Us Airways Reaches $125 Mln Deal For Restructuring
- Thread starter JayBrian
- Start date
US Airways Press Release
Well is says it is DIP financing from Eastshore Aviation LLC, converting to equity after emergence, maybe we can get rid of Dr Bonehead.
Info about AWAC:
Air Wisconsin Airlines Corporation (AWAC) operates as a privately held airline in partnership with United Airlines. Founded in 1965, AWAC schedules more than 500 departures per day to 71 cities in 26 states and three Canadian provinces. As United Express, it feeds United Airlines at Chicago, Denver and Washington’s Dulles Airport.
AWAC is the largest privately held regional airline in the United States. AWAC also had the longest Express carrier relationship with United, which began in 1985.
In 1993, a group of private investors purchased Air Wisconsin. They began operations with a fleet of 12 British Aerospace 146 jets (BAe-146). In a mere decade, the airline has grown to 17 BAe-146s and added an impressive fleet of 70 Canadair Regional Jets (CRJs). More than 3,000 people make up the AWAC team.
Well is says it is DIP financing from Eastshore Aviation LLC, converting to equity after emergence, maybe we can get rid of Dr Bonehead.
Info about AWAC:
Air Wisconsin Airlines Corporation (AWAC) operates as a privately held airline in partnership with United Airlines. Founded in 1965, AWAC schedules more than 500 departures per day to 71 cities in 26 states and three Canadian provinces. As United Express, it feeds United Airlines at Chicago, Denver and Washington’s Dulles Airport.
AWAC is the largest privately held regional airline in the United States. AWAC also had the longest Express carrier relationship with United, which began in 1985.
In 1993, a group of private investors purchased Air Wisconsin. They began operations with a fleet of 12 British Aerospace 146 jets (BAe-146). In a mere decade, the airline has grown to 17 BAe-146s and added an impressive fleet of 70 Canadair Regional Jets (CRJs). More than 3,000 people make up the AWAC team.
http://www.usairways.com/about/press/nw_05_0218.htm
Interesting. We'll see if it's enough.
Here's some additional Q & A from US:
http://www.usairways.com/about/press/qa_eastshore.htm
Interesting. We'll see if it's enough.
Here's some additional Q & A from US:
http://www.usairways.com/about/press/qa_eastshore.htm
This part is real interesting:
Will Eastshore Aviation/Air Wisconsin become a part owner of US Airways?
This $125 million financing commitment not only demonstrates Eastshore’s confidence in US Airways’ strategic plan, but also Air Wisconsin’s interest in partnering with US Airways in a longer-term relationship. The investment would convert to equity upon US Airways’ emergence from Chapter 11. In addition, the transaction has a regional jet service agreement, which gives Air Wisconsin the right, but not the obligation, to place aircraft with US Airways, and to operate under the US Airways Express banner.
I bet Johnnie O is not going to sleep well tonight!
Will Eastshore Aviation/Air Wisconsin become a part owner of US Airways?
This $125 million financing commitment not only demonstrates Eastshore’s confidence in US Airways’ strategic plan, but also Air Wisconsin’s interest in partnering with US Airways in a longer-term relationship. The investment would convert to equity upon US Airways’ emergence from Chapter 11. In addition, the transaction has a regional jet service agreement, which gives Air Wisconsin the right, but not the obligation, to place aircraft with US Airways, and to operate under the US Airways Express banner.
I bet Johnnie O is not going to sleep well tonight!
WorldTraveler
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smart deal on Air Wiskies part. A well run regional airline gets the opportunity to potentially move some of their RJs from disgruntled UA to US who desperately needs RJs.
The lines between regional and legacy operators are getting blurred real fast.... also says the chances of US being sold wholesale to Virgin or another carrier are much more remote. Of course, Air Wis could sell US to another airline but they will likely make a handsome profit in the process and will undoubtedly lock up a deal to flow RJs for the new owner as part of the process.
The lines between regional and legacy operators are getting blurred real fast.... also says the chances of US being sold wholesale to Virgin or another carrier are much more remote. Of course, Air Wis could sell US to another airline but they will likely make a handsome profit in the process and will undoubtedly lock up a deal to flow RJs for the new owner as part of the process.
