UALGSO
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US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 8:26 am

A summary below

ARLINGTON, Va., Feb. 18 /PRNewswire-FirstCall/ -- US Airways Group, Inc. today announced that it has reached agreement with Eastshore Aviation, LLC, an investment entity owned by Air Wisconsin Airlines Corp., and shareholders, on a $125 million financing commitment to provide a substantial portion of the equity funding for a plan of reorganization (POR).
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The $125 million facility will be made in the form of a debtor-in- possession (DIP) term loan, to be drawn in the amount of $75 million (immediately upon approval by the U.S. Bankruptcy Court) and two subsequent $25 million increments. This loan would be second only to the Air Transportation Stabilization Board (ATSB) loan with regard to the company's assets that are pledged as collateral. Upon emergence from Chapter 11, the $125 million financing package would then convert to equity in the reorganized US Airways.

Air Wisconsin, based in Appleton, Wis., is the nation's largest privately held regional airline. In 2004, its 87 all-jet fleet generated approximately $700 million in revenue and flew more than 7 million passengers under the United Express brand. As part of this agreement, US Airways and Air Wisconsin will enter into an air services agreement under which Air Wisconsin may, but is not required to, provide regional jet service under the US Airways Express brand. Air Wisconsin's arrangements with United Airlines are unaffected by this agreement with US Airways.

Pretty interesting read...
Looks like AWAC just found a back up in case UA turns to another carrier.

[Edited 2005-02-19 00:28:19]

[Edited 2005-02-19 00:31:03]
 
ORDZW
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 8:54 am

Originally, I was worried about this announcement, however I have a theory:

It might be possible that we are moving our 50 seat regionals to US Airways as a better fit, and then filling the United space with new, larger aircraft. This is something that I think United is looking for, and this may be a very positive move. I may just be looking at it through rose-colored lenses, but I have to stay positive!

It is worrying, but exciting at the same time!

What do you think?
9E, AA, AQ, AX, BA, CO, CP, DH, DL, EV, F9, FL, HA, HP, KL, NK, NW, OH, OO, QX, RP, RW, S5, TW, UA, US, WN, YV, ZK, ZW
 
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ERJ170
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 9:02 am

Perhaps this is the reason ZW was looking at the E170???
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FriendlySkies
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 9:06 am

Wait, it says they aren't required to fly for US Airways Express...this could get interesting...
 
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ERJ170
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 9:11 am

Hmm... this could be interesting.. ZW already basically owns UA at RDU... perhaps they will get a lot of the US at RDU also.. then they will have both sides of the terminal..

Or perhaps ZW could be looking at the future.. a hostile takeover.. and could run US themselves.. and then won't have to worry about UA and their contracts.. then, unlike DH.. they will be starting with established routes.. established aircraft.. and an already established name.. sounds like a plan to me..
Aiming High and going far..
 
ORDZW
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 9:13 am

Quoting FriendlySkies (reply 3):
it says they aren't required to fly for US Airways Express


That's what was weird to me, too.

It is very exciting, hopefully we'll hear something about the United side soon...



Edit to correct spelling

[Edited 2005-02-19 01:15:53]
9E, AA, AQ, AX, BA, CO, CP, DH, DL, EV, F9, FL, HA, HP, KL, NK, NW, OH, OO, QX, RP, RW, S5, TW, UA, US, WN, YV, ZK, ZW
 
solehibob
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 9:18 am

I wonder how this spins into the Indy Air situation?
 
SHUPirate1
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 9:21 am

Quoting ERJ170 (reply 4):
Or perhaps ZW could be looking at the future.. a hostile takeover.. and could run US themselves..


And how much of a stake exactly do you think $125 million would give AWAC in the carrier?
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FriendlySkies
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 9:22 am

Quoting SHUPirate1 (reply 7):
And how much of a stake exactly do you think $125 million would give AWAC in the carrier?


100%

j/k  Big grin
 
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ERJ170
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 9:24 am

well, if ZW was good.. I'd say all they need 51%
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casinterest
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 9:25 am

This seems like a way to keep the major's operating , by being supported from the regionals. Maybe since US Airways is so close to the brink, this is a way for "United" to help out a code share partner. However Mesa, and Chautauqua are not involved which makes me wonder what exactly is going on at ZW. Could this also be leverage for them in the case that United dumps their contract and goes with another of the regional carriers?
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avek00
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 9:26 am

*mindless a.net armchair CEO hat on*

Maybe Air Wisconsin is trying to take over US ala Swissair/Crossair.

