Major Schedule "tweak"

[Ch. 12]

Here's a question...

in the event of a Chapter 11 filing does whatever governmental body that controls the airport terminal at Philadelphia have the right to wrestle gates away from USAirways and re-lease them to Southwest Airlines Co.???

I can hear Garry Kelly now..."we'd like one of those cheese steak thingies...and 18 gates to go, please."

[post="172221"][/post]​

The power would be with U if they filed BK again. Hence "bankrupcty protection". Now...U may find it worthwhile to concede PHL as an ongoing interest since it is probably a battle that they cannot afford at this time.

 

[RowUnderDCA]

well, I think U at PHL is sort of an existential proposition. If U can't compete at PHL in some form, then U isn't worth restructuring. Of course, all of this is in the mind of management and any creditors that would be willing to go along. If U can't get competitive costs in Ch. 11, then U will liquidate. If U can get competitive costs in Ch. 11, then U stays at PHL in some form.

 

[funguy2]

I think US Airways holds the cards at PHL... They would probably either have to reject lease contracts or stop payment before PHL could do anything... And neither is very likely.

My guess is that the "big push" at PHL is to get to 41 flights, which was already announced... If LUV expands PHL again, I expct we'll hear about it in the spring

 

[swflyer]

The corresponding press release was out on July 15, announcing 22 new flights. The freed up capacity fuels this change, needing only one new aircraft to accomplish the new schedule.