Air Wisconsin throws $35 Million to US Airways

DenverCrashpad

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Nov. 6, 2008 11:18 a.m. | Appleton-based Air Wisconsin Airlines Corp. said today it has agreed to provide a $35 million loan to US Airways Inc., part of a $950 million financing package that US Airways announced on Oct. 23.
Air Wisconsin is a major US Airways vendor, providing aircraft and flight crews for US Airways Express regional service. The loan has an initial term of 12 months, with optional monthly extensions totaling an additional 12 months, provided certain conditions are met.
An investors group owned by Air Wisconsin agreed in 2005 to provide $125 million to US Airways. That investment and other cash infusions allowed US Airways, once considered a candidate for liquidation, to strike a $1.5 billion merger deal with America West Holdings Corp. US Airways later emerged from Chapter 11 bankruptcy and completed its merger with America West.
"As the regional carrier operating the largest fleet of US Airways Express aircraft, Air Wisconsin remains committed to supporting US Airways' success," Air Wisconsin President and CEO Jim Rankin said in a statement.
Air Wisconsin is the largest privately held regional airline in the United States. The company also performs ground-handling services for United Express and Northwest Airlines at over 30 locations throughout the country.
 

jws717

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Nov. 6, 2008 11:18 a.m. | Appleton-based Air Wisconsin Airlines Corp. said today it has agreed to provide a $35 million loan to US Airways Inc., part of a $950 million financing package that US Airways announced on Oct. 23.
Air Wisconsin is a major US Airways vendor, providing aircraft and flight crews for US Airways Express regional service. The loan has an initial term of 12 months, with optional monthly extensions totaling an additional 12 months, provided certain conditions are met.
An investors group owned by Air Wisconsin agreed in 2005 to provide $125 million to US Airways. That investment and other cash infusions allowed US Airways, once considered a candidate for liquidation, to strike a $1.5 billion merger deal with America West Holdings Corp. US Airways later emerged from Chapter 11 bankruptcy and completed its merger with America West.
"As the regional carrier operating the largest fleet of US Airways Express aircraft, Air Wisconsin remains committed to supporting US Airways' success," Air Wisconsin President and CEO Jim Rankin said in a statement.
Air Wisconsin is the largest privately held regional airline in the United States. The company also performs ground-handling services for United Express and Northwest Airlines at over 30 locations throughout the country.
Air Wisconsin has some deep pockets, i hope deep enough to keep US air out of Ch11.
 

WayBack

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Something is wrong when the regional is supporting the major airline.
 

WSurf

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Air Wisconsin has some deep pockets, i hope deep enough to keep US air out of Ch11.
I don't think you have to worry about Ch11 and US Airways. They have tons of cash and can probably ride out any fuel storms better then most in the future. Thats why AirWilly and Republic are jumping in.

Whats funny is that these Regionals are giving millions, but when its contract talks with employees they don't seem to have a penny sitting around.

I can hear the talk on the golf course. "We'll give US Airways Millions, and then give our Pilots 23.00hr to fly the 175!! Yes, that sound fair"
 

WSurf

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Something is wrong when the regional is supporting the major airline.
Don't think its some much supporting, its paying to play and locking in the future for feed.

Watch what happens to some of the regionals at the new Delta. Gonna be funny watching these 7-8 carriers stab each other in the back for flying.

If its anything like how management played PSA/PDT/ALG its gonna be a mess.


Good Luck
 

Captain Morgan

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I'm thinking of just throwing in the towl on this site. It's gonna be a bloodbath of hate once the merger really get's going.
 

DiverDriver

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I'm thinking of just throwing in the towl on this site. It's gonna be a bloodbath of hate once the merger really get's going.

Who's Air Wisconsin merging with? Source?
 

ground stop

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i think he is referring to the delta/nw merger and their regional feed.
 

DiverDriver

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i think he is referring to the delta/nw merger and their regional feed.

Ah thanks for the clearification. I thought this was an Air Wisconsin thread.
 

LearLove

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actually i was told today by a jumpseater/faa/checkairman/training instructor/management/union rep/guy-who-is-in-the-know that mainline will be taking back all the 170/175's and crj700/900's for mainline and replacing all the remaining contract crj200's with a giant dash8-400 order also to be flown by mainline guys.

he said the press release will be out by 5pm.
 

ex j-41

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Well according to USAPA the regionals have more than the allowed larger regional jets. So don't think anyone is going to be getting any bigger airplanes. And if anything Republic is going to be losing some.
 

Captain Morgan

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actually i was told today by a jumpseater/faa/checkairman/training instructor/management/union rep/guy-who-is-in-the-know that mainline will be taking back all the 170/175's and crj700/900's for mainline and replacing all the remaining contract crj200's with a giant dash8-400 order also to be flown by mainline guys.

he said the press release will be out by 5pm.
Sounds great to me!
 

LearLove

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in fact so many aircraft are on order to replace the outsourced flying that there will be a production line opened in CLT. Displaced WaMu bankers will be used and supplies/materials will come from scrapped NASCAR metal after a race.

that same jumpseater told me this also - press release to follow the first
 
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