Supa7E7--Well... TWA carried their A330 orders on the books as a liability (along with the RR
Trent's that came with them). It impacted TWA's credit rating and was finally negotiated away when TWA converted them to A318 orders.
As for the rest of the post. After being through three bankruptcies with TWA and a brush with Ch.11 at AA
and having intimate knowlege of the proceedings from a member of the creditor's committee on the last TWA filing, AND
being on the APA BOD
for the discussions and briefings prior to the brush with Ch. 11, I stand by my comments on the hurdles any company in Ch.11 faces when emerging from bankruptcy.
Because of its credit rating, TWA was paying as much for their MD80's as they would for a 757 at market rates. They had to go back to Carl Icahn to borrow money (in the mid-90's when money was flowing freely) because they couldn't get it anywhere else.
My kid may be able to order an A320. Whether he can pay for it is another matter. AND
, more importantly (since my post had nothing to do with USAir's ability to order airplanes and everything to do with wanting to clear a liability off the balance sheet) having the A320 order on his balance sheet will negatively impact his ability to borrow money from me to buy more Yugi-Oh cards.