*mindless a.net armchair CEO hat off*
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SHUPirate1
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 9:27 am

ERJ-Isn't AWAC among the better regionals out there? I know they don't quite compare to Chautauqua (who is excellent), but AWAC simply has a massive problem right next to Lake Michigan, and with a certain Elk Grove-based airline taking all of their ATC flow ground delay slots.
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ERJ170
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 9:33 am

SHUPirate1..

I have flown United a total of 2 times.. both were RDU-ORD-OAK...

The over all experience I hated.. not the actual flights, but the handling of me as a customer by United..

On all 8 legs.. the United system somehow cancelled all my seat reserves and put me at the back of the plane like I was supposed to be Rosa Parks.. that ticketed me off.. but on all the RDU-ORD and ORD-RDU flights, it was on the Bae146.. and those flights and crews were very good.. so I would have to say, from my limited experience, that ZW was pretty good.. hopefully US will let ZW have assigned and make up some of their own routes.. if they get E170 for them (or even E190) then that would be freaking awesome!
Aiming High and going far..
 
A330323X
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 9:34 am

A few comments:

Anyone who thinks that this is over and that Air Wisconsin is going to walk away with US at this price is absolutely crazy.

I agree that this provides ZW with a spot to place their CRJ-200 equipment in the event they are unable to renew their UA contract. The fact that ZW is not required to operate as US Airways Express makes perfect sense; they would prefer to keep the UA flying, and will only operate for US if necessary.

This will also greatly help US in renegotiating their existing RJ contracts with Chautauqua, Trans States, and *especially* Mesa, by providing US with another source of RJ feed.

As for ZW flying as US Airways Express, they could fly lots and lots of CRJ-200/700/900 equipment as US Airways Express. The US ALPA contract does not permit anyone other than MidAtlantic to fly the EMB-170. There is a scenario in which an affiliate US Airways Express carrier could be permitted to operate up to 25x EMB-190. Obviously, the BAe 146 falls under the scope of US mainline, as US mainline previously operated the type.
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allstarflyer
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 9:39 am

Well, because I was concerned for them that UA may want to go with bidders other than ZW leaving them on the short end or out of UX flying, I'm glad ZW could get this deal. I'm confident they could serve US profitably.

-R
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A330323X
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 9:47 am

I just noticed that no one had actually posted the link.

Here's the press release: http://www.usairways.com/about/press/nw_05_0218.htm

And a Q&A: http://www.usairways.com/about/press/qa_eastshore.htm
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SegmentKing
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 10:12 am

Scary to think that a major regional airline like AWAC is helping bail out a legacy, USAirways.

AWAC has always been one of the most finacially sound of all regional airlines, this move doesn't surprise me although I would have suspected they'd invest a lot more money.

-n
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mojo89
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 11:41 am

Wow. Didn't see this one coming at all. From reading the press release and Q&A, this thing looks great overall! Our owners never cease to amaze me. It will be very interesting to see how this plays out. Seems like the worst case scenario so far is Eastshore Aviation gets its money back if US Air goes belly-up. Looks like we've definitely got a solid alternative to UA now! Sweet.
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PSU.DTW.SCE
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 11:52 am

Sounds like somewhat of a win-win for AirWhisky.

ZW could remain flying for United, and not do any flying for US

If United drops them, they go and fly for US.
Probably screwing Mesa.

And the musical chairs game of regional airlines continues.
 
ouboy79
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 12:32 pm

This is definitely a bit of a shock as others have said. What this means? Couple scenerios...

1) Absolutely nothing then what has been stated...a way for Wiskey to hedge against UAL should that deal fall out.

or...

2) Setups the eventual investment by Sir Richard. Current ownership break down is RSA ~40%, GE ~10%, ALPA ~20%, followed by the other unions and creditors that picked up stock after the last Ch11. The stock will likely be eliminated, again, and shares reissued. We will probably see something like:

RSA - 26%, AWAC - 20%, GE - 10%, Unions - 20%, and Sir Richard with 24%. This will give Branson with the maximum amount allowed of voting stock. Once the common stock is issued I would expect Branson to get the maximum 49% with the rest going to the other preferred stock holders and the general public (probably OTC until they get relisted on NASDAQ).

or...

