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US Airways Could Be Bankrupt In A Few Weeks  
User currently offline777ER From New Zealand, joined Dec 2003, 12218 posts, RR: 18
Posted (10 years 2 months 2 weeks 7 hours ago) and read 12764 times:
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US Airways is in serious trouble. The Airline could be bankrupt by mid September.
APF/408130530&cachetime=5>


96 replies: All unread, showing first 25:
 
User currently offline7LBAC111 From United Kingdom, joined Jul 2004, 2566 posts, RR: 35
Reply 1, posted (10 years 2 months 2 weeks 7 hours ago) and read 12534 times:

Whats your source on this?


Debate is what you put on de hook when you want to catch de fish.
User currently offline777ER From New Zealand, joined Dec 2003, 12218 posts, RR: 18
Reply 2, posted (10 years 2 months 2 weeks 7 hours ago) and read 12509 times:
AIRLINERS.NET CREW
FORUM MODERATOR

http://www.wilmingtonstar.com

User currently offline7LBAC111 From United Kingdom, joined Jul 2004, 2566 posts, RR: 35
Reply 3, posted (10 years 2 months 2 weeks 7 hours ago) and read 12454 times:

Sorry 777ER but I cannot find this story - have you got a more specific link?


Debate is what you put on de hook when you want to catch de fish.
User currently offlineDtwclipper From , joined Dec 1969, posts, RR:
Reply 4, posted (10 years 2 months 2 weeks 6 hours ago) and read 12403 times:

The New York times is also warning of the demise of US Airways.

I would post the link, but you need to be a subscriber so here are some of the high lights:

Absent a new cost structure, the report said US Airways could cease to operate within 180 to 270 days - meaning sometime between March and June, regardless of whether it seeks bankruptcy protection.

But there has been resistance to US Airways' push for cutbacks among employees who are skeptical that the situation is really so dire, both within the pilots union and among other labor groups.


http://www.nytimes.com/2004/08/13/business/13pilots.html





User currently offlineFlyLondon From United Kingdom, joined Feb 2004, 377 posts, RR: 0
Reply 5, posted (10 years 2 months 2 weeks 6 hours ago) and read 12341 times:

This has also just been reported on CNBC Europe citing a union official who says thay may file for bankruptcy within a month.

Other sources:
http://cbs.marketwatch.com/news/story.asp?guid=%7B166A32E1-0BF5-4C71-B455-89BB25F874AD%7D&siteid=google&dist=google
http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=5965071
http://www.washingtonpost.com/wp-dyn/articles/A61539-2004Aug12.html


[Edited 2004-08-13 13:45:35]

User currently offline7LBAC111 From United Kingdom, joined Jul 2004, 2566 posts, RR: 35
Reply 6, posted (10 years 2 months 2 weeks 6 hours ago) and read 12321 times:

Jeez - then things really are bad with US, on top of the cutting those 20 routes at PIT earlier,

What I don;t understand is why US employees are doing so much to limit the options for their company. Whats better - a pay cut/pay freeze or no job...erm duh!

Mark



Debate is what you put on de hook when you want to catch de fish.
User currently offlineN754pr From , joined Dec 1969, posts, RR:
Reply 7, posted (10 years 2 months 2 weeks 5 hours ago) and read 12201 times:

Unions, a pain in the butt.

Like others have said, whats more important a pay cut or no job.......


User currently offlineFreshlove1 From , joined Dec 1969, posts, RR:
Reply 8, posted (10 years 2 months 2 weeks 5 hours ago) and read 12120 times:

This I believe this is a totally false report. We are doing just fine. This is once again upper managements way of putting fear into the employees so they will take the cuts. If US does go back into Ch.11 it will be to break the unions contracts and re-do the pay structure. Unfortunately one way or another the pay-cuts will come. It's just hard to say what road everyone will take to get it done. The pilots are talking about a pay-cut so I have no idea where the assumption about resistance by them is coming from. The Unions will hold out until the last minuet and then come to some sort of deal. Everyone knows what is on the line here. Unfortunately some of you would love to see US go under, but it is not going to happen, sorry to rain on your parade. In this industry every airline will at some point be in a situation like this and will have to re-do their business plan to succeed. Look at CO and HP for examples.

