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[P align=justify][FONT face=Times New Roman size=3]US Airways Equity Plan Sponsor Update[BR][/FONT][FONT face=Times New Roman size=3][BR]October 17 – CLT Observer:[/FONT][FONT face=Times New Roman size=3] About 30 people have shown interest, 10 have followed up, and two or three will show up next week to do real work, David Bronner, chief executive of the Retirement Systems of Alabama, said in an interview Thursday. He said the airline wouldn't identify the potential bidders.[BR][/FONT][FONT face=Times New Roman size=3][BR]November 13 – Bloomberg News:[/FONT][FONT face=Times New Roman size=3] US Airways Group Inc., which filed for bankruptcy protection in August, has talked with private equity firms interested in bidding for an ownership stake in the airline, Chief Executive Officer David Siegel said. The Retirement Systems of Alabama state pension fund, which offered $240 million for a 38 percent stake in the seventh-largest U.S. airline, still is the front-runner, he told reporters after speaking in New York to the Wings Club, an aviation advocacy group. Siegel wouldn't identify the companies US Airways talked to or say whether any bids have been made. The bid deadline in the bankruptcy process is Friday. [BR][/FONT][FONT face=Times New Roman size=3][BR]November 15 – US Airways Statement:[/FONT][FONT face=Times New Roman size=3] Deadline Nears - The close of business today is the deadline for bidders to submit competing plan proposals as US Airways’ reorganization equity sponsor. In a statement today regarding the status of equity bids US Airways said: Given our obligation to conduct this process properly, we will not be in a position to comment, confirm or speculate today about whether other bidders have stepped forward to replace The Retirement Systems of Alabama. We expect to make an announcement next week.[BR][/FONT][FONT face=Times New Roman size=3][BR]Chip comments:[/FONT][FONT face=Times New Roman size=3] Any Equity Plan Sponsor (EPS) bid must be equal to or higher than the RSA offer and according to the company be labor friendly. US Airways must submit its choice from the Equity Plan Sponsor bidders to the court by November 25. It appears US Airways is having discussions with potential bidders, but for some reason the airline has elected to not go public with its decision on whether or not to reach an agreement with interested private investors. The Chicago Tribune reported on November 7 that Texas financier David Bonderman, California oilman Marvin Davis and billionaire investor George Soros head the three groups expected to bid for United if the Elk Grove Township-based carrier is forced to seek bankruptcy protection, airline officials said. Both Bonderman’s Texas Pacific Group (TPG) and Davis, who has partnered with Mesa Airline CEO Jonathan Davis, recently submitted bids for US Airways. Reports indicate TPG and the Davis/Ornstein group may have revisited their efforts to invest in both US Airways and United as the EPS. Regardless, US Airways said in a statement it expects to make to make an announcement next week. The question is why can’t the airline comment now and what is occurring behind the scenes, both internal and external to the company?[BR][BR]Chip[/FONT][/P]
