brons2
Posts: 2462
Joined: Tue Sep 25, 2001 1:02 pm

US Airways, Revisited.

Sat Jul 20, 2002 1:06 am

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.
 
northwest_guy
Posts: 210
Joined: Sat Jul 21, 2001 12:27 pm

RE: US Airways, Revisited.

Sat Jul 20, 2002 2:21 am

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.
 
John
Posts: 1253
Joined: Sat Sep 18, 1999 10:47 am

RE: US Airways, Revisited.

Sat Jul 20, 2002 2:34 am

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.
 
DELTA777
Posts: 637
Joined: Tue Mar 07, 2000 6:34 am

RE: US Airways, Revisited.

Sat Jul 20, 2002 5:46 am

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
 
N79969
Posts: 6605
Joined: Tue Jan 29, 2002 1:43 am

RE: US Airways, Revisited.

Sat Jul 20, 2002 6:13 am

DELTA 777, I have noticed you are huge USAirways fan which is funny considering your ID. That's cool though.
 
brons2
Posts: 2462
Joined: Tue Sep 25, 2001 1:02 pm

RE: US Airways, Revisited.

Sat Jul 20, 2002 9:05 am

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.
 
AA717driver
Posts: 1502
Joined: Tue Feb 12, 2002 8:27 am

RE: US Airways, Revisited.

Sat Jul 20, 2002 12:26 pm

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
 
747-451
Posts: 2327
Joined: Wed Oct 04, 2000 5:50 am

RE: US Airways, Revisited.

Sat Jul 20, 2002 1:11 pm

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
 
flashmeister
Posts: 2671
Joined: Fri Apr 28, 2000 4:32 am

RE: US Airways, Revisited.

Sat Jul 20, 2002 1:58 pm

Correction: Midway will operate as a USExpress carrier, not MetroJet, which is no more.
 
747-451
Posts: 2327
Joined: Wed Oct 04, 2000 5:50 am

RE: US Airways, Revisited.

Sat Jul 20, 2002 2:41 pm

Thanks for the correctiion, I knew it was something like that...
 
AASTEW
Posts: 418
Joined: Sat Oct 06, 2001 10:47 am

RE: US Airways, Revisited.

Sat Jul 20, 2002 3:57 pm

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
 
John
Posts: 1253
Joined: Sat Sep 18, 1999 10:47 am

RE: US Airways, Revisited.

Sun Jul 21, 2002 1:23 am

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.

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