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Embraer Suspends US Airways Jet Deliveries  
User currently offlineAkjetblue From United States of America, joined Dec 2003, 790 posts, RR: 5
Posted (9 years 7 months 1 week 6 hours ago) and read 8936 times:

Wow!

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.




Save a horse! Ride a Cowboy!
40 replies: All unread, showing first 25:
 
User currently offlineTOLtommy From United States of America, joined Dec 2003, 3276 posts, RR: 4
Reply 1, posted (9 years 7 months 1 week 6 hours ago) and read 8835 times:

Anybody need a jet, quick? Delivery spots just opened up at Embraer!

User currently offlineNW747400 From United States of America, joined Jul 2004, 329 posts, RR: 0
Reply 2, posted (9 years 7 months 1 week 6 hours ago) and read 8787 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?
NW747400


User currently offlineNIKV69 From , joined Dec 1969, posts, RR:
Reply 3, posted (9 years 7 months 1 week 6 hours ago) and read 8693 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. I think US should say "uncle" they have just about run out of options.

User currently offlinePlanemaker From Tuvalu, joined Aug 2003, 5925 posts, RR: 34
Reply 4, posted (9 years 7 months 1 week 6 hours ago) and read 8653 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.  Wink/being sarcastic



Nationalism is an infantile disease. It is the measles of mankind. - A. Einstein
User currently offlineAS739X From United States of America, joined Apr 2003, 5998 posts, RR: 24
Reply 5, posted (9 years 7 months 1 week 6 hours ago) and read 8626 times:

"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."



So how many EMB does USAirways has? Where are the 10 missing planes?

ASSFO




"Some pilots avoid storm cells and some play connect the dots!"
User currently offlineFlyguyclt From United States of America, joined Aug 2005, 537 posts, RR: 8
Reply 6, posted (9 years 7 months 1 week 6 hours ago) and read 8609 times:

And so we have the perfect replacement for the NWA DC9's.

Just a little goofy humor for the day.

Living here in CLT, I hope USAirways management can come up with a plan that works and returns their company to financial stability. The employees of USAirways are derserving professionals.

Safe Flying  Smile



Florida Express, Braniff II and ......
User currently offlineS12PPL From , joined Dec 1969, posts, RR:
Reply 7, posted (9 years 7 months 1 week 6 hours ago) and read 8568 times:

Yet another sign the end is very near for US. This is a sad time in the industry, as one of the best known airlines in the United States is slowly dying.

I don't see how US can possibly "come back from the dead" as the "new" USAirways out in Alabama.....I just don't see that happening at all.


User currently offlineBR715-A1-30 From , joined Dec 1969, posts, RR:
Reply 8, posted (9 years 7 months 1 week 4 hours ago) and read 8244 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.

User currently offlineDbo861 From United States of America, joined May 2004, 861 posts, RR: 1
Reply 9, posted (9 years 7 months 1 week 3 hours ago) and read 8140 times:

""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."



So how many EMB does USAirways has? Where are the 10 missing planes"

12 Planes in the first half, or 6 months of the year, that's through June. US has received 22 so far, but this is September...3 months later. That might be an explanation.


User currently offlineCory6188 From United States of America, joined Feb 2004, 2686 posts, RR: 6
Reply 10, posted (9 years 7 months 1 week 3 hours ago) and read 8109 times:

Has US made any response to Embaer's decision to stop delivery of the planes?

User currently offlineSPREE34 From United States of America, joined Jun 2004, 2195 posts, RR: 9
Reply 11, posted (9 years 7 months 1 week 3 hours ago) and read 7987 times:


"Has US made any response to Embaer's decision to stop delivery of the planes?"

What are they going to say? Give us the airplanes we can't pay for?



I don't understand everything I don't know about this.
User currently offlineAkjetblue From United States of America, joined Dec 2003, 790 posts, RR: 5
Reply 12, posted (9 years 7 months 1 week 1 hour ago) and read 7842 times:

SPREE34-

Why not? Since JetBlue "doesn't pay for their airplanes," why should US Airways?  Smile/happy/getting dizzy




Save a horse! Ride a Cowboy!
User currently offlineMD-90 From United States of America, joined Jan 2000, 8494 posts, RR: 12
Reply 13, posted (9 years 7 months 1 week ago) and read 7697 times:

Only a company in Alabama that manages people's retirements would be dumb enough to invest so heavily in US Airways.

It's going to be bad for Alabama taxpayers if US Airways goes under, strange as that seems.


User currently offlineFlybyguy From United States of America, joined Jun 2004, 1798 posts, RR: 1
Reply 14, posted (9 years 7 months 1 week ago) and read 7669 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
User currently offlineDutchjet From Netherlands, joined Oct 2000, 7864 posts, RR: 57
Reply 15, posted (9 years 7 months 1 week ago) and read 7602 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.


User currently offlineBENNETT123 From United Kingdom, joined Aug 2004, 7209 posts, RR: 3
Reply 16, posted (9 years 7 months 1 week ago) and read 7595 times:

The question is which supplier or leasor will be next?.