3) Sets up the irony of a regional buying the legacy made from regionals. Air Wiskey can become the primary feeder for US Airways and absorb the operation of Piedmont and PSA. Mid Atlantic will remain a branch of mainline since their payscale is much lower than those at AWAC. Also there would be the issue of the 146s as they would not be able to fly under the US Airways banner unless they were mainline - once a mainline plane always a mainline plane. Of course not sure how excited AWAC will be to fly Dash 8s again...but imagine if it opens up the opportunity to get a fleet of Q400s in here.

What ever happens is up in the air right now and we probably won't know for a few more months. One thing is becoming clear...she ain't dead yet and got some more life today.
 
N1120A
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 1:20 pm

>Maybe Air Wisconsin is trying to take over US ala Swissair/Crossair.<

That is not what happened with SR/LX. SR actually owned a controlling share in LX. When SAirGroup went bankrupt, that freed LX which, with help from the Swiss Government, took over most of SR's fleet from the banks and became Swiss.
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J32driver
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 10:52 pm

You guys are reading way to much into this. Its a hedge against UAL... thats all.

UAL keeps AWAC.... The $125m will eventually return to AWAC with interest.
UAL dumps AWAC.... They place 70 RJs with US
US liquidates.... The amigos running AWAC have claimed DIP behind only the ATSB.

The guys running AWAC are pretty darned smart. They have made it this far on nothing but private money. When your risking your own money and not the stockholders, you will make better decisions. I say again... these guys are smart.
 
ATWZW170
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 11:09 pm

I have to agree with ORDZW...this is awesome news for us. The 50 seat RJ's go to the US Airways system, we order larger EMB-190, that can fly in either the US OR UA systems...or the CRJ700, CRJ900 and fly those for UA...it's a total win win. If we fly for US Airways, we have the right to basically bump out another express carrier....probably Mesa...would really love to screw Mesa seeing as how they have screwed every other regional by paying very low wages and making the good ones, like ZW, have to become more competitive by cutting wages....and someone asked how does Indy play out in all this...they don't. I don't see why anyone would think that.

Can't wait to see what comes out next week!
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AA717driver
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RE: US Airways Reaches $125 Million Agreement With ZW

Sat Feb 19, 2005 11:35 pm

A330323X--I'm assuming you still believe your CBA is worth more than the paper it's written on?

Have they not proved that they can impose any contract they want? All they have to do is rattle the 1113 sabre again and 'viola!' your SCOPE allows 100 seaters.

Good luck.TC
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ATWZW170
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RE: US Airways Reaches $125 Million Agreement With ZW

Sun Feb 20, 2005 2:08 am

I don't think that Air Wisconsin wants to keep the 146. When we had a revenue share contract, we made tons of money thanks to ASE...now that it's a fee for departure, it doesn't matter....so I don't believe you will see the 146 transfer to the US system. I hope the 146 is gone in two yers or less...it's just too expensive to keep.
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PSU.DTW.SCE
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RE: US Airways Reaches $125 Million Agreement With ZW

Sun Feb 20, 2005 3:10 am

So here's a theory......that could potentially play out.

United drops ZW.......Picks up Mesa to replace flying.
Mesa drops US, ZW picks up US.

There are all sorts of senarios that could play out.

Heck, who would have though that:
ACA would go on to be Independence Air
Colgan would be flying for CO
Shuttle America would fly for United
 
ATWZW170
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RE: US Airways Reaches $125 Million Agreement With ZW

Sun Feb 20, 2005 3:31 am

That is so true....all these no name airlines are all of a sudden flying for major carriers....I wonder if Colgan Air is going to be a good airline to fly on...lord only knows that Shuttle American isn't.
Success is getting what you want...happiness is liking what you get
 
ouboy79
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RE: US Airways Reaches $125 Million Agreement With ZW

Sun Feb 20, 2005 3:59 am

ATWZW170 -

I can guarantee you that the 146s will not go to US Airways...Why?


View Large View Medium
Click here for bigger photo!

Photo © Frank C. Duarte Jr.



Once its been flown by mainline...it always must be flown by mainline.
 
A330323X
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RE: US Airways Reaches $125 Million Agreement With ZW

Sun Feb 20, 2005 5:09 am

As I already said, Anyone who thinks that this is over and that Air Wisconsin is going to walk away with US at this price is absolutely crazy. Remember, in the first bankruptcy, US had announced a deal with TPG, only to have RSA outbid them.

