U.s. Airways Gets A.t.s.b. Loan

[blzr]

Now that the $900 million loan has been approved, what's next? Does that mean that emergence from ch11 is assured?

 

[flyinhard]

U.S. Approves US Airways Loan Guarantee
Tuesday February 11, 4:12 pm ET
By John Crawley


WASHINGTON (Reuters) - US Airways Group Inc. (Other OTC:UAWGQ.PK - News) won government approval on Tuesday for a $900 million loan guarantee that is critical to the carrier's bid to reorganize under bankruptcy protection.
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The airline must meet several new conditions before the Air Transportation Stabilization Board will activate the guarantee to underpin $1 billion in private financing.

The conditions include finalizing concession deals, obtaining final bankruptcy court approval of its reorganization proposal, and regulatory and judicial clearance of its plan to eliminate its pilot's union retirement plan.

The three-member board, which voted unanimously to approve the application, also said it reserved the right to decline the assistance if the airline's financial prospects worsen or its ability to repay the loan diminishes.

The board's executive director, Daniel Montgomery, said in a letter to the airline that it had presented a business plan that "reasonably positions" the company to "meet the challenges and risks of this industry and to achieve financial stability over the term of the proposed loan."

The US Airways bid was conditionally approved last July just weeks before the Arlington, Virginia-based carrier filed for bankruptcy protection.

At that time, the board demanded substantial cost cuts and a stake in the No. 7 U.S. airline.

As part of reorganization, the stabilization board accepted US Airways' plan to give the government warrants to buy 10 percent of the company. US Airways also plans to cut annual costs by $1.8 billion.

US Airways plans to emerge from Chapter 11 protection by March 31.

"We are gratified by the (government) action today, and its vote of confidence in our company's restructuring and prospects for long-term success," David Siegel, the airline's president and chief executive, said in a statement.

David Bronner, chief executive of the airline's lead investor, Retirement Systems of Alabama, said the new conditions were anticipated.

"Now we just have to go through it and make sure that we meet all of the guidelines," Bronner said.

The stabilization board was set up after the 2001 hijack attacks to help financially struggling airlines with loan guarantees. (Additional reporting by Julie MacIntosh in New York)

 

[dcabusdriver]

"The conditions include finalizing concession deals, obtaining final bankruptcy court approval of its reorganization proposal, and regulatory and judicial clearance of its plan to eliminate its pilot's union retirement plan."



The Bush administration and the ATSB have held us hostage. It's simply amazing what they have been able to do to labor in the past year. I'll never vote Republican again. Look what's occured on their watch:

9-11
Thousands of aviaton emloyees out of work
Pay Cuts and huge Work Rule Concessions
Stock Market Slump/Interest Rate at all time lows
Pension Plan Termination
Legislation to overturn Railway Labor Act
Oil Prices Spike
and don't forget a war!

 

[Rock]

"I'll never vote Republican again"

Demographically, republicans tend to be better educated than their democrat counterparts. Based on your post, I would guess you've never voted republican.

 

[cocknbull]

dcabusdriver


9-11
Thousands of aviaton emloyees out of work
Pay Cuts and huge Work Rule Concessions
Stock Market Slump/Interest Rate at all time lows
Pension Plan Termination
Legislation to overturn Railway Labor Act
Oil Prices Spike
and don't forget a war! [/B][/QUOTE]

That's Bush's fault. I hope your not as ignorant as you sound.

 

[sleepy]

I can not say that I will never vote for another Republican. However, if you do not believe that airline managements and their (main) allies in the GOP are using the current situation (911, recession, etc...) as cover for an all out assult on organized labor within the airline industry, you are a naive.

 

[Splert]

Dcabusdriver,

Why is my grandmother bailing you guys out?

America was not and is not buying at the price you guys are selling, simple.

Give me a freaking break,

Splert

 

[hogdriver00]

clue

I would have to agree with Rock and Cocknbull.

However, if you do not believe that airline managements and their (main) allies in the GOP are using the current situation (911, recession, etc...) as cover for an all out assult on organized labor within the airline industry, you are a naive.

I'm sure no company money goes to the DNC or the mayor of Chicago.

 

[Mr. Irrelevant]

Although I'm not a republican, I can't say I agree with much of what dcabusdriver said. Bush certainly wasn't responsible for almost all of what was mentioned. However, Sleepy hits the nail on his comments. It really amazes me on the board when Bush and GOP supporters who belong to airline unions dismiss what the REPUBLICANS want to do to organized labor. I've voted for both Democrats and Repubs but who is kidding who on the labor issue. The GOP would love to get rid of unions all together.

