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US Airways Misses Airbus Plane Payments  
User currently offlineFlyingbronco05 From United States of America, joined May 2002, 3840 posts, RR: 2
Posted (11 years 5 months 1 week 4 days 12 hours ago) and read 3241 times:

US Airways misses Airbus plane payments, in talks

"ARLINGTON, Va., Feb 20 (Reuters) - U.S. Airways Group Inc. (OTC BB:UAWGQ.OB - News) said on Thursday it had begun talks with European aircraft maker Airbus after failing to make certain payments on public debt instruments for five Airbus A330 planes."

More at: http://biz.yahoo.com/rf/030220/airlines_usairways_1.html

US Airways in Talks on Airbus A330 Aircraft Payments

"ARLINGTON, Va., Feb. 20 /PRNewswire-FirstCall/ -- US Airways, Inc. reported that it did not make certain payments due today on public debt instruments related to five Airbus A330 aircraft totaling $19.7 million. US Airways is currently in discussions with certain interested parties regarding these payments. The company anticipates reaching agreement on these payments during the 10 business-day cure period allowed for these payments."

More at: http://biz.yahoo.com/prnews/030220/nyth175_1.html


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10 replies: All unread, jump to last
 
User currently offlineBR715-A1-30 From , joined Dec 1969, posts, RR:
Reply 1, posted (11 years 5 months 1 week 4 days 12 hours ago) and read 3199 times:

So what happens if they cannot make the payments? Does the Repo man come? If that happens, I could see those 330s going to NWA for a cheap price.

User currently offlineGigneil From United States of America, joined Nov 2002, 16347 posts, RR: 85
Reply 2, posted (11 years 5 months 1 week 4 days 11 hours ago) and read 3178 times:

They will make the payments. Bronner is famous for pressuring Airbus.

N


User currently offlineLMP737 From , joined Dec 1969, posts, RR:
Reply 3, posted (11 years 5 months 1 week 4 days 9 hours ago) and read 3074 times:

Does the repo man come for the airplane? Well yes, in a way. Since U uses the A330 on it's USA-Europe runs it would not be that difficult for Airbus to take possession if they really wanted to. With that said repossesion will be the absolute last thing that Airbus will want to do.

User currently offlineYyz717 From Canada, joined Sep 2001, 16245 posts, RR: 56
Reply 4, posted (11 years 5 months 1 week 4 days 8 hours ago) and read 3034 times:

US Airways and Airbus are stuck with each other. Despite US financial issues, Airbus is no doubt delighted that US appears to be moving to an all-Airbus fleet, perhaps the largest in the world.


Panam, TWA, Ansett, Eastern.......AC next? Might be good for Canada.
User currently offlineRyefly From United States of America, joined Jun 2000, 1396 posts, RR: 0
Reply 5, posted (11 years 5 months 1 week 4 days 8 hours ago) and read 3020 times:

It's a ploy by US Airways. They have a hearing tomorrow in court about the pilot pension issue. I am sure they are trying to make it very clear to the judge that they can't pay their bills with out cutting the pilots pensions. If it's not it is very good timing.

User currently offlineOuboy79 From United States of America, joined Nov 2001, 4567 posts, RR: 23
Reply 6, posted (11 years 5 months 1 week 4 days 3 hours ago) and read 2936 times:

Ryefly - very good, hardly anyone picked up on that. This is nothing but 1) painting a picture of financial restrictions the company has now with the pension issue not resolved and 2) getting better rates on the 330s. Airbus will not do anything to harm US Airways. This is a company that will continue to boost the use of their widebodies in this country and will likely move to replace the remaining 140+/- 737s on the property with 319/320/321s. I wouldn't be too shocked to see a 318 order eventually if it looks reliable enough.

User currently offlineN628AU From United States of America, joined Oct 2000, 343 posts, RR: 0
Reply 7, posted (11 years 5 months 1 week 3 days 19 hours ago) and read 2707 times:

The planes would not be repossed by Airbus anyway. Airbus does not own them.

User currently offlineScottb From United States of America, joined Jul 2000, 6712 posts, RR: 32
Reply 8, posted (11 years 5 months 1 week 3 days 19 hours ago) and read 2678 times:

Just as a bit of a correction, the 737-300/400 fleet is down to 112 aircraft, not 140+. I honestly don't see big new orders of Airbus aircraft coming from US Airways for quite a while. Remember that they only "restructured" their existing orders (going from 37 A320-family aircraft and 1 A330-300 to 19 A320-family and 10 A330-200 aircraft) last month. And it seems pretty clear (to me, at least) that those A332's will replace the 767-200ER's, some of which will be hitting 20 years of age in 2007, when the 332's will be entering the fleet. If US Airways planned to be making large purchases of A320-family aircraft in the near future, I doubt they would have restructured that order.

If/when US Airways emerges from bankruptcy on March 31, half of the federal loan guarantee will go to repaying RSA's DIP financing. Now, RSA and GE will be injecting capital into the company at that time, so their cash position will probably be in the $1.2-1.5 billion range. But they also need to lay out money for regional jet purchases, according to the business plan, so I doubt they'll be buying much else until they achieve good, sustained profitability AND sufficient liquidity to pay down the $1 billion loan.

A lot of people are going to be holding their breath until the company and the pilots manage to come to some agreement regarding the pilots' pensions.


User currently offlineOuboy79 From United States of America, joined Nov 2001, 4567 posts, RR: 23
Reply 9, posted (11 years 5 months 1 week 3 days 17 hours ago) and read 2606 times:

If UAL folds, than you will see an aircraft purchase to replace the 73s from the fleet - but they will be UAL's 319 & 320s. All of this will be financed by RSA which has already pledged money to fund any purchase of UAL assets.

User currently offlineAcidradio From United States of America, joined Mar 2001, 1874 posts, RR: 10
Reply 10, posted (11 years 5 months 1 week 3 days 14 hours ago) and read 2519 times:
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Note: US uses A319/A320 with CFM engines, UA has the IAE engines. I don't think that would mesh all that well together.


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