Us Air Seen Close To Deal For Financing

[USA320Pilot]

See Story

Regards,

USA320Pilot

 

[CLTFlyer]

Well, that's good news. Now if only US and GECAS can work out their deal - US will buy some more time. Not to be a cynic, but I'm guessing US and GECAS knew where the $100 million was coming from before they signed their deal.

 

[robbedagain]

i wonder if they will defer the planes for now or allow ge to take back some planes that to me seems like what they would do to get the 100mill

 

[USA320Pilot]

Expect new ATSB deal to use monies for at least three months. The goal is to get the company through Q2. In addition, expect agreement on $100 million in additional liquidity. Both topics to be on court’s Jan. 13 docket. ATSB concerned about near-term revenue in light of Delta SimpliFares announcement. US Airways considers SimpliFares a Delta program to drive US Airways out of business. Program will be revenue negative, but US Airways could be hurt the least with its costs rapidly coming down.

If necessary, PSA and/or Allegheny/Piedmont could be spun off to raise cash, with ATSB approval.

PSA and MDA will take delivery of 3 CRJ-700s and 3 EMB-170s, respectively, immediately after Jan. 13 court ruling on ATSB deal. Then expect more RJ delivery’s before bankruptcy exit.

Key creditor’s and committee fully support POR – ATSB, GE, Airbus, Bombardier, Embraer, Citigroup, etc.

Unsure of who will provide exit financing, but I have a feeling it could be RSA who could take the company private.

POR filed by February 15 with plan confirmation and exit June 30.

Following full transformation plan emergence, target CASM including fuel will be below Southwest and AirTran, but above jetBlue.

 

[Walmartgreeter]

Unsure of who will provide exit financing, but I have a feeling it could be RSA who could take the company private.

Any thoughts as to the the advantages or negatives to going private? I have heard going private might give U some sort of competetive advantage. Comments? Greeter. (I don't know how to add a permanent tag line...but if I had one it would be...."The greatest change in the US airline industry will occur if U SURVIVES!)

 

[USA320Pilot]

Walmartgreeter:

Good question. If RSA takes the company private David Bronner would have total control. After talking to outside and ALPA officials, the only reason most people think he is still operating US Airways is that the airline operates in a very visible industry and his “egoâ€￾. Thus, he wants to make the company work, which should be considered positive.

Regards,

USA320Pilot

 

[JayBrian]

One advantage of being private would be reduction of SEC required compliance and disclosure. It would put a few bean counters out of work though. Might not even need directors.

A negative for the employees would be a lack of regular visibility into the companies performance.




Jay

 

[USA320Pilot]

Reuters said, "US Airways is able to seriously pursue both the GE deal and an extension of its cash after winning concession agreements from key unions and securing permission from Judge Mitchell last week to throw out machinists' contracts to save money. "

Regards,

USA320Pilot

 

[boeing787]

yeah and I believe everything I read. Can U say TITANIC!

 

[goingboeing]

Yeah,give the same U management more money so they can flush it down the drain also.It is like giving a junkie more drugs.