User currently offlineJohn From United States of America, joined Sep 1999, 1374 posts, RR: 5
Reply 9, posted (10 years 2 months 2 weeks 4 hours ago) and read 12078 times:

YES folks, this is a THREAT(and a ploy) to the employees in hopes that we'll come to our senses! Well...I've taken 2 paycuts already, surrendered some holidays and I only get paid at 75% of my rate when I take a friggin' vacation! PLUS, I was furloughed for nearly 2 years! I've PAID my dues! ENOUGH is ENOUGH!! And BTW, >ADVANCE BOOKINGS<, are very strong and US could very well post another profit for the 3rd quarter, SO...how would that justify another trip into bankruptcy?

User currently offlineAirTran737 From United States of America, joined Apr 2004, 3705 posts, RR: 12
Reply 10, posted (10 years 2 months 2 weeks 3 hours ago) and read 11951 times:
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Hey why don't you read this article from the USA Today on 8-13-04. ALPA hired an investment banker to look at the books, and he found that US is a sinking ship, listing to the side and filling with water.

http://www.usatoday.com/travel/news/2004-08-13-usair-woes_x.htm



Nice Trip Report!!! Great Pics, thanks for posting!!!! B747Forever
User currently offline7LBAC111 From United Kingdom, joined Jul 2004, 2566 posts, RR: 35
Reply 11, posted (10 years 2 months 2 weeks 3 hours ago) and read 11904 times:

With all due respect to you US employees, you all seem to know an awful lot about your companies finances.

Why would US upper management risk the negative fallout that being close to bankruptcy generates? Ultimately people will become fearful that their holiday or honeymoon or business trip may not happen if the carrier goes under, and will stop booking US. This alone will force you closer to extinction.

Take the pay cuts, concessions etc and when the company begins to show profits and returns to its pre 9/11 peak, then you can start to reap the rewards. In the same way CO's employees are now.

Just my two British pence worth.




Debate is what you put on de hook when you want to catch de fish.
User currently offlineSHUPirate1 From United States of America, joined Sep 2003, 3670 posts, RR: 16
Reply 12, posted (10 years 2 months 2 weeks 3 hours ago) and read 11836 times:

Well, if the Pilots think that US Airways is a sinking ship, then they BETTER get to the bargaining table and take some paycuts...I have this for a question though...if US Airways goes the way of the dinosaur, would the Star Alliance Silver status that I have achieved (through being US Airways Silver Preferred) still apply, or would I be between a rock and a hard place in that respect?


Burma's constitutional referendum options: A. Yes, B. Go to Insein Prison!
User currently offlineInnocuousFox From United States of America, joined Dec 2003, 2805 posts, RR: 14
Reply 13, posted (10 years 2 months 2 weeks 3 hours ago) and read 11766 times:

I didn't realize there was so much sand in PHL. How much sand WOULD it take to hold the heads of the US employees there? Maybe they take turns sticking their heads in? Hmm... something to ponder.


Dave Mark - Intrinsic Algorithm - Reducing the world to mathematical equations!
User currently offlineFRA2DTW From Germany, joined Feb 2004, 322 posts, RR: 0
Reply 14, posted (10 years 2 months 2 weeks 2 hours ago) and read 11697 times:

The impact of US disappearing from the aviation scene would be short-lived. Several other airlines have contingency plans to fill the void quickly, especially relatively healthy competitors like WN, CO, NW, even Delta and American, to serve the East Coast. The employees would be most affected, of course, and would be paying the price for management incompetence and union arrogance. But that's the free market system and George W is telling us that new jobs are being created all the time - at McDonald's.

