What Happens To Wexford?

[CaptianBoomer]

All:

Now that it seems that other investors have or will pony up more buckage and with better terms than Wexford, will MDA still be sold off?

It seems these employees have already been through the wringer and to further expose them to being screwed again is very poor indeed.

Anyone have any ideas?

Boomer

 

[SoldWholeSale]

http://biz.yahoo.com/ap/050515/us_airways_..._west.html?.v=2

"Wexford Capital LLC, a hedge fund that had agreed two months ago to
invest $125 million when US Airways leaves bankruptcy, isn't expected
to complete that investment because other investors have offered more
attractive terms, the newspaper said, citing a person familiar with the
matter. But Wexford could still invest a smaller amount."

 

[Light Years]

So will there still be a seperate "MidAtlantic" division to fly the 170/190 family, or will they just take the fence down? Will the combined company be able to resume delivery of them? Will HP crews be eligible for MAA positions in the event of a furlough?

Or will the company try to sell them again?

 

[ringmaruf]

Honestly, my favorite thing about this merger is that it looks like US will be keeping MidAtlantic (and PSA) inhouse. The crews are some of the best in the system, and the planes and profits should stay on the property.

It was an awful decision to try to sell MidAtlantic in the first place. I mean, this idiot management was complaining about not having economies of scale with such a small EMB-170 fleet. Well, first of all, the fleet won't be so small when we take more planes. And second of all, the "small" fleet is the largest fleet in the world of the darn things. 🙄

 

[Light Years]

I agree 100% ring.

Even in US Airways terms, the fleet isn't that small...

A333 9
A321 28
A320 24
A319 63
B767 10
B757 31
B734 44
B733 67
E170 28

A few more deliveries, and the fleet surpasses everything but the 737 and A319 in number. The 170/190 family could be a huge part of the merged airline and a great 737 replacement, so let's hope it stays in-house. Same for PSA and Piedmont.

 

[whatkindoffreshhell]

Bet most folks on this board don't know (or care) who is Wexford.

Today's WSJ said the merged US/HP has a pledge of $250mil from Airbus, in return the merged airline will be the North American launch customer for the A350 (natch with GE engines).

Those crafty Euros! Your French tax dollars at work!

 

[funguy2]

So will there still be a seperate "MidAtlantic" division to fly the 170/190 family, or will they just take the fence down? Will the combined company be able to resume delivery of them? Will HP crews be eligible for MAA positions in the event of a furlough?

Or will the company try to sell them again?

[post="270049"][/post]​

My recollection is that the Republic deal included a number of things...

Republic was to invest $125mil in equity into US. Period.
Then, there was an additional sale/lease-back provision (roughly) for the Commuter Slots + reassignment of the EMB-170/190 flying to Republic. If this were to occur, Republic gets the flying and slots, US gets $110mil + assurances that the slots and aircraft are used on US's behalf + a repurchase right. This transaction was at US's discretion/need (i.e. no requirement to proceed).

It would appear that, if US does not intend to give up the slots/aircraft (as would now seem to be the case), then Republic can find better uses for its cash. A reasonable determination for both sides.

As I said before, I suspect the aircraft, and more-so the slots, are a big part of what make US Airways an attractive acquistion. If US sells them, what is HP trying to buy?

 

[Light Years]

So I wonder if there is financing for future EMBs... were the orders cancelled or put off until after BK?

 

[funguy2]

You would have to think that if they can pull off the merger... They'll find a sale/leaseback or EETC financing for the EMB-170's...

 

[a320av8r]

I read, but can't find, that all future RJ orders to U from GECAS have been suspended as part of the deal effective immediately.

 

[a320av8r]

Found part of it-

"GE also is finalizing its own deal with the carriers to reduce its financial exposure by $1 billion, the newspaper reported. GE plans to cut off most of the regional-jet financing and take back more leased planes than previously expected."

From WSJ article