MCDU
Well-known member
- Joined
- Mar 9, 2003
- Posts
- 1,146
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Except that AWA did get the loan and avoided BK. Where as USAir was in their second BK and about to liquidate. Big differenced. Would have AWA survived? Maybe/Most likely. However USAir would not have. Big difference.
Just my opinion.....
FNG
Henry was instrumental in helping America West receive a
government loan guarantee after 9/11. He aggressively supportedwithout that guarantee, America West would not have survived.
our application with members of the Federal Reserve and the
Treasury department, bringing the full support of GE to our
cause. I am certain that without Henry’s hard work,
America West would not have received a loan guarantee and
A little reality check for the AWA folks who thought they were flying for a growing, prosperous company that was in much better off the USAIR.
M
McFly? Hello McFly? The loan guarantee Parker is talking about was shortly after 9/11, and was completed three years before the merger happened!! AWA was the first to ask for the loan guarantee after 9/11, and those loans were paid off quicker than required. They didn't get any money from the government - it was simply a guarantee to the lenders made in a difficult time for the airlines that said the loan would be repaid even if AWA went under. By the time the merger happened AWA was a growing, prosperous company! Lenders were happy to deal with AWA because Parker had proven he knew how to run an airline, and how to handle money. By the same token, USAirways was less than a month from folding, because they had very little cash left, an nobody else was going to loan them money because of their inability to run a profitable airline. Because of Parker's good reputation, lenders were able to work the deal to buy USAirways where nobody else could. Of course AWA didn't 'buy' US themselves - no corporation does that without using money from lenders. But that money wouldn't have been there if AWA hadn't already proven that it was a good airline, run by people who knew how to make a profit.
A little reality check for the AWA folks who thought they were flying for a growing, prosperous company that was in much better off the USAIR.
M