January 2 Airline News

C

chipmunn

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[P][SPAN class=t1][SPAN style=FONT-FAMILY: 'Times New Roman'][FONT size=3]American Airlines Reports December Traffic[?xml:namespace prefix = o ns = urn:schemas-microsoft-com:eek:ffice:eek:ffice /][o:p][/o:p][/FONT][/SPAN][/SPAN][/P]
[P style=TEXT-ALIGN: justify][SPAN style=FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 9.5pt][FONT size=3]FORT WORTH (PRNewswire-FirstCall) - American Airlines reported its systemwide traffic for December increased 14.0 percent from December 2001, on a capacity increase of 4.6 percent. This is a decrease in traffic of 5.7 percent and a decrease in capacity of 11.4 percent compared to the same month in 2000. The system load factor was 73.3, up 6.1 points from a year ago and up 4.4 points from 2000.[o:p][/o:p][/FONT][/SPAN][/P]
[P style=TEXT-ALIGN: justify][FONT size=3][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman']Complete Story: [/SPAN][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'][A target=_blank href=http://biz.yahoo.com/prnews/030102/dath023_1.html][FONT color=#0000ff]http://biz.yahoo.com/prnews/030102/dath023_1.html[/FONT][/A][/SPAN][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'][o:p][/o:p][/SPAN][/FONT][/P]
[P][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'][FONT size=3]United union objects to cuts[o:p][/o:p][/FONT][/SPAN][/P]
[P style=TEXT-ALIGN: justify][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'][FONT size=3]CHICAGO (Reuters) - The machinists union at United Airlines yesterday formally objected to proposed temporary 13-percent wage cuts, saying the bankrupt airline did not provide enough financial data to back up its claim such cuts were needed for survival.[o:p][/o:p][/FONT][/SPAN][/P]
[P style=TEXT-ALIGN: justify][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'][FONT size=3]United, a unit of UAL Corp., filed for bankruptcy Dec. 9 and is seeking $2.4-billion (U.S.) in wage cuts annually from its union and non-union workers. It has warned that without sufficient cost cuts and revenue growth, its special bankruptcy financing can be pulled, threatening its survival.[o:p][/o:p][/FONT][/SPAN][/P]
[P style=TEXT-ALIGN: justify][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'][FONT size=3]Leaders of the pilots' and flight attendants' unions at United have already agreed to temporary wage cuts, buying the airline more time to negotiate permanent deals once rank-and-file members approve them. But the leadership of the International Association of Machinists has not done so.[o:p][/o:p][/FONT][/SPAN][/P]
[P style=TEXT-ALIGN: justify][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'][FONT size=3]In court papers filed yesterday, the IAM said the provision of the bankruptcy code that United is using to seek the temporary wage cuts, known as 1113(e), requires specific documentation proving its very existence is threatened.[o:p][/o:p][/FONT][/SPAN][/P]
[P style=TEXT-ALIGN: justify][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'][FONT size=3]The IAM submits that United has not satisfied this heavy burden, the filing said. The evidence, if any, does not establish that the proposed reductions are necessary or even appropriate on an interim basis.[o:p][/o:p][/FONT][/SPAN][/P]
[P style=TEXT-ALIGN: justify][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'][FONT size=3]Executives and union officials at other financially strapped airlines are closely watching developments on the labor front at United.[o:p][/o:p][/FONT][/SPAN][/P]
[P style=TEXT-ALIGN: justify][STRONG][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'][FONT size=3]The judge presiding over United's bankruptcy case said he will consider both the IAM's objection and United's response on Jan. 10. At that point, he will decide whether the temporary cuts should go into effect or whether a different negotiating process under the U.S. bankruptcy code's section 1113© will kick in.[o:p][/o:p][/FONT][/SPAN][/STRONG][/P]
[P style=TEXT-ALIGN: justify][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'][FONT size=3]Meanwhile, during a court hearing Monday about a complicated tax issue involving the company's employee stock ownership plan, the airline's chief financial officer said UAL's net operating loss, which is a special tax reporting figure only, will total about $3.2-billion for 2002.[o:p][/o:p][/FONT][/SPAN][/P]
