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US considering selling remaining 190.

olympus593

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US Airways is considering selling the remainder of its Embraer 190 fleet, after reaching an agreement with Republic Airways Holdings to off-load a total 10 of the type to the regional airline operator.
During an earnings conference call today to discuss a third quarter net loss of $80 million, US Airways management revealed the carrier is assessing its options and considering the sale of the remaining 15 E-190s in its fleet.
Earlier this month the Star Alliance member announced plans to sell 10 of its 25 E-190s to Republic, which previously supplied the US major with a $35 million loan.
Under the agreement, Republic will apply the balance of the loan to the purchase of the aircraft and will assume the remaining debt on the aircraft. A further $3 million in cash will be paid by Republic to US Airways.
US Airways says the deal with Republic includes the sale/leaseback of a number of E-190s. The overall arrangement will reduce US Airways' debt by about $217 million.
Pulling the E-190s out of the network ultimately supports some of US Airways' planned reduction in transatlantic flying, as Boeing 757s are transitioned to domestic flying, triggering an overall down-gauge of equipment, says US Airways.
According to Flightglobal's ACAS database, US Airways has standing orders for a further 12 E-190s and options for 60 of the type.
 

SpauldingSmails

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Ah, burning the furniture again I see.
 

TWA Dude

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They're not considering selling the remaining 190s; they're going to. Isom said so back in August.
 

Colonel Savage

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Any rumors about parking them even if they don't sell them?
 

OurMoney1

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With only 1.5 Billion in Unrestricted cash they had better think about selling everything they can including Diet Cokes again. Their situation has to be cash critical. I think something is about to go down. Their situation is not sustainable. If their credit processors pull a F9 on them they could be in a serious crunch. I think before it comes to that there will be an intervention. Wether it be West stand alone, American takes an Int'l footrpint and the Shuttle, something is going to happen. You cannot operate that large an airline on so little cash on standbye.
 

Mercy98

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If flying 25 e190's wasn't sustainable, having 15 of them never will be. They will be gone, or the seller known before mid year 2010.

They probably know who the buyer is for the remaining 15, and could have announced it today during their quarterly report. They just need to spread out their writeoffs.
 

JetMonkey

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With only 1.5 Billion in Unrestricted cash they had better think about selling everything they can including Diet Cokes again. Their situation has to be cash critical. I think something is about to go down. Their situation is not sustainable. If their credit processors pull a F9 on them they could be in a serious crunch. I think before it comes to that there will be an intervention. Wether it be West stand alone, American takes an Int'l footrpint and the Shuttle, something is going to happen. You cannot operate that large an airline on so little cash on standbye.

The numbers were worst earlier in the year but they've been paying down some debt, which is always a good thing.

1Q 2009 $2.1B, $700M restricted
2Q 2009 $2.3B, $600M restricted
3Q 2009 $2.0B, $500M restricted

This sale of 15 E190's just cleared another $271 million of debt, so the trend is moving in the right direction. Let's just hope these fare hikes stick and the business passenger comes back next year.
 

Colonel Savage

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The sale was for 10 190's, 15 remaining, correct?
 

JetMonkey

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The sale was for 10 190's, 15 remaining, correct?

Yes, sorry I was writing fast. Also I typed the 7 & 1 backwards, it should be $217 million less debt.
 

Mercy98

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Azul seems to be in need of 190's, if they can get their financing right. If not there, then probably to some Middle East or Asian carriers. Dunno who though.
 
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