United''s debt puts future of special bonds in question

USA320Pilot

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US Airways Prepares Response For Rendell
PITTSBURGH (Post-Gazette), August 7 - US Airways has told Gov. Ed Rendell's office that it could be several weeks before it responds to the governor's offer of a $263.9 million package of cost-saving measures and capital improvements at Pittsburgh and Philadelphia international airports. Rendell's offer on June 11 was the opening gambit in negotiations between the airline and Pennsylvania officials over a new lease for US Airways at Pittsburgh airport. The airline has canceled its current airport leases, effective Jan. 5.
The Beaver County Times wrote on August 10, Just before exiting bankruptcy March 31, US Airways dropped its leases at Pittsburgh International Airport, saying the cost of doing business here was too high. William Lauer, chairman of Allegheny Capital Management said four months post-bankruptcy he's still not quite sure of US Airways' strategy for growing the airline. It's possible, he said, management is awaiting the outcome of United's bankruptcy before committing itself. The case could resolve itself in three ways: United could continue as-is, it could continue as a smaller airline or it could go belly-up.
Chip comments: I was just wondering...out of the five cities the Chicago Tribune listed above, how many of them were listed in the UCT & ICT conversations? Furthermore, I wonder if US Airways' delays or stalling tactics with Pennsylvania government leaders could be effected by Judge Wedoff's ruling in September?
Best regards,

Chip
 
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The Chicago Tribune wrote, United's failure to make interest payments could jeopardize its airport leases in Chicago, New York, Los Angeles, San Francisco and Denver. United could be evicted if it defaults on its interest payments and another airline brought in to take over the obligation, its lease agreements say. United has gone to court to ensure that doesn't happen. In June, U.S. Bankruptcy Court Judge Eugene Wedoff dismissed United's arguments to prevent its eviction from O'Hare when the city said it had no plans to kick the airline out. But a ruling on United's arguments regarding the facility bonds at the other four airports is expected in September.
Best regards,
Chip
 
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United's debt puts future of special bonds in question

Failure to pay may hurt airline's lease deals at airports


CHICAGO (Tribune) - Since 1999, the City of Chicago has issued more then $600 million in special facility revenue bonds for United Airlines, raising money the airline used to refinance old debt and pay for new projects like reconfiguring terminal gates.

Complete Story: http://www.chicagotribune.com/business/chi...hi-business-hed
 
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On 8/10/2003 10:30:23 PM Chip Munn wrote:


Chip comments: I was just wondering...out of the five cities the Chicago Tribune listed above, how many of them were listed in the UCT & ICT conversations?

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OMG Chip you truly ARE a genius after all! I NEVER would have guessed cities like ORD, DEN, SFO, LAX, SFO, and NYC would be key to UA's future! I thought UA's future would hinge on the much more strategically important world-wide business centers and vital UA hubs such as MHT, GRR, RSW, and JAC! But we heard it here first from you!
 
Bear96, nice but you failed to mention the three strategically important world-wide business centers and vital UA airports that some feel is the real key to UA's future. Those three being CLT, PIT, PHL?
 
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