[P style=TEXT-ALIGN: justify][FONT size=3][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman']Chip comments:[/SPAN][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman'] What’s interesting about the UAL restructuring process, is the Chicago-based airline is attempting to bypass the bankruptcy code by seeking court ordered cuts without a Section 1113 process. This process lists a sequence of seven or eight steps that must be taken by a company before it can seek court ordered contract changes per the Section 1113 process. It’s unclear of whether or not UAL has complied with the bankruptcy code and if the Judge agrees with IAM attorney’s and prevents court ordered W-2 cuts, UAL may not meet cash flow targets specified in the DIP financing agreements, which could cause the airline to transition to Chapter 7 proceedings.[o:p][/o:p][/SPAN][/FONT][/P]
[H2 style=TEXT-ALIGN: justify][SPAN style=FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman']UAL machinists fight wage cuts, court defers stock trading decision[o:p][/o:p][/SPAN][/H2]
[P class=MsoNormal style=TEXT-ALIGN: justify; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto][FONT face=Times New Roman][FONT size=3][SPAN style=COLOR: black; mso-bidi-font-size: 10.0pt]CHCAGO (Reuters) - The machinists union at United Airlines Tuesday formally objected to proposed temporary 13 percent wage cuts, saying the bankrupt airline did not provide enough financial data to back up its claim such cuts were needed for survival. [/SPAN][SPAN style=COLOR: black; FONT-FAMILY: 'Arial Unicode MS'; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman'][o:p][/o:p][/SPAN][/FONT][/FONT][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'][FONT size=3]United, a unit of UAL Corp. filed for bankruptcy Dec. 9 and is seeking $2.4 billion in wage cuts annually from its union and nonunion workers. It has warned that without sufficient cost cuts and revenue growth, its special bankruptcy financing can be pulled, threatening its survival.[o:p][/o:p][/FONT][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'][FONT size=3] [o:p][/o:p][/FONT][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman'][FONT size=3]Complete Story:[o:p][/o:p][/FONT][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN style=FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'][A target=_blank href=http://www.chicagobusiness.com/cgi-bin/news.pl?id=7517][SPAN style=FONT-SIZE: 12pt]http://www.chicagobusiness.com/cgi-bin/news.pl?id=7517[/SPAN][/A][o:p][/o:p][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN style=COLOR: blue; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'][FONT size=3] [o:p][/o:p][/FONT][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify][FONT size=3][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman']Chip comments:[/SPAN][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman'] If things were not bad enough for UAL, if the court permits State Street Bank and Trust, AON, and other investors to trade their UAL stock holdings, which is a normal and responsible action, UAL could see a change of control transaction and the company estimates it could lose “$5.2 billion in special tax assets called net operating loss (NOL) carryforwards.†The ramifications of the court’s decision are enormous: permit normal and legal trading of investor holdings to permit shareholders to preserve some value or cause the airline to lose essential tax credits. Chief financial officer Jake Brace told the court that “United and the lenders who provided $1.5 billion in debtor-in-possession (DIP) financing consider the NOLs an asset of the estate, critical to implementing the reorganization plan.â€[SPAN style=mso-spacerun: yes] [/SPAN]Without the NOLs as a means of increasing future cash flow planned for emergence, UAL may not be able to create a POR and Disclosure Statement approved by the creditors.[o:p][/o:p][/SPAN][/FONT][/P]
[P style=MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'][FONT size=3][SPAN style=mso-spacerun: yes] [/SPAN][o:p][/o:p][/FONT][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][FONT size=3][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman']Also noteworthy, as Mike Boyd said, “[/SPAN][SPAN class=bodyfont1][SPAN style=COLOR: #0b3053; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman']How do you lose $3.2 billion on $15 billion in revenue in one year?†This number far surpasses previous estimates by the company and Wall Street analysts and will further put pressure on the company’s ability to meet stringent DIP agreement financial requirements.[/SPAN][/SPAN][SPAN class=bodyfont1][SPAN style=COLOR: #0b3053; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'][o:p][/o:p][/SPAN][/SPAN][/FONT][/P]
