dollacrackho
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- Oct 19, 2004
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notice bold face paragraph slid into the bottom of this article. wtf does this mean?!?!?!??!?
UPDATE 1-US Airways, America West in talks for funding-WSJ
Sun May 15, 2005 11:33 PM ET
(Adds details)
PHILADELPHIA, May 15 (Reuters) - US Airways Group Inc. (UAIRQ.OB: Quote, Profile, Research) and America West Holdings Corp. (AWA.N: Quote, Profile, Research) , which are in merger negotiations, are trying to raise up to $400 million in funding and secure a loan from Airbus (EAD.PA: Quote, Profile, Research) in exchange for ordering new airplanes, according to The Wall Street Journal.
The two airlines are expected to announce their merger within the next week, an industry source previously told Reuters. That pact would likely begin as a marketing alliance and unfold in stages, the source said.
The Wall Street Journal reported on Sunday that US Airways and America West have been in talks to gain new funding from Air Canada and two hedge funds. The carriers also may secure additional funds through a rights offering, the newspaper said in its electronic edition.
America West, based in Tempe, Arizona, and US Airways, based in Arlington, Virginia, have confirmed they are talking, but have not commented further.
Any merger agreement would also have to satisfy a bankruptcy judge in Virginia, government antitrust enforcers, and a federal board that oversees loan guarantees to both US Airways and America West and holds warrants in each company.
Industry experts have said they envision an imaginative financing deal that could involve several potential investors.
Two regional airlines have already pledged $250 million in equity. Other potential investors include General Electric Co. (GE.N: Quote, Profile, Research) , US Airways' largest creditor, and Retirement Systems of Alabama, the airline's single-biggest stakeholder.
The Wall Street Journal reported that the two carriers are in talks with Air Canada's parent, ACE Aviation Holdings Inc. (ACErv.TO: Quote, Profile, Research) , which may provide up to $150 million in equity. Hedge fund PAR Capital Management Inc., formerly a large stakeholder in America West, and a second hedge fund may provide another $125 million of equity, the newspaper said.
In addition to that funding, the airlines are in negotiations to get a $250 million loan from aircraft manufacturer Airbus (EAD.DE: Quote, Profile, Research) in return for ordering about 20 new A350 planes, the WSJ reported.
An Airbus spokesman could not be immediately reached for comment. America West operates mainly Airbus jets. US Airways also flies Airbus models. GE also is finalizing its own deal with the carriers to reduce its financial exposure by $1 billion, the newspaper reported. GE plans to cut off most of the regional-jet financing and take back more leased planes than previously expected.
UPDATE 1-US Airways, America West in talks for funding-WSJ
Sun May 15, 2005 11:33 PM ET
(Adds details)
PHILADELPHIA, May 15 (Reuters) - US Airways Group Inc. (UAIRQ.OB: Quote, Profile, Research) and America West Holdings Corp. (AWA.N: Quote, Profile, Research) , which are in merger negotiations, are trying to raise up to $400 million in funding and secure a loan from Airbus (EAD.PA: Quote, Profile, Research) in exchange for ordering new airplanes, according to The Wall Street Journal.
The two airlines are expected to announce their merger within the next week, an industry source previously told Reuters. That pact would likely begin as a marketing alliance and unfold in stages, the source said.
The Wall Street Journal reported on Sunday that US Airways and America West have been in talks to gain new funding from Air Canada and two hedge funds. The carriers also may secure additional funds through a rights offering, the newspaper said in its electronic edition.
America West, based in Tempe, Arizona, and US Airways, based in Arlington, Virginia, have confirmed they are talking, but have not commented further.
Any merger agreement would also have to satisfy a bankruptcy judge in Virginia, government antitrust enforcers, and a federal board that oversees loan guarantees to both US Airways and America West and holds warrants in each company.
Industry experts have said they envision an imaginative financing deal that could involve several potential investors.
Two regional airlines have already pledged $250 million in equity. Other potential investors include General Electric Co. (GE.N: Quote, Profile, Research) , US Airways' largest creditor, and Retirement Systems of Alabama, the airline's single-biggest stakeholder.
The Wall Street Journal reported that the two carriers are in talks with Air Canada's parent, ACE Aviation Holdings Inc. (ACErv.TO: Quote, Profile, Research) , which may provide up to $150 million in equity. Hedge fund PAR Capital Management Inc., formerly a large stakeholder in America West, and a second hedge fund may provide another $125 million of equity, the newspaper said.
In addition to that funding, the airlines are in negotiations to get a $250 million loan from aircraft manufacturer Airbus (EAD.DE: Quote, Profile, Research) in return for ordering about 20 new A350 planes, the WSJ reported.
An Airbus spokesman could not be immediately reached for comment. America West operates mainly Airbus jets. US Airways also flies Airbus models. GE also is finalizing its own deal with the carriers to reduce its financial exposure by $1 billion, the newspaper reported. GE plans to cut off most of the regional-jet financing and take back more leased planes than previously expected.
