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USAir Files Chapter 11

2000flyer

EASY FLYER
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Off the news wires:

THE AIRLINE, WHICH has mentioned bankruptcy as possibility after it lost $2.1 billion during 2001, said all of its flights are expected to continue without interruption. The Arlington, Va.-based airline said it received $500 million in financing to keep operating while it reorganizes.
“Ultimately, this effort is about our customers, employees and the communities we serve, as we seek to fix the airline’s finances and return to profitability,” said US Airways president and chief executive David Siegel. “US Airways will continue to operate while we complete our financial restructuring, and our customers should be confident that we will continue service to the more than 200 communities in our network.”
The airline, the nation’s seventh-largest, listed $7.81 billion in assets and $7.83 billion in liabilities in its petition, filed with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The Court has scheduled a hearing for Monday at 10:30 a.m. EDT.
US Airways has been trying to wring $950 million in cost cuts from its 35,000 employees as part of a restructuring plan that was designed to stave off bankruptcy. Last week, it reached agreements with unions representing its pilots and flight attendants that called for wage and benefits cuts in order to keep the airline operating.
The airline said its debtor-in-possession financing will come from a group of institutions led by Credit Suisse First Boston and Bank of America Corp., with participation from Texas Pacific Group, which has signed a memorandum of understanding to provide $200 million in equity when the carrier emerges from bankruptcy.
“In the face of an uncertain and trying time for the industry, we have been impressed by the major strides taken by US Airways’ management and employees to significantly improve the competitiveness of the airline,” said Richard P. Schifter, a partner with Texas Pacific Group. “Given the progress made to date, the time required in Chapter 11 to complete the restructuring should be relatively brief.”
That’s besides the $1 billion collateralized loan that has been conditionally approved by the Air Transport Stabilization Board.
 

CoopDog

SWA Pool Dog Paddler
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What great timing U have

Sad news here. And the same day that Duane Worth signed on the dotted line too.

The new deal ratifed last Thursday by U's MEC and signed today by ALPA allows U to downsize to 275 airplanes (245 in bankruptcy). It'll be interesting to see how U's management plays this one out.

"Please be advised, we (they) have 1070 pilots on furlough. Thank you for listening."

Man, I'm tired of hearing that!
 

reepicheep

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Brace yourselves, job seekers; you're about to have more company. Word is a bid will be out with the equivalent of 500 pilot positions eliminated. We will be furloughing pilots hired when Ronald Reagan was president.
 

LAZYB

Time wounds all heels.
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Hmmmm

David Bonderman

Founding Partner, Texas Pacific Group

David Bonderman is a co-founder and partner of Texas Pacific Group (TPG), a leading private investment firm with more than $8 billion of equity capital under management. David is currently a director and previously served as Chairman of Continental Airlines, Inc. Additionally, he is a director of Ryanair, plc and numerous other public and private companies including Ducati Motorcycles, Washington Mutual, Inc., Oxford Health Plans, Inc., and ON Semiconductor.

David graduated magna cum laude from Harvard Law School and is a Phi Beta Kappa graduate of the University of Washington

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http://www.hoovers.com/uk/co/capsule/1/0,2163,41891,00.html

Go west, young man, but skip the covered wagon -- take a plane instead. America West Holdings is the holding company for America West Airlines (AWA), one of the top 10 US airlines. AWA serves about 90 North American destinations, including seven in Mexico and two in Canada. It has a fleet of nearly 150 aircraft, which fly from hubs in Phoenix, Las Vegas, and Columbus, Ohio. AWA serves more than 115 destinations worldwide through code-sharing alliances with Northwest, British Airways, and Taiwan's EVA Airways. Another subsidiary, The Leisure Company, sells vacation packages.

A unit of investment firm Texas Pacific Group controls 59% of the company.


Board of Directors - America West Holding Corporation

W. Douglas Parker Chairman of the Board, President and CEO, America West Holding Corporation
John L. Goolsby President and CEO (retired), The Howard Hughes Corporation
Walter T. Klenz Chairman and CEO, Beringer Blass Wine Estates
Richard C. Kraemer President, Chartwell Capital, Inc.
Robert J. Miller Senior Partner, Jones Vargas
Denise M. O'Leary Private Investor

Richard P. Schifter Managing Partner, Texas Pacific Group

John F. Tierney Managing Director, Castletown Financial Services
J. Steven Whisler Chairman, President and Chief Executive Officer, Phelps Dodge Corporation

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http://money.cnn.com/2000/06/29/travelcenter/airlines/

The majority investor in Hotwire, which has a total of $75 million in initial funding, is the privately held Texas Pacific Group, which has also taken ownership interest in Continental, America West and Northwest airlines. Hotwire CEO Peterson is a former partner in Texas Pacific.
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Swissair Group an-nounced today that it has signed the definitive purchase agreement with Texas Pacific Group, a leading global private equity firm, on the sale of Gate Gourmet, Swissair Group’s airline catering business.
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:confused:
 

KC-10 Driver

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With the restructuring agreement, the no-furlough clause was eliminated from the contract. Job security is provided by the minimum aircraft numbers (275, or 245 in bankruptcy). If US Airways downsizes to 245 airframes, that would most likely mean 500-600 more furloughs.

If anyone out there knows differently, please correct me. I hope I'm wrong.
 

chperplt

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But how many positions will be opening up at Mid Atlantic and the other carriers that signed on to J4J? It has to be close to that number if not more.
 

KC-10 Driver

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If I turn down a position at MidAtlantic (or whereever else they offer Jets for Jobs positions), will that be considered to be turning down a recall?

In other words, I wonder if I will be giving up my seniority number with US Airways if I decline a Jets for Jobs offer.

Does anyone know?
 

publisher

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see it

The way I see it is that this was a the correct and right move by David Siegel and confirms that he may well be the man to lead them out of trouble/

If I had a dime, I would buy the stock.

Why, they can get rid of a bunch of contracted aircraft leases they do not want. Bunch of money coming in. Labor concessions in place.

This is much better situation that United.
 

FurloughedAgain

Cabin Heating & Air Tech.
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No KC-10.

Declining a J4J opportunity does not have ANY impact on your U seniority.

Speaking of J4J there are only a handful of companies who will be participating.

PSA - Who has yet to negotiate the terms.
Midatlantic - Which is, as of now a "paper" airline.
Midway - Which is, as you know, in bankruptcy as well.

Perhaps by some miracle these carriers can accomidate the next 500-600 furloughs (the guys with the late 1980's hire-dates) but there is no way that they will be able to find positions for all of us...the 1670(?) total furloughees.

What was your hire date? I want to cross your name off the list of people who are above me for J4J. <laugh>
 

reepicheep

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The furlough protection was given up and replaced by the aformentioned 275/245 fleet size minimum. In the near term block hours will almost immediately be reduced and a new bid should shortly reveal a surplus of around 500 pilots. If they take it all the way down to 245 a/c it would be in the neighborhood of 1,000. These furloughs will probably occur well in advance of any corresponding openings at MDA so these folks are going to be on the street a while...to say nothing of the previous 1070 who have already been out there for several months.
 
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