User currently offlineAZjetgeek From United States of America, joined Jul 2004, 235 posts, RR: 2
Reply 15, posted (10 years 2 months 2 weeks 2 hours ago) and read 11639 times:

I would tend to believe both Freshlove1 and John in this matter. First, US employees have taken pay cuts and other concessions over the past three or four years. Those of you who say these people should take more cuts may not be aware of this. But if you are and still insist that taking more cuts is the way to go, perhaps you should walk in their (US employees) shoes first.

There's an old saying about going to the well once too often. US management is falling right in line with that phrase. I think it's past time to think that pay cuts will save this airline. As much as it weakens US' standing at PIT, cutting flights from there to 20 destinations was a step in the right direction.

Management might also want to consider streamlining their fleet. Take a look at their website with special consideration given to their fleet. They have entirely too much duplication, especially among their RJ's and turboprops.

Another questionable move this airline recently made was expanding its international flights out of CLT. If you're cutting domestic service, how can you justify international expansion? Is it pure speculation that they'll turn a profit on those flights out of CLT? I would say so. It's a gamble and management seems to be willing to play with their employees' pay.



Long live the RJ!
User currently offlineClipperNo1 From Germany, joined May 1999, 672 posts, RR: 2
Reply 16, posted (10 years 2 months 2 weeks 2 hours ago) and read 11576 times:

This story comes up every two weeks now, yet US is still alive.
Add tot that they lately joined Star Alliance. I don't think the Star board would have let them join unless they didn't believe they were able to survive. They are quite picky I think.
How far are we about the topic regarding how much of an US airline's stake can be hold by foreign investors? Some carriers could be happy to jump in and get the extensive east coast network of US.

It sometimes seems to me, that several investors, public or private, want to see a legacy carrier to go down, in order to somehow justify the enormus sums injected into the aviation industry.



"I really don't know one plane from the other. To me they are just marginal costs with wings."� Alfred Kahn, 1977
User currently offlineJohn From United States of America, joined Sep 1999, 1374 posts, RR: 5
Reply 17, posted (10 years 2 months 2 weeks 2 hours ago) and read 11548 times:

A question for those people on this forum who would like nothing better than to see US Airways FAIL and thousands of people unemployed, I ask you, WHAT do YOU do for a living?

User currently offlineDtwclipper From , joined Dec 1969, posts, RR:
Reply 18, posted (10 years 2 months 2 weeks 2 hours ago) and read 11513 times:

John,

I don't think anyone wants US to fail and put thousands of people out of work.

My biggest worry, is that the employees of US will do to themselves what the workers of Eastern did. That would be a shame.

dtwclipper


User currently offlineDAL7001 From United States of America, joined Jun 2004, 65 posts, RR: 0
Reply 19, posted (10 years 2 months 2 weeks 2 hours ago) and read 11499 times:

Not myself, I lived in PIT and have family and friends who work for US. I hope for the best as I do for the legacy I work for in ATL.


KATL
User currently offlineNIKV69 From , joined Dec 1969, posts, RR:
Reply 20, posted (10 years 2 months 2 weeks 2 hours ago) and read 11485 times:

Freshlove1,

Though I admire your faith in the face of adversity, face it, US is a sinking ship. In a year it will be gone. It has nothing to offer. With WN and B6 growing and changing the face of air travel we are not going to need US anymore, not with old planes and high fares. If you choose to lower your fares you will still die since your debt is too much to overcome. The end is in sight. Nobody here wants to see US go under, but it is going to happen.


User currently offline7LBAC111 From United Kingdom, joined Jul 2004, 2566 posts, RR: 35
Reply 21, posted (10 years 2 months 2 weeks 2 hours ago) and read 11425 times:

John

It's a discussion forum. Nobody WANTS to see US fail - get a grip.



Debate is what you put on de hook when you want to catch de fish.
User currently offlineAirTran737 From United States of America, joined Apr 2004, 3705 posts, RR: 12
Reply 22, posted (10 years 2 months 2 weeks 2 hours ago) and read 11295 times:
Support Airliners.net - become a First Class Member!

