US Airways Says Further Cuts in Expenses Will Be Necessary

[chipmunn]

Dow Jones Business News reported: The nation's seventh-largest airline said it needs to tighten its belt more if it expects to regain profitability, win a federal loan guarantee and receive further debtor-in-possession funding. It filed the information Thursday with the Securities and Exchange Commission. Earlier this week, the company told creditors rising fuel prices and the industry's dismal outlook necessitate further trimming.

Chip comments: US has its third Omnibus Hearing scheduled for November 7. Major agenda items include final RSA approval as the debtor-in-possession (DIP) financier and for the Alabama pension fund to provide US with $200 million. The agenda also includes multiple motions on aircraft leases and other business.

This could be an interesting week with other potential Equity Plan Sponsors reviewing confidential company information, who may or may not be labor friendly.

Regardless, as I have suggested throughout the past week, without additional cuts the DIP financing agreement and loan guarantee will be in jeoprdy, which could lead to the liquidation of the company.

Chip

 

[chipmunn]

[A href=http://biz.yahoo.com/djus/021025/0326000179_1.html]http://biz.yahoo.com/djus/021025/0326000179_1.html[/A]

 

[ITRADE]

[P]Where are these cuts gonna come from?[/P]
[P]Aircraft leases?[/P]
[P]I don't envision the unions coughing up an additional $100MM, and personally, I don't really feel that its really encumbant upon them to do so. I'll be the first to say this round that many have taken substantial hits already.[/P]

 

[KCFlyer]

Gotta cut more costs. But they still have done NOTHING to try to increase revenues, other than implement some loss leading fare sales.

 

[usfliboi]

Theres nothing new here.... we have heard this over and over again...we have no control over what happens and ya have to roll with the punches

 

[USAirBoyA330]

Chip:

And just want exactly are we as line employees supposed to do? It is totally OUT OF OUR CONTROL. AFA rarely listens to anything we say. It's pretty sad that we have all become numb to these sorta of news bits but....we are just sick of hearing the sky is falling. Well, I can't control what's going on with the lessors or anything else so pardon me if I don't play the Henny Penny game. What will be will be and lets hope it all works out.

 

[DorkDriver]

KCFlyer, I like your attitude. You wouldn't happen to be from Kansas City?

 

[chipmunn]

Stewart:

I disagree, last night the company informed the SEC and investors that it no longer meet the requirements of the DIP financing and the loan guarantee.

Chip

 

[Lakeguy67]

Prove your statement Chip, company has said none of what you are posting.

 

[KCFlyer]

[P]
[BLOCKQUOTE][BR]----------------[BR]On 10/25/2002 2:16:03 PM DorkDriver wrote:
[P]KCFlyer, I like your attitude.  You wouldn't happen to be from Kansas City?[/P]
[P]----------------[/P]
[P]Yep. KC's home.[/P][/BLOCKQUOTE]
[P][/P]