AWAC and USAir

[lowecur]

If USAir goes chapter 7, would this loan give AWAC first rights to their aircraft, gates, slots etc?

The press release said they would be second in line behind the ATSB whose lein rights are perpetual, so conceivably yes. The RSA must have forfeited their 2nd in line rights in order for UAIR to get this deal done. The only way that they would get the rights to UAIR assets is if UAIR was forced to liquidate as the result of not enough exit financing. Not a bad move since Bronner said he has no intention of liquidating UAIR to recover his investment. Upon exiting Bankruptcy, the lein would be substituted with new stock in the amount of $125M to secure the investment, and become part of the exit financing program.

Air Wisconsin has secured the short term future of the CRJs should UAX go elsewhere. UAIR has apparently agreed to jettison the other carriers if this happens. Other exit financing proposals for UAIR have to be submitted by 3/15/05 in order to meet the deadline set by the court.

 

[lowecur]

Does anyone know the drop dead date on the decision by UAL on future UAX carriers?

 

[avrodriver]

There isn't one...at this point we are all waiting on UAL.

 

[SkyW120]

Does anyone know the drop dead date on the decision by UAL on future UAX carriers?

I heard UAL is taking their time with this and won't make a decision until this summer.

 

[lowecur]

I heard UAL is taking their time with this and won't make a decision until this summer.

If that's the case, then Air Wisconsin will probably withdraw their bid on 3/15/05. If UAL has any intention of keeping Air Wisconsin, then they will need to give them a contract prior to 3/15/05, as that's when the reorganization plan for UAIR must be in the courts hand. This reorganization plan will have to include which carriers UAIR plans to use, and which ones they will need to have the court discharge.

In reading the announcement further, it looks as though this was included as DIP financing for now and will also be included as part of the exit financing on 6/30/05. Since UAIR had petitioned and received approval from the ATSB for use of their funds until 6/30/05, it is a mystery as to what portion of the $125M from Air Wisconsin will be used as DIP financing, and then rolled over to exit financing.

 

[avrodriver]

United can take all the time in the world they want. Remember USAir isn't in need of our airplanes....they are in need of our cash. United can drag there heals all day long and it won' hurt our owners masterplan. AD

 

[Rottweiller]

United can take all the time in the world they want. Remember USAir isn't in need of our airplanes....they are in need of our cash. United can drag there heals all day long and it won' hurt our owners masterplan. AD

If anything this may speed up the UAL process. Do they (UAL) continue to try and wittle away at AWAC's cost structure to save another five cents and risk AWAC pulling their fleet and painting them dark blue and leaving UAL in the cold? UAL have to realise now that they are not the only game in town and maybe treat AWAC with a little more respect.

If UAL want the cheapest product without the performance go right ahead. Still they may just end up with that when USAir (and AWAC for that matter) dump MESA et al out of the USAir regional feed market and provide it themselves.

Personally I have no time anymore for UAL and they have decided to make their bed with these stupid games they are playing and I hope they get to lie in the bed they have made for themselves. This is great news for AWAC pilots (and company).

Amazing how everyone was concerned about which regional would buy which, but a regional (for all intents and purposes) buys part of a major!!??

 

[Beaver_Liquors]

I wonder if this might United positioning itself for rapid growth if UAir would go chapter 7. How much would PSA or PDT be worth in chapter 7 (125 million)? ie airwisky would get PSA or PDT in exhange for the $125 million that they have invested. That would allow for a quick growth in UAirs current market for UAL, they already have pilots and planes and rampers in position to go, just have to pull the airways flag off and put a United logo on like we did with our AirTran birds.

BL

 

[Mongolikecandy]

I wonder if this might United positioning itself for rapid growth if UAir would go chapter 7. How much would PSA or PDT be worth in chapter 7 (125 million)? That would allow for a quick growth, they already have pilots and planes and rampers in position to go, just have to pull the airways flag off and put a United logo on like we did with our AirTran birds.

BL

Huh??

 

[I.P. Freley]

If UAL want the cheapest product without the performance go right ahead. Still they may just end up with that when USAir (and AWAC for that matter) dump MESA et al out of the USAir regional feed market and provide it themselves.

Do you have even an iota of proof that AWAC's performance really is any better than the "cheapest product"? That's a popular viewpoint, but the stats I saw out of Dulles showed that AWAC wasn't doing any better than anyone else, regardless of price.

Disclaimer- Haven't seen these numbers in a few months...