I want to see US fail. There are too many airlines as it is right now. I feel for the employees, but only a little bit. Their employee appointed union leaders are the ones who negotiated the contracts that are now starving the airline of any earned cash. An example needs to be made, and US is poised to be that example.


Nice Trip Report!!! Great Pics, thanks for posting!!!! B747Forever
User currently offlineJohn From United States of America, joined Sep 1999, 1374 posts, RR: 5
Reply 23, posted (10 years 2 months 2 weeks 2 hours ago) and read 11286 times:

Let's face it, there are some people here that have a HARD ON for US Airways and I have grown tired of all the cynicism. There are currently 2 other "legacy" carriers in financial dire straits right now, so why just POINT the finger specifically at US Airways? Let me give you this scenario to ponder: If your boss told you I'm sorry, but you have to take a $7.00 per hour pay cut, what would YOUR reaction be?

User currently offlineTWFirst From Vatican City, joined Apr 2000, 6346 posts, RR: 52
Reply 24, posted (10 years 2 months 2 weeks 2 hours ago) and read 11256 times:

My reaction would be that if I didn't want to take a $7 per hour pay cut, I would start looking for another job that pays the amount I want to be paid... what is your reaction?


An unexamined life isn't worth living.
25 Rsmith6621a : 711LBAc asked.......What I don;t understand is why US employees are doing so much to limit the options for their company. Whats better - a pay cut/pa
26 Ual777contrail : From what I understand they are pretty low as far as industry averages go. How much more can you give before you have given it all? Hope the best for
27 Jumbojet : If the upper echelons of management are still receiving these raises/bonuses and in the same breathe ask for more $$ back from the employees, then the
28 Post contains links JMV : Some highlights from an article in the Wall Street Journal (link provided for those with WSJ accounts) http://online.wsj.com/article/0,,SB109235140018
29 S12PPL : As I read through this thread, I have to chuckle at the USAirways employees. You guys are like Michael Jackson fans denying that he could ever molest
30 PilotNtrng : Hey sorry folks, but when you are only making 7.84 an hour, working in miserable weather conditions, working around props that can mangle or kill you,
31 7LBAC111 : John asked: Let me give you this scenario to ponder: If your boss told you I'm sorry, but you have to take a $7.00 per hour pay cut, what would YOUR r
32 1rocco : I like most other people would hate to see another airliner go under but it is absolutely stupid to not read the writing on the wall. Freshlove I admi
33 Brons2 : A question for those people on this forum who would like nothing better than to see US Airways FAIL and thousands of people unemployed, I ask you, WHA
34 Freshlove1 : There is no denial here, we understand what is happening. We see it on a daily basis. S12PPL I would certainly think you see the whole picture, don't
35 TWFirst : Freshlove1: One profitable quarter after numerous unprofitable quarters doesn't mean a company has a viable business plan or cost structure. Certainly
36 Freshlove1 : I completely understand that, but if what we did was not correct we would have lost money again, so hopefully we can build on this and keep it going w
37 Ultrapig : There are too many planes flying-American tried to raise fares a measly $5 and it had to withdraw-The law of supply and demand is keeping the price of
38 Coa764 : Let's face it, there are some people here that have a HARD ON for US Airways and I have grown tired of all the cynicism. There are currently 2 other "
39 Post contains links A330323X : Nobody WANTS to see US fail - get a grip. Let's face it, there are some people here that have a HARD ON for US Airways and I have grown tired of all t
40 Elwood64151 : But that's the free market system and George W is telling us that new jobs are being created all the time - at McDonald's I can't help but point out t
41 Flaps : It isnt that simple. If you havent been through restructurings, bankruptcies, pay cuts, and constant management threats then you are not in a position
42 UAMAYBACH1239 : Jeez - then things really are bad with US, on top of the cutting those 20 routes at PIT earlier, What I don;t understand is why US employees are doing
