flyingbronco05
Posts: 3484
Joined: Fri May 10, 2002 11:43 am

US Airways Misses Airbus Plane Payments

Fri Feb 21, 2003 11:19 am

US Airways misses Airbus plane payments, in talks

"ARLINGTON, Va., Feb 20 (Reuters) - U.S. Airways Group Inc. (OTC BB:UAWGQ.OB - News) said on Thursday it had begun talks with European aircraft maker Airbus after failing to make certain payments on public debt instruments for five Airbus A330 planes."

More at: http://biz.yahoo.com/rf/030220/airlines_usairways_1.html

US Airways in Talks on Airbus A330 Aircraft Payments

"ARLINGTON, Va., Feb. 20 /PRNewswire-FirstCall/ -- US Airways, Inc. reported that it did not make certain payments due today on public debt instruments related to five Airbus A330 aircraft totaling $19.7 million. US Airways is currently in discussions with certain interested parties regarding these payments. The company anticipates reaching agreement on these payments during the 10 business-day cure period allowed for these payments."

More at: http://biz.yahoo.com/prnews/030220/nyth175_1.html
Never Trust Your Fuel Gauge
 
BR715-A1-30
Posts: 6525
Joined: Thu May 30, 2002 9:30 am

RE: US Airways Misses Airbus Plane Payments

Fri Feb 21, 2003 11:34 am

So what happens if they cannot make the payments? Does the Repo man come? If that happens, I could see those 330s going to NWA for a cheap price.
Puhdiddle
 
gigneil
Posts: 14133
Joined: Fri Nov 08, 2002 10:25 am

RE: US Airways Misses Airbus Plane Payments

Fri Feb 21, 2003 11:39 am

They will make the payments. Bronner is famous for pressuring Airbus.

N
 
LMP737
Posts: 4810
Joined: Wed May 08, 2002 4:06 pm

RE: US Airways Misses Airbus Plane Payments

Fri Feb 21, 2003 2:26 pm

Does the repo man come for the airplane? Well yes, in a way. Since U uses the A330 on it's USA-Europe runs it would not be that difficult for Airbus to take possession if they really wanted to. With that said repossesion will be the absolute last thing that Airbus will want to do.
Never take financial advice from co-workers.
 
User avatar
yyz717
Posts: 15689
Joined: Mon Sep 10, 2001 12:26 pm

RE: US Airways Misses Airbus Plane Payments

Fri Feb 21, 2003 3:04 pm

US Airways and Airbus are stuck with each other. Despite US financial issues, Airbus is no doubt delighted that US appears to be moving to an all-Airbus fleet, perhaps the largest in the world.
I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
Ryefly
Posts: 1324
Joined: Wed Jun 21, 2000 7:56 am

RE: US Airways Misses Airbus Plane Payments

Fri Feb 21, 2003 3:24 pm

It's a ploy by US Airways. They have a hearing tomorrow in court about the pilot pension issue. I am sure they are trying to make it very clear to the judge that they can't pay their bills with out cutting the pilots pensions. If it's not it is very good timing.
 
ouboy79
Posts: 4111
Joined: Sun Nov 18, 2001 1:48 pm

RE: US Airways Misses Airbus Plane Payments

Fri Feb 21, 2003 8:10 pm

Ryefly - very good, hardly anyone picked up on that. This is nothing but 1) painting a picture of financial restrictions the company has now with the pension issue not resolved and 2) getting better rates on the 330s. Airbus will not do anything to harm US Airways. This is a company that will continue to boost the use of their widebodies in this country and will likely move to replace the remaining 140+/- 737s on the property with 319/320/321s. I wouldn't be too shocked to see a 318 order eventually if it looks reliable enough.
 
N628AU
Posts: 355
Joined: Wed Oct 18, 2000 4:20 am

RE: US Airways Misses Airbus Plane Payments

Sat Feb 22, 2003 4:06 am

The planes would not be repossed by Airbus anyway. Airbus does not own them.
 
ScottB
Posts: 5447
Joined: Fri Jul 28, 2000 1:25 am

RE: US Airways Misses Airbus Plane Payments

Sat Feb 22, 2003 4:30 am

Just as a bit of a correction, the 737-300/400 fleet is down to 112 aircraft, not 140+. I honestly don't see big new orders of Airbus aircraft coming from US Airways for quite a while. Remember that they only "restructured" their existing orders (going from 37 A320-family aircraft and 1 A330-300 to 19 A320-family and 10 A330-200 aircraft) last month. And it seems pretty clear (to me, at least) that those A332's will replace the 767-200ER's, some of which will be hitting 20 years of age in 2007, when the 332's will be entering the fleet. If US Airways planned to be making large purchases of A320-family aircraft in the near future, I doubt they would have restructured that order.

If/when US Airways emerges from bankruptcy on March 31, half of the federal loan guarantee will go to repaying RSA's DIP financing. Now, RSA and GE will be injecting capital into the company at that time, so their cash position will probably be in the $1.2-1.5 billion range. But they also need to lay out money for regional jet purchases, according to the business plan, so I doubt they'll be buying much else until they achieve good, sustained profitability AND sufficient liquidity to pay down the $1 billion loan.

A lot of people are going to be holding their breath until the company and the pilots manage to come to some agreement regarding the pilots' pensions.
 
ouboy79
Posts: 4111
Joined: Sun Nov 18, 2001 1:48 pm

RE: US Airways Misses Airbus Plane Payments

Sat Feb 22, 2003 6:11 am

If UAL folds, than you will see an aircraft purchase to replace the 73s from the fleet - but they will be UAL's 319 & 320s. All of this will be financed by RSA which has already pledged money to fund any purchase of UAL assets.
 
acidradio
Crew
Posts: 1595
Joined: Mon Mar 12, 2001 3:19 pm

RE: US Airways Misses Airbus Plane Payments

Sat Feb 22, 2003 8:48 am

Note: US uses A319/A320 with CFM engines, UA has the IAE engines. I don't think that would mesh all that well together.
Ich haben zwei Platzspielen und ein Microphone