US Airways Dividend Miles (Pre-FlightFund Merger) - US Secures Financing and Lease Extensions

Positive news on the US front this morning. US announced that $140 million in cash is to be provided by GECAS and GEES and aircraft leases and debt repayments will be deferred for 6 months. Additionally, GECAS will purchase and leaseback up to 31 RJs over the next 3 years and US will return some mainline jets (10 Airbus 319s in 2005, and 15 Boeing 737-300s in 2006/2007). The overall lease arrangement with GECAS has been reorganized to allow cost savings of approximately $80 million.

Deal must be approved by the bk judge by December 17 and US has agreed as a condition to emerge from Chapter 11 by the end of June.

http://news.bbc.co.uk/2/hi/business/4045689.stm
http://www.usairways.com/about/press/nw_04_1126.htm

Well I am hoping this will not affect their current schedule. But I guess with their new point to point it should not affect this too much. While I wish they were getting rid of all the old boeings. I was not happy to see some of the airbuses going back to GE.

It's good to hear some kind of good news for a change.

Yes - good news indeed. I am seeing a number of small, but positive things for our troubled company. I am also seeing a number of small, but negative things for our competiton (Jet Blue posting a loss for example). This is a cutthroat & highly competitive industry but I think US is trying hard to turn itself around. Cheers for some good news for a change! :)

On a related positive...just booked 3 more trips for Jan/Feb on US...I am doing my part to help them stay flying.... :D

I bet that GE wants some A319's back to lease to other airlines. That's probably why they wanted that clause in the deal.

Then again, if things look different when that time comes around, the deal might be restructured to let US keep those planes -- it's far enough out that anything could happen.

While I wish they were getting rid of all the old boeings. I was not happy to see some of the airbuses going back to GE.


I wonder why, with the Caribbean expansion, they would want to let go of A-319's? Aren't they using them there more?

I suppose it's not exactly a matter of choice....but I agree with US AIRWAYS FAN that I'd much rather see all the old 737's go.

Is this more a function of the particular lessor's demands rather than US's fleet aspirations?

In any event, I agree.....some good news is due!

I wonder why, with the Caribbean expansion, they would want to let go of A-319's? Aren't they using them there more?

I suppose it's not exactly a matter of choice....but I agree with US AIRWAYS FAN that I'd much rather see all the old 737's go.

Is this more a function of the particular lessor's demands rather than US's fleet aspirations?

In any event, I agree.....some good news is due!

I would hazard a guess that USAir was not able to do much in terms of setting the terms of this deal. I'd bet that they were happy enough that GE would take the phone call, and would accept basically whatever terms that GE would set.

In this case, I think GE would look at the 319's as the most easily re-leasable assets. I'd much rather in their shoes have those assets than the 737's which have a much lower residual value.

Of course as a passenger I'd much rather that the 737s all go away as soon as possible as well. I doubt however our wishes were on the agenda when they met with GE.

I wish US all the best in trying to turn things around.

US has agreed as a condition to emerge from Chapter 11 by the end of June.
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Perhaps US could just liquidate by the end of June?

Then it would no longer be in Chapter 11.

Is it me, or does it seem that the end of June isn't that far away, especially considering they haven't completed cost-savings negotiations with three of their unions?

From what I remember everyone seemed to think that BK1 was pushed along too fast and the necessary evils werent performed when they had the chance. This seems waaaay too fast to me IMHO.

-JC

Is it me, or does it seem that the end of June isn't that far away, especially considering they haven't completed cost-savings negotiations with three of their unions?

From what I remember everyone seemed to think that BK1 was pushed along too fast and the necessary evils werent performed when they had the chance. This seems waaaay too fast to me IMHO.

-JC

agreed. end of june is just pie-in-the-sky, unless they intend to go for the hat-trick of filings in December 2005.

agreed. end of june is just pie-in-the-sky, unless they intend to go for the hat-trick of filings in December 2005.

Can't - Third strike, you're out. Its then unlucky #7.

-JC