Us Air To Keep Flying Most Of Its Planes
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BoeingBoy
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The company press release:
Press Release
And the correction to the press release:
Correction to PR
Jim
Press Release
And the correction to the press release:
Correction to PR
Jim
BoeingBoy
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BoeingBoy
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And finally (for now), the full corrected press release:
US AIRWAYS REACHES AGREEMENTS FOR CONTINUED
USE OF AIRCRAFT
ARLINGTON, Va., Nov. 11, 2004 -- US Airways Group Inc. has reached agreements with its lenders and lessors for continued use and operation of substantially all of its mainline and Express fleet.
Section 1110 of the U.S. Bankruptcy Code requires that within 60 days of its Sept. 12, 2004, Chapter 11 filing, US Airways must either (i) cure and perform under the terms of its aircraft financing or (ii) negotiate consensual arrangements with its lenders and lessors. As of today, US Airways has agreed to cure and perform for all but 36 aircraft, which will be subject to further negotiation. For these 36 aircraft, alternative interim arrangements have been secured for 14 of the aircraft. US Airways continues to negotiate with the lenders and lessors for the remaining 22 aircraft, and absent negotiated solutions, at least four of the aircraft will likely be rejected.
"Identifying these 36 aircraft is a routine part of the process, and our expectation is that our mainline fleet will remain largely intact," said Bruce R. Lakefield, US Airways president and chief executive officer. "Our intent is to focus on those few aircraft that for a variety of reasons may no longer be economical to fly, and if there is a downsizing of the fleet, that it be minimal, and that it be transparent to our customers."
Lakefield said that the February 2005 schedule US Airways announced last month provided for nearly 230 additional daily flights without adding any new aircraft due to changes in flying patterns and efficiencies – the equivalent of approximately 27 additional aircraft to the current fleet. "More point-to-point flying, more efficient aircraft utilization, and a focus on key business and leisure markets in the eastern U.S. remain core elements of the company’s Transformation Plan. We might conclude, however, that some aircraft with fuel inefficiencies or significant maintenance or operating costs might not make sense in an era of high fuel costs, depressed revenue and over-capacity in the industry. We need to carefully analyze and negotiate with our aircraft financers to reduce our costs and make the company as efficient as possible."
US Airways currently operates a fleet of 282 mainline jets. Its wholly owned US Airways Express operations include a fleet of 67 regional jets and 64 turboprop aircraft.
Reporters needing additional information should contact US Airways Corporate Affairs at (703) 872-5100.
Jim
US AIRWAYS REACHES AGREEMENTS FOR CONTINUED
USE OF AIRCRAFT
ARLINGTON, Va., Nov. 11, 2004 -- US Airways Group Inc. has reached agreements with its lenders and lessors for continued use and operation of substantially all of its mainline and Express fleet.
Section 1110 of the U.S. Bankruptcy Code requires that within 60 days of its Sept. 12, 2004, Chapter 11 filing, US Airways must either (i) cure and perform under the terms of its aircraft financing or (ii) negotiate consensual arrangements with its lenders and lessors. As of today, US Airways has agreed to cure and perform for all but 36 aircraft, which will be subject to further negotiation. For these 36 aircraft, alternative interim arrangements have been secured for 14 of the aircraft. US Airways continues to negotiate with the lenders and lessors for the remaining 22 aircraft, and absent negotiated solutions, at least four of the aircraft will likely be rejected.
"Identifying these 36 aircraft is a routine part of the process, and our expectation is that our mainline fleet will remain largely intact," said Bruce R. Lakefield, US Airways president and chief executive officer. "Our intent is to focus on those few aircraft that for a variety of reasons may no longer be economical to fly, and if there is a downsizing of the fleet, that it be minimal, and that it be transparent to our customers."
Lakefield said that the February 2005 schedule US Airways announced last month provided for nearly 230 additional daily flights without adding any new aircraft due to changes in flying patterns and efficiencies – the equivalent of approximately 27 additional aircraft to the current fleet. "More point-to-point flying, more efficient aircraft utilization, and a focus on key business and leisure markets in the eastern U.S. remain core elements of the company’s Transformation Plan. We might conclude, however, that some aircraft with fuel inefficiencies or significant maintenance or operating costs might not make sense in an era of high fuel costs, depressed revenue and over-capacity in the industry. We need to carefully analyze and negotiate with our aircraft financers to reduce our costs and make the company as efficient as possible."
