US AIRWAYS may go down to 245 jets?

C

chipmunn

Guest
Joesy:

The ALPA restructuring agreement provides a minimum of 245 aircraft in bankruptcy and a minimum 275 aircraft out of bankruptcy. The current fleet count stands at 301 aircraft.

October 9 is the 60th day since the bankruptcy filing where the law makes it easier for the company to dispose of excess aircraft. US Airways has reached restructuring agreements with 16 of 18 lease companies and only 10 of 32 aircraft scheduled for retirement have obtained court approval to reject the lease agreements.

The court said it would rule on the remaining two lessor objections, and presumably the 22 aircraft whose lease agreements have not been restructured, as soon as possible, reportedly before October 9.

Chip
 

sabre

Advanced
Aug 20, 2002
161
0
I don''t know all the details of BK but I have heard that jet repos from creditors may force the company to renegotiate with ALPA on going down to the minimum jet number.
My questions is why would the company have to renegotiate with ALPA if it went down to the 245 or so number? I thought ALPA already recognized this minimum and the company could hit the minimum if it wanted to? Not that the company wants to but all the same.
Anyways, how about these load factors? Man they are aweful.
 

sabre

Advanced
Aug 20, 2002
161
0
Chip,
does that mean that if US AIRWAYS comes out of BK that it must operate 275 jets to be within contractual limits? Or did it mean it could have operated 275 jets prior to BK?
 

autofixer

Veteran
Aug 20, 2002
1,804
241
www.usaviation.com
If the industry does not recover(and it appears it is not), and the hundreds of small jets arrive on property and the UAL/U codeshare goes into effect...how many jets does U really need? This has been a nagging question of mine and it is way above my paygrade. Any thoughts??? I know the small jets and the codeshare are supposed to increase revenue, but at what cost? Less mainline planes, re. jobs?
 
OP
C

chipmunn

Guest
Hi Joesy:

Joesy asked: Does that mean that if US AIRWAYS comes out of BK that it must operate 275 jets to be within contractual limits? Or did it mean it could have operated 275 jets prior to BK?

Chip answers: Joesy, you bring up good questions that have been discussed within ALPA. The ALPA Restructuring Agreement states, Minimum Active Fleet - No less than 275 aircraft (including permanent bid plus 8% for maintenance and spares), with daily utilization rate measured monthly of 10 hours. In the event of Chapter 11, the minimum active fleet may be no less than 245 (permanent bid plus 8% for active spares).

The agreement does not state pre or post bankruptcy for a minimum fleet count of 275; therefore, in my opinion, upon emergence the company would be required to operate a minimum of 275 mainline aircraft.

Chip
 
OP
C

chipmunn

Guest
[SPAN][STRONG][FONT face=Times New Roman color=#333333 size=4]US Airways Judge Approves Rejection of 150 Jet Leases [/FONT][/STRONG][/SPAN][BR][BR][SPAN][A href=http://quote.bloomberg.com/fgcgi.cgi?T=marketsquote99_news.ht&s=APZtyOhVaVVMgQWly][FONT face=Times New Roman size=3]http://quote.bloomberg.com/fgcgi.cgi?T=marketsquote99_news.ht&s=APZtyOhVaVVMgQWly[/FONT][/A][/SPAN][BR][BR][SPAN][FONT face=Times New Roman size=3]Bloomberg reported, Lawyers said the Arlington, Virginia-based company won't abandon all 150 aircraft. Rather, US Airways will choose among the aircraft and use the court's permission to reject the lease as a bargaining tool. The airline's strategy is to attempt to renegotiate the terms of those loans and leases which they feel are financially burdensome and, at the end of the day, to retain only those aircraft in the pool that are needed for continued operations and are the least burdensome,' Mitchell wrote in his ruling. [/FONT][/SPAN][BR][BR][SPAN][FONT face=Times New Roman size=3]Chip comments: Judge Mitchell continues to approve every company motion. [/FONT][/SPAN][BR][BR][SPAN][FONT face=Times New Roman size=3]Chip[/FONT][/SPAN]
 

usfliboi

Veteran
Aug 20, 2002
2,070
270
Chip , Im not sure that the fact the judge approves everything is significant given the fact that us hasnt really asked for anything unresonable in its request.... i can see it being a big deal if it was something off the wall or wasnt common sense but so far i think all of us request have been lodgical.
 

resconcerns

Member
Sep 11, 2002
26
0
Chip comments: Judge Mitchell continues to approve every company motion.

Chip


Please...we all know that you are the greatest living legend that USAir has. I hate to harp on this. Some of your information is very enlightening, but when you throw in your egotistical comments, I become a little nauseated. No offense, not that you'd be offended anyway.
 

autofixer

Veteran
Aug 20, 2002
1,804
241
www.usaviation.com
LAWYERS said that the company would not abandon all 150 leases. Very interesting...it seems that management has left themselves an out. It is often what is not said, rather than what is said. In the Bloomberg article, Lawyers said, not Dave or even management at that. I think Dave could have made this comment to a world class media outlet such as Bloomberg; however, Lawyers were chosen. Just an observation! It may be nothing, or it may be. Was the quote in the context of the hearing, or was it not? Time will tell.
 

usfliboi

Veteran
Aug 20, 2002
2,070
270
Dave has already adressed this issue in the public as well as with employees concerning the 150 leases.