Us Airways Needs $100 Million By Friday

[notlayedoffyet]

Money and faith are needed for two major pieces of US Airways' survival package to lock into place.

First, US Airways needs to drum up $100 million in new equity by Friday to qualify for continued funding from GE Capital Inc., or put plane leases, engine maintenance and other money at risk. The airline could meet that condition by identifying another $100 million in additional savings or revenue, said GE Capital spokesman Eric Jones.

See Article:
http://www.timesonline.com/site/news.cfm?newsid=13712409

Granted, this article is written in the usual Beaver County Times style. Negative, Over Hyped and probally missing a few key points and details. But overlooking this Newspapers faults and the fact that they will put a story about Amber from Survivor buying socks at the mall on the front page before any "real news" I gleaned a few new facts fron this. I just wish I did not have to do it while picking through one sentence paragraphs.

 

[Rico]

Nothing sells newspapers like Drama...

So we move on from the labor concessions crisis to whatever else makes things sound dramatic.

After that passes, then it will be something else I am sure

 

[usairways_vote_NO]

Nothing sells newspapers like Drama...

So we move on from the labor concessions crisis to whatever else makes things sound dramatic.

After that passes, then it will be something else I am sure

[post="237266"][/post]​

So true too bad USairways will not be around much longer or else you could start a newspaper devoted to it.

 

[BoeingBoy]

Actually, the article is pretty accurate - as far as public information is concerned - as long as you take the quotes from "experts" as merely opinions.

The only thing that I can see thay they omitted is the GE requirement for "meaningful" structural changes to reduce the cost structure.

Jim

 

[BoeingBoy]

It would seem with ALL of the bragaining units except the IAM having ratified new lower cost contracts that the GECAS financial covenant would be met regarding structural changes or did I miss something? And what if IAM votes to accept the last best offer?

[post="237297"][/post]​

The requirement is for NON-labor changes to lower the cost structure and is separate from the $100 million in additional investment or cost savings. The website with the court filings is apparently down or I would be able to quote the exact language.

It appears to me that the GE folks are smart enough to realize that the employee cuts are just the start. For U to exit BK and possibly survive, there must be additional investment (or additional concessions) and a structural change. Absent both, they may pull out.

Jim

 

[delldude]

i really really would like to help...but as of late i'm kinda tapped out.....
maybe we can pass the hat??

 

[nycbusdriver]

$100 million by Friday? No problem.

Pollock and the ALPA weak sisters will just have to find a novel way to pick our pockets once again.

 

[justaumechanic]

$100 million by Friday? No problem.

Pollock and the ALPA weak sisters will just have to find a novel way to pick our pockets once again.

[post="237326"][/post]​

This place will pump out 100 million cost savings numbers by Friday.. It will be just like the annual report with Non-Recuring charges.. Magic numbers.. Its a no brainer.. They will have it by Friday no problem.

 

[Winglet]

This place will pump out 100 million cost savings numbers by Friday.. It will be just like the annual report with Non-Recuring charges.. Magic numbers.. Its a no brainer.. They will have it by Friday no problem.

[post="237338"][/post]​

This management team has the employees so pumped (use your own interpretation), that I'm sure everyone will pull out their Mastercards and donate to the cause to keep the dream alive. Maybe even the junior half of the IAM that's gonna get thrown under the bus will do it too.

 

[wench]

US need's what by friday?

Boys at CCY dig deep ,open YOUR pockets and now it's YOUR TURN!!!!!

Unline those golden pockets!

 

[deano]

This management team has the employees so pumped (use your own interpretation), that I'm sure everyone will pull out their Mastercards and donate to the cause to keep the dream alive. Maybe even the junior half of the IAM that's gonna get thrown under the bus will do it too.

[post="237360"][/post]​

Hell, I not even there and I am signing up with my card number!

 

[phl2]

mark it down>GE gives US a reprive....the Fri deadline is extended.

 

[Justair]

Hopefully the fire sale WON"T begin.

Once asset sale begins it will never end.

Bonner said if U gets its cost down it may be worth investing in again.

I hate to need that guy!

 

[westcoastflyer]

Perhaps a formal announcement before Friday of the PIT reservations center closing will satisfy the cost savings requirement.

 

[BoeingBoy]

The requirement is for NON-labor changes to lower the cost structure and is separate from the $100 million in additional investment or cost savings. The website with the court filings is apparently down or I would be able to quote the exact language.

[post="237307"][/post]​

Apparently Donlin, Recano, and Company, Inc changed their website and that's why I couldn't get the filings over the weekend. Anyway, here's the language from the GE deal:

"Implementation of definitive agreements with a third party or third parties to provide the US Airways with at least $100 million of incremental liquidity, cost reductions or concessions during the Chapter 11 Case"

"Implementation of a program reasonably forecasted to produce a mutually acceptable level of annual savings in non-labor costs from the US Airways’ business plan"

Both of these are 1/14/05 requirements.

Jim