Republic From Canada, joined Dec 2012, 0 posts, RR: 0 Posted (13 years 9 months 1 day 18 hours ago) and read 1180 times:
From Travel Weekly:
National gets financing; expects Ch. 11 exit (9/5/2002)
'The unwavering support of our loyal and growing customer base and our travel agent partners cannot be overemphasized.'
LAS VEGAS -- National Airlines, flying under Chapter 11 bankruptcy protection since December 2000, reached a deal on a $112 million financing package and said it expects to emerge from bankruptcy protection in October.
The financing package is valued at $112 million, the airline said Sept. 4. National said it also reduced its annual operating expenses by about $50 million through renegotiated aircraft lease rates and vendor contracts and employee pay cuts.
Management and pilots are taking the biggest cuts, National said.
Michael Conway, National's president and chief executive, thanked the employees, lessors, investor Harrah's Entertainment and other key creditors, but also two other groups: "The unwavering support of our loyal and growing customer base and our travel agent partners cannot be overemphasized," he said.
The financial package would seem to save National, which faced a potential shutdown after the Air Transportation Stabilization Board Aug. 14 rejected the airline's request for a $55.5 million federal loan guarantee.
In related news, National said it is postponing its return of service to Washington National, previously scheduled to begin Oct. 3, and will temporarily discontinue its Chicago Midway service Oct. 1. The airline continues to serve Washington via Dulles Airport, and Chicago via O'Hare.
National still plans to begin new service to Reno/Tahoe Oct. 3 with four daily flights, and new season service to West Palm Beach beginning Nov. 21.
OPNLguy From , joined Dec 1969, posts, RR:
Reply 4, posted (13 years 9 months 1 day 14 hours ago) and read 1086 times:
Personally, I hope they make it...
That said, this fellow's post (from another board) has some interesting perspective...
by: prechilill (31/M/Las Vegas, NV)
09/05/02 12:56 am
Msg: 25609 of 25717
Don't have too much time to share my good thoughts tonight (so much studying to do still), but a few comments on Conway's latest play. First, I congratulate Conway on a very good move to play in the public eye a financing deal. Although, to a reader with above-average reasoning, there are warning flags about this whole thing. Instead of a play- winning touchdown, it may be nothing more than a delay of game penalty. Specifically, the timing is critical, and although well-written, it is obviously a "check in the mail" one line statement crammed into an entire page. Financing deals, especially of this magnitude, usually have multiple releases (like in a proposed merger), so I anxiously await the follow-on release from ILFC, GECAS (or maybe Planners Bank in Atlanta). Second, this release exclaims one thing: it's showtime Friday for Conway. His back is against the wall and the nine lives have been used, no more get out of jail free cards. The desperation of this release is shown in the timing of it and a complete lack of concrete facts. To a neutral outside observer, this is more obvious than perhaps to a person whose job depends on the outcome of Friday's court date. I hope for the employees they will come out ok, but logically the final act is going to be played. I think it will happen Friday evening. Again, all the best to the National team, they have put up a good fight.
EA CO AS From United States of America, joined Nov 2001, 15368 posts, RR: 60
Reply 5, posted (13 years 9 months 1 day 14 hours ago) and read 1061 times:
While it's sad to see any airline go out of business, I'm in agreement with B747-437B's analysis. But hey, way to go Mike. You've succeeded in beating the reaper for the time being.
Of course, it's just a matter of time before we're right back here again. It may be six months or a year from now, but mark my words: if National does NOT drastically change their business model, we'll be back to square one.
In the meantime, they'll still artificially drag down the average fares on any market they serve by offering fares below their costs in an attempt to boost their cash position.
So all their competitors (who, for the most part, have somewhat sound business models to/from LAS) are forced to take it in the shorts while this schizophrenic company figures out who it wants to be today.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
Srbmod From , joined Dec 1969, posts, RR:
Reply 6, posted (13 years 9 months 1 day 13 hours ago) and read 1030 times:
You know the old joke about the definition of a boat: "A hull in the water into which you throw money into." This definitely holds true for National Airlines as well. How do you make a million dollars in the airline industry? Spend $100 million. National may have used another one of its' lives, but how many more times can they cheat fate? I hope Mike Conway has the phone #s of some other airline CEOs on speed dial, because that's what he'll end up having to do. Banks will only finance you so much, and then after that other companies will only do so under stricter terms. I doubt Boeing will want to help out another airline as well. National Airlines as we currently know it is on life support; it will more than likely go through a little surgery after getting rescued by another outfit.