We will probably see something like: RSA - 26%, AWAC - 20%, GE - 10%, Unions - 20%, and Sir Richard with 24%.

I would be absolutely shocked if RSA cooperated with this bid. It's certainly quite possible that RSA will be placing a bid of their own, but I don't see them and ZW working together here. As for Sir Richard...well, I won't go there.

Air Wiskey can become the primary feeder for US Airways and absorb the operation of Piedmont and PSA.

I don't think that ZW would want to merge with PSA, since PSA has lower labor costs. PSA and Piedmont also have some advantageous terms with US Airways in terms of scope and such as wholly-owned US Airways Express carriers.

A330323X--I'm assuming you still believe your CBA is worth more than the paper it's written on?

Have they not proved that they can impose any contract they want? All they have to do is rattle the 1113 sabre again and 'viola!' your SCOPE allows 100 seaters.

Good luck.TC


My CBA? My scope? Try again.

As for the existing CBA, 97-seat EMB-190 aircraft are already permitted, up to 60 total aircraft, with up to 25 of those permitted at an affiliate US Airways Express carrier instead of MidAtlantic under certain circumstances.

The fact remains that US does not have scope relief for the EMB-170/175 to be flown anywhere other than MidAtlantic, and it will not be obtaining such relief in the near future. While ALPA is indeed traditionally the first work group to give concessions, I do not see them approving additional scope relief. The most recent agreement received only 58% of the vote. I also do not see US able to receive additional relief under Section 1113.

So here's a theory......that could potentially play out.

United drops ZW.......Picks up Mesa to replace flying.
Mesa drops US, ZW picks up US.


To clarify, Mesa can not drop US. US can, however, reject its contract with Mesa (and/or Chautauqua and/or Trans States) in bankruptcy. Even if US does not reject an affiliate RJ contract, they will be able to obtain more favorable rates.
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lowecur
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RE: US Airways Reaches $125 Million Agreement With ZW

Sun Feb 20, 2005 6:27 am

All should become clearer on 3/15/05. US Airways needs to submit their reorganization plans to the bankruptcy court on this date, which needs to include who will be their regional carriers. US Airways will ask the court on this date to discharge the regional contracts that are not intended to be part of the "new" US Airways when they exit bankruptcy on 6/30/05.

The court must also receive all Exit Financing proposals from third parties that wish to loan US Airways money on 3/15/05. It is not clear on whether US Airways will continue to draw on ATSB backed funds that were approved by the bankruptcy court until 6/30/05 as DIP financing now that Eastshore Aviation, LLC has invested $125M. The SEC filing will disclose more detail when it is available.

[Edited 2005-02-19 22:29:02]
 
ouboy79
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RE: US Airways Reaches $125 Million Agreement With ZW

Sun Feb 20, 2005 10:08 am

Right now RSA is at a point where they can do two things...

1) Invest more and be an additional DIP financer (remember UAL has several).
2) Suck it up, write off the last investment and go home.

I doubt they will attempt to submit a bid that would require US Airways to reject the AWAC agreement. We'll see what happens...but I think RSA will remain part of US AIrways - in a smaller fashion. I also believe part of the reorganizing efforts will be adding of additional facilities (or relocation) to Right to Work Alabama. This involves a new call centers for res.

As far was AWAC and PSA/PDT. I never said merge...I said absorb. This would likely be in a sale where these two airlines become subsidiaries of AWAC. There would need to be some negotiations when it comes to scope concerns...but if everything was left to one entity that had a stake in US Airways, it would probably go over easier...especially if it gets rid of Johnny O.

Next few weeks will be interesting.
 
A330323X
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RE: US Airways Reaches $125 Million Agreement With ZW

Sun Feb 20, 2005 10:32 am

We'll see what happens...but I think RSA will remain part of US AIrways - in a smaller fashion.

I really disagree. Dr. Dave (and his ego) needs complete control if he is going to be involved. This isn't about DIP financing; this is about control of US upon emergence.

I also believe part of the reorganizing efforts will be adding of additional facilities (or relocation) to Right to Work Alabama. This involves a new call centers for res.

If RSA ends up involved with US, I agree. (Note that the heavy maintenance outsourcing was already placed in MOB.)

