ETOPS01

Don't get on my case about copyrights and what not... it's already in front of the world at www.nytimes.com

America West Seeks Loan Guarantee to Avoid Bankruptcy

December 27, 2001

By LAURENCE ZUCKERMAN

Three months after Congress created a board to distribute $10 billion in federal loan guarantees to help the airline industry, the first application is coming down to the wire.

America West Airlines, which is the country's
eighth-largest carrier and one that was struggling even before the terrorist attacks, has asked for help and could be forced to file for bankruptcy protection early next week if the board does not grant it a guarantee.

Other airlines, which together have lost billions of dollars since Sept. 11, are watching the process closely. While their condition is not as pressing as America West's, they say they, too, will be forced to apply to the board if passenger traffic does not pick up significantly next year...

Does this make HP ripe for a buyout, or do other carriers do not want to buy into this liability? CO has been a close partner of HP for some time now, but CO is so knee-deep in debt obligations that I am sure creditors would be screaming bloody murder if Gordon even shot a glance at HP's hemline.

[This message has been edited by ETOPS01 (edited 12-26-2001).]

snake

See:

Well Kids, it's Christmas Eve, and still no word from Santa and the Elves at the NTSB

PG

Aren't they merging with Compaq?

Oops, wrong HP.

NoStressHere

This is serious stuff, and how much can we attribute this to the crazy rules in place from long lines, blocked off parking areas, missed flights, money spent on extra rules, etc.? It will take more than one of these to get America's attention. There is a limit to how much time and money we can spend on security (or lack thereof).

You know that many of the airports and cities that support them are running into serious budget issues already?

Aspirapolvere

In the HP Club in Phoenix today the rep practically begged me to allow them to comp me status on Flightfund - didn't even have to show them any statements. They must be in trouble!!

TravelManKen

If 9/11 had never happened HP was probably going to file bankruptcy before year end. In a weird sort of way, it actually bought them time because they were able to hide behind the fallout.

richard

Absolutely true. HP is a financial disaster. They cannot make money and unfortunately for their fine employees need to be toast.

Capitalism ain't always pretty, but it beats the alternatives.

duxfan

the big problem for HP is this: just what is their advantage? what makes them attractive to a potential suitor? is it their hub/focus cities of PHX, LAS, and CMH? all have major competition from WN, which depresses their yields. Is it their product, which is so good that the high yield business traveller will pay more for the superior HP service?

~pauses here while laughter subsides~

they do have one advantage of the rest of the majors (including WN) in the fact that their labor costs are among the lowest. however, those low salaries contribute directly to the employee morale at HP.

IMHO, they are a dead duck. hopefully this loan app board holds true to the intention when created by greenspan, and forces them to come up with a realistic reorg plan before any money gets loaned. my hunch, however, is that McCain won't let that happen.

i don't see where HP in part or whole has much value to any airline in this day and age. would gordon want to take on WN in PHX, or fly planes in low yield leisure markets from LAS? is their fleet compatible with anyone elses? i don't know if their A319/320 and 757 fleets have the same engines as NW, but they would be the most likely candidate for some of the equipment. the old 737's would find a new home in the desert.

i can't see any airline trying to go thru the pain of a merger right now. they're going to be looking to labor for pay/benefit concessions shortly, and you don't try to merge a seniority list while you are trying to convince employees to take pay cuts. just ask anyone at United. they sure learned the hard way....

12 months from now, i think PHX will have a gaping void left by the demise of HP...

dcwcce

What the #$% does this mean ?

The sum of the parts are worth more than the whole. Prop it up and sell off the routes and gates where they make the most sense.

Keeps the albatross from taking down another strugling airline.




------------------
"A Southwest line never gets longer, It only gets wider"

snake

dcwcce writes: "The sum of the parts are worth more than the whole.

Parts? what parts are worth anything? Gates? who needs gates with the current schedule reductions? "sell off the routes"??? Did you forget deregulation?



[This message has been edited by snake (edited 12-27-2001).]

duxfan

IMHO = In My Honest Opinion

mikel51

Also:
IMHO = In My Humble Opinion

davistev

Maybe HP's demise is a blessing in disguise for National Airlines out of LAS. From what I hear, National is an excellent airline that recently underwent restructuring.

avek00

Good point. Historically, as weaker "dinosaur" airlines have fallen, newer, stronger ones take their place.

eastwest

I'm a stock market novice, but I am surprised that HP stock hasn't taken a real beating in the last couple of days.

Anyone more knowledgable than me out there care to address that thought?