UALGSO From , joined Dec 1969, posts, RR: Posted (10 years 5 months 1 week 6 days 10 hours ago) and read 10060 times:
A summary below
ARLINGTON, Va., Feb. 18 /PRNewswire-FirstCall/ -- US Airways Group, Inc. today announced that it has reached agreement with Eastshore Aviation, LLC, an investment entity owned by Air Wisconsin Airlines Corp., and shareholders, on a $125 million financing commitment to provide a substantial portion of the equity funding for a plan of reorganization (POR).
The $125 million facility will be made in the form of a debtor-in- possession (DIP) term loan, to be drawn in the amount of $75 million (immediately upon approval by the U.S. Bankruptcy Court) and two subsequent $25 million increments. This loan would be second only to the Air Transportation Stabilization Board (ATSB) loan with regard to the company's assets that are pledged as collateral. Upon emergence from Chapter 11, the $125 million financing package would then convert to equity in the reorganized US Airways.
Air Wisconsin, based in Appleton, Wis., is the nation's largest privately held regional airline. In 2004, its 87 all-jet fleet generated approximately $700 million in revenue and flew more than 7 million passengers under the United Express brand. As part of this agreement, US Airways and Air Wisconsin will enter into an air services agreement under which Air Wisconsin may, but is not required to, provide regional jet service under the US Airways Express brand. Air Wisconsin's arrangements with United Airlines are unaffected by this agreement with US Airways.
Pretty interesting read...
Looks like AWAC just found a back up in case UA turns to another carrier.
ORDZW From United States of America, joined Aug 2004, 198 posts, RR: 3
Reply 1, posted (10 years 5 months 1 week 6 days 10 hours ago) and read 9903 times:
Originally, I was worried about this announcement, however I have a theory:
It might be possible that we are moving our 50 seat regionals to US Airways as a better fit, and then filling the United space with new, larger aircraft. This is something that I think United is looking for, and this may be a very positive move. I may just be looking at it through rose-colored lenses, but I have to stay positive!
ERJ170 From United States of America, joined Apr 2004, 6825 posts, RR: 16
Reply 4, posted (10 years 5 months 1 week 6 days 9 hours ago) and read 9818 times:
Hmm... this could be interesting.. ZW already basically owns UA at RDU... perhaps they will get a lot of the US at RDU also.. then they will have both sides of the terminal..
Or perhaps ZW could be looking at the future.. a hostile takeover.. and could run US themselves.. and then won't have to worry about UA and their contracts.. then, unlike DH.. they will be starting with established routes.. established aircraft.. and an already established name.. sounds like a plan to me..
CasInterest From United States of America, joined Feb 2005, 5331 posts, RR: 3
Reply 10, posted (10 years 5 months 1 week 6 days 9 hours ago) and read 9701 times:
This seems like a way to keep the major's operating , by being supported from the regionals. Maybe since US Airways is so close to the brink, this is a way for "United" to help out a code share partner. However Mesa, and Chautauqua are not involved which makes me wonder what exactly is going on at ZW. Could this also be leverage for them in the case that United dumps their contract and goes with another of the regional carriers?
Older than I just was ,and younger than I will soo be.
SHUPirate1 From United States of America, joined Sep 2003, 3670 posts, RR: 15
Reply 12, posted (10 years 5 months 1 week 6 days 9 hours ago) and read 9687 times:
ERJ-Isn't AWAC among the better regionals out there? I know they don't quite compare to Chautauqua (who is excellent), but AWAC simply has a massive problem right next to Lake Michigan, and with a certain Elk Grove-based airline taking all of their ATC flow ground delay slots.
Burma's constitutional referendum options: A. Yes, B. Go to Insein Prison!
ERJ170 From United States of America, joined Apr 2004, 6825 posts, RR: 16
Reply 13, posted (10 years 5 months 1 week 6 days 9 hours ago) and read 9652 times:
I have flown United a total of 2 times.. both were RDU-ORD-OAK...
The over all experience I hated.. not the actual flights, but the handling of me as a customer by United..
On all 8 legs.. the United system somehow cancelled all my seat reserves and put me at the back of the plane like I was supposed to be Rosa Parks.. that ticketed me off.. but on all the RDU-ORD and ORD-RDU flights, it was on the Bae146.. and those flights and crews were very good.. so I would have to say, from my limited experience, that ZW was pretty good.. hopefully US will let ZW have assigned and make up some of their own routes.. if they get E170 for them (or even E190) then that would be freaking awesome!
A330323X From United States of America, joined Oct 2003, 3039 posts, RR: 40
Reply 14, posted (10 years 5 months 1 week 6 days 9 hours ago) and read 9639 times:
A few comments:
Anyone who thinks that this is over and that Air Wisconsin is going to walk away with US at this price is absolutely crazy.
I agree that this provides ZW with a spot to place their CRJ-200 equipment in the event they are unable to renew their UA contract. The fact that ZW is not required to operate as US Airways Express makes perfect sense; they would prefer to keep the UA flying, and will only operate for US if necessary.
