Us Airways February Net Loss $119.2 Million

[eolesen]

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..

[post="259522"][/post]​

Spring break and Easter will help March, but fuel prices were also higher during March, and will probably stay equally high in April.

There was also more crappy weather during March than expected, no?

Whatever fuel was saved by cancellations was probably burned up with ATC holds.... plus deicing, pax expenses, lost revenue from cancels, etc...

 

[mweiss]

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

Remind me again...what money has come from the US Treasury to UAIRQ in the past year and a half?

 

[avek00]

Christopher Chiames, its vice president of corporate affairs, said US Airways is talking to several parties about investing. As to the two regional airlines that have already done so, Chiames said, "No one's twisting their arm. These are smart business people and they make investment decisions based on what's good for them. We're not a charity case."

http://www.forbes.com/facesinthenews/2005/...yahoo&referrer=

 

[usair_begins_with_u]

Weiss: what money has come from the US Treasury to UAIRQ in the past year and a half?

no federal loan guarantee, no usair.. period. I suppose you'll want to argue that point too?

 

[700UW]

You still did not answer his question.

 

[eolesen]

Remind me again...what money has come from the US Treasury to UAIRQ in the past year and a half?

[post="259804"][/post]​

Not directly to UAIRQ perhaps, but how 'bout what the PBGC is and will be providing to current and future retirees?...

 

[JS]

Theoretically, the PBGC uses the pension insurance premiums to pay the benefits of failed pension plans, similar to that of the FDIC and FSLIC for banks. Of course, if there are massive failures like the S&L, then the taxpayers are on the hook.

Regarding the air traffic liability, if you had an extra $10 million in ticket sales for future travel, $10 million is added to assets and the same $10 million is added to air traffic liability so that there is no earnings impact. During the period in which travel occurs, the air traffic liability is released, adding $10 million to earnings. The extra sales contribute, say, $1 million in marginal costs, so the result is $9 million in earnings during the period travel is taken ("extra sales" meaning people who bought tickets during the sale who would not have flown US otherwise).

 

[MCI transplant]

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

[post="259748"][/post]​

<_< End result is just the same! Except someone else will be working overtime on your aircraft, while you and your "fellow former employees" go out the door!!!!!!! :down:

 

[MCI transplant]

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.

[post="259751"][/post]​

<_< He's right!!! They screwed us "Big Time"!!!!!

 

[mrfish3726]

Remind me again...what money has come from the US Treasury to UAIRQ in the past year and a half?

[post="259804"][/post]​

USAIR was granted a 900 million dollar ATSB loan weren't you?????

 

[700UW]

USAIR was granted a 900 million dollar ATSB loan weren't you?????

[post="259930"][/post]​

Guess you need to learn about the ATSB.

It was a loan gaurantee, not a loan, the loan money was provided by PRIVATE BANKS, not tax dollars.

If US defaults on the loan then the government is liable, but the loan is also collateralized by 1 and 1/2 value of the loan by US' assets.

You would think after over three years of the ATSB being around, people would get it right by now.

From the ATSB web page:

Loan Guarantees
The purpose of the guarantees issued by the Board is to compensate air carriers for losses incurred as a result of the terrorist attacks on the United States that occurred on September 11, 2001.

Before entering into an agreement to issue a guarantee, the Board must determine that:

The obligor is an air carrier for which credit is not reasonably available at the time of the transaction; the intended obligation is prudently incurred; and such agreement is a necessary part of maintaining a safe, efficient and viable commercial aviation system in the United States.

Also Mr Fish, look at this from their web page, you would think you understand it.

February 14, 2003, Frontier Airlines closed on a $70 million loan supported by a $63 million Federal loan guarantee.

 

[aafsc]

<_< He's right!!! They screwed us "Big Time"!!!!!

[post="259878"][/post]​

Better than nAAtives being screwed big time. Last in, first out!

 

[aafsc]

<_< End result is just the same! Except someone else will be working overtime on your aircraft, while you and your "fellow former employees" go out the door!!!!!!! :down:

[post="259876"][/post]​

Unless, they have protection in their bases (CLT, PHL, etc.) like the TWA people have in MCI and STL. Four years after the TWA/AA transaction, how many TWA people are still working in STL and MCI?

 

[mweiss]

no federal loan guarantee, no usair.. period. I suppose you'll want to argue that point too?

No, I'll argue the point that a federal loan guarantee isn't money.

And, as JS already noted, PBGC money doesn't come from taxes.

There are elements of our air travel system that are taxpayer-funded, but they benefit all airlines roughly equally (naturally, no monetary distribution method is equal by all metrics).

 

[funguy2]

Getting back to the point of the thread...

Does anyone have any information on how strong Q1 is vs other quarters...

For most, primarily east-west airlines, Q1 is not their best... However, with a predominently north-south network, I would expect Q1 to be fairly strong, revenue-wise, for US Airways.

In any event, I think there are a few interesting things coming to light.

With the latest exclusivity period for POR extention to May 31, 2005, US Airways has announced it expects to emerge from BK on August 31, 2005... No longer June 30, 2005 as previously planned. I have mixed feelings on this... On one hand, I think it is smart not to rush through the BK process and miss some items, or not take full advantage of BK, which I believe was the case in BK 1. However, on the other-hand, it shows to me that finding independent financing seems to be near impossible for US Airways, and I am not sure that will change by May 31...

And with fuel prices staying above $50/bbl, and as reported today, very sluggish improvement in individuals incomes, fare increases will not occur with demand growth. Therefore, capacity has to be removed from the system. US Airways is still target #1 for this.