Anyone have the call in number for this?
March 23, 2004
US Airways to Update Employees
By MICHELINE MAYNARD
Having bought time from a federal loan board to fix its sagging operations, US Airways plans to update employees tomorrow on the state of its affairs.
In an e-mail message sent to employees yesterday, David N. Siegel, chief executive of US Airways, said the airline would hold a midafternoon telecast, via the Internet, to discuss the challenges it faced.
Other corporate meetings were restricted to employees, but Mr. Siegel invited family members to watch the broadcast to learn about what steps US Airways might take.
He invited employees to send questions by e-mail before the meeting.
"I urge you and your families to view this presentation because US Airways is at a significant crossroad," Mr. Siegel wrote. "All of us will be faced with making choices that will affect the future of the company, and my hope is that this information will help you make informed decisions."
An airline spokesman declined to elaborate on what Mr. Siegel would discuss.
US Airways, which emerged from bankruptcy protection one year ago next week, is struggling to avoid a second Chapter 11 filing. On March 12, the federal Air Transportation Stabilization Board agreed to amend the covenants of $900 billion in loan guarantees that formed the basis of the airline's restructuring. Without the action, the airline would have been in default of its loan package.
As part of that agreement, US Airways made a $250 million payment on its loan balance. It agreed to cut its losses significantly this year and to post a profit in 2005. It also won revisions that would allow it to sell its assets more easily and to keep some proceeds from any asset sales.
To achieve that profit target, the airline needs to cut its costs by about 25 percent, analysts say. US Airways is seeking another round of contract concessions from its labor unions, which granted it two rounds of wage and benefit cuts in bankruptcy. The airline is also considering whether to sell some assets, including its East Coast shuttle and US Airways Express commuter operation, in a bid to raise money.
Only its pilots union has agreed to negotiate with the company. But without reductions in labor costs, the airline cannot hope to achieve its cost-cutting goal, said Robert W. Mann Jr., an industry analyst in Port Washington, N.Y.
"They really are faced with a bleak set of alternatives," Mr. Mann said.
March 23, 2004
US Airways to Update Employees
By MICHELINE MAYNARD
Having bought time from a federal loan board to fix its sagging operations, US Airways plans to update employees tomorrow on the state of its affairs.
In an e-mail message sent to employees yesterday, David N. Siegel, chief executive of US Airways, said the airline would hold a midafternoon telecast, via the Internet, to discuss the challenges it faced.
Other corporate meetings were restricted to employees, but Mr. Siegel invited family members to watch the broadcast to learn about what steps US Airways might take.
He invited employees to send questions by e-mail before the meeting.
"I urge you and your families to view this presentation because US Airways is at a significant crossroad," Mr. Siegel wrote. "All of us will be faced with making choices that will affect the future of the company, and my hope is that this information will help you make informed decisions."
An airline spokesman declined to elaborate on what Mr. Siegel would discuss.
US Airways, which emerged from bankruptcy protection one year ago next week, is struggling to avoid a second Chapter 11 filing. On March 12, the federal Air Transportation Stabilization Board agreed to amend the covenants of $900 billion in loan guarantees that formed the basis of the airline's restructuring. Without the action, the airline would have been in default of its loan package.
As part of that agreement, US Airways made a $250 million payment on its loan balance. It agreed to cut its losses significantly this year and to post a profit in 2005. It also won revisions that would allow it to sell its assets more easily and to keep some proceeds from any asset sales.
To achieve that profit target, the airline needs to cut its costs by about 25 percent, analysts say. US Airways is seeking another round of contract concessions from its labor unions, which granted it two rounds of wage and benefit cuts in bankruptcy. The airline is also considering whether to sell some assets, including its East Coast shuttle and US Airways Express commuter operation, in a bid to raise money.
Only its pilots union has agreed to negotiate with the company. But without reductions in labor costs, the airline cannot hope to achieve its cost-cutting goal, said Robert W. Mann Jr., an industry analyst in Port Washington, N.Y.
"They really are faced with a bleak set of alternatives," Mr. Mann said.
