Us Airways Seeks New Cuts From Workers

[insp89]

If I remember correctly, Didn't the company report " breakeven " cash flow in the FIRST quarter ??

Can anyone confirm or deny this ststement ?

 

[EyeInTheSky]

By the way, who first reported on this website that US Airways was once again discussing new loan guarantee terms with the ATSB?

Respectfully,

USA320Pilot

Sorry to put a sock in your "clairvoyant" moment. I believe PITbull and others more well-connected have brought this up well before you did. Sorry USA320pilot but the reporters aren't going to be calling you ala "Aerosmith" on this one.

 

[oldiebutgoody]

If another chapter 11 is attempted, prepackaged or not, RSA stands a huge probability of losing control of this airline. Not only that, but their stock becomes worthless too. The only way thay MIGHT recoup some of thier money would be to again offer DIP financing, some would say, throwing good money after bad. Folks, This is like the FOURTH time they've used the old, rapidly approaching daeline, gotta shove something....trick, and it appears that everybody's buying it, hook, line, and sinker. With oil prices slowly coming down, UAL likely to downsize, LCCs starting to face lower yields and higher prices, they've got to move quick. They've reached a point where they can't hide the cash anymore, and will have to show at least breakeven for the second quarter. Just as advertised, the bad news has already started, and looking at what they want from labor they STILL think that labor is the problem, not the solution! :angry:

 

[mweiss]

oldie,

If US merely breaks even in Q2, typically their best quarter of the year, why wouldn't you expect losses in the remaining two quarters???

 

[oldiebutgoody]

Maybe because other costs are going down, like fuel? Or, maybe because some pricing power is beginning to return to the marketplace? Or, maybe because the competition is beginning to suffer from higher costs? There are MANY reasons that things are improving. If you ask me, the ATSB loan just gave the company ONE MORE thing to beat the employees over the head with. UAL employees are probably MUCH better off since they were rejected and their management must begin to really manage the company. If these guys (UAIR) were hurting as much as they say, they'd stop the silliness of flooding the east coast with RJs, they'd take the pilots up on their offer of cost cuts NOW, and they'd get on with either improving old markets or developing new ones, rather than continually replacing mainline flying with RJs. All they are doing is driving their customers to the competition while spending big bucks on a stupid idea which limits any potential revenue to 70 seats or less.
Actually, if going chapter 11 again gives UAIR any better chance of getting rid of RSA, then it would be a good thing. UAIR needs folks that understand the airline business, since it is real obvious that they're still using Siegel's playbook.

 

[usairways_vote_NO]

Sorry to put a sock in your "clairvoyant" moment. I believe PITbull and others more well-connected have brought this up well before you did. Sorry USA320pilot but the reporters aren't going to be calling you ala "Aerosmith" on this one.

I thought someone else mentioned it but I searched and couldn't find where.

But I do know in the thread where USA320Pilot asked his five questions this was one of my answers and it was when USA320Pilot was still crying the loan terms were non-negotiable.

USA320Pilot says:
2. If US Airways continues to lose money and violates the terms of the loan guarantee, what is the likely outcome for the company?

I say : I would think there would be some type of restructuring of the loan terms just like before.

LINK

Which brings us to the question if USA320Pilot rarely reads the posts on the board as he claims how would he ever know when he was the first to post anything? Ponder that for awhile.

Not that any of this matters I just like proving him a liar.

 

[USA320Pilot]

Oldie:

Oldie said: “If another chapter 11 is attempted, prepackaged or not, RSA stands a huge probability of losing control of this airline. Not only that, but their stock becomes worthless too. The only way thay MIGHT recoup some of thier money would be to again offer DIP financing, some would say, throwing good money after bad.â€

USA320Pilot: The intent of the pre-packaged bankruptcy would be to keep cash levels high, preserve the current equity and ownership, and continue to pay the guaranteed loans. That’s one of the topics being discussed with the ATSB. If US Airways requires additional DIP financing, the airline could be in real trouble.

The question is will the ATSB permit the loan guarantee terms to be re-negotiated or will they pull the plug like they did at United Airlines?