InclusiveScope
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Well... I'm not sure if US Airways "desperately needs RJs"... I think Air Wis desperately needs this deal in case they end up with no Major partners (remember, UAL, their only partner, put Air Wisconsin's services out to bid a few months ago... Also, remember AirWis operated AirTran JetConnect for about 18months as an attempt to diversify from UAL).
Also, I do not see this precluding a sale to Branson or anyone else. I would presume, since this is DIP financing, that it could be repaid at emergence from BK like "normal" DIP financing is...
In fact, this could be a good think for Branson, because he's only allowed a 49% stake in a US carrier (unless he has become a US citizen recently). As such, this would not preclude a Branson invenstment, and might actually help that cause by US Airways finding a partner for him (although I doubt that is what has happened... I think AirWis is desparate to ensure somebody will fly their aircraft...)
And yes... I am sure Johnnie O, who tried to do something similar by acquiring U stock through something called UFLY, won't be happy about it.
Also, I do not see this precluding a sale to Branson or anyone else. I would presume, since this is DIP financing, that it could be repaid at emergence from BK like "normal" DIP financing is...
In fact, this could be a good think for Branson, because he's only allowed a 49% stake in a US carrier (unless he has become a US citizen recently). As such, this would not preclude a Branson invenstment, and might actually help that cause by US Airways finding a partner for him (although I doubt that is what has happened... I think AirWis is desparate to ensure somebody will fly their aircraft...)
And yes... I am sure Johnnie O, who tried to do something similar by acquiring U stock through something called UFLY, won't be happy about it.
Art at ISP
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This is verrrry interesting...sure does fuel some fires...
USA320Pilot
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US Airways has not affirmed any Express carrier contract and is attempting to obtain concessions from the company's partners.
Regards,
USA320Pilot
Regards,
USA320Pilot
InclusiveScope
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Art at ISP said:
One fire this will fuel is the whole scope/major/regional debate that is burning in ALPA. The Air Wisc. BAE 146 pilots make more than MidAtlantic mainline pilots. Maybe ALPA will finally abandon it's absurd major/regional career expectations argument for not fairly representing it's second class members.
OldGuyinPA
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So....
Is it AirWisconsonways...or AirWiskeyways....
any way you cut it...AWW
Is it AirWisconsonways...or AirWiskeyways....
any way you cut it...AWW
Just a theory:
ATSB owns 1/2 of U
AWAC owns 1/4 of U for 125 M
Could Sir Richard come in for 24% ownership for
the other 125 M needed for the POR?
That would put him at the maximum voting stock
a foreign carrier can own in a US carrier.
Afterwards AWAC and Sir Richard buyout ATSB and end up
with 51%-49% ownership but Virgin still only has 24% voting shares.
It's all legal and ATSB gets their money back.
End of ATSB. Lights out. Game-set-match.
ATSB owns 1/2 of U
AWAC owns 1/4 of U for 125 M
Could Sir Richard come in for 24% ownership for
the other 125 M needed for the POR?
That would put him at the maximum voting stock
a foreign carrier can own in a US carrier.
Afterwards AWAC and Sir Richard buyout ATSB and end up
with 51%-49% ownership but Virgin still only has 24% voting shares.
It's all legal and ATSB gets their money back.
End of ATSB. Lights out. Game-set-match.
The ATSB does not own any part of US. The RSA is the largest stakeholder in US, I believe it was around 37%, ALPA owns 19% and the other unions own stock.
The Company has issued warrants for the ATSB to get, but to date the ATSB has not asked for or gotten any of the warrants, therefore they have no ownership and no stock.
And the ATSB is has no money invested in US, they only gauranted the loan, GOVCO is the primary lender and I believe the outstanding amount is around $650 Million of the secured portion.
So it is not the end of the ATSB, lights are still on and you lose.
The Company has issued warrants for the ATSB to get, but to date the ATSB has not asked for or gotten any of the warrants, therefore they have no ownership and no stock.
And the ATSB is has no money invested in US, they only gauranted the loan, GOVCO is the primary lender and I believe the outstanding amount is around $650 Million of the secured portion.
So it is not the end of the ATSB, lights are still on and you lose.
