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US Airways Broke! Say it ain't so.

Bai B Nai

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Just read an article about US Airways trying to get government backing for a 900 MILLION dollar loan! Unbelievable. They lost $2.1 billion in 2001, and lost $269 million in the first quarter this year. Apparently the only way the federal government will guarantee this loan is if USAirways has backing from another lender.

According to the article, Vanguard and Frontier were both turned down for loan guarantees from the feds "when the government said it was not confident either carrier could repay the loans. " Sounds like a catch-22. We can't get the loans to help us get back to solvency because were not solvent! Lee Iacoca where are you?

It's still amazes me how any major airline can make a nickel (apparently most aren't.) Is is any wonder why most European carriers are subsidized? (Disclaimer: I am not advocating federal government run our airlines.)

I hope it turns out OK for the sake of the good employees @ PIT and elsewhere.
 

flint4xx

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If you were to apply for a car loan, you would get the same treatment.:cool:
 

328dude

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We will have to see if SIZE really does matter.
 

skybuda

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I guess we all can relax alittle in knowing that size really doesent matter. AMW got the loan didnt they.
 

skydiverdriver

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This is so obvious, I shouldn't even have to say it. The reason USAirways is doing so poorly is because it's mainline pilots scoped out rj's. That is why Delta has been doing so well, because there was no scope, at least nothing except seat limits, until recently. I don't understand why people still think that scoping out rj's will increase mainline jobs. It decreases them, perhaps to the point of having none at all. Good luck to you guys.
 

reepicheep

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Our pilot leadershiip failed to come to grips with Rj's in the last couple of years it is true, but also recall that Wolf had no interest in bargaining for greater freedom to deploy them until the very last.

US Airways' real problems go way back; at the core, you cannot succeed as a mature, full service, hub-and-spoke carrier when you really only serve one market, can't match the big boys, and have no way to defend yourself if lower cost carriers enter your turf. USAir had the chance to diversify in the late 80's when they acquired Piedmont and PSA but instead spurned international ops., cancelled 767 options, ordered F100's, and began a retreat to the northeast that continues to this day. Siegel's plans may stabilize things temporarily but the airline will never truly prosper.
 

FlyDeltasJets

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skydiverdriver said:
This is so obvious, I shouldn't even have to say it. The reason USAirways is doing so poorly is because it's mainline pilots scoped out rj's. That is why Delta has been doing so well, because there was no scope, at least nothing except seat limits, until recently. I don't understand why people still think that scoping out rj's will increase mainline jobs. It decreases them, perhaps to the point of having none at all. Good luck to you guys.
If a relaxed scope was the only reason that airlines thrive, than AWA would be the largest and most powerful airline in history, as they have the least restrictive scope. The fact is, there is more to U's problems, (and AWA's) than rj's.

That being said, I agree that their scope puts them at a disadvantage. That is not their fault, it is ours. Perhaps if the pilots at other airlines (esp. Delta) had been as committed to strong scope as the U guys were, perhaps mgt would have been forced to operate rj's at mainlines instead of farming out all of the flying to low-wage carriers. If that were the case, than the 20% annual growth we have seen would have been at the high-paying carriers, not those who refuse to pay their pilots a fair wage.

A relaxed scope at U is not what was needed years ago, what was needed was a stronger scope at the rest of the airlines.
 

TWA69

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I hope that US Scare does go out. Any company that furloughes at the expense of their brothers deserves to go out of business. Mainline needs to get brains and try to save the company.
I am also furloughed from the WO company. So I do have a say in it.
 

reepicheep

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TWA69 said:
Mainline needs to get brains and try to save the company.
Mainline has already offered around a 30% cut and $400 million in savings. The other employee groups are in denial and will determine, more than ALPA, if it gets "saved".
 

Tim47SIP

Serving for the USofA
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Too little-too late!
Should have been on the band wagon along time ago. Sorry, but it is true! I hope that US comes back and does well. A US liquidation will do nothing but hurt the industry.
 
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