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[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][FONT size=3][SPAN class=t1][SPAN style=FONT-FAMILY: 'Times New Roman']UAL Noteholder Panel Seeks Protection For Collateral Loss[/SPAN][/SPAN][SPAN class=bodyfont1][SPAN style=COLOR: #0b3053; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'][o:p][/o:p][/SPAN][/SPAN][/FONT][/P]
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[P class=MsoNormal style=TEXT-ALIGN: justify; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto][FONT face=Times New Roman size=3]WASHINGTON (Dow Jones)--An ad hoc committee of noteholders in United Airlines Inc.'s parent, UAL Corp, is asking a bankruptcy court to prohibit the carrier from using equipment on which the noteholders have security interests unless they are granted further protection for any loss in the value of their collateral. [/FONT][/P]
[P style=MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify][SPAN style=FONT-FAMILY: 'Times New Roman'][FONT size=3]Typically, third-party trusts have acquired equipment that UAL leases. One of those trusts would finance the acquisition by issuing notes, which were purchased by a pass-through trust, court papers said.[o:p][/o:p][/FONT][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify][SPAN style=FONT-FAMILY: 'Times New Roman'][FONT size=3] [o:p][/o:p][/FONT][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN style=FONT-FAMILY: 'Times New Roman'][FONT size=3]Complete Story:[o:p][/o:p][/FONT][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN style=FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 9.5pt][A target=_blank href=http://biz.yahoo.com/djus/030102/1426000324_1.html][SPAN style=mso-bidi-font-size: 12.0pt][FONT size=3]http://biz.yahoo.com/djus/030102/1426000324_1.html[/FONT][/SPAN][/A][o:p][/o:p][/SPAN][/P]
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[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN class=t21][SPAN style=FONT-FAMILY: 'Times New Roman'][STRONG][FONT size=3]New United Airlines Creditors' Group Demands Plane Payments, Talks, files motion in
court[o:p][/o:p][/FONT][/STRONG][/SPAN][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN class=t21][SPAN style=FONT-FAMILY: 'Times New Roman'][STRONG][FONT size=3] [o:p][/o:p][/FONT][/STRONG][/SPAN][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN style=FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 9.5pt][FONT size=3]CHICAGO (AP) - A group of United Airlines creditors claiming to hold about $3 billion in bonds has put new pressure on the restructuring carrier, seeking court-ordered payments for the leased planes it is flying in bankruptcy.[o:p][/o:p][/FONT][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN style=FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 9.5pt][FONT size=3] [o:p][/o:p][/FONT][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN style=FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 9.5pt][FONT size=3]Complete Story:[o:p][/o:p][/FONT][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN style=FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 9.5pt][A target=_blank href=http://biz.yahoo.com/ap/030102/united_airlines_1.html][FONT color=#0000ff size=3]http://biz.yahoo.com/ap/030102/united_airlines_1.html[/FONT][/A][o:p][/o:p][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN style=FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 9.5pt][FONT size=3] [o:p][/o:p][/FONT][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][FONT size=3][SPAN style=FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 9.5pt]Chip comments:[/SPAN][SPAN style=FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 9.5pt] The ad hoc committee of 25 creditors are placing added pressure on the airline because it said “the group is concerned that the airline's lease proposals to date provide little or no information about United's intentions or its overall restructuring plan.†Interestingly, the IAM filed a motion rejecting pay cuts because on its website t[/SPAN][SPAN style=FONT-FAMILY: 'Times New Roman']he IAM said it “believes United’s financial problems can best be resolved with a business plan that emphasizes negotiations and partnership with its union-represented employees for the long-term health of the airline, its employees and shareholders. The “13 percent solution†represents an approach using the court to impose temporary measures, but should not negate the need for a long-term resolution that would provide adequate opportunity for employee involvement and consent.