US Airways Defers 54 Airbus Deliveries

[LaGarbage Man]

http://online.wsj.com/article/SB10001424052748704779704574555532774603854.html?mod=googlenews_wsj

Other than improving the cash postion, what does this mean for Airways. Positioning for merger? If so with who? Begining of the end?
Lets hear all your thoughts.
And by all means you Eastwipes and Westholes should take advantage of this thread to go at it some more because I'm sure we all can't get enough of it from any other thread mentioning US Airways.

 

[Colonel Savage]

Generally, future aircraft delivery positions held by the acquired airline are considered an asset in a merger, especially if a common fleet type is involved. In this case, as with the 190's, it looks in all likelihood like a liquidity infusion for survival.

 

[Cowboy75]

Westhole here. Doug should have got out of the way of the train wreck known as us air. Instead, he stood on the tracks and got run over.

 

[LaGarbage Man]

Well what can I say? I think we all know what beer can do to your judgment (A 2 at 10 is a 10 at 2). And Doug has been known to have a few. As for the merger, It is what it is.

 

[Cowboy75]

Well what can I say? I think we all know what beer can do to your judgment (A 2 at 10 is a 10 at 2). And Doug has been known to have a few. As for the merger, It is what it is.

He got drunk one night, brought us air home and now the sun has come up the next morning, sees who he slept with.

It ain't pretty.

 

[LaGarbage Man]

You left out one part of the story.
He got drunk in Vegas. While drunk he put a ring on her finger and made a trip to the " Little White Wedding Chapel" where Elvis pronounced them man and wife. In his drunken stuppor he forgot the prenup and now he is looking at one he!! of an expensive divorce.
Like I said, "It is what it is"

 

[xanderman]

Totally survival mode. If you read the press release you can read that Barclay's gave them 14 months to begin repayment of the 200 million loan.

Hey great! 14 months guys. Then what? I think LCC is burning the furniture to keep the house warm.

 

[Cowboy75]

Hey great! 14 months guys. Then what? I think LCC is burning the furniture to keep the house warm.

Funny how history repeats itself with us air. Like our friend says, it is what it is.

 

[OurMoney1]

Cash Preservation for very uncertain future. The industry saw this coming last summer, with every financial move they make it looks more and more like Eastern's shut down part 2.

 

[ACL65PILOT]

Yes, it is to save money, but there may be other reasons like their dance partner not liking the bus!

 

[get2flyin]

http://finance.yahoo.com/news/US-Airways-Completes-Major-bw-2771992969.html?x=0&.v=1


For those of us who don't have access to WSJ online.

 

[johnsonrod]

My bet: Republic will end up buying USAirways and Frontier pilots will be senior to everyone but Sully.

 

[BeCareful!]

My bet: Republic will end up buying USAirways and Frontier pilots will be senior to everyone but Sully.

Sounds about right. Sounds like a job for Nicolau!

 

[jmreii]

Cash Preservation for very uncertain future. The industry saw this coming last summer, with every financial move they make it looks more and more like Eastern's shut down part 2.

You are right, it does look like an Eastern shutdown. Don't let them know anything till we get to the end of the line.

 

[Bringupthebird]

Perhaps they are being given such a smoking deal on holding the airplanes that were going to be exchanged (anyone know of an airline in demand for narrowbodies?) that they decided to gamble on a strengthening dollar to buy them cheaper later. Nah!

Never underestimate USAirways' shortsightedness.

I don't see any merger coming along. There's more money to be had financing other plays in the airline sector than to throw more good money after bad. Plus the lessors and credit card companies know what a train wreck any merger with US would be and are keeping their hand on the switch to prevent needless loss.

My prediction is a slow part-out disguised as asset trades (i.e.LGA/DCA swap) until all the good stuff (did I really say that?) is gone and then the gavel will come down on the junk.

The shame is that it doesn't have to be that way. Run a good solid operation and get everyone pulling in the same direction rather than pretending you can substitute playing money games for real leadership.