US Airways Dividend Miles (Pre-FlightFund Merger) - Good News Until June!

I have an award flight with LH using USAirways miles in April. I was worried what would happen if USAirways went under before then. Now the good news, looks like they will be around at least until June:

http://www.washingtonpost.com/wp-dyn/articles/A6085-2005Jan13.html?sub=AR

Good news for those of us trying to use our miles up.

I have an award flight with LH using USAirways miles in April. I was worried what would happen if USAirways went under before then. Now the good news, looks like they will be around at least until June:

http://www.washingtonpost.com/wp-dyn/articles/A6085-2005Jan13.html?sub=AR

Good news for those of us trying to use our miles up.

Can you paraphrase the good news for those not interested in registering fot this web site?

Can you paraphrase the good news for those not interested in registering fot this web site?

Use http://www.bugmenot.com to avoid those useless web registrations.

PS - I think there are at least five threads about this, so I'm not sure which one the moderators will bless as the 'real' one and close the rest.

Can you paraphrase the good news for those not interested in registering fot this web site?

Basically this:

US Airways will have access to the cash it needs to keep flying through June as a result of a bankruptcy judge's approval Thursday of a deal between the nation's seventh biggest carrier and the federal Air Transportation Stabilization Board.

An interim financing deal between the two parties had been set to expire on Saturday, but U.S. Bankruptcy Judge Stephen Mitchell gave his blessing to an extension through June 30. By then, the airline hopes it will have found a new investor to provide hundreds of millions of dollars needed to emerge from bankruptcy

If they're flying in June I think they'll be flying in October.

Which is good news for dumb little me who just rescheduled a Dublin award to from May to August...

They still need the $100 million or a waiver from GECAS by the end of the week.

But let's look further:

Without having seen the terms of the ATSB extension, let's assume that it won't let the unrestricted cash level drop below what's left on the loan. Last I checked, that difference was maybe $100-150 million, tops.

US is burning north of $1 million/day in cash. That leaves about 3-5 months before they hit the critical point. That also ignores the fact that several hundred million in lease payments are coming due in the next couple of quarters.

In short, they are going to need exit financing. Lots of it, because the testimony from CCY about the Transformation Plan (which I will refer to hereforth as "TP") indicates that they don't forecast making any money until 2008. Someone will have to fund the difference. Airlines are bankrupt left and right, the TP does not "work" until 2008 despite the fact that they've beat their labor groups bloody, and the LCCs are encroaching on the heart of the operaton--how many of us would invest money into anything under those circumstances?

Oh, and then there are those pesky mechanics.

I would not buy a ticket on US more than 60 days out, or whatever the time difference is that you can recover from your CC company. I'd also have a backup plan.

The interesting factor that I think has yet to been realized or estimated is the savings that US will see from increased efficiency, especially in the labor department. They've cut wages as low as they can go, the significant difference I am looking for is whether they are comparably efficient to the LCC's.