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U Gets More Time For Ch 11  
User currently offlineOuboy79 From United States of America, joined Nov 2001, 4611 posts, RR: 23
Posted (9 years 7 months 4 weeks 4 hours ago) and read 3039 times:

Reuters
US Airways Gets More Time to Reorganize
Thursday March 31, 11:41 am ET

ALEXANDRIA, Va. (Reuters) - A U.S. bankruptcy judge on Thursday gave US Airways until May 31 to file a reorganization plan without interference from creditors.

http://biz.yahoo.com/rb/050331/airlines_usairways.html?.v=2

Other details...Judge Mitchell approved the Republic financing deal contingent on US Airways getting at least another $100 million.

US Airways has until May 31st to file a POR and target exit is by August 31st. This obviously means that GECAS and other creditors have come to an agreement to delay the exit from Chapter 11.

My personal thoughts...they rushed through too quickly last time due to ATSB deadlines. This time they might as well attempt to get it right and not rush to things. Heck look at UAL...they've been dancing in front of the bench for nearly 3 years now.

17 replies: All unread, jump to last
 
User currently offlineNWAFA From United States of America, joined Dec 2003, 1893 posts, RR: 15
Reply 1, posted (9 years 7 months 4 weeks 4 hours ago) and read 3022 times:

US deserves more time...but UA on the other hand has had enough time..Im sure they will get another extenion here shortly instead of coming up with a plan.


THANK YOU FOR FLYING NORTHWEST AIRLINES, WE TRULY APPRECIATE YOUR BUSINESS!
User currently offline7E72004 From United States of America, joined Mar 2004, 3587 posts, RR: 2
Reply 2, posted (9 years 7 months 4 weeks 4 hours ago) and read 3014 times:

I don't see US staying in bankruptcy as long as UA has...i think US will get their act together and reorganize into a better and smaller airline.


The next generation of aircraft is just around the corner!
User currently offlineFriendlySkies From United States of America, joined Aug 2004, 4120 posts, RR: 5
Reply 3, posted (9 years 7 months 4 weeks 4 hours ago) and read 2975 times:

Quoting NWAFA (Reply 1):
US deserves more time...but UA on the other hand has had enough time..Im sure they will get another extenion here shortly instead of coming up with a plan.

Why does US deserve more time and UA doesn't? Let me remind you, US rushed through bankruptcy the first time, with a plan that obviously failed. UA is spending as long as possible to get every last penny out of the bankruptcy. UA is also a hell of a lot bigger than US, and there's a lot more to reorganize. I'm sure if NW was in bankruptcy for 2 years and wanted another extension, you'd be telling everyone how much they needed and deserved it...


User currently offlineCTHEWORLD From Mayotte, joined Dec 2004, 478 posts, RR: 2
Reply 4, posted (9 years 7 months 4 weeks 4 hours ago) and read 2928 times:

Quoting FriendlySkies (Reply 3):
Why does US deserve more time and UA doesn't? Let me remind you, US rushed through bankruptcy the first time, with a plan that obviously failed. UA is spending as long as possible to get every last penny out of the bankruptcy. UA is also a hell of a lot bigger than US, and there's a lot more to reorganize. I'm sure if NW was in bankruptcy for 2 years and wanted another extension, you'd be telling everyone how much they needed and deserved it...

Amen!


User currently offlineNWAFA From United States of America, joined Dec 2003, 1893 posts, RR: 15
Reply 5, posted (9 years 7 months 4 weeks 4 hours ago) and read 2913 times:

FriendlySky,

Should NWA been in B.K. for three years I would not say they would deserve to continue. Got I hope we don't do the BK dance, but that could very easily happen...but 3 years is way to long.

So NO I woulud not say that. I belive in crap or get off the pot. I went through it at PanAm, my first and biggest love.

US jumped out way too quick, we all know that, but they realized that and they are dancing back in BK...but UA is just abusing the system. 3 years and the plan is....................................................



THANK YOU FOR FLYING NORTHWEST AIRLINES, WE TRULY APPRECIATE YOUR BUSINESS!
User currently offlineBurnsie28 From United States of America, joined Aug 2004, 7557 posts, RR: 8
Reply 6, posted (9 years 7 months 4 weeks 4 hours ago) and read 2909 times:

Sorry but there is no reason that it should take UA over 2 years to file a plan, not to fully re-organize, id be surprised if they even have began the first word on the plan.


"Some People Just Know How To Fly"- Best slogan ever, RIP NW 1926-2009
User currently offline7E72004 From United States of America, joined Mar 2004, 3587 posts, RR: 2
Reply 7, posted (9 years 7 months 4 weeks 3 hours ago) and read 2887 times:

Isn't NW the more financially "stable" airline out of all of "legends?"


The next generation of aircraft is just around the corner!
User currently offlineOuboy79 From United States of America, joined Nov 2001, 4611 posts, RR: 23
Reply 8, posted (9 years 7 months 4 weeks 3 hours ago) and read 2868 times:

There comes a time when you use Chapter 11 for what it is meant to do...reorganize...and a time when you abuse it - avoid the costs of your competitors. Lets not turn this into a UAL vs U debate because both airlines are completely different. UAL is the old style legacy...U is the creature of multiple "locals" or regionals forged together through several misguided mergers.

As far as points on both...

U rushed through the first time, put a plan in place that was not forward thinking to skyrocketing fuel costs and wound up failing. Not many companies get a second chance...they have proven to be an airline that has some fight left in them to restructure.