†Also noteworthy, in a December 30 letter to the company’s pilots, ALPA MEC chairman Captain Paul Whiteford to members, “[SPAN class=bodyfont1]the Company has simply been unable or unwilling to provide us with the information and materials necessary to construct a rational economic deal that will protect the long-term career interests of the pilots through an economically viable airline. We cannot get a reliable fix on the Company's near-term cash needs; the Company has not really developed a longer-term marketing and business program to exit Chapter 11; and management cannot-or will not-tell us how much United might save by revising particular work rules and benefits under the contract. I find it interesting that UAL’s two most powerful unions and 25 creditors are questioning management’s business plan and the IAM and the ad hoc creditors have filed motions in court objecting to the debtors plan.[SPAN style=mso-spacerun: yes] [/SPAN]With the company telling the court this week that is will lose more money in 2002 than previously forecast, it cannot post a profit until 2005, and union/creditors questioning the company’s business plan, how much confidence will the court have in management and its multiple consultants to provide an effective Plan of Reorganization?[o:p][/o:p][/SPAN][/SPAN][/FONT][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN class=t1][SPAN style=FONT-FAMILY: 'Times New Roman'][FONT size=3] [o:p][/o:p][/FONT][/SPAN][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN class=t1][SPAN style=FONT-FAMILY: 'Times New Roman'][FONT size=3]Continental unit revenue up 9-11 pct in December[o:p][/o:p][/FONT][/SPAN][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN class=t1][SPAN style=FONT-FAMILY: 'Times New Roman'][FONT size=3] [o:p][/o:p][/FONT][/SPAN][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][FONT size=3][SPAN style=FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 9.5pt]HOUSTON (Reuters) - Continental Airlines said on Thursday that unit revenue rose an estimated 9 percent to 11 percent in December from the year earlier month that closely followed the Sept. 11 attacks, but was down 5 percent to 7 percent compared to two years ago.[/SPAN][SPAN class=bodyfont1][SPAN style=FONT-FAMILY: 'Times New Roman'] [o:p][/o:p][/SPAN][/SPAN][/FONT][/P]
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[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt][SPAN class=bodyfont1][SPAN style=FONT-FAMILY: 'Times New Roman'][FONT size=3]Complete Story: [/FONT][A target=_blank href=http://biz.yahoo.com/rc/030102/airlines_continental_load_1.html][FONT color=#0000ff size=3]http://biz.yahoo.com/rc/030102/airlines_continental_load_1.html[/FONT][/A][o:p][/o:p][/SPAN][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN class=bodyfont1][SPAN style=FONT-FAMILY: 'Times New Roman'][FONT size=3] [o:p][/o:p][/FONT][/SPAN][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN class=t1][SPAN style=FONT-FAMILY: 'Times New Roman'][FONT size=3]Continental Air Dec Jet Load Factor Rose To 74%[o:p][/o:p][/FONT][/SPAN][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN class=t1][SPAN style=FONT-FAMILY: 'Times New Roman'][FONT size=3] [o:p][/o:p][/FONT][/SPAN][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN style=FONT-FAMILY: 'Times New Roman'][FONT size=3]HOUSTON (Dow Jones) - Continental Airlines Inc. said mainline jet traffic in December rose 7% to 4.83 billion revenue passenger miles from 4.51 billion a year ago. [o:p][/o:p][/FONT][/SPAN][/P]
[P][SPAN style=FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 9.5pt][FONT size=3]Load factor for the month was 74%, compared with 72.3% a year ago.[o:p][/o:p][/FONT][/SPAN][/P]
[P][SPAN style=FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 9.5pt][FONT size=3]Complete Story: [/FONT][A target=_blank href=http://biz.yahoo.com/djus/030102/2020000475_1.html][FONT color=#0000ff size=3]http://biz.yahoo.com/djus/030102/2020000475_1.html[/FONT][/A][o:p][/o:p][/SPAN][/P]
[H2][SPAN style=FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 18.0pt]US Airways to lay off up to 35 flight attendants, TWU-FCTI ratifies cost cuts[o:p][/o:p][/SPAN][/H2]
[P style=MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify][FONT size=3][SPAN class=bodyfont1][SPAN style=COLOR: #0b3053; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman']PITTSBURGH (Tribune-Review) - [/SPAN][/SPAN][SPAN style=FONT-FAMILY: 'Times New Roman']US Airways will lay off as many as 35 flight attendants in Pittsburgh on Jan. 7, and 228 more at five other bases, as the troubled airline prepares to emerge from bankruptcy this March.[o:p][/o:p][/SPAN][/FONT][/P]
