U.s. Air Adjusts Loss Down On Pension Accounting

[JayBrian]

U.S. Air adjusts loss downward on pension accounting

 

[Bear96]

Uh-oh.

Looks like USA320pilot has his work cut out for him to re-spin the numbers.

 

[boeing787]

WHoops! Looks like someone tried to hide a 91milllion loss. Hate it when the SEC and the Press find out about it. Just another nail.

 

[jimntx]

However, this sounds more like an "on paper" transaction to make the debits line up toward the window and the credits toward the wall. (I would have made an A+ in my required Accounting course in graduate school except the final was held in a basement room. ) And, I would guess that this wasn't a deliberate attempt to mislead regarding the size of the loss. Post-Enron/Tyco/etc., it would be foolhardy in the extreme to try to hide a true loss of this magnitude.

I don't think any "real" dollars went out the door or failed to come in.

 

[USA320Pilot]

Per US Airways' March Operating Report, US Airways cash position increased about $100 million from the end of February to the end of March, the airline had a $19.3 million in operating income and $65.1 million in net income for the month of March.

See Report

The accounting change due to the termination of the DB Plans is a paper loss and does not effect the company's cash position.

Meanwhile, the company's bookings for May and June are ahead of plan and are quit good. Today's announcement of 10 more aircraft to leave the fleet has been previously discussed on this forum and as I said before, both America West and US Airways could lose aircraft owned by GE as the company's prepare for their merger, which could be announced this week.

Today's press release indicated In connection with traffic, revenue, and fuel trends, US Airways said today that effective with an August schedule change, it will reduce its mainline fleet by an additional 10 aircraft. This reduction will have limited impact on flight schedules, resulting primarily in the temporary cancellation of some selected seasonal Caribbean and Florida flying. No employee furloughs are anticipated as a result of this decision, and US Airways does not expect to eliminate service to any cities it now serves. "As we continue to talk with potential investors, the elimination of unprofitable flying is a key topic of conversation," said Bruce Ashby, US Airways executive vice president of Marketing and Planning. "Furthermore, the retirement of these 10 aircraft can be accomplished with little impact on customers or employees." Ashby added that the 10 aircraft will be identified over the coming weeks, with careful consideration given to retiring aircraft that are fuel inefficient and that have upcoming expensive scheduled maintenance cycles.

See Press Release

Best regards,

USA320Pilot

 

[USA320Pilot]

Just one more point...the 10 aircraft reduction in August is being driven by GE -- US Airways' largest creditor and a key member of the creditors committee.

Regards,

USA320Pilot

 

[whlinder]

The company's bookings for May and June are ahead of plan and are quit good. Today's announcement of 10 more aircraft to leave the fleet has been previously discussed on this forum and as I said before, both America West and US Airways could lose aircraft owned by GE as the company's prepare for their merger, which could be announced this week.

[post="266518"][/post]​

So they are preparing for a merger that hasn't been announced yet?

Is the new POR? Merge with HP?

 

[diogenes]

A merger has always been the POR.

Golf courses eagerly anticipate the influx of US managers.

 

[funguy2]

which could be announced this week

"Could" according to you (USA320Pilot)?

Or

"Could" according to some super secret source?

I am just preparing for when we ask why it didn't happen, and you reply that you never said it "would"... Or if it does happen this week, the "who first told you..." post.