43 KITH : I will mourn the day Usairways stops clying, as they are our airports only carrier. Yet, if the "top brass" all took $1/yr would it save the company?
44 Elwood64151 : There are too many planes flying-American tried to raise fares a measly $5 and it had to withdraw-The law of supply and demand is keeping the price of
45 IslandHopperCO : Much as I hate unions, I agree with US employees that their wages are low enough already. Nobody here (or in the company for that matter) has addresse
46 NWAFA : It will be another sad day "if" US goes under (dont think that will happen). I do think is part MGMNT looking to get blood from a turnip. How much mor
47 Ultrapig : Elwood-Good point-I agree that US recent moves could be making things worse FOR IT. If it had the ability to expand and become the big dog that mgiht
48 DCA-ROCguy : I for one stopped predicting US Airways' demise a while ago. That was last summer, a few months after they came out of bankruptcy. The banks should ha
49 Post contains images DCA-ROCguy : Before anyone replies, yes, I know that Dr. Bronner and RSA in Alabama are the primary investors and have deciding control. But he obviously has a fid
50 Ryefly : I am uncertain that any of today's legacy carriers will remain in business under their current cost structure they have in the future. Once a few carr
51 Upsmd11 : I personally hope that US doesn't go under. Yes, we have a supply and demand system here in the USA but I think US offers a product that is just as go
52 Lj : Let me give you this scenario to ponder: If your boss told you I'm sorry, but you have to take a $7.00 per hour pay cut, what would YOUR reaction be?
53 Whitehatter : Looking at it from outside, things might look grim on the balance sheets as black and white but there are other factors. The debt carriers for US coul
54 Tripseven : You all will think I am joking, but I just accepted a job at US Airways (corporate position in Arlington). My start date is Monday. I took the job wit
55 Pylotguy1 : As a former US employee, a thought or two. I generally tend to side with management on issues of pay, etc but in this case of looking for additional c
56 Post contains images Scootertrash : I for one, as a U group employee and a stakeholder in what happens next, agree with management that there must be some changes to the current labor co
57 AirframeAS : If you look at US's fleet, you'll see they have pretty much about every damn aircraft type in its fleet that ever existed. (Except for Eastern Bloc pa
58 Tommy767 : "..changing the face of air travel we are not going to need US anymore, not with old planes and high fares..." US is another airline with new airbaii
59 N670UW : Can anyone post a breakdown of type of aircraft and how many US has in its fleet? Sure thing. 118 A320 Family 9 A330-300 118 737's 31 757's 10 767's 6
60 AirframeAS : Thanks for the breakdown, 670! Now if US can retain its A320s and 737s and some 757s then they should be okay, IMO.
61 Post contains links KarlB737 : An Audio Report: http://www.marketwatch.com/tvradio/playerFull.asp?media=1&band=0&remPref=1&guid=%7B01C3EB43-EAD0-48E6-97DD-555D3C997A6A%7D&siteid=yho
62 UAL747DEN : This is copied from another post that I wrote. The same thing still applies. The most important part of this is if US goes under NO employee will be h
63 Scootertrash : Uhh, Airframe... That's what they have been doing. As a matter of fact, the long term plan (as I understand it anyway) calls for an all Airbus fleet a
64 Post contains links UA777222 : Here's a post I just put in on another US post. It has to do with everything the aviation industry is going through right now. Please comment if I'm o
65 Airplaneslover : AirTrain737 It is sad to see someone like youself wishing an airline to go down. Grow-up and smell the coffee would you?. what would happen if someone
66 PilotNtrng : Well since everyone has dodged my complaint earlier.... I say we the lowly ramp rat scum making just above minimum wage..... walk out . Im sick and ti
67 Newkai : "Let's face it, there are some people here that have a HARD ON for US Airways and I have grown tired of all the cynicism." Yes, there are just as many
68 StevenUhl777 : Because the Boys and Girls at the top are still recieveng generous pay raises and sweet sweet quarterly/annual bonuses Examples of this would be....?