As for a new call center, it's a bit trickier. I don't think that US will open a new res center, in Alabama or anywhere else. US is permitted, however, to outsource some res work, which they will be able to do once PIT res is closed and the Early-Out is offered to INT res. I do think that US will outsource the res work to a firm in Alabama if RSA is involved, or to El Salvador otherwise.


And Ouboy79, that picture you posted:


View Large View Medium
Click here for bigger photo!

Photo © Frank C. Duarte Jr.



Guess where that plane is now...


View Large View Medium
Click here for bigger photo!

Photo © Michael Carter



Small world.  Smile
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flyibaby
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RE: US Airways Reaches $125 Million Agreement With ZW

Sun Feb 20, 2005 7:21 pm

Is anyone considering that this also might help position UA to resume a merger with US once out of bankruptcy as reported last week? I realize that ZW is privately owned, but they have been in bed with UA forever now. Maybe I sound crazy with this, but the timing seems ironic with UA's announcement a week ago.
 
ATWZW170
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RE: US Airways Reaches $125 Million Agreement With ZW

Mon Feb 21, 2005 12:10 am

I kind of thought about that as well. Our owners have done the smart thing and now if a merger where to happen, Air Wisconsin just might have a voice in the whole thing....I think this was a smart move.
Success is getting what you want...happiness is liking what you get
 
ouboy79
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RE: US Airways Reaches $125 Million Agreement With ZW

Mon Feb 21, 2005 5:09 am

Ed - you catch on quick in terms of the pic.  Big grin

As far as Doc Dave's ego. Yeah you have a point...but it will come down to whether or not RSA wants to put up more cash to ensure their stake in the future. AWAC has done that and they will have a say in the future. The general sentiment on the USAviation boards will be AWAC will replace Mesa, CHQ, and TSA for RJ flying. Then there may be something where PDT and ALG will be transferred to AWAC and US Airways will have a single regional provider for the first time since the 60s I believe. Whether or not this comes true, I have my doubts. They aren't going to fly DH8s into every town that gets beeches right now.

Should see some more investors jumping up in the next couple weeks.

Flyibaby - You actually think UAL has the money to successfully acquire another airline? Try again. AWAC has been involved with UAL for nearly 20 years now...but during that time they have also been royally screwed over. Just jump back to the early 90s when UAL took control of all the slots at ORD and reduced AWAC to merely nothing. Remember UFS coming out of no where with Air Wiskey's ATPs?

I could be completely wrong...but I do not believe this has anything to do with a UA/US merger. As as been stated before...US has lower costs than UA, why would UA acquire them just to raise costs for the US side again? A merger between UA and US will not happen anytime soon...with someone else - who knows.
 
supa7E7
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RE: US Airways Reaches $125 Million Agreement With ZW

Mon Feb 21, 2005 5:22 am

If UA screwed them over, at least they have plenty of cash. Why would UA donate further money to an already profitable regional, anyway?

So with this deal the irony of profitable regionals vs bleeding mainlines comes to a head... when the regionals buy controlling shares of mainline. Wow.

So anyway, does Wisconsin have any new stations that would probably be added to the US Airways system? US only serves ORD, MKE, MSP in that region... having pulled out of MDW about a year ago.
"Who's to say spaceships aren't fine art?" - Phil Lesh
 
A330323X
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RE: US Airways Reaches $125 Million Agreement With ZW

Mon Feb 21, 2005 7:47 am

As far as Doc Dave's ego. Yeah you have a point...but it will come down to whether or not RSA wants to put up more cash to ensure their stake in the future. AWAC has done that and they will have a say in the future.

...unless they are outbid.  Big grin

The general sentiment on the USAviation boards will be AWAC will replace Mesa, CHQ, and TSA for RJ flying.

I don't think that ZW would replace all three of US's affiliate RJ providers. ZW only has 70 CRJ-200s, and the affiliate providers operate about 110 50-seat RJs for US Airways Express.

and US Airways will have a single regional provider for the first time since the 60s I believe.

I was going to say that that'll happen when pigs fly, but US Airways has been a pioneer in the industry in allowing pigs to fly.  Smile

So let's just say don't hold your breath.

Even if you were to go all out and assume that US will dump all the affiliate RJ providers and count AWAC/PSA/PDT as one, it makes no sense for US to dump the affiliate turboprop providers. Colgan, in particular, provides valuable additions to the US Airways route network, and the affiliate turboprop contracts are all at-risk to the operator, providing US with basically guaranteed profits, in addition to the network benefits. (Though in terms of rejecting the contracts, I'm not sure if Air Midwest and Mesa come as one package; similarly, I'm unsure if the Trans States RJs and turboprops come as one package.)

