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US AIRWAYS REACHES AGREEMENTS FOR CONTINUED
USE OF AIRCRAFT
ARLINGTON, Va., Nov. 11, 2004 [font=Arial,Helvetica,Geneva,Swiss,SunSans-Regular][/font][font=Arial,Helvetica,Geneva,Swiss,SunSans-Regular]-- [/font]US Airways Group Inc. has reached agreements with its lenders and lessors for continued use and operation of substantially all of its mainline and Express fleet.
Section 1110 of the U.S. Bankruptcy Code requires that within 60 days of its Sept. 12, 2004, Chapter 11 filing, US Airways must either (i) cure and perform under the terms of its aircraft financing or (ii) negotiate consensual arrangements with its lenders and lessors. As of today, US Airways has agreed to cure and perform for all but 36 aircraft, which will be subject to further negotiation. For these 36 aircraft, alternative interim arrangements have been secured for 14 of the aircraft. US Airways continues to negotiate with the lenders and lessors for the remaining 22 aircraft, and absent negotiated solutions, at least four of the aircraft will likely be rejected.
"Identifying these 36 aircraft is a routine part of the process, and our expectation is that our mainline fleet will remain largely intact," said Bruce R. Lakefield, US Airways president and chief executive officer. "Our intent is to focus on those few aircraft that for a variety of reasons may no longer be economical to fly, and if there is a downsizing of the fleet, that it be minimal, and that it be transparent to our customers."
Lakefield said that the February 2005 schedule US Airways announced last month provided for nearly 230 additional daily flights without adding any new aircraft due to changes in flying patterns and efficiencies – the equivalent of approximately 27 additional aircraft to the current fleet. "More point-to-point flying, more efficient aircraft utilization, and a focus on key business and leisure markets in the eastern U.S. remain core elements of the company’s Transformation Plan. We might conclude, however, that some aircraft with fuel inefficiencies or significant maintenance or operating costs might not make sense in an era of high fuel costs, depressed revenue and over-capacity in the industry. We need to carefully analyze and negotiate with our aircraft financers to reduce our costs and make the company as efficient as possible."
US Airways currently operates a fleet of 282 mainline jets. Its wholly owned US Airways Express operations include a fleet of 67 regional jets and 64 turboprop aircraft.
USE OF AIRCRAFT
ARLINGTON, Va., Nov. 11, 2004 [font=Arial,Helvetica,Geneva,Swiss,SunSans-Regular][/font][font=Arial,Helvetica,Geneva,Swiss,SunSans-Regular]-- [/font]US Airways Group Inc. has reached agreements with its lenders and lessors for continued use and operation of substantially all of its mainline and Express fleet.
Section 1110 of the U.S. Bankruptcy Code requires that within 60 days of its Sept. 12, 2004, Chapter 11 filing, US Airways must either (i) cure and perform under the terms of its aircraft financing or (ii) negotiate consensual arrangements with its lenders and lessors. As of today, US Airways has agreed to cure and perform for all but 36 aircraft, which will be subject to further negotiation. For these 36 aircraft, alternative interim arrangements have been secured for 14 of the aircraft. US Airways continues to negotiate with the lenders and lessors for the remaining 22 aircraft, and absent negotiated solutions, at least four of the aircraft will likely be rejected.
"Identifying these 36 aircraft is a routine part of the process, and our expectation is that our mainline fleet will remain largely intact," said Bruce R. Lakefield, US Airways president and chief executive officer. "Our intent is to focus on those few aircraft that for a variety of reasons may no longer be economical to fly, and if there is a downsizing of the fleet, that it be minimal, and that it be transparent to our customers."
Lakefield said that the February 2005 schedule US Airways announced last month provided for nearly 230 additional daily flights without adding any new aircraft due to changes in flying patterns and efficiencies – the equivalent of approximately 27 additional aircraft to the current fleet. "More point-to-point flying, more efficient aircraft utilization, and a focus on key business and leisure markets in the eastern U.S. remain core elements of the company’s Transformation Plan. We might conclude, however, that some aircraft with fuel inefficiencies or significant maintenance or operating costs might not make sense in an era of high fuel costs, depressed revenue and over-capacity in the industry. We need to carefully analyze and negotiate with our aircraft financers to reduce our costs and make the company as efficient as possible."
US Airways currently operates a fleet of 282 mainline jets. Its wholly owned US Airways Express operations include a fleet of 67 regional jets and 64 turboprop aircraft.
