Us Airways Obtains Second $125 Million

[jB-Rocks]

See Story

 

[usairways_vote_NO]

See Story

[post="255565"][/post]​

Here come the spin here come the spin... Bet he starts another thread on same story.

 

[whlinder]

Anyone wanna bet that it is entitled US Airways Strategic Analysis?

 

[mlt]

So the rj's go to Republic and the MAA employees go to the street.

 

[700UW]

Burning the furniture:

Wexford is based in Greenwich, Conn., and holds a majority interest in Republic, which operates Chautauqua Airlines and Republic Airlines. The proposed $125 million equity investment is contingent on US Airways securing a total of $350 million in new cash investment (including the $125 million from Republic and the $125 million previously secured from Eastshore Aviation, LLC) to finance the US Airways Plan of Reorganization and other conditions, including Republic being satisfied with US Airways' business plan. The agreement also provides for comparable treatment -- such as representation on the US Airways board of directors -- as that provided to Eastshore. The agreement also includes a commitment by US Airways to amend and restate its existing jet service agreement with Chautauqua, to assume that agreement and to enter into a new jet service agreement with Republic for regional jet feed using the Embraer (EMB) 170 and 190 aircraft under the US Airways Express brand.

So US needs another $100 million.

Bye Bye MDA, See ya Rico:

Prior to the effective date of US Airways' plan of reorganization, but no later than Dec. 31, 2005, US Airways may exercise its option to obtain approximately $110 million through the sale of certain assets, including ten EMB-170 aircraft currently owned by US Airways and the three EMB-170 aircraft currently committed for delivery to US Airways;other EMB 170 related assets, such a flight simulator and other items;and 113 commuter slots at Ronald Reagan Washington National Airport; and 24 commuter slots at New York's LaGuardia airport. In addition, US Airways will assign to Republic the leases for an additional 15 EMB-170 aircraft.

Republic would also work with US Airways to locate an Embraer heavy maintenance facility at an agreed upon location within the US Airways network. Republic would enter into a regional jet service agreement that would continue the operation of the aircraft as US Airways Express. In addition, Republic would simultaneously lease back the slots to US Airways. At any time on or after the second anniversary of the slots sale/leaseback agreement, US Airways will have the right to repurchase the LaGuardia and Washington slots at a predetermined price.

* After the effective date of US Airways' Chapter 11 plan of reorganization, in the event that US Airways does not exercise the slots sale/leaseback option, Republic has an option to purchase/assume debt and leases for all 28 EMB-170 aircraft and to fly them as US Airways Express. The net effect, should this portion of the agreement be implemented, would be the sale of US Airways' MidAtlantic aircraft to Republic. If either option is exercised, Republic will comply with the applicable provisions of all existing agreements with US Airways regarding MidAtlantic Airways. Customers will not be impacted, as the EMB-170 aircraft that currently comprise the MidAtlantic fleet will continue to fly under the US Airways Express brand, but will be operated by Republic.

 

[N924PS]

Here come the spin here come the spin... Bet he starts another thread on same story.

[post="255568"][/post]​

So long MidAtlantic and Jets for Jobs. Watch and see how fast USAirways Mainline implodes now.

Thanks USAirways ALPA for giving away fragmentation/follow on rights.

Standing by for A320's positive spin on this.

 

[Winglet]

I guess Wexford sees the opportunity to bleed U for a while too. Sort of like Al Capone setting you up in the bar biz, then making sure you buy all your booze from him.

 

[usfliboi]

amazing how the poor souls can turn a positive agreement into something negative

 

[NAPAUS]

amazing how the poor souls can turn a positive agreement into something negative

[post="255577"][/post]​

B) B) So tell us Mr Junior flyboi, just how this will help any US mainline or MAA employee. Hope you'll be happy flying the EMB 170/190 for the rest of your career!!! Please, Please.... ENLIGHTEN US!!!

 

[PITbull]

So the rj's go to Republic and the MAA employees go to the street.

[post="255571"][/post]​

That's it in a "nut shell".

So much for the bullsshit "Jet for Jobs" crapola.

But that damn mangment still gets to hold on to ther jobs...go figure. All collecting that $10-$25,000 a month pay check....all the way off the cliff. :down:

 

[BoeingBoy]

Thought I'd look up the ALPA scope from LOA 91 to refresh my memory:

From the "educational material":

2. If MDA is sold, 100% of its pilots (and their contract) will go with the sale to the new acquiring carrier/owner whether or not the purchaser operates as US Airways Express. If the acquiring carrier is an Affiliate (that is, operating as US Airways Express), at least 50% J4J will apply for all future additional vacancies.

[Since MDA is not being sold, just the airplanes, equip, etc, I presume the above doesn't apply - Jim]

3. If the EMB 170 aircraft positions now going to MDA are pulled by GECAS, or if MDA aircraft are sold, they can be bought and operated by our Affiliate carriers, keeping these aircraft in US Airways colors and providing revenue and feed, and requiring the acquiring Affiliate carrier to provide at least 50% J4J positions for APL pilots. These J4J job rights would not apply if the purchaser does not operate as an Affiliate.

Sell MDA Aircraft (some or all)
If some or all MDA aircraft are sold to affiliate:
• 50% J4J in seniority order to incumbents (50% could lose jobs)
• 50% J4J on future vacancies and 100% on backfill
• Request 100% J4J, filled first by incumbents
• Require Preferential consideration for employment for incumbents

Jim

 

[PITbull]

amazing how the poor souls can turn a positive agreement into something negative

[post="255577"][/post]​

Hey sunshine.... B)


Mainline is next. All this selling of slots and a/c of EMB along with MAA is buying time...

They're coming to get you too....

Just wait..6 months tops for your kind.


And keeping MAA flying is going to be a nightmare for U. Those folks who are losing their jobs may not even show up.

Jim,

You are right. Only the a/c (all of them) is being sold, therefore, they got around the language. I believe Republic may be non-union as well.

 

[700UW]

Jim,

Does LOA 93 address any issues with selling MDA's assets?

 

[BoeingBoy]

Jim,

Does LOA 93 address any issues with selling MDA's assets?

[post="255591"][/post]​

I'd have to look, but I think it only addresses adding the Emb-190/CRJ-900.

Jim

 

[a320av8r]

"Prior to the effective date of US Airways' plan of reorganization, but no later than Dec. 31, 2005, US Airways may exercise its option to obtain approximately $110 million through the sale of certain assets..."

It's prior to...
There's your other $100M.

You said MDA would implode when all of the MDA pilots go to jetBlue...
Well?