The company would like to enter a quick Chapter 11, which could be as little as 120 days, and finish what they did not do in the first filing because Dave Siegel wanted to exit bankruptcy as fast as possible to complete a corporate transaction with United Airlines, as Dow Jones accurately pointed out. RSA publicly said they would finance such a deal, and we have all read David Bronner’s comments in the press about RSA’s involvement, but the Iraqi War and SARS ended before United defaulted on their DIP requirements.

Nonetheless, that’s history now. If the company enters bankruptcy, US Airways wants to keep the current stock in place and if necessary, issue RSA more shares.

The financial issues are being headed by the Seabury Group and FTI Consulting with bankruptcy legal specialists from the law firm of Arnold and Porter working on the filing, if necessary.

The lease targets will be airports like Buffalo, Cleveland, St. Louis, and other airports who have excess gates, and maybe even Charlotte and the maintenance hangar too, in addition to Pittsburgh facilities that have already been rejected.

It’s entirely possible the company is currently working on S.1113 and S.1114 motions with Arnold and Porter for any union who does not participate in the “Transformation Planâ€, which is likely why management keeps telling employees throughout the system that “the airline will not fail if any labor group does not participate in the Transformation Plan.â€

Let's hope a filing does not occur later this year because as Bruce Lakefield told the SEC this week, the company "could run out of steam."

Respectfully,

USA320Pilot

 

[700UW]

No one in their right mind will provide DIP financing with labor unrest.

 

[cavalier]

DELETED BY MODERATOR

 

[700UW]

It’s entirely possible the company is currently working on S.1113 and S.1114 motions with Arnold and Porter for any union who does not participate in the “Transformation Planâ€￾, which is likely why management keeps telling employees throughout the system that “the airline will not fail if any labor group does not participate in the Transformation Plan.â€￾
Respectfully,
USA320Pilot

Do you not understand, the company can file an 1113/4 motion, and the judge WILL HAVE TO ORDER THE TWO PARTIES TO SIT DOWN AND NEGOTIATIE.

But I guess you don't read those posts since you been told a million times the samething over and over.

 

[oldiebutgoody]

The trouble with bankruptcy, even a prepackaged one, is that the court is OBLIGATED to do what is best for the creditors and shareholders. All one of these parties would have to do is convince the court that they are a better saviour of the assets for the creditors and there it goes. And, this sort of thing happens fairly frequently, just like when the RSA took control after Siegel had basically given the store to TPG. Very risky proposition. Besides, by accepting the worst possible contract before chapter 11, what would a union really accomplish? Seems like they would be better off to take their chances in front of the judge. Also, I doubt that the federal (or state for that matter) judicial system wants anything to do with this management team. I expect the ATSB to take the FIRST opportunity to call the loan, not extend it or make this management teams ineptitude pay off for them. Chapter 11 is rapidly becoming the business tool of choice for incompetent managements; they file, screw employees, leasors, and creditors, then walk away with MILLIONS!

 

[colorado_cowboy]

which is likely why management keeps telling employees throughout the system that “the airline will not fail if any labor group does not participate in the Transformation Plan.â€￾

Respectfully,

USA320Pilot

That’s funny, all the management in my station is either going to work at other airlines, retiring or getting out of the aviation altogether.

As a matter of fact their encouraging the employees to look for other employment and should they find something try to arrange it so they can work both jobs until U closes its doors.

Most of the employees that can retire are and those of us who arent old enough have taken management's advice and have found a second job and doing exactly as they suggested.

I have to admit working 2 jobs is difficult but when I go to my "other" job its like a breath of fresh air. I may work a little harder and earn a little less but its well worth the piece of mind I DONT get at US Air.

 

[DOA@Airport]

Do you not understand, the company can file an 1113/4 motion, and the judge WILL HAVE TO ORDER THE TWO PARTIES TO SIT DOWN AND NEGOTIATIE.

Well, I guess that means the IAM will have to open their contract one way or the other.

 

[colorado_cowboy]

Well, I guess that means the IAM will have to open their contract one way or the other.

And what would happen if an agreement between the company and the IAM can’t be reached. Then what, abrogation?

 

[usairways_vote_NO]

And what would happen if an agreement between the company and the IAM can’t be reached. Then what, abrogation?

Where you been?