[P style=MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify][SPAN style=FONT-FAMILY: 'Times New Roman'][FONT size=3][SPAN style=mso-spacerun: yes] [/SPAN][o:p][/o:p][/FONT][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN class=bodyfont1][SPAN style=COLOR: #0b3053; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'][FONT size=3]Complete Story:[o:p][/o:p][/FONT][/SPAN][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN class=bodyfont1][SPAN style=FONT-SIZE: 10pt; COLOR: #0b3053; FONT-FAMILY: 'Times New Roman'][A target=_blank href=http://www.pittsburghlive.com/x/tribune-review/business/s_110533.html][SPAN style=FONT-SIZE: 12pt]http://www.pittsburghlive.com/x/tribune-review/business/s_110533.html[/SPAN][/A][/SPAN][/SPAN][SPAN class=bodyfont1][SPAN style=COLOR: #0b3053; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'][FONT size=3] [o:p][/o:p][/FONT][/SPAN][/SPAN][/P]
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[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][STRONG][SPAN style=FONT-FAMILY: 'Times New Roman'][FONT size=3]US Airways, GE Capital Unveil Post-Chapter 11 Plan[o:p][/o:p][/FONT][/SPAN][/STRONG][/P]
[P class=MsoNormal style=TEXT-ALIGN: justify; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto][FONT face=Times New Roman size=3]WASHINGTON (Dow Jones) - US Airways Group Inc. and its largest creditor, General Electric Capital Corp., have reached a deal that the airline says could finance a significant portion of its capital needs after emerging from Chapter 11. [/FONT][/P]
[P style=MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify][SPAN style=FONT-FAMILY: 'Times New Roman'][FONT size=3]In papers filed Dec. 27 with the U.S. Bankruptcy Court in Alexandria, Va., the airline says the parties have reached a global settlement to resolve all their issues. The debtors cannot emphasize enough how important the global settlement is to their estates, creditors and other parties in interest, US Airways said.[o:p][/o:p][/FONT][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify][SPAN style=FONT-FAMILY: 'Times New Roman'][FONT size=3] [o:p][/o:p][/FONT][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN class=bodyfont1][SPAN style=COLOR: #0b3053; FONT-FAMILY: 'Times New Roman'][FONT size=3]Complete Story:[o:p][/o:p][/FONT][/SPAN][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN class=bodyfont1][SPAN style=FONT-SIZE: 10pt; COLOR: #0b3053; FONT-FAMILY: 'Times New Roman'][A target=_blank href=http://biz.yahoo.com/djus/030102/1427000326_1.html][SPAN style=FONT-SIZE: 12pt][FONT color=#0000ff]http://biz.yahoo.com/djus/030102/1427000326_1.html[/FONT][/SPAN][/A][/SPAN][/SPAN][SPAN class=bodyfont1][SPAN style=COLOR: #0b3053; FONT-FAMILY: 'Times New Roman'][o:p][/o:p][/SPAN][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN class=bodyfont1][FONT size=3][SPAN style=COLOR: #0b3053; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman'] [/SPAN][SPAN style=COLOR: #0b3053][o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][FONT size=3][SPAN class=bodyfont1][SPAN style=COLOR: #0b3053; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman']Chip comments: [/SPAN][/SPAN][SPAN class=bodyfont1][SPAN style=COLOR: #0b3053; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman']US Airways has pending liquidity additions of $200 in RSA DIP financing, $120 million in GECAS DIP financing, $240 million in the RSA Equity Investment, [/SPAN][/SPAN][SPAN style=FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 9.5pt]a $360 million loan from GECAS for use after it exits from Chapter 11, and $350 million of lease equity from GECAS for the leveraged lease financing of regional jet aircraft. In addition, the company has “conditional†approval for a $1 billion federal loan guarantee, of which $500 million must be used to repay the RSA DIP financing agreement. It’s unclear from today’s GECAS announcement of whether or not the financiers $120 million DIP financing will have to be repaid with federally backed loans; however, US Airways continues to strengthen its liquidity, lower its costs, and has obtained significant mainline and “wholly owned†airline RJ financing. But, its is likely none of this liquidity will be made available to the Arlington-based airline unless the IAM-M, IAM-FSA, AFA, and CWA rank-and-file approve their TA’s..[SPAN style=mso-spacerun: yes] [/SPAN][/SPAN][SPAN class=bodyfont1][SPAN style=COLOR: #0b3053; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman'][o:p][/o:p][/SPAN][/SPAN][/FONT][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN class=bodyfont1][SPAN style=COLOR: #0b3053; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman'][FONT size=3] [o:p][/o:p][/FONT][/SPAN][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN class=bodyfont1][FONT size=3][SPAN style=COLOR: #0b3053; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman']US Airways Tidbits[/SPAN][SPAN style=COLOR: #0b3053][o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN class=bodyfont1][FONT size=3][SPAN style=COLOR: #0b3053; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman'] [/SPAN][SPAN style=COLOR: #0b3053][o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN class=bodyfont1][FONT size=3][SPAN style=COLOR: #0b3053; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman']PSA Airlines IAM December 30 Update[/SPAN][SPAN style=COLOR: #0b3053][o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
