USAirways loses loan on RJs

[dlredline]

Sure is tough to have a business plan based around the acquisition of hundreds of E170's when you can't even finance them. . . .



Sat Sep 18, 2004 12:12 AM ET

WASHINGTON, Sept 18 (Reuters) - U.S. Airways lost the financing for nearly 100 regional jets that were to be a key part of the bankrupt airline's restructuring plan, The Washington Post reported on Saturday.

With the carrier in Chapter 11 bankruptcy protection, its aircraft manufacturers Bombardier (BBDb.TO: Quote, Profile, Research) and Embraer (EMBR4.SA: Quote, Profile, Research) decided to terminate their financing contracts on the jets, the paper said.

US Airways had built part of its transformation plan around the use of the 50- to 70-seat aircraft during its previous restructuring in 2002. The carrier hoped to deploy the jets on many of its shorter or less popular routes and use them to expand service to short-haul destinations, The Post said.

The Virginia-based airline sought bankruptcy protection this past Sunday after being pinched by low-cost rivals, higher fuel prices and a failure to win new labor concessions.

 

[MLBWINGBORN]

The Virginia-based airline sought bankruptcy protection this past Sunday after being pinched by low-cost rivals, higher fuel prices and a failure to win new labor concessions.[/QUOTE]So..The reason all this is happening at USAIR is the LCCs beat up on em,gas prices sneaked up on em,and they couldnt toss out all their contracts that they couldnt afford in the first place.

Oh..We just gotta bail these guys out with more tax payers $$.
Whats happening here is just not fair!!
And darn those nasty ole crediters..Making them have a plan to pay for all those jets is just not fair..

And we all know its ALL the pilots fault for not wanting to work for free..

Its always sombody elses fault..

When was the last time we saw a news report citing the worthless managment of the company and their golden chutes being the REAL reason for this huge failure?

This is just a bad as ENRON and some of these guys should be taking a perp walk.

I feel for all you folks at USAIR..

Youve been had as far as im concerned.

Mike

 

[cosmotheassman]

AGAIN, I'm GLAD when Melissa called me a few weeks ago for an interview at PSA that I never returned her call... I feel for all the guys at the BNA job fair that were waiting in the LONG line for PSA...Regionals and airlines in general are not a good place to strive for anymore.

 

[Heavy Set]

With gas prices still very high and the slower fall season approaching with fewer vacationers, those E170s would have been perfect replacements for the gas-guzzling and maintenance-intensive 737-300/400s. Not a good show of support and confidence to the rest of the creditors...

 

[philo beddoe]

Were those jets headed for Mid Atlantic or PSA? I'm not really up on my US Air scuttlebutt.

 

[CWI]

Heavy Set,

Being a twice furloughed USAir/USAirways pilot these are my thoughts on your post.

"those E170s would have been perfect replacements for the gas-guzzling and maintenance-intensive 737-300/400s."

Why then does SWA have a fleet of them and making money?

"Not a good show of support and confidence to the rest of the creditors..."

Remember the saying, "Burn me once shame on you, burn me twice shame on me!"

There is not enough room on this Forum to cover all of the mistakes USAirways management has made in the past 15 years..............

But on the other side of this coin USAirways has made many of that same management, including the BOD, multi-millionaires with retirement to boot!

CWI

 

[StarrBuck]

Where is Lowecur's opinion on this?

 

[FN FAL]

Were those jets headed for Mid Atlantic or PSA? I'm not really up on my US Air scuttlebutt.

I think they were headed for mainline operations philo.

 

[On Your Six]

Heavy Set,

Being a twice furloughed USAir/USAirways pilot these are my thoughts on your post.

"those E170s would have been perfect replacements for the gas-guzzling and maintenance-intensive 737-300/400s."

Why then does SWA have a fleet of them and making money?

"Not a good show of support and confidence to the rest of the creditors..."

Remember the saying, "Burn me once shame on you, burn me twice shame on me!"

There is not enough room on this Forum to cover all of the mistakes USAirways management has made in the past 15 years..............

But on the other side of this coin USAirways has made many of that same management, including the BOD, multi-millionaires with retirement to boot!

CWI

Sorry to hear about your situaiton with USAirways. SWA operates 737s better than anyone and a lot of their older aircraft are being replaced by more efficient 737NG aircraft. That's my theory anyway. The E170s are very nice aircraft and are probably more productive now that many of the kinks have been worked out....

 

[CRJDog]

IMHO, The USAirways bankruptcy filing is to flush the labor contracts down the toilet. I believe the issue was not of money concessions but primarily work rules. I am not a firm believer that the US Government is responsible to bail USAirways out but they did and did not give them enough time to pay the loan back.

This goes on while we dump billions of our tax dollars and sacrifice the lives of our soldiers in the Middle East. The United States loaned billions to European countries such as Germany after WW2 and they haven't see a dime in repayment. Soon we will all be out of a job and when your family boards a plane to see you the pilots will be from Taiwan.

Truly SAD!!