Akjetblue From United States of America, joined Dec 2003, 790 posts, RR: 5 Posted (9 years 11 months 3 weeks 2 days 9 hours ago) and read 9009 times:
SAO PAULO, Brazil, Sept 15 (Reuters) - Embraer (EMBR4.SA: Quote, Profile, Research) (ERJ.N: Quote, Profile, Research) on Wednesday said it had suspended aircraft deliveries to US Airways (UAIR.O: Quote, Profile, Research) in the first indication the airline's filing for bankruptcy protection could affect the Brazilian aircraft manufacturer's sales targets.
"Deliveries are temporarily suspended while Embraer's negotiations with US Airways and the main financiers continue," said a spokeswoman for Empresa Brasileira de Aeronautica (Embraer), the world's fourth largest commercial aircraft manufacturer.
According to court documents filed by US Airways in the United States, the carrier owes Embraer $1.47 billion for future aircraft commitments.
Embraer was sticking to its target of delivering 160 of its small and medium-sized aircraft this year pending the outcome of the talks with the U.S. airline, the spokeswoman said.
US Airways, the No.7 U.S. airline, filed for Chapter 11 bankruptcy protection for a second time in two years on Sunday, casting a cloud over large orders it has made for planes built by Embraer and its Canadian rival, Bombardier (BBDb.TO: Quote, Profile, Research) .
US Airways ordered 85 of the 70-seat EMBRAER 170 regional aircraft in May 2003 in a $2.1 billion deal.
Embraer said earlier this week that it had delivered 12 of those planes in the first half of this year. Industry analysts say US Airways has received 22 jets from the order so far.
Embraer stock was 1.35 percent weaker at 20.40 reais in Wednesday afternoon trading in Brazil. The country's benchmark Bovespa stock index was up 0.6 percent at the time.
Bombardier said on Sunday that its total aircraft deliveries for the current fiscal year would not be affected by US Airways' filing for bankruptcy protection.
NW747400 From United States of America, joined Jul 2004, 329 posts, RR: 0
Reply 2, posted (9 years 11 months 3 weeks 2 days 9 hours ago) and read 8860 times:
Well Embraer got the jitters that US is gonna go belly up. TOLtommy said it best "Anybody need a jet, quick? Delivery spots just opened up at Embraer!"
P.S. If US does go belly up will it make the situation for the other airlines better? Their passengers have to go to another airline could this be just what DL,CO and UA needs to help them get back on their feet?
Planemaker From Tuvalu, joined Aug 2003, 6152 posts, RR: 35
Reply 4, posted (9 years 11 months 3 weeks 2 days 9 hours ago) and read 8726 times:
If US does go belly up will it make the situation for the other airlines better?
My two cents - I think that there is still too much LCC capacity coming on stream to make the situation better for the other airlines in a sustained manner - there might be a blip in load factors but yields will remain depressed.
However, sub 70-pax aircraft pricing will probably be taking a big hit over the next couple of years. You probably won´t be able to "give" 50-seat RJ´s away.
Nationalism is an infantile disease. It is the measles of mankind. - A. Einstein
BR715-A1-30 From , joined Dec 1969, posts, RR:
Reply 8, posted (9 years 11 months 3 weeks 2 days 7 hours ago) and read 8317 times:
Analysts were predicting US to go Belly-up in 2001. My friend brought me a timetable in 2001 and told me to enjoy because it would probably be the last one. I'll believe it when they fly their last flight.
Flybyguy From United States of America, joined Jun 2004, 1801 posts, RR: 1
Reply 14, posted (9 years 11 months 3 weeks 2 days 3 hours ago) and read 7742 times:
What Embraer has done makes perfect sense, US can't pay it's bills and with B6 starting at LGA it's going to get worse...
Although I would love to see la Guardia become a second smaller JetBlue hub... JetBlue's presence at LGA hardly upsets anything more than the NYC-Florida market. By far most other carriers out of LGA have more cities and especially STATES to sell to customers.
"Are you a pretender... or a thoroughbred?!" - Professor Matt Miller
Dutchjet From Netherlands, joined Oct 2000, 7864 posts, RR: 57
Reply 15, posted (9 years 11 months 3 weeks 2 days 3 hours ago) and read 7675 times:
This is interesting, since some have suggested that US's new bankruptcy filing was a pre-packaged proceeding, meaning that just about all of US's creditors, banks, lessors, etc had agreed to the proceeding......the idea was that everything would go on in a normal fashion at US, and the only reason for the new bankrupcty filing was to "beat up" employees and the unions and convince them to accept wage cuts and productivity increases.
Embraer's suspension of deliveries to US suggests that it is taking US's Chapter 11 filing very seriously, and that all financial agreements may not be in place over at US Airways. I hope I am wrong, but things do not sound to good for US.
Then again, over a 100 new A32X airliners, 9 new A333s, plus 85 E170s and a good number of CRJS in the past few years......dont you think US has ordered far too many new aircraft? And, this buying spree has certainly added to US's financial problems in recent years.
A330323X From United States of America, joined Oct 2003, 3039 posts, RR: 44
Reply 18, posted (9 years 11 months 3 weeks 2 days 2 hours ago) and read 7590 times:
Embraer Stops Deliveries
ARLINGTON (theHub.com) - Brazilian aircraft manufacturer Embraer today said it has suspended aircraft deliveries to US Airways following the company’s filing for Chapter 11 bankruptcy court protection. “Deliveries are temporarily suspended while Embraer's negotiations with US Airways and the main financiers continue," a spokeswoman for the aircraft manufacturer said.
In a statement, US Airways said, "Embraer has been a great business partner and we will continue to work with them. This decision is one of many reasons why we advised our labor leaders that it will be much worse for employees if we had to file for Chapter 11. We will adjust our business plan accordingly, but our ability to grow is going to be limited." US Airways ordered 85 of the 70-seat Embraer 170 regional aircraft in May 2003. The company has received 22 jets from the order.
Nickofatlanta From Australia, joined May 2000, 1487 posts, RR: 0
Reply 19, posted (9 years 11 months 3 weeks 2 days 1 hour ago) and read 7267 times:
I would hope at this point we can all agree that we don't need to "make things look bad" at US Airways, they are pretty bad. It's a fact as far as I'm concerned. Being in Chapter 11 is a pretty bad thing!
Freshlove1 From , joined Dec 1969, posts, RR:
Reply 22, posted (9 years 11 months 3 weeks 2 days ago) and read 6653 times:
"US can't pay it's bills and with B6 starting at LGA it's going to get worse"
Bankruptcy Code provides a priority status for post-petition purchases (goods and services received after the date of the filing). We (US) can and will pay for all such post-petition goods and services in the normal course of business.
US can pay their bills just like they have in the past and will in the future and B6 doesn't pay hardly anything for those Airbuses due to the lease deal they have with them. When they start paying the full lease payments on those planes we will see how much profit B6 is making.