[P class=MsoNormal style=MARGIN-RIGHT: 0.5in; TEXT-ALIGN: justify; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto][FONT face=Times New Roman size=3]Dear Sisters and Brothers:[/FONT][/P]
[P class=MsoNormal style=MARGIN-RIGHT: 0.5in; TEXT-ALIGN: justify; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto][FONT face=Times New Roman][FONT size=3][SPAN style=mso-bidi-font-size: 10.0pt]Recently PSA management has responded to our questions concerning their restructuring plan. On January 13th and 14th we will meet with company officials in Pittsburgh and discuss their proposal.They are seeking wage, benefit cuts and a extension to your contract. Your committee members Mike Chappie (DAY)Jim Lipinski (PIT) Rick Lockard (CAK) along with myself and General Chairman Duke Snyder will do everything possible to limit the impact of the company's proposal . Once our talks are completed the company proposal will be presented to the membership for a vote. The decision you make will be a very important, PSA is in bankruptcy, and its survival is at stake. We will keep you updated. [/SPAN] [SPAN style=FONT-FAMILY: 'Arial Unicode MS'; mso-fareast-font-family: 'Times New Roman'][o:p][/o:p][/SPAN][/FONT][/FONT][/P]
[P class=MsoNormal style=MARGIN-RIGHT: 0.5in; TEXT-ALIGN: justify; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto][FONT face=Times New Roman][FONT size=3][SPAN style=mso-bidi-font-size: 10.0pt]Fraternally, Steve Ebert General Chairman 141-M IAMAW[/SPAN][SPAN style=FONT-FAMILY: 'Arial Unicode MS'; mso-fareast-font-family: 'Times New Roman'][o:p][/o:p][/SPAN][/FONT][/FONT][/P]
[P style=MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13.5pt; TEXT-ALIGN: justify][SPAN class=bodyfont1][FONT size=3][SPAN style=COLOR: #0b3053; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman']Piedmont Airlines IAM December 30 Update[/SPAN][SPAN style=COLOR: #0b3053][o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
[P class=MsoNormal style=MARGIN-RIGHT: 0.5in; TEXT-ALIGN: justify; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto][FONT face=Times New Roman size=3]Dear Sisters and Brothers:[/FONT][/P]
[P class=MsoNormal style=MARGIN-RIGHT: 0.5in; TEXT-ALIGN: justify; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto][FONT face=Times New Roman][FONT size=3]Restructuring talks will resume in Pittsburgh on January 15th and 16th. The company is seeking pay cuts, benefit changes and a contract extension. Your committee will do its best to limit the impact on the membership. Piedmont Airlines is in bankruptcy and we have a duty to meet with them. Remember what ever the result of these talks are, you have the final say with your vote. [SPAN style=FONT-FAMILY: 'Arial Unicode MS'; mso-fareast-font-family: 'Times New Roman'][o:p][/o:p][/SPAN][/FONT][/FONT][/P]
[P class=MsoNormal style=mso-margin-top-alt: auto; mso-margin-bottom-alt: auto][FONT face=Times New Roman][FONT size=3]Fraternally, Steve Ebert General Chairman 141-M IAMAW[SPAN style=FONT-FAMILY: 'Arial Unicode MS'][o:p][/o:p][/SPAN][/FONT][/FONT][/P]
[P class=majortitles][FONT size=3][STRONG][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman']Midway Onboard[/SPAN][SPAN style=FONT-FAMILY: 'Times New Roman'][o:p][/o:p][/SPAN][/STRONG][/FONT][/P]
[P class=bodytext style=TEXT-ALIGN: justify][SPAN style=FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 9.0pt]ARLINGTON (theHub.com) - Midway Airlines yesterday began flying as a US Airways Express carrier, with the introduction of nonstop service from Raleigh, N.C., to Ronald Reagan Washington National Airport. Three 50-seat CRJ regional jets will complement Piedmont’s three Dash-8 aircraft currently on the route, for a total of six daily nonstop flights between the cities. Midway Airlines is based near Raleigh, N.C., and plans to have up to 18 jets in operation as US Airways Express by mid-2003. The next route will begin on Feb. 9, when Midway will replace Indianapolis-based Chautauqua Airlines on the Raleigh to LaGuardia route, providing six daily nonstop flights with a combination of Canadair and Embraer regional jets. [o:p][/o:p][/SPAN][/P]