Although Hogdriver has a point about companies playing both sides of the fence there is no way the democrats, if they had the means, would try to change the negotiating process in the manner the GOP is.

As for the pension plan changes, most are being forced about by economic conditions and the general trend in America, not just the airline industry, is towards 401k's and 401k matches by the company as well as profit sharing. I know very few people in white collar industries these days who have a pension to go with their 401k. Pensions just aren't the guaranteed money everyone seems to think they are.


Mr. I.

 

[cocknbull]

I consider myself a Republican, however I am very concerned with many of their positions on airline issues. I feel like Repubs represent my ideology and values better then Democrats at this present time in history. However if this was 1935 I would say FDR alll the way. The bottom line is that companies who can't control their costs and fail should not have tax payer's money wasted on them. I do think the government should do more to help airlines cut cost like paying for security, ommitting landing fees, etc... Maybe we should form a Republican Pilot Association and get MCcain to sponsor a bill helping the Airlines cut costs buy geeting rid of those fees and to show the rest of the Republicans that we are a group of highly trained pros who deserve representation and fair treatment.

 

[General Lee]

If USAir does cancel the pilots' pensions, look for a possible strike from the pilots---unless Siegel gives them some sort of a pension. They are not very happy that USAir is getting all of this money and in turn cancelled all of their hard work for the last 20 years...etc (pension). I read on another board that they still could try to strike.

Bye Bye--General Lee

 

[PBRstreetgang]

GOP="big bidness"
DEM's="big labor"

"big bidness"-airline mgmt, stockholders, ect.
"big labor"-unions, hourly paid employees

Quick reference checklist:
If you are paid by the hour, you are labor
If you recieve a salary, you are managment

ok flame on
ola
PBR

P.S. this is a simplification, and I have voted both parties, based upon the candidate.

 

[AJWick]

Hey PBRstreetgang,

you theory is not always correct.

Remember Clinton on February 15th 1997? Ordered the AA pilots to return back to work minutes after they went on strike.

Bottom line is you cant trust anyone.

aj

and I believe this is the wrong thread to be discussing politics.

Good luck to my buddies at USAir. Maybe I will return one day.

 

[typhoonpilot]

Vote Liberatarian

I know this may be a little bit of thread creep, but I couldn't resist. My father is a died in the wool Republican even though he has been repeatedly screwed over by the government in regards to labor issues. Most of us tend towards the right, since we tend to be self sufficient and don't like the idea of the Democrats giving away our hard earned money to people who are either undeserving or just plain lazy. We like the idea of a strong country and lower taxes so we tend to vote Republican, even though we are labor and the Republicans are anti-labor, or more accurately, pro business.

The path our country is heading down is wrong. The criminals that ran and are running USAirways have just stolen $600,000 from me. They did it with the help of their Republican friends that let companies get away with this rape of the American worker. I know $600,000 sounds like a lot, but that is based on $2500 per month for 20 years after retirement. That really isn't that much, especially since I wouldn't be eligible for it for another 20 plus years and the effect of inflation will make it even less.

The other option out there is the Liberatarian party. I know, everyone say it is wasting a vote. Well, if everyone that said that would just grow a backbone and vote how they feel they might be surprised with the results.

ecr.lausd.k12.ca.us/clubs/libertarian/quiz.htm

Typhoonpilot

 

[PBRstreetgang]

AJ,
If you read my P.S. you will notice the caveat this is a simplification, there will always be exceptions to every theory in a complex situation. Also you will note Clinton was closer to the middle of the road than most will recognize.
Alas I digress into the arena of politics, where there is no right nor wrong just millions shades of grey.
ola
eric

 

[Splert]

Pro-business is pro-labor. Without the former the latter is furloughed.

 

[PBRstreetgang]

Splert,
I have posted this before, one more time won't hurt too bad.

The function of managment is to get the most work for the least amount of money.

The function of labor is to get the most money for the least amount of work.

To have a healthy operation these forces must be balanced. They were out of balance when labor won the huge contracts now managment will recover those gains and probably some more
from labor. This is a yin/yang type of relationship, without one the other could not exist.

ola
eric

 

[100LL... Again!]

Look at all the things that happened with dcabusdriver at the wheel (sidestick):


9-11
Thousands of aviaton emloyees out of work
Pay Cuts and huge Work Rule Concessions
Stock Market Slump/Interest Rate at all time lows
Pension Plan Termination
Legislation to overturn Railway Labor Act
Oil Prices Spike
and don't forget a war!


I'll never fly on an airbus again!