US Airways to seek favor for Texas bid, more cash

C

chipmunn

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[A href=http://money.iwon.com/jsp/nw/nwdt_rt.jsp?cat=USMARKET&src=201&feed=reu&section=news&news_id=reu-n25157343&date=20020926&alias=/alias/money/cm/nw]http://money.iwon.com/jsp/nw/nwdt_rt.jsp?cat=USMARKET&src=201&feed=reu&section=news&news_id=reu-n25157343&date=20020926&alias=/alias/money/cm/nw[/A]
 

G4G5

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Aug 21, 2002
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Ahh what an airline Bonderman is building. USAir in the east, America West out west and with Dasburg's knowledge of NWA. Who knows?
 

Baret4

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Sep 14, 2002
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[P]Chip,[/P]
[P] A quote from the article. One industry source said US Airways has just a 40 percent to 50 percent chance of surfacing out of bankruptcy because negotiations between the airline and its creditors have turned very nasty over the past few weeks. What kind of implications this may have on US Airways ability to surface and survive? [/P]
[P]Thanks,[/P]
[P] [/P]
[P] [/P]
 
Aug 19, 2002
1,062
737
The JFK
www.usaviation.com
One industry source said US Airways has just a 40 percent to 50 percent chance of surfacing out from bankruptcy because negotiations between the airline and its creditors have turned very nasty over the past few weeks.

US Airways says it's saddled with excess airplanes, and it asked to reject leases and abandon more aircraft and engines on top of about 67 that have already been rejected or abandoned.

Its major creditors have rallied forcefully to object to the airline's request.



I sure hope that Brash Management Team hasn't stepped on too many creditors toes.

From what I've read here the Alabama Pension Fund is offering more money for the same percentage of the company, while maintaining the current leadership structure of the company.

The creditors can rightfully object to U taking less money for the same percentage.

Obviously the court tends to favor the debtors choice in these matters,but I'd think the possibility of the creditors becoming decidedly uncooperative and objecting to the TPG package at this point can not be discounted.
 

AOG-N-IT

Veteran
Aug 19, 2002
1,132
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www.usaviation.com
Baret4, I can understand Creditors and Lessors playing hard-ball with U. They have to play for all they can get right now. However , There will have to be a point where resistance to work on these leasing fees has to be re-addressed or re-evaluated by them..One way or another. Thier failure to work with U , may kill U's chances of a safe return?...It will in all likelihood only slow the return. Failure to negotiate on thier part under the current market conditions will be fool-hardy, both in the short and long term. The Aircraft being returned will only sit...or will picked up by other (secondary) operators at current market rates or below anyway. This is a good time for both sides to come to terms. The Employee's of U saw the need to continue getting part of what they were accustomed too...So should the lessors and creditors. The industry as a whole is becoming rapidly De-Valued. U and UAL are , or will have to make salary adjustments...other carriers will also be making continued down-sizing moves to meet the decreased demands of the marketplace. Everything..and Everybody in this industry needs to come to terms with getting less and in some cases doing more for less. Creditors should be no different. Regarding JBL...I do not see them continuing to make Big Splashes in this industry. I see them having to come to terms with Real Operating Issues like paying for planes and maintenance costs in short order. They are very young...and so is thier fleet. Time will take it's toll on both of these issues. Knowing how Airbus itself operates logistically in the US and abroad...The Clock is ticking before reality of thier choice sets in. Those of us in my capacity at NW,U, UA and HP have already learned this first-handedly, we have the grey hair to prove it too!! I can assure you that these issues do not age like a fine wine. They become worse with age. They should have more closely modeled themselves and grown at a rate closer to the example set by WN. As we know...Herb did not grow WN overnight.
 

sabre

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Aug 20, 2002
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To Dave:
Look, you need to stop pissing off the big creditors buddy. YOu will be the sole reason why we lose 35,000 jobs! Be smart and get focused for once...Take the Alabama pension deal!

And for those of you who blindly and unintelligibly say Dave has the right to take a lowball offer over a competitive one, realize this, the judge has creditors breathing down his neck with good case law. The Judge will not be letting US AIRWAYS piss on creditors because it says WE BROKE MAN, and then goes into a backalley type deal with TPG that is significantly less. I wish I were TPG...paying only $200 mill for almost 40% of this airline...what the heck is going on? I smell someone getting their pockets lined!
 

DCAflyer

Veteran
Aug 27, 2002
821
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Joesy said:

To Dave:
Look, you need to stop pissing off the big creditors buddy. YOu will be the sole reason why we lose 35,000 jobs! Be smart and get focused for once...Take the Alabama pension deal!

And for those of you who blindly and unintelligibly say Dave has the right to take a lowball offer over a competitive one, realize this, the judge has creditors breathing down his neck with good case law. The Judge will not be letting US AIRWAYS piss on creditors because it says WE BROKE MAN, and then goes into a backalley type deal with TPG that is significantly less. I wish I were TPG...paying only $200 mill for almost 40% of this airline...what the heck is going on? I smell someone getting their pockets lined!


DCAfyer says:

There are no back alley deals going on. Everything is squarely in front of the bankruptcy judge.

What is going on here is simple. The creditors, and the aircraft lessors in particular, are fighting very fervently because they know that if U gets its lease rates reduced, or is allowed to return aircraft and pick up some of the sweetheart deals on planes parked in the Mojave, the other airlines will attempt to follow suit. Whether or not the other airlines are successful remains to be seen, since they will have to file bankruptcy like we did, and they will have a harder time convincing a judge that there is an immediate need and impending financial doom to their operations. But the future of this industry may very well come down to this.

DCAflyer
 

UAL777flyer

Veteran
Aug 20, 2002
730
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He HAS to play hard ball with the creditors and lessors because without restructuring deals with them, the restructure of US Airways won't happen. Let them get pissed. Do they really want to risk having MORE planes getting a tan in the desert? It's not exactly a seller's, or in this case lessor's, market at the moment. Either they restructure, or they get peanuts and their planes back. But Siegel has to play hard ball because without new agreements, US will continue to pay above market rates, which is a large reason why they declared bankruptcy in the first place.