US Airways Dividend Miles (Pre-FlightFund Merger) - US Airways May Consider 2nd Bankruptcy

Reuters
US Airways File for 2nd Bankruptcy
Friday May 7, 1:26 pm ET


CHICAGO (Reuters) - US Airways Group Inc. on Friday said it hopes to begin implementing much-need cost cuts by mid-year but that it could consider another bankruptcy filing if it is unable to do so.
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The No. 7 U.S. airline is seeking cost cuts of at least 25 percent and has turned to labor groups for more givebacks.

Failure to achieve the cost cuts "will force the company to re-examine its strategic options, including but not limited to asset sales or a judicial restructuring," US Airways said in a filing with the U.S. regulators.

The company has said it is considering the sale of some of its assets, including its East Coast shuttle.

US Airways has previously hinted at another bankruptcy filing, but Friday's statement signals that the carrier's new management team is racing against time and has elevated bankruptcy as a realistic option, along with potential asset sales.

Bruce Lakefield took over as chief executive officer last month after the abrupt resignation of David Siegel, who had been criticized by union leaders. Chief Financial Officer Neal Cohen, who resigned this week, was replaced by Dave Davis.

US Airways also said it could be required to pay up to $90 million this year and $21 million in 2005 if it is unable to obtain financing for regional jets scheduled to be delivered this year and next. The carrier is in talks with General Electric's (NYSE:GE - News) Capital Aviation Services on the jet financing after a downgrade in US Airways' corporate credit rating put the financing deal in jeopardy.

(Additional reporting by John Crawley in Washington)

or misleading at the very least.

That topic title/headline should be changed.

I just used what was posted on Yahoo.

Not quite, you added the word "to" in "to file". Regardless, the headline was poor.

Another here who thinks the title is misleading.

I think that this is another way to put the squeeze on the unions for more concessions. In any case, it's not a very smart move on their part to air this publicly -- it's just another way of scaring off customers and given the going concern clause in their auditor's letters, not necessary under the securities laws.

The title on the article was:

"USAir Not Ruling Out 2nd Bankruptcy"

Your title was beyond bogus.

I agree! The title is very misleading, and even if Yahoo posted it, doesn't mean we have to have the same misleading title here. :rolleyes:

Reuters must have altered their headline, as I've set the thread title to reflect what's currently displaying on Yahoo.

I was going to ask the moderator to delete the thread . . until i realized that the moderator posted it :rolleyes:

This is very misleading and should be pulled.

Actually at 4:51 PM the reissued the article at that time. When I posted this it was around 1:45. Doesn't matter article still reads the same.

Headling on retuers now reads US Airways File for 2nd Bankruptcy.They really need to fix that.
-howie

It doesnt look like all outlets have picked up the revised title.Yahoo just as of a few minutes ago still had the old title.I just emailed a retuers editor through it's site with my compliant about this...
-howie

I have a very basic question.

Although I will admitt I am not very experienced when it comes to law- nor am I very knowlegable.

But, doesn't a bankruptcy filing severely damage a company's credit? I know if someone personally files for bankruptcy, it destroys their credit.

Now my question is, why would US secure regional jet orders, knowing that they were in bankruptcy, and would find it hard to gather the cash to pay for them, and knowing that they'd find it hard to finance them. Also, wouldn't Embraer or whoever else deny them the credit to finance regional jets?

I am just confused at how they are buying new planes after a bankruptcy emergence, and with a second one possibly pending.

Very Ouch, Baby.

Oddly enough, even though this story seemed to break at 1330 EDT, UAIR didn't nosedive and actually finished the day up .04 (1.92%) to close at 2.12.

gotta say, would not at all be surprised if US Airways filed for bankruptcy. Things look pretty bad. It may be that the airline is inherently nonprofitable.

gotta say, would not at all be surprised if US Airways filed for bankruptcy. Things look pretty bad. It may be that the airline is inherently nonprofitable.

While US fits the description of a charity case, it's hardly a charity airline.

Perhaps it would be better to say US is inherently unprofitable... ;)

Chapter 22, here we come.