Congratulations may not be the word I would have chosen, but indeed there has been a victory, so I guess it should be recognized in some manner. I think condolences are in order to some andâ€¦ well I donâ€™t know exactly what I would say to the others.
I find it interesting how quickly we forget that the loan was approved many months ago upon condition of employee concessions. Since that time, the employees have capitulated to managementâ€™s take-it-or-leave-it demands so many times, giving up so much, it is difficult to even add the various â€œre-writesâ€ and â€œre-re-writesâ€ of the employee contracts. Adding up the value of employee concessions to date is difficult, but I think most would agree that it might easily top 7 billion dollars.
Nonetheless, the point is that the loan was conditionally approved once before, and notwithstanding todayâ€™s headline, it is still not in the coffer.
It is amazing to me how effective this route has been. Who could have ever dreamed, â€œEmployees give up 7 billion (and still counting) to get 900 million.â€
And people think Wolf is retiredâ€¦
(As pilots resolve begins to solidify over pension raid, government delivers final blow to the heart)
Tuesday February 11, 1:42 pm ET
WASHINGTON, Feb 11 (Reuters) - US Airways Group Inc received government approval on Tuesday for a $900 million loan guarantee that is critical to the carrier's bid to reorganize under bankruptcy protection The guarantee from the Air Transportation Stabilization Board -- the government entity set up to assist financially struggling airlines after the Sept 11, 2001 hijack attacks -- will underpin $1 billion in private financing.
The airline must still meet several new conditions before the government will activate the guarantee. They include finalizing concession deals with workers, obtaining final bankruptcy court approval of its reorganization proposal, and regulatory and judicial clearance of its plan to eliminate its pilot's union retirement plan.
The board agreed to take a 10 percent stake in US Airways and said it may seek more agreements on other matters with the carrier before the bankruptcy process ends. US Airways plans to emerge from bankruptcy at the end of March.