Us Airways May File For Ch11 Again

[767jetz]

On Wednesday, October 22 USA Today published an article titled "US Airways CEO says more cuts necessary."

Benchmark Co. analyst Helane Becker is quoted as saying, "I think they (US Aiways) emerged from Chapter 11 way too soon. There are rumors they may have to go back into Chapter 11 to get costs down."

IMO this news does not bode well for UA's codeshare partner. The article also contrasts USAir's short trip through the court with UA's plan to take up to 18 months to reorganize. With close to flat revenue year over year, competition from LCC's, cost per seat mile that is still too high, Dave Siegel's desire to shut down it's Pittsburgh hub, and contractual problems with contracting out maintenance, it seems that skepticism is building amoung analysts.

My concern here is how UA would deal with a loss of revenue if or when USAir re files for Chapter 11. Does anyone know if the ATSB would grant another loan guarantee? Where would USAir get exit financing this time? Would UA be in a position to aquire parts of USAir if necessary, to keep the revenue within the Star alliance?

UA recently said it would increase the amount of money it will seek in it's ATSB application. There is reason to believe that the additional cash may be to respond to changing markets. Is it possible that Tilton anticipated the possible fate of USAir?

respectfully,

767jetz

 

[whatkindoffreshhell]

Going to Ch11 again so soon just to lower costs is a joke.

For one thing, the employees would simply leave, probably have to elbow the white collar-types aside on their way out the door.

And the ATSB? They get whatever is left. Maybe auction it to the Project Roam folks. Could this be the UCT we've heard of?

And if US files CH11 again and you're a ATSB board member -- how you gonna feel about backing Glenn Tilton? Dick Cheney won't allow it.

 

[Bear96]

Good observations jetz!

Of course you are just pointing this out becuase you are only concerned about the health of UA's business partner, right?

But there certainly IS reason to be concerned about UA's business partner these days...

 

[wrx]

If they file Chapter 11 again, US Airways is done. The employees can't afford to give more concessions to help the airline and I doubt they will. You can blame this on bad management from Dave and his buddies.

 

[Fly]

OMG!!!! lol You sure nailed that one 767Jetz.....just change the name of the airline and I could swear someone else wrote that. hmmmmm

 

[737nCH11]

If Dave Lorenzo wants to be taken seriously for the rest of his career, he had better try like hell not to let U go back in CH11. I thought it was a rush job when it happened, and these rumors only validate my opinion. Now, because of this guy's ego thousands of hard-working employees might get drug through the mud again. Only in America. :angry:

 

[UnitedChicago]

You all - UA and U - really just baffle me.

I don't really give a rats a** who started the intra bashing first. You all should grow up and realize that UA and U's long term health is extremely important for both companies.

I know I've stepped in the middle of the debate a few times - but I never, ever posted negative news about U. Rather I refuted opinion-based posts - usually with factual information.

Just this week there was a post about me and my rosy outlook - but I ignored it and guess what, it disappeared.

The result of all of this in-fighting was tarnishing my view of U. Why should I start to look down on an important business partner? Just because 1 of 28,407 fine employees of U have an axe to grind with UA and post opinion based, negative banter. This 1 person should alter my opinion of U? That's just rediculous when put in those terms.

I know I've said adios twice before - but this is the last straw. There is no meaningful news, insight, or debate here. Therefore, I'm canceling my account.

I'd rather watch events unfold factually and in real-time.

To the people of U - while my loyalties are with UA - I wish you all the bestl. You are a strong, necessary partner.

To the fine folks at UA - I can't wait till UA emerges. I'll toast you all that wonderful day. I'm a life long customer!

Please - take my advice. Is it worth getting all upset and caught up in childish behavior because 1 of 28,408 people is posting opinion. Opinion folks - not fact.

Best wishes!

UC

 

[N628AU]

Apparently someone is trying to get Chip going again. This post is obviously inciteful and just trying to rile people up. There is no way this company is going back into Chapter 11, no matter what a lone analyst says. It would be Chapter 7 with that ATSB loan in place, and despite management's best efforts, that is a long way off.

Maybe Dave and BBB should have seen the guy on CNBC this afternoon talking about the limits to cost cutting (no, he was not talking about the airlines specifically), and that corporations need to focus on growing revenue in order to be healthy financially over the long run.