Us Airways February Net Loss $119.2 Million

[MCI transplant]

Historically it is cheaper then having your own workers, you don't pay wages, vacation, sick time or benefits, but the variables is the quality, extra down-time and lack of parts in the supply chain.

Phantom Fixer can elaborate more on that.

[post="259408"][/post]​

<_< 700-----There are two things that you loose with outsourcing! You loose control as to when your going to get your product back. And secondly you don't know what condition that product will be in when you do!!!!

 

[700UW]

If you read my post I including that in there.

I said quality and extra down-time.

 

[funguy2]

sfb: I completely agree... Even the best case scenario's seem pretty bleak... A merger cannot come soon enough for this company... The problem is: who wants to acquire such a basketcase?

 

[RowUnderDCA]

it's getting increasingly difficult to imagine. But an industry without U is getting increasingly easier to imagine.

 

[WorldTraveler]

sfb,
nice analysis. Thanks.

Not sure if you all figured it out but the air traffic liability represents tickets US sold but during the period but which have not travelled. Probably alot of it was spring break travel since I doubt if US is getting a whole lot of advance bookings beyond a couple months. I believe that because US has such large holdbacks by its credit card processors, those spring break tickets should also be shown as receivables since US will not receive the money until the passenger flies - in order to minimize the possibility credit card companies will have to settle chargebacks in the event US folds. In other words, US cannot initiate sales to generate cash as has been typical in the industry for quite some time. US may need to stimulate traffic and will have sales to do so, but it won't get the money until the passengers fly.
Correct me if I'm wrong but I believe that is how airline finances work.

 

[sfb]

I believe that because US has such large holdbacks by its credit card processors, those spring break tickets should also be shown as receivables since US will not receive the money until the passenger flies - in order to minimize the possibility credit card companies will have to settle chargebacks in the event US folds.

My reading of things is a bit different. The balance sheet has two different entries for restricted cash; one under "current assets" and the other under "other assets." My guess (and it is a guess!) is that the second "restricted cash," at $622 million, is the credit card processor holdback, since it increased by $68 million month-over-month.

 

[madders]

Gloomy gloomy gloom
Hey I thought Bush was going to lose this election and he pulled off a win due to some "brilliant" strategy
I bet bonner and Crystal city have something up their sleeves

And while you are pondering all that could go wrong in theory maybe you should ponder what works in the usairways system therefore the strengths

 

[FWAAA]

Gloomy gloomy gloom
Hey I thought Bush was going to lose this election and he pulled off a win due to some "brilliant" strategy
I bet bonner and Crystal city have something up their sleeves

And while you are pondering all that could go wrong in theory maybe you should ponder what works in the usairways system therefore the strengths

[post="259507"][/post]​

Gloomy? Nope, just realistic. Three more months of negative cash flow like February and US is completely drained of unrestricted cash. And March has already just about happened, so if this keeps up, May 31 is when US would be completely outta cash.

 

[justaumechanic]

3.6 million a day over Jan and Feb.. It will be a little better in March due to the heavy travel for spring break but it won't be enough.

Fuel is eating away at the money..

This place is doomed.. Totally doomed..

 

[airbiiguy]

yea say good bye!!! i jsut hope they are open until aug so i can use up my flying bennies!

 

[MCI transplant]

sfb:  I completely agree...  Even the best case scenario's seem pretty bleak...  A merger cannot come soon enough for this company...  The problem is:  who wants to acquire such a basketcase?

[post="259457"][/post]​

<_< Be careful what you wish for! When a.a. bought TWA, there were 22,000 empolyees working for TWA. Today, I don't think there are 3,000, and there will be less by June!!! :down:

 

[aafsc]

<_< Be careful what you wish for! When a.a. bought TWA, there were 22,000 empolyees working for TWA. Today, I don't think there are 3,000, and there will be less by June!!! :down:

[post="259719"][/post]​

If there is no transaction and the losses continue, USAir will shut down and ALL will be out of work.

 

[Winglet]

Even if pricing goes up a little among other majors, SWA is going to finish bleeding off U with a price war that won't have to last long.

 

[aafsc]

I also wonder what the U employees will do if offered the same thing the TWA people were offered.

1. Agree to waive their seniority protections in exchange for SOME of the people keeping their jobs at the top rate of the acquirer and being protected in their bases (PHL, CLT, etc). Or

2. Not agreeing to waive their seniority protections and EVERYONE loses their jobs.

If this were to happen, I wonder what they would do. Especially USA320Pilot.

And remember they are in bankruptcy so the judge could make the changes to the seniority protections.

 

[usair_begins_with_u]

how US makes it to 3/30/2006 even if the company manages to emerge some time this summer.

On the back of uncle sam like it has for the last 1.5 years....

Besides, no one wins if U fails, therefore it will live on and on for a while, slowly being paired away. U wont go down in a blaze of glory, its going to fade away like an aged rock star.

Look around you... isn't it already happening? The downsizing is probably not over yet.