[P class=bodytext style=TEXT-ALIGN: justify][SPAN style=FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 9.0pt]As part of US Airways’ Jets for Jobs agreement, up to 18 furloughed US Airways pilots will start training on Jan. 13 in Raleigh to fly as Midway Airlines pilots. By late summer, it is expected that up to 83 furloughed US Airways pilots will be flying for Midway. US Airways and Midway have a 10-year service agreement. US Airways will sell tickets on flights operated by Midway and will provide reservation, ground support and other services for the regional jet service. Midway joins 10 other regional airlines that operate as US Airways Express under a code-share and service agreement.[o:p][/o:p][/SPAN][/P]
[P class=majortitles][FONT size=3][STRONG][SPAN style=COLOR: black; FONT-FAMILY: 'Times New Roman']It's a Triple[/SPAN][SPAN style=FONT-FAMILY: 'Times New Roman'][o:p][/o:p][/SPAN][/STRONG][/FONT][/P]
[P class=bodytext style=MARGIN-BOTTOM: 12pt; TEXT-ALIGN: justify][SPAN style=FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 9.0pt]ARLINGTON (theHub.com) - US Airways will continue a US Airways Shuttle Triple Double Dip offer through March 31 to give US Airways Dividend Miles members and United Mileage Plus program members more opportunities to earn triple Dividend Miles or triple Mileage Plus miles when traveling on US Airways Shuttle flights. United customers must provide their Mileage Plus number when making a reservation each time they fly the US Airways Shuttle to get mileage credit. To earn triple Dividend Miles, members must register before their first flight at 1-800-872-4738 and enter bonus request 7270 or go to usairways.com/dm/7270.htm. Members who registered for last year's triple Dividend Miles Shuttle offer have been pre-registered for this new offer.[o:p][/o:p][/SPAN][/P][BR]
 
OP
C

chipmunn

Guest
Biff:[BR][BR]I fully understand the Section 1113(e) clause and the IAM's legal staff has done a good job of explaining the issue. For more information, readers can view the IAM's detailed explanation at:[BR] [BR][A href="http://www.iam141m.org/united.htm"]http://www.iam141m.org/united.htm[/A][BR][BR]However, my point is that the airline industry has never been down this road before where a union has filed a motion asking the court to reject concessions. This decision, ironically set for the same date as the US Airways unions vote on their TA's, is slippery for both management and the employees. If the judge rules in favor of the IAM motion, all of the other TA's will become null and void.[BR][BR]If this occurs, UAL would have to seek S.1113© relief from all labor groups, unless new TA's are obtained while the company continues to bleed cash at an enormous rate.[BR][BR]Chip
 

Biffeman

Senior
Nov 25, 2002
447
0
www.usaviation.com
Chip 1113e gives them the right to seek immediate relief[BR][BR][STRONG] [/STRONG]
[P][FONT color=#000080]1113 (e) – Temporary Modifications[/FONT][/P]
[P]Section 1113 (e) of the Bankruptcy Code states:[/P]
[DIR]
[DIR]
[P]If during a period when the collective bargaining agreement continues in effect, and if essential to the continuation of the debtor's business, or in order to avoid irreparable damage to the estate, the court, after notice and a hearing, may authorize the trustee to implement interim changes in the terms, conditions, wages, benefits, or work rules provided by a collective bargaining agreement. Any hearing under this paragraph shall be scheduled in accordance with the needs of the trustee. The implementation of such interim changes shall not render the application for rejection moot.[/P][/DIR][/DIR]

[P]Essentially, 1113 (e) allows a company in bankruptcy to ask a judge to impose temporary wages, work rules and benefits if the continuation of a company’s business is at risk without immediate relief. If temporary modifications are imposed by a judge, they are not a matter for negotiations with the Union and are not subject to member ratification. United Airlines is asking the judge to impose a 13% wage reduction on IAM represented employees. The company is seeking to have these terms effective January 1, 2003.[/P]
[P]The negotiations required under section 1113 © to achieve a permanent solution would continue even if temporary modifications are imposed. The 1113 © process, and the application for a complete rejection of the contracts, would still go forward. The temporary modification would only be in effect until the judge rules on the application to reject the agreements, or permanent modifications to the agreement are negotiated, ratified by the membership and approved by the bankruptcy judge.[/P]