Today's ATSB announcement provides US Airways with relief, places greater pressure on the employees to participate in the "Going Forward Plan", and moves the company closer to being involved in a corporate transaction.
There is not question the company has problems with GECAS, the independent auditor, S&P credit rating service, and the ATSB, not to mention intense and relentless LCC pressure. These are all being simultaneously addressed.
The assets sales will be PSA followed by Allegheny and Piedmont. If necessary, the new ALPA RJ agreement may provide for MDA to be "spun off", which could be next, followed by the Shuttle. It's far less likely the Shuttle will be sold and management has indicated its performing better. This cash infusion can then be used to further pay down the loan guarantee to $500 million, which will permit a corporate transaction to proceed.
As I have said before, US Airways has M&A options and today's ATSB news provides the company and its employees the opportunity to collectively move forward with the "Going Forward Plan".
However, I believe it's important to note that if the employees do not participate in the "Going Forward Plan", the airline could be liquidated. US Airways' plan is to have everybody on board by June 30 and then move forward as a stable imdependent enterprise, which will be involved in a corporate transaction. Is it coincidental that United Airlines has said it will emerge from bankruptcy on June 30, which is about the same time US Airways wants to have its "Going Forward Plan" in place? Moreover, what will Northwest Airlines have to say about this?
Regards,
USA320Pilot