UAL entered Ch11 all on the airline "going all in" in hopes of getting the ATSB loan. ATSB said no...3 times...and they were caught with no plan B. The shuffle of regional carriers with ACA becoming a competitor in IAD and AWAC investing heavily in a competitor/partner. UAL though has a significant international presence and a good network across the US...with some fine tuning they can definitely turn the corner.

I think the best solution for both airlines would be to transform into a new style LCC. One division of the company being international where the yeilds are decent and they make money, the other being a domestic low fare operation...similar to what America West did domestically.


User currently offlineAzul320 From United States of America, joined Jun 2004, 281 posts, RR: 0
Reply 9, posted (9 years 7 months 4 weeks 2 hours ago) and read 2798 times:

I still fail to understand how that company loses hundreds of millions quarterly, when they are under BK protection, progressively offered hundreds of millions by GECAS and 2 commuter airlines, secured $1.1 Billion dollars in annual labor savings, continue to cut unprofitable routes/planes, consolidate Airbus aircraft payments/cancel future orders and get back the $6 million deposit, outsource maintenance, cut their employee work force in half since 2001, close costly clubs and still lose money. How in the hell?? What clown is running that company? Psycho Bob?!

[Edited 2005-03-31 21:11:20]

[Edited 2005-03-31 21:14:09]

[Edited 2005-03-31 21:17:38]

[Edited 2005-03-31 21:28:43]


Excuse me, while I kiss the sky
User currently offlineIAHTowTeam From , joined Dec 1969, posts, RR:
Reply 10, posted (9 years 7 months 4 weeks 2 hours ago) and read 2769 times:

I am too also puzzled how United could still be losing money and have been in BK for over 2 years. I think United will eventually flounder. I really don't beleive there is a chance for UA. Given all the conditions and the protection that BK gives them and them still losing money....well, it doesn't take a rocket scientist to figure that one out.

I hate to see them go because of the loss of jobs and good poeple but these are the times we live in, mergers, takeovers, buyouts and bankruptcy. Don't ya love it~


User currently offlineTPASXM787 From United States of America, joined Mar 2005, 1730 posts, RR: 19
Reply 11, posted (9 years 7 months 4 weeks 2 hours ago) and read 2755 times:

US is trimming down and making themselves smaller, which is what they need to do. Ok, let's clear one thing up(and this comes straight from a US pilot) what wrecked US was MetroJet. Unlike Ted, where United is charging lower fares and overlaying other airlines' rounts, US overlaid THEMSELVES!!!  banghead 

This, combined with rising fuel costs, have really hurt US. They need to get back to what made them successful.

Actually, let's just bring back Piedmont.



This is the Last Stop.
User currently offlineAzul320 From United States of America, joined Jun 2004, 281 posts, RR: 0
Reply 12, posted (9 years 7 months 4 weeks 2 hours ago) and read 2737 times:

High fuel costs blah blah blah. First it was the LCC labor cost advantage, then they cut it by ONE BILLION a year. Ater that, same clutter of 'bad future for US' news articles...Now, they blame fuel.


Excuse me, while I kiss the sky
User currently offlineSonOfACaptain From United States of America, joined May 2004, 1747 posts, RR: 6
Reply 13, posted (9 years 7 months 3 weeks 6 days 22 hours ago) and read 2595 times:

Quoting Azul320 (Reply 12):
Now, they blame fuel.

...well because it is fuel.

-SOAC



Non Illegitimi Carborundum
User currently offlineYUL332LX From Canada, joined Feb 2004, 820 posts, RR: 1
Reply 14, posted (9 years 7 months 3 weeks 6 days 22 hours ago) and read 2575 times:

Quoting Azul320 (Reply 12):
High fuel costs blah blah blah. First it was the LCC labor cost advantage, then they cut it by ONE BILLION a year. Ater that, same clutter of 'bad future for US' news articles...Now, they blame fuel.

Amen to that! If they can't survive now with the supposedly high fuel price, then they can't survive at all.

Current oil prices are quickly becoming the new standard prices.



E volavo, volavo felice più in alto del sole, e ancora più su mentre il mondo pian piano spariva lontano laggiù ...
User currently offlineOuboy79 From United States of America, joined Nov 2001, 4611 posts, RR: 23
Reply 15, posted (9 years 7 months 3 weeks 6 days 22 hours ago) and read 2542 times:

Apparently as some of our armchair CEOs here seem to keep forgetting, every airline right now is scrambling to redo their business model (in some fashion) to adapt to higher fuel prices. DL has been rumored to be flirting with bankrupcty again, Continental is getting major cost reductions past through, and Northwest is taking similar cost cutting steps. Southwest is even needing to find ways to adjust to the higher fuel prices.

U has one more chance. We'll see what the POR has in it and see if their plan will make them profitable or if it will fail.


User currently offlineFriendlySkies From United States of America, joined Aug 2004, 4120 posts, RR: 5
Reply 16, posted (9 years 7 months 3 weeks 2 days 1 hour ago) and read 2329 times:

Quoting Ouboy79 (Reply 8):
I think the best solution for both airlines would be to transform into a new style LCC. One division of the company being international where the yeilds are decent and they make money, the other being a domestic low fare operation...similar to what America West did domestically.

You mean like what UA is doing with Ted?  Wink


User currently offlineOuboy79 From United States of America, joined Nov 2001, 4611 posts, RR: 23
Reply 17, posted (9 years 7 months 3 weeks 2 days ago) and read 2292 times:

More so where the majority of domestic ops going to the LCC format...so a wider scale than Ted and Song.

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