Us Airways Posts $720m Net Income For January

[usairways_vote_NO]

[post="251687"][/post]​

Wonder how much booking away was from all the doom and gloom on this website?

So when someone has a bad opinion about something you want to happen or hear they are not considered a reputable source? Kinda like sticking head in sand.

I suggest you give USAirways a call they are looking for a few good sandheads in upper management.

 

[a320av8r]

You've NEVER had anything positive to say about anything.

 

[usairways_vote_NO]

[post="251698"][/post]​

Your point is? Is it that so much positive has happened USAirways in the last 3 years how could I possibly ignore it?

 

[a320av8r]

What's keeping you here?

 

[usairways_vote_NO]

Why do you pine for piedmont still as your avatar seems to show?

 

[usairways_vote_NO]

One could argue that the mere fact there is still a US Airways to discuss is a positive in and of itself.

[post="251711"][/post]​

Ok that is a positive for the airline itself and the ones remaining that are happy with what they earn now including the benefits they have left.

Ok I said something positive now. I wanted to disprove his "never" posted a positive thing post but there are too many negative posts of mine to wade through to do that. At least I try to be honest in what I say.

 

[delldude]

the thread title makes one beleive all is well in ccy land and we all will prosper in the new year....
i'm getting touchy feely.....time to seek the good fairy....

 

[BoeingBoy]

If anyone is interested, the 2004 annual report is here.

Jim

 

[DR.EVIL]

Confronted by the inherent structural problems, 20 years of previous bad management,

Current BAD management is still alive and well in most depts. of usairways. If you were on the inside you would see it and live day by day. Employee's pay and benefit cuts still subsidizes managements poor moves. DISGUSTING!! :down:

 

[BoeingBoy]

Statement of KPMG accompaning 2004 annual report....

"The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred significant recurring losses from operations, has an accumulated deficit and as discussed in Note 1 to the consolidated financial statements, filed a voluntary petition seeking to reorganize under Chapter 11 of the federal bankruptcy laws which raise substantial doubt about its ability to continue as a going concern. Although the Company is currently operating as a debtor-in-possession under the jurisdiction of the Bankruptcy Court, the continuation of the business as a going concern is contingent upon, among other things: (1) the ability to maintain compliance with all terms of its ATSB Loan; (2) the ability of the Company to successfully achieve required cost savings to complete its restructuring; (3) the ability of the Company to generate cash from operations and to maintain adequate cash on hand; (4) the resolution of the uncertainty as to the amount of claims that will be allowed and as to a number of disputed claims which are materially in excess of amounts reflected in the accompanying consolidated financial statements; (5) the ability of the Company to confirm a plan of reorganization under the Bankruptcy Code and obtain the required debt and equity financing to emerge from bankruptcy protection; and (6) the Company’s ability to achieve profitability. Management’s plans in regard to these matters are also described in Note 1. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty."

 

[usairways_vote_NO]

All is NOT rosey and swell. US Airways is not out of the danger zone. Look at the statement of cash flows and the picture isn't pretty. In fact it's pretty gloomy in many ways.

If the airline makes it through May and starts building some cash by operating at a profit then the picture changes.

[post="251723"][/post]​

I will hold my tongue so as not to come off as negative... everything is ok

 

[mweiss]

Why is the "goodwill" valued at 2+billion?

We discussed this when examining the December report. It represents the debt that was written off in the last bankruptcy. It is my understanding that, while the rules for handling goodwill did change recently, it still must be reflected in the financial statements.

This is not any sort of accounting sleight of hand.

Will this money (from pension defaults to PBGC) ever touch the bottom line?

[post="251637"][/post]​

Of course it will touch the bottom line. It just doesn't do anything for the two most important lines at US right now, namely operating profit/(loss) and cash.

 

[funguy2]

If I am reading this right...

On 12/31/04, unrestricted cash was $738mil
On 1/31/05, unrestricted cash was $543mil
That's an unrestricted cash loss of $195mil, or $6.3mil/day

Yikes.

The Annual Report goes on to say: "The Bankruptcy Court approved two subsequent agreements extending the Company’s ability to use the cash collateral, including an agreement approved on January 13, 2005 extending the Company’s use of cash collateral through June 30, 2005, subject to certain conditions and limitations (the Cash Collateral Agreement). Under the current agreement, the Company may continue to access such cash collateral to support daily operations so long as it maintains an agreed upon minimum amount of cash on hand each week. The amount declines from approximately $500 million at the end of January to $341 million on June 30, 2005, with weekly cash levels permitted as low as $325 million in March 2005."

So I guess this level of cash losses is within ATSB loan covenents, but it seems dangerously low to me... And apparently, as of 1/13/05, expected to get worse!

Yikes again!

 

[DR.EVIL]

I actually am aware of some of the front line/middle management issues regarding the way employees are treated. Breaking down those barriers are IMO US Airways biggest challenge.

I wasn't talking about the way management treated the employees nor did i type that in my post. I said they were continuing to make poor moves, regarding operating a business. You may be a frquent flyer but you are an outsider to the employee groups of usair IMO!! IMO your long winded reply was irrelevant to my post and pure speculation.

 

[mweiss]

If I am reading this right...

You're reading it right.

So I guess this level of cash losses is within ATSB loan covenents, but it seems dangerously low to me...

It is. If it weren't for the value of the collateral (slots at LGA and DCA), I doubt they'd be allowed to do this. Nonetheless, I really don't see how US can survive the year this way.