Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
US Airways, Revisited.  
User currently offlineBrons2 From United States of America, joined Sep 2001, 3013 posts, RR: 4
Posted (12 years 2 months 3 days 11 hours ago) and read 1176 times:

Most troubling about the latest loss: Revenue loss accelerated in the 2nd quarter. This makes me believe that customers also have no confidence in the financial stability of the airline and are buying tickets elsewhere for fear of US going under. I believe, despite the loss of jobs, that the country would be best served by letting US go under. There just isn't enough that can be done fast enough to save this airline. The $900 million will just stop the bleeding for a year at most.


[from reuters, unessenital information deleted]
After posting a massive increase in second quarter net losses, US Airways sources have warned that the airline may yet have to file for bankruptcy protection unless its financial problems are resolved.

The carrier lost USD$248 million against USD$24 million in the same period last year. Revenue dropped from USD$2.49 billion in 2001 to USD$1.9 billion this year.

The company said that as a result of previously announced payment deferrals related to aircraft lessors and lenders it is currently in default on certain public and private debt obligations.

The success of its restructuring program is crucial to US Airways future as it seeks to win concessions from its employees and meet the requirements for a USD$900 million federal loan guarantee for which it has won conditional approval.

The airline, which has reduced capacity by 20 percent, saw second-quarter traffic fall by 19 percent. Operating loss for the first half of the year was USD$545 million, compared to USD$208 million for the first six months of 2001.



Firings, if well done, are good for employee morale.
11 replies: All unread, jump to last
 
User currently offlineNorthwest_guy From United States of America, joined Jul 2001, 217 posts, RR: 4
Reply 1, posted (12 years 2 months 3 days 10 hours ago) and read 1140 times:

I agree that it is only a matter of time before US Airways goes under. Everyday it seems that they slip closer and closer. It is rare to hear positive news about them when it comes to finances. I would bet that within a year and a half they'll be gone.

User currently offlineJohn From United States of America, joined exactly 15 years ago today! , 1374 posts, RR: 5
Reply 2, posted (12 years 2 months 3 days 10 hours ago) and read 1123 times:

Look at the staggering loss the almighty AA just posted for chris sakes, 495 mil! US Airways IS NOT alone with it's financial woes. The airlne industry as a whole, is in turmoil. Everbody loves to point the finger at US Airways! And even though WN may have posted a profit, it's revenues are WAY DOWN, folks.

User currently offlineDelta777 From United States of America, joined Mar 2000, 658 posts, RR: 0
Reply 3, posted (12 years 2 months 3 days 6 hours ago) and read 1065 times:

I think that in the long term US Airways will be here. I hope. They have a superior product compared to most other domestic Airlines and I feel Dave Siegel (spelling??) will do a good job.

D E L T A 7 7 7


User currently offlineN79969 From , joined Dec 1969, posts, RR:
Reply 4, posted (12 years 2 months 3 days 6 hours ago) and read 1044 times:

DELTA 777, I have noticed you are huge USAirways fan which is funny considering your ID. That's cool though.

User currently offlineBrons2 From United States of America, joined Sep 2001, 3013 posts, RR: 4
Reply 5, posted (12 years 2 months 3 days 3 hours ago) and read 1011 times:

Look at the staggering loss the almighty AA just posted for chris sakes, 495 mil! US Airways IS NOT alone with it's financial woes. The airlne industry as a whole, is in turmoil. Everbody loves to point the finger at US Airways! And even though WN may have posted a profit, it's revenues are WAY DOWN, folks.

Yes, but American has a lot more cash to burn than does USAir. Furthermore, AA's credit rating is stellar, compared to other US based majors. This makes a huge difference in the ability to run a business. US will have to pay probably double the interest on anything they purchase, adding to an already bloated cost structure.



Firings, if well done, are good for employee morale.
User currently offlineAA717driver From United States of America, joined Feb 2002, 1566 posts, RR: 13
Reply 6, posted (12 years 2 months 3 days ago) and read 990 times:

AA has $8 B-I-L-L-I-O-N in unencumbered assets as of today. USAir has some note pads and typewriters that are unencumbered(thanks to that airline management genius, Stephen["don't call me Steve"] Wolf). Bit of a difference.TC


FL450, M.85
User currently offline747-451 From United States of America, joined Oct 2000, 2417 posts, RR: 6
Reply 7, posted (12 years 2 months 2 days 23 hours ago) and read 969 times:

US Airways just "took over" Midway who will operate MetroJet service with a few planes. A 4 line article was in the paper today...


747-451


User currently offlineFlashmeister From United States of America, joined Apr 2000, 2900 posts, RR: 6
Reply 8, posted (12 years 2 months 2 days 22 hours ago) and read 961 times:
Support Airliners.net - become a First Class Member!

Correction: Midway will operate as a USExpress carrier, not MetroJet, which is no more.

User currently offline747-451 From United States of America, joined Oct 2000, 2417 posts, RR: 6
Reply 9, posted (12 years 2 months 2 days 22 hours ago) and read 950 times:

Thanks for the correctiion, I knew it was something like that...

User currently offlineAASTEW From Dominican Republic, joined Oct 2001, 447 posts, RR: 1
Reply 10, posted (12 years 2 months 2 days 20 hours ago) and read 936 times:

AA's finanicial status is better than USAirways. AA has made plenty of money in it's day. (OLD MONEY) Besides, AA is triple the size and has more responsiblity than USAirways.

AASTEW@LGA


User currently offlineJohn From United States of America, joined exactly 15 years ago today! , 1374 posts, RR: 5
Reply 11, posted (12 years 2 months 2 days 11 hours ago) and read 910 times:

Also, look at UNITED's huge loss for the 2nd quarter! Their stock, (as are most airline stocks, right now) is junk. A very sad state of affairs in the airline industry at the moment.

Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
US Airways A La Carte Service Cranks Up August 1st posted Wed Jul 30 2008 16:36:12 by Elcableguy77
Please Help Me Understand This US Airways Agent posted Tue Jul 22 2008 03:08:13 by Jhooper
US Airways West(AWA) 757 With Winglets posted Mon Jul 21 2008 13:34:05 by Bkircher
US Airways MAN-PHL - Downgraded To 757? posted Sat Jul 19 2008 14:27:02 by Gilesdavies
US Airways Dispatchers Deny Shaving Fuel Supplies posted Thu Jul 17 2008 19:44:49 by Mercure1
US Airways Puts The 757 Back On Transcons posted Tue Jul 15 2008 15:14:45 by PanAm330
US Airways Registration Help! posted Mon Jul 14 2008 17:17:46 by DesertFlyer
The Fate Of US Airways posted Mon Jul 14 2008 01:16:31 by FastEddie07
US Airways Continues On-time Trend, #3 For May posted Mon Jul 7 2008 12:26:42 by IliriBDL
US Airways And Air China Sign Code-sharing Deal posted Mon Jun 23 2008 08:44:31 by IliriBDL