User currently offlineFLY777UAL From United States of America, joined May 1999, 4512 posts, RR: 3
Reply 17, posted (9 years 7 months 6 days 23 hours ago) and read 7560 times:

This could be perfect for United...73 unfilled spots.

F L Y 7 7 7 U A L


User currently offlineA330323X From United States of America, joined Oct 2003, 3039 posts, RR: 44
Reply 18, posted (9 years 7 months 6 days 23 hours ago) and read 7517 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.

---------------------------------------------------------------------------

And there you have it. Make things look bad, so the unions give in.



I'm the expert on here on two things, neither of which I care about much anymore.
User currently offlineNickofatlanta From Australia, joined May 2000, 1483 posts, RR: 0
Reply 19, posted (9 years 7 months 6 days 22 hours ago) and read 7194 times:

A33032X -
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!


User currently offlineUA777222 From United States of America, joined Dec 2003, 3348 posts, RR: 12
Reply 20, posted (9 years 7 months 6 days 21 hours ago) and read 6771 times:

Wait,

Are the 170's(?) that US is taking, are they for USX or US Airlines?

Thanks again.

UA777222



"It wasn't raining when Noah built the ark."
User currently offlineSegmentKing From , joined Dec 1969, posts, RR:
Reply 21, posted (9 years 7 months 6 days 21 hours ago) and read 6671 times:

well all union contracts can be voided by the bankruptcy judge, so it doesn't matter who USAirways is trying to convince of the bad financial position.

-n


User currently offlineFreshlove1 From , joined Dec 1969, posts, RR:
Reply 22, posted (9 years 7 months 6 days 21 hours ago) and read 6580 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.


User currently offlineAirframeAS From United States of America, joined Feb 2004, 14150 posts, RR: 25
Reply 23, posted (9 years 7 months 6 days 18 hours ago) and read 6058 times:

The real question is are any of the current EMB jets that US has...are they paid for. AND...does US owe any monies to EMB to the planes that have not been delivered or manufactured yet?


A Safe Flight Begins With Quality Maintenance On The Ground.
User currently offlineMariner From New Zealand, joined Nov 2001, 24638 posts, RR: 86
Reply 24, posted (9 years 7 months 6 days 18 hours ago) and read 6026 times:
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Freshlove1:

You don't really believe all that crap about JetBlue's supposed deal with Airbus, do you?

If you do, take a squizz at JetBlue's SEC filings - they'll show how much they are paying for the planes, both leased and purchased.

Airbus doesn't let a plane off the property until there is a full payment deal in place with a financier - a leasing company or a financing bank(s).

cheers

mariner



aeternum nauta
25 Flyibaby : Freshlove, B6 also doesnt have unions to deal with..big plus, and their planes are consistently full. When they don't see the potential they thought t
26 Post contains images B6FA4ever : just a quick comment regarding us (B6) starting service out of LGA. like some one mentioned above...we are only gonna fly LGA-FLL. that is ONLY 1 mark
27 777ER : UA777222 The EMB170s are all for US Express.
28 Post contains images Planemaker : "Wow!" This thread goes to show how important managing the media is. EMB announces after US Airways enters BK that it has "suspended" aircraft deliver
29 BENNETT123 : Clearly no one is going to continue deliveries unless they are going to be paid. If I was a leasor, I would be checking the contract.
30 Planemaker : Back in May, an analyst with JP Morgan said in a research note that GECAS does USD$2.7 billion worth of total business with US Airways. In a press rel
31 Regis : This thread goes to show how important managing the media is. EMB announces after US Airways enters BK that it has "suspended" aircraft deliveries and
32 Planemaker : Regis, there are a couple of points to draw which have nothing to do with "honour" and everything to do with business - BBD got the jump on EMB. Both
33 ChiGB1973 : "Only a company in Alabama that manages people's retirements would be dumb enough to invest so heavily in US Airways. It's going to be bad for Alabama
34 AZjetgeek : What seems overlooked in all the previous posts in this thread is that US placed the $4.3 billion order for RJ's through BBD and EMB in April 2003, a
35 UA777222 : I'm having issues understanding who own's what. Please help if possible. If a UAX CRJ is bought doesn't say Mesa or Chautauqua or Trans States Airline
36 Dasheighty : I was Thinking (Which is dangerous.) If Us Airways folds I wonder if Jet Blue And or southwest will Pick up those Embraer's that are being hold as wel
37 AZjetgeek : I actually emailed US a couple months ago about the subject of the duplication of aircraft from different manufacturers. For example, their USX fleet
38 FA4B6 : I know US and LOT are getting the the 170's, and jetBlue is getting the 190's. Who is getting delivery of the 175's and 195's?
39 Airways6max : This is not surprising, given that US has entered Chapter 11 for the second time in two years. No aircraft manufacturer will want to deliver planes to
40 Akjetblue : Didn't Air Canada order the 175s? Anyone else know who ordered the 175s or 195s? -Philzy
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