USAirBoyA330

Veteran
Aug 23, 2002
724
0
BOSTON, Nov 21 (Reuters) - The head of General Electric Co.''s [GE.N] aircraft leasing business said he expects to strike a deal to restructure its finance agreement with bankrupt US Airways Group Inc. [UAWGQ.OB] in the next two to four weeks.
Henry Hubschman, chief executive of GE Capital Aviation Services, said the conglomerate has about $2.2 billion in exposure to Arlington, Virginia-based US Airways, which is operating under Chapter 11 bankruptcy protection. Of that amount, $1.9 billion is secured by US Airways assets, Hubschman told analysts during a presentation in New York City.
We anticipate a restructuring agreement in two to four weeks, he said.
 
C

chipmunn

Guest
Geo1004:

You are correct and this is extremely good news for all parties interested in the success of US.

GE has significant exposure to a US failure, not only in financing, but the conglomerate holds the contract for all future A-320 family engine deliveries and options, which I believe now total 282 aircraft.

GE also holds a contract with US for CFM engine overhaul work. The power-by-the-hour contract(s) cover all work for the B-767, B737, and A320 family or 241 jets out of the 279 mainline aircraft fleet.

Separately, it is my understanding GECAS has agreed to finance a US RJ order, where there are reports the company could reach an accord for 200 firm deliveries and 300 options, with the EMB-170 expected to be a lynchpin.

Chip
 

Down Range

Newbie
Nov 20, 2002
12
0
[P]
[BLOCKQUOTE][BR]----------------[BR]On 11/21/2002 12:49:35 PM chipmunn wrote:
[P][BR]Separately, it is my understanding GECAS has agreed to finance a US RJ order, where there are reports the company could reach an accord for 200 firm deliveries and 300 options, with the EMB-170 expected to be a lynchpin.[BR][BR]Chip [BR][/P]----------------[BR][/BLOCKQUOTE]
[P] [STRONG][FONT face=Times New Roman size=3]There is reason to believe that this too will not come to pass. I might point out Mr.Munn that you have been incorrect in not too distant past.[BR][BR][/FONT][/STRONG][/P]