This will also greatly help US in renegotiating their existing RJ contracts with Chautauqua, Trans States, and *especially* Mesa, by providing US with another source of RJ feed.
As for ZW flying as US Airways Express, they could fly lots and lots of CRJ-200/700/900 equipment as US Airways Express. The US ALPA contract does not permit anyone other than MidAtlantic to fly the EMB-170. There is a scenario in which an affiliate US Airways Express carrier could be permitted to operate up to 25x EMB-190. Obviously, the BAe 146 falls under the scope of US mainline, as US mainline previously operated the type.
I'm the expert on here on two things, neither of which I care about much anymore.
Allstarflyer From , joined Dec 1969, posts, RR:
Reply 15, posted (10 years 5 months 1 week 6 days 9 hours ago) and read 9619 times:
Well, because I was concerned for them that UA may want to go with bidders other than ZW leaving them on the short end or out of UX flying, I'm glad ZW could get this deal. I'm confident they could serve US profitably.
Mojo89 From United States of America, joined Feb 2004, 123 posts, RR: 1
Reply 18, posted (10 years 5 months 1 week 6 days 7 hours ago) and read 9310 times:
Wow. Didn't see this one coming at all. From reading the press release and Q&A, this thing looks great overall! Our owners never cease to amaze me. It will be very interesting to see how this plays out. Seems like the worst case scenario so far is Eastshore Aviation gets its money back if US Air goes belly-up. Looks like we've definitely got a solid alternative to UA now! Sweet.
When the going gets weird, the weird turn pro. -Dr. Hunter S. Thompson
Ouboy79 From United States of America, joined Nov 2001, 4646 posts, RR: 22
Reply 20, posted (10 years 5 months 1 week 6 days 6 hours ago) and read 9182 times:
This is definitely a bit of a shock as others have said. What this means? Couple scenerios...
1) Absolutely nothing then what has been stated...a way for Wiskey to hedge against UAL should that deal fall out.
2) Setups the eventual investment by Sir Richard. Current ownership break down is RSA ~40%, GE ~10%, ALPA ~20%, followed by the other unions and creditors that picked up stock after the last Ch11. The stock will likely be eliminated, again, and shares reissued. We will probably see something like:
RSA - 26%, AWAC - 20%, GE - 10%, Unions - 20%, and Sir Richard with 24%. This will give Branson with the maximum amount allowed of voting stock. Once the common stock is issued I would expect Branson to get the maximum 49% with the rest going to the other preferred stock holders and the general public (probably OTC until they get relisted on NASDAQ).
3) Sets up the irony of a regional buying the legacy made from regionals. Air Wiskey can become the primary feeder for US Airways and absorb the operation of Piedmont and PSA. Mid Atlantic will remain a branch of mainline since their payscale is much lower than those at AWAC. Also there would be the issue of the 146s as they would not be able to fly under the US Airways banner unless they were mainline - once a mainline plane always a mainline plane. Of course not sure how excited AWAC will be to fly Dash 8s again...but imagine if it opens up the opportunity to get a fleet of Q400s in here.
What ever happens is up in the air right now and we probably won't know for a few more months. One thing is becoming clear...she ain't dead yet and got some more life today.
N1120A From United States of America, joined Dec 2003, 27801 posts, RR: 74
Reply 21, posted (10 years 5 months 1 week 6 days 5 hours ago) and read 9093 times:
>Maybe Air Wisconsin is trying to take over US ala Swissair/Crossair.<
That is not what happened with SR/LX. SR actually owned a controlling share in LX. When SAirGroup went bankrupt, that freed LX which, with help from the Swiss Government, took over most of SR's fleet from the banks and became Swiss.
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
J32driver From United States of America, joined May 2000, 399 posts, RR: 1
Reply 22, posted (10 years 5 months 1 week 5 days 20 hours ago) and read 8854 times:
You guys are reading way to much into this. Its a hedge against UAL... thats all.
UAL keeps AWAC.... The $125m will eventually return to AWAC with interest.
UAL dumps AWAC.... They place 70 RJs with US
US liquidates.... The amigos running AWAC have claimed DIP behind only the ATSB.
The guys running AWAC are pretty darned smart. They have made it this far on nothing but private money. When your risking your own money and not the stockholders, you will make better decisions. I say again... these guys are smart.
ATWZW170 From United States of America, joined Oct 2004, 904 posts, RR: 3
Reply 23, posted (10 years 5 months 1 week 5 days 20 hours ago) and read 8827 times:
I have to agree with ORDZW...this is awesome news for us. The 50 seat RJ's go to the US Airways system, we order larger EMB-190, that can fly in either the US OR UA systems...or the CRJ700, CRJ900 and fly those for UA...it's a total win win. If we fly for US Airways, we have the right to basically bump out another express carrier....probably Mesa...would really love to screw Mesa seeing as how they have screwed every other regional by paying very low wages and making the good ones, like ZW, have to become more competitive by cutting wages....and someone asked how does Indy play out in all this...they don't. I don't see why anyone would think that.
Can't wait to see what comes out next week!
Success is getting what you want...happiness is liking what you get