Us Airways Group Investors Increase Equity Investment

US Airways Group, Inc. Investors Increase Equity Investment
Total New Equity of $867 Million Largest Amount of New Equity Ever Raised by U.S. Airline

TEMPE, Ariz., Oct 21, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- US Airways Group, Inc., (NYSE: LCC) today announced its investors have exercised all of their options to purchase additional shares of US Airways Group common stock at $15 per share. The investors, which include Par Investment Partners, L.P., Peninsula Investment Partners, L.P., a group of investors under the management of Wellington Management Company, LLP, and Tudor Proprietary Trading, L.L.C. and a group of investors for which Tudor Investment Corp. acts as investment adviser exercised the first two-thirds of their options, which totaled approximately 5 million shares, on Sept. 28, 2005, resulting in aggregate proceeds to US Airways Group of approximately $75 million. The remaining one-third of the options, exercisable for approximately 2.5 million shares, were scheduled to expire on Oct. 13, 2005. These options were exercised in full, which resulted in an additional $38 million in aggregate proceeds to US Airways Group.

When combined with other equity raised in connection with the merger, US Airways Group has now raised $867 million in new equity, which is the most new equity ever raised by a U.S. airline. Total cash on hand, including restricted cash, is now over $2.5 billion despite post-merger transactions of $116 million to repurchase warrants from the Air Transportation Stabilization Board and $125 million which was used to retire certain debt to General Electric Capital Corporation.

US Airways Group Chairman, President and CEO Doug Parker said, "The market's confidence in the new US Airways is extremely gratifying, and is evidenced by today's announcement and backed further by the recent sale of our former government-backed loans. While we have much work to do to successfully complete the integration of our two airlines, we are confident that we have taken the right steps to adequately fund a firm foundation for our new airline."

With all merger-related equity transactions now closed, the estimated ownership breakout of US Airways Group is:

Entity Primary Percentage
Shares
(000)
Equity Investors
Wellington Management Company 11,091 14%
PAR Investment Partners, L.P. 10,769 14%
Eastshore Aviation, LLC 8,333 11%
ACE Aviation Holdings, Inc. 5,000 6%
Tudor Investment Corporation 4,806 6%
Peninsula Investment Partners, L.P. 4,000 5%

Other Public Equity
Former America West Shareholders 15,109 20%
Former US Airways Creditors 8,212 11%
Post Merger Public Offering 9,775 13%

Total Shares* 77,095 100%



* The Company anticipates shares on a fully diluted basis will
approximate 78.5 million, which assumes the buy back of warrants.
Fully diluted shares represent the primary shares outstanding plus
potential common stock including options, warrants and restricted
stock units. Convertible notes are not included in this fully diluted
share count.

US Airways and America West's recent merger creates the fifth largest domestic airline employing nearly 38,000 aviation professionals. US Airways, US Airways Shuttle and US Airways Express operate approximately 4,000 flights per day and serve more than 225 communities in the U.S., Canada, Europe, the Caribbean and Latin America. This press release and additional information on US Airways can be found at www.usairways.com or www.americawest.com.

US Airways is a member of the Star Alliance, which was established in 1997 as the first truly global airline alliance to offer customers global reach and a smooth travel experience. The other members are Air Canada, Air New Zealand, ANA, Asiana Airlines, Austrian, bmi, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Singapore Airlines, Spanair, TAP Portugal, Thai Airways International, United and VARIG Brazilian Airlines. South African Airways and SWISS will be integrated during the next 12 months. Overall, member carriers of the Star Alliance offer more than 15,000 daily flights to 795 destinations in 139 countries. (LCCG)
 
When combined with other equity raised in connection with the merger, US Airways Group has now raised $867 million in new equity, which is the most new equity ever raised by a U.S. airline. Total cash on hand, including restricted cash, is now over $2.5 billion despite post-merger transactions of $116 million to repurchase warrants from the Air Transportation Stabilization Board and $125 million which was used to retire certain debt to General Electric Capital Corporation.

We have more cash!!!

:up: :up: :D :up: :up: B)
 
Hmm, strange, I thought we were supposed to have been "stick a fork in em" dead by now.

Nice to see a change of fortunes.
 
Yeah, So much for all of the know-it-all, self-serving ANALysts and their fortune telling skills... :lol:
Here, here! Be very careful who you listen to and follow and maybe practice that care with the lawyers on this board?
 
This is good news IF management are good stewards of the money. $2.5 billion definitely provides you with some "wiggle room." However, employees should make sure that EVERYWHERE they see money being pi**ed away, they should email Parker.

Be on the lookout for sweetheart deals like the Pentagon signs up for on a regular basis--did anyone see the article yesterday about the $20 plastic ice cube trays (the one's that cost 89 cents at the store)?