Looks Like U will get the loans

[dashtrasher]

US Airways stock rises after loan guarantee win


CHICAGO, July 11 (Reuters) - Shares of No. 6 airline US Airways Group Inc. <U.N> rose more than 5 percent early in the session on the New York Stock Exchange Thursday, a day after it won conditional approval for government backing of $900 million in loans.

The Air Transportation Stabilization Board, created in the aftermath of the Sept. 11 attacks, said US Airways had shown reasonable assurance it could repay the loan, which will come from the private sector.

But the government has set additional conditions including more warrants for stock and labor concessions from the airline's unions before making it the second airline and the largest one yet to win approval for the loan guarantees.

"In all likelihood, it appears that US Airways will receive the loan guarantee," said Merrill Lynch analyst Michael Linenberg. "However, US Airways still needs to prove to investors that it can be profitable on a sustainable basis."

He said bankruptcy for US Airways, based in Arlington, Virginia, was still possible but less likely once the $1 billion loan is in hand.

He continues to rate US Airways as neutral.

Shares were 5.2 percent higher or up 19 cents to $3.82.

 

[publisher]

Keys

There are a couple of keys here.

Concessions by labor in hand
Giving piece of airline to government.
Poor condition of airline

United not doing any of above.

 

[ultrarunner]

Just one of their labor groups could halt this whole deal.

 

[dakotaHC8]

huh

What would United have to do with US Airways getting the loan?

 

[CoopDog]

And look for more furloughs

The MEC and management reached a TA today which eliminates the coveted no-furlough protection clause of the contract. Look for up to 40 more airplanes being parked very shortly. That's 600 pilots at U.

Very, very, sad. It will go up for a vote, but I'm affraid those guys....well, I'm going to refrain from my opinions here and just report the facts as I've read them.

Please pass the word about this forum to any U buddies out there. It is a tremendous outlet for job info, and many of these guys have not had to look for a job in over 13-14 years, except of course the 200+ that were furloughed for over 7 years last time. If and when Mid-Atlantic gets up and running, these guys are supposed to have first dibs on jobs there. But if U still goes chapter 11, furlough pay for these guys could be wiped out. Let's hope that's not the case.

For those of you who do, please keep them and their families in your prayers.

CoopDog (U furloughee)

 

[rapidD]

U declaring bankruptcy is the worse possible scenario for all of the majors and all of the major furloughees. In this case, there truly is strength in numbers. Good luck U and all o f you guys/gals waiting recall.

 

[WileE]

This makes no sense.

This doom and gloom spiel makes no sense to me. Has anyone else flown USAir lately? Every **CENSORED****CENSORED****CENSORED****CENSORED** plane I've seen is near full, full or even overbooked and has been since even a month after 9/11. The USAir hubs are positively packed with people even allowing only ticketed passengers through security. I jumped and deadheaded on a hell of a lot of USAir flights before and after 9/11 and now the planes are definately more crowded than before.

Is it just me that smells something fishy? Is their management so bad that they lose money even when planes are full? Why are they thinking of parking planes when they should be adding flights like Southwest did? Does anyone else smell the same kind of stink flowing out of the front office as Enron and Arthur Anderson?