US Airways, investor rejigger loan deal - Airline seeks to avoid United''s woes

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[A href=http://www.post-gazette.com/businessnews/20021206usairp2.asp]http://www.post-gazette.com/businessnews/20021206usairp2.asp[/A]
 

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Nov 27, 2002
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[P]But others said a United bankruptcy ultimately could hurt US Airways by making United a much more competitive carrier by virtue of its ability to abrogate costly labor contracts and aircraft leases.
[P]"If United files [for bankruptcy protection], it drives up the possibility of US Airways folding," said Richard Gritta a University of Portland professor with expertise in airlines. "It puts more pressure on US Airways, and any more pressure on US Airways could tip the balance."[BR][BR]Setting the stage for an interesting corporate transaction whereby UAL with their court lowered expenses utilizes loans from the star alliance partners to buy the tattered remnants of Allegheny.[/P][/FONT][/STRONG]
 

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Nov 27, 2002
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[STRONG][FONT size=3]
[P]But others said a United bankruptcy ultimately could hurt US Airways by making United a much more competitive carrier by virtue of its ability to abrogate costly labor contracts and aircraft leases.
[P]"If United files [for bankruptcy protection], it drives up the possibility of US Airways folding," said Richard Gritta a University of Portland professor with expertise in airlines. "It puts more pressure on US Airways, and any more pressure on US Airways could tip the balance."[BR][BR]Setting the stage for an interesting corporate transaction whereby UAL with their court lowered expenses utilizes loans from the star alliance partners to buy the tattered remnants of Allegheny.[/P][/FONT][/STRONG]