Question about emerging from CH11...

[767jetz]

I'm hoping someone can shed some light on this for me. It seems that U was in a huge rush to exit CH11 when it did. With an on going war, and U still losing millions per day, it seems like it would have been better to stay protected by the courts a little while longer. I'm now hearing that there are some aircraft lease issues that may cause the grounding of some A320/319's.

I know there were some people claiming secret corporate transactions, and the need to claim the gov't backed loans ASAP to use in such a scenario. That obviously wasn't the case.

So what were the pros and cons? And in retrospect, would it have been better to stay in CH11 until some geopolitical issues were resolved and fuel prices stabilized?

 

[gilbertguy]

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On 4/19/2003 9:54:14 AM 767jetz wrote:

I''m hoping someone can shed some light on this for me. It seems that U was in a huge rush to exit CH11 when it did. With an on going war, and U still losing millions per day, it seems like it would have been better to stay protected by the courts a little while longer. I''m now hearing that there are some aircraft lease issues that may cause the grounding of some A320/319''s.

I know there were some people claiming secret corporate transactions, and the need to claim the gov''t backed loans ASAP to use in such a scenario. That obviously wasn''t the case.

So what were the pros and cons? And in retrospect, would it have been better to stay in CH11 until some geopolitical issues were resolved and fuel prices stabilized?

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Older Airbii'' are due for heavy maint. checks and the company doesn''t want to give the work to IAM union.....will farm out that work to low cost maint. They are pulling 73'' out of desert and putting back into service since getting a sweetheart deal from GE. You have a valid point about why not staying in CH11 until.....did it keep them from dropping fleet size and furloughing more from payroll? Legal types will need to step up on that one......

 

[LavMan]

US had to emerge by 3-31 in order to keep the DIP and $240 million investment from the RSA, and get the ATSB loan and the biggest factor was the credit card processing agreement was coming to an end leaving US the inability to take credit cards for ticket payments.

They have all ready just parked seven narrow body airbii, all the other lease issues have been settled.

And it is much better to be out of Bankruptcy because it removed the threat from the two Dave''s that will need more or we will liquidate and Dave #2 (Bronner) from saying I am gonna take my money and leave and force you out of business if you don''t give me exactly what I want!

 

[LavMan]

Gilbert the airbii that they parked were not the ones due for the S check yet. The company cannot farmout the check, we own the work, even if they park it, get the check done and bring it back it is a major dispute under our contract which if the Federal Court rules a major dispute we will be free to strike.

Aircraft 700 and 701 are due this October for their first "S" check which is a 30 day overhaul.