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Can I ask our American friends, and anyone else who might know for that matter. What is the most recent news regarding US Airways?
Dorothy has posted on another thread that there are to be no further talks until June but I couldn't find the info on their website. As we are supposed to fly with them at Easter I would be interested in the current 'Buzz'.
Liz I have sent you a private message and information from the Washington Post.
I found the article thro' Google ......about two thirds of the page down. The article must have been in the paper on 13th Jan.[msnsmile2]
Dorothy
Last week, a federal bankruptcy judge signed off on an agreement
between US Airways and the Air Transportation Stabilization Board
that gives the airline access to a federally guaranteed loan
through June 30. According to US Air chief Bruce Lakefield: "Our
customers should book us with confidence, knowing that we have
sufficient cash to operate."
US Airways is hardly out of the woods. Among other upcoming
hurdles: US Airways' machinists could turn down management's
latest contract proposal, and subject the carrier to a potentially
crippling walkout.
I had to cut & paste as it's fron a secure site. Hope this gives you a ray of hope.
US Air gets federal loan extension
Plans to take delivery of six regional jets
By Matt Andrejczak, CBS.Marke[bad language filtered out]ch.com
Last Update: 6:06 PM ET Jan. 13, 2005
SAN FRANCISCO (CBS.MW) -- US Airways Group got more breathing room to pursue its restructuring Thursday after the Air Transportation Stabilization Board agreed to extend a cash loan to the carrier through June 30.
US Airways, the No. 7 U.S. airline, has been using the federally guaranteed loan to help fund its operations since filing for Chapter 11 bankruptcy protection from creditors last September.
Judge Stephen Mitchell approved the loan extension by the ATSB, an arm of the Treasury Department, at a court hearing Thursday.
Separately, US Airways said it will take delivery of six regional jets from Embraer (ERJ: news, chart) and Bombardier by the end of the month.
Under its agreement with the ATSB, Arlington, Va.-based US Airways (UAIRQ: news, chart) is required to maintain minimum weekly cash balances. It still owes the government about $646 million of the original $900 million loan.
The airline said ratification of a cost-savings proposal it delivered to its mechanics, baggage handlers, and cleaning crews is crucial to meeting the liquidity requirements. It seeks $269 million in annual savings from the group.
Those workers, numbering 8,500, are part of the International Association of Machinists and Aerospace Workers, the only union yet to reach a deal with US Airways. Voting will conclude on Jan. 21.
Last week, Mitchell agreed to cancel the labor contracts if the workers fail to approve the airline's latest proposal. That would allow US Airways to seek court permission to impose the wage cuts it seeks.
Exit Chapter 11 this summer?
After months of arduous contract negotiations and a holiday travel season marred by a worker shortage that led to cancelled flights and passengers getting separated from their luggage, US Airways CEO Bruce Lakefield sought to quell speculation of the carrier's demise. He predicts the groundwork has been laid to emerge from Chapter 11 this summer.
"I think our most difficult period is behind us," he said.
The ATSB loan extension was the third major piece of US Airways' restructuring efforts -- the others being its new labor contracts and a financing and lease agreement with its largest outside creditor, an arm of General Electric (GE: news, chart).
These deals could buy the airline time as it heads out of the lean winter revenue season, one observer said. Spring is the most profitable time of year for US Airways.
"It looks like they got the pieces in place to start in a positive direction," said Daniel Kasper, airline economist with LEGC LLC who has testified in bankruptcy court on behalf of US Airways' management. "This is good news."
I spoke to Wexas last month about the problem facing US Airways and after some 'inside' enquiries, he agreed that it was risky to wait for my flight to and from Charlotte in May-June this year. So, I decided to play safe and swap to American Airlines flying to Raleigh for my trip to the Carolinas. Even if US Airways does not go 'under', there is the risk of some flights being cancelled and the LGW-CLT one is very likely to be on top of that list.
Looks like you should be okay at Easster then Liz.[msnoo][msnsmile2]
Well I'm keeping my fingers crossed!!!
Next question, anyone know the luggage allowance?[msnwink]
<blockquote id="quote" class="ffs">quote:Originally posted by E. Cosgrove
Well I'm keeping my fingers crossed!!!
Next question, anyone know the luggage allowance?[msnwink]
[/quote]
Not enough i'm guessing![msnwink]:D
This is more positive news for our guests who fly with US Airways on February the 5th. They haven't contacted us so I am assuming everything is going to plan.
<blockquote id="quote" class="ffs">quote:Originally posted by Ray&Sarah
<blockquote id="quote" class="ffs">quote:Originally posted by E. Cosgrove
Well I'm keeping my fingers crossed!!!
Next question, anyone know the luggage allowance?[msnwink]
[/quote]
Not enough i'm guessing![msnwink]:D
[/quote]
Does our Liz like to pop to the shops while away in Florida??[msnwink][msnsmile2][msnwink]