US Airways currently operates a fleet of 282 mainline jets. Its wholly owned US Airways Express operations include a fleet of 67 regional jets and 64 turboprop aircraft.
Reporters needing additional information should contact US Airways Corporate Affairs at (703) 872-5100.
Jim
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Ok, I've had time to go through the court filings from yesterday and here's what there is....
Defaults cured under Section 1110:
98 Airbus (9 A330 & 89 A320 Series) (Docket #729)
75 Boeing (3 B767, 18 B757, 54 B737-3/400) (Docket #730)
9 Dash8-200 (Docket #731)
[of the B737's above, 3 are listed twice each - N504, N505, & N506, so the number of tail numbers is 3 less than above]
Section 1110 Deadline extended to 11/12/04 (Docket #733):
38 Bombardier Aircraft (only tail numbers listed so don't know type)
Section 1110 Deadline extended to 11/25/04 (Docket #738)
N805MD, N806MD, N809MD, N810MD, N815MD, N818MD, N821MD
Section 1110 Deadline extended to 12/15/04 (Docket #732)
N586US & N587US
Section 1110 Deadline extended to 1/14/05 (Docket #734)
N653US
Section 1110 Deadline extended to 1/14/05 (Docket #735)
N614AU
Section 1110 Deadline extended to 1/14/05 (Docket #736)
N625VJ & N628AU
Section 1110 Deadline extended to 1/14/05 (Docket #737)
N587US, N436US, N437US, N651US, N652US
All the dockets are here..
Defaults cured under Section 1110:
98 Airbus (9 A330 & 89 A320 Series) (Docket #729)
75 Boeing (3 B767, 18 B757, 54 B737-3/400) (Docket #730)
9 Dash8-200 (Docket #731)
[of the B737's above, 3 are listed twice each - N504, N505, & N506, so the number of tail numbers is 3 less than above]
Section 1110 Deadline extended to 11/12/04 (Docket #733):
38 Bombardier Aircraft (only tail numbers listed so don't know type)
Section 1110 Deadline extended to 11/25/04 (Docket #738)
N805MD, N806MD, N809MD, N810MD, N815MD, N818MD, N821MD
Section 1110 Deadline extended to 12/15/04 (Docket #732)
N586US & N587US
Section 1110 Deadline extended to 1/14/05 (Docket #734)
N653US
Section 1110 Deadline extended to 1/14/05 (Docket #735)
N614AU
Section 1110 Deadline extended to 1/14/05 (Docket #736)
N625VJ & N628AU
Section 1110 Deadline extended to 1/14/05 (Docket #737)
N587US, N436US, N437US, N651US, N652US
All the dockets are here..
DorkDriver
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"US Airways currently operates a fleet of 282 mainline jets. Its wholly owned US Airways Express operations include a fleet of 67 regional jets and 64 turboprop aircraft."
PSA Currently operates 40 RJs (35 CRJ 200s, 5 CRJ 701s). How many EMB170s does MDA have, I thought it was only 22?
PSA Currently operates 40 RJs (35 CRJ 200s, 5 CRJ 701s). How many EMB170s does MDA have, I thought it was only 22?
BoeingBoy
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One thing to keep in mind is that curing the default on these airplanes does not necessarily mean that the company is going to reject or accept the leases - it merely means that the lessor can't take the airplane. While it could certainly be the case that the company intends to keep the 170 mainline planes they cured the defaults on, all options are still open.
As for the other 11 mainline aircraft that had the section 1110 deadline extended, this gives the company more time (varying from tomorrow to 1/14/05) to decide whether to cure the defaults or not.
Also notice that this only totals 181 mainline aircraft, and a few of these are not leased, but mortgaged. The other 100 are mortgaged, meaning the company could still shed some of them by letting the lender repossess them.
Jim
As for the other 11 mainline aircraft that had the section 1110 deadline extended, this gives the company more time (varying from tomorrow to 1/14/05) to decide whether to cure the defaults or not.
Also notice that this only totals 181 mainline aircraft, and a few of these are not leased, but mortgaged. The other 100 are mortgaged, meaning the company could still shed some of them by letting the lender repossess them.
Jim
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I'm confused. What planes are being returned, what ones are being kept?
And is US getting those 7 170s that Embraer had finished or no?
And is US getting those 7 170s that Embraer had finished or no?