69 UAL747DEN : Newkai writes but what about all the flights that don't really have much a market but are important to people Well, my friend this is a very good exam
70 KITH : I say we the lowly ramp rat scum making just above minimum wage..... walk out -That has to be one of the most interesting thnsgs aid on the forum. Tha
71 Fly_emirates : isnt usairways already bankrupt? or am i wrong?
72 TransPac : US Airways is a failed conglomeration of regulation-era regionals that doesn't work as a network carrier because leadership--management and unions--di
73 Post contains links Newkai : "Well, my friend this is a very good example of why you would be a horrible executive!" I never said I wouldn't cut a non-profitable flight. But let's
74 PilotNtrng : Kith... no offense but please get your head out of what its buried in.
75 Ryefly : I saw a couple times people saying they need to simply cut it's fleet because there is to many different types. It's just not that simple. Under contr
76 KITH : PilotNtraining, no offense taken. Another armchair CEO here, and I agree, if I were runing Usairways i'd dump pretty much all of upstate, or at least
77 UA777222 : Either way. Whichever way they decide to go about it it's going to cost them and this isn't just for US. UA too. And any airline on the "edge" right n
78 Srbmod : AirTrain737 It is sad to see someone like youself wishing an airline to go down. Grow-up and smell the coffee would you?. what would happen if someone
79 Klwright69 : I am not a big follower of US since I live in the west, and do not know a lot about them, so I hope I don't appear ignorant. But for how long was US u
80 Cody : KLWright69, I believe US AIRWAYS was in bankruptcy seven months. They had to get in and out quickly. I cannot recall the exact verbage, but it had som
81 Klwright69 : Cody, thanks for a great response. I remember Gordon had to get CO employees to have faith and buy-in in him and the company. I seem to remember an in
82 SHUPirate1 : Newkai-Just a thing about some of those routes...anything flown by a turboprop that is NOT owned by US Airways (any Beechcraft, Jetstream, or Saab) wo
83 Aa757first : SHUPirate1, I'm almost positive that all express flying, other than those wholly owned by US Airways, is flown in that fashion. AAndrew
84 N670UW : I'm almost positive that all express flying, other than those wholly owned by US Airways, is flown in that fashion. Non-wholly owned regional jets (Ch
85 Jfk747 : They (DOJ) should have allowed United to buy them out 4 years ago.
86 Vctony : That would've just created a bigger mess. Thank goodness the UA/US merger didn't happen.
87 SHUPirate1 : Jfk747-I like that idea...that way, we would have had one very profitable carrier (DC Air) and one defunct one (UA/US), as opposed to two that are on
88 Tcfc424 : It really upsets me when people get on here bashing the LCC's and complain that they have ruined the industry. There is a theory called supply and dem
89 Dc10guy : If you look carefully above the terminal @ PHL & CLT you can clearly see vultures circling ...
90 Freshlove1 : What terminal are you looking at DC10guy?? I see none of that in either airport. US is doing fine in PHL and CLT so I don't see where your information
91 Scootertrash : Fresh: I am convinced that there are some on these boards who want to see the demise of US Airways just to have something different to talk about. It
92 Uadc8contrail : tcfc, lets assume you work for a l.c.c. and do not include wn in the l.c.c. envelope, they are a l.f.c. and lets assume that you make 7-9/hr, im sure
93 Airplaneslover : To: Srbmod Thanks for the correction. I just want to make my point. I have flown with many airlines in the United States, and they were all wonderful.
94 Uadc8contrail : srbmod, didnt valuejet buy airtran to stay in biz after the crash of 592????as valuejet was shut down and no one would have flown them?????not a smart
95 Dc10guy : I admit that I would like to see Usairways gone. If nothing more for the health of the rest of the airline biz. Why should their unions give up anythi
96 Srbmod : srbmod, didnt valuejet buy airtran to stay in biz after the crash of 592????as valuejet was shut down and no one would have flown them?????not a smart
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