I do not believe this has anything to do with a UA/US merger.

I agree.
I'm the expert on here on two things, neither of which I care about much anymore.
 
FriendlySkies
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RE: US Airways Reaches $125 Million Agreement With ZW

Mon Feb 21, 2005 12:11 pm

Does UA still own a large portion of ZW, or have they given up all their shares in the company? I know at one point UA completely owned ZW, but I don't know that they ever completely sold it off. If UA still holds a share in ZW, maybe this is an indirect way for UA to help US? I'm probably thinking into this too much...
 
Piedmontbrat
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RE: US Airways Reaches $125 Million Agreement With ZW

Mon Feb 21, 2005 12:18 pm

If US Airways is smart, they'll dump Mesa as their express carrier like a hot potato. Mesa is the single worst carrier I've ever tried to fly.

I hope the execs at US get it right this time!
 
avek00
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RE: US Airways Reaches $125 Million Agreement With ZW

Mon Feb 21, 2005 12:27 pm

UA needs to help itself at this point - can't even think about helping US...
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ORDZW
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RE: US Airways Reaches $125 Million Agreement With ZW

Mon Feb 21, 2005 1:01 pm

Quoting FriendlySkies (reply 38):
Does UA still own a large portion of ZW, or have they given up all their shares in the company?


AWAC is currently 100% privately owned. The only ties we have with UA is a contract agreement, (which will hopefully continue). There are the three main owners up in ATW, and some other silent partners.

While ZW helping out US Airways will be beneficial to United as far as the code share agreements and the Star Alliance, I think that the main reason we were looking at other options was to show United that we have a way out and to diversify. We were the only regional carrier that solely operated as United Express, and I always felt like this put us at a disadvantage. Now that we have this other agreement in the works, it shows that we can pursue other avenues if necessary.

This was definitely a good move, and I am excited to see how it plays out in the coming weeks.
9E, AA, AQ, AX, BA, CO, CP, DH, DL, EV, F9, FL, HA, HP, KL, NK, NW, OH, OO, QX, RP, RW, S5, TW, UA, US, WN, YV, ZK, ZW
 
mojo89
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RE: US Airways Reaches $125 Million Agreement With ZW

Mon Feb 21, 2005 1:01 pm

FriendlySkies-
UA does not own any of ZW. It was purchased from them in 1993 by CJT Holdings who has owned it ever since.
When the going gets weird, the weird turn pro. -Dr. Hunter S. Thompson
 
CcrlR
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RE: US Airways Reaches $125 Million Agreement With ZW

Mon Feb 21, 2005 1:16 pm

Quoting Ouboy79 (reply 28):


If that happens then we will party like it's 1990 again.

I rather see them get CRJ-900s and the 700s if they need to which would be better than the EMB-170. This is like PSA going for UA too just like it was for US.
"He was right, it is a screaming metal deathtrap!"-Cosmo (from the Fairly Oddparents)
 
tockeyhockey
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RE: US Airways Reaches $125 Million Agreement With ZW

Mon Feb 21, 2005 10:37 pm

Scary to think that a major regional airline like AWAC is helping bail out a legacy, USAirways.

ok, i could be wrong about this, but as i understand the term, US is not really a legacy airline. they were the original southwest, if you will -- a start up carrier with a lot of regional flights out of pittsburgh. they were known as allegheny air.

a legacy carrier is one of the leftovers from the original goverment regulated system in which the world was divided among companies. pan am was a legacy carrier, northwest is a legacy carrier, UA is a legacy carrier.

but USairways is NOT a legacy carrier. they are a LCC that managed to grow into something pretty big.
 
avek00
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RE: US Airways Reaches $125 Million Agreement With ZW

Mon Feb 21, 2005 10:46 pm

"but USairways is NOT a legacy carrier. they are a LCC that managed to grow into something pretty big."

An airline that, until recently, had the highest costs in the business is NOT a LCC.
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tockeyhockey
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RE: US Airways Reaches $125 Million Agreement With ZW

Tue Feb 22, 2005 12:25 am

granted, US is not an LCC in terms of being inexpensive, but it was a small regional airline that flew mainly in PA. in that sense it is more closely analagous to WN than to the real legacy carriers, which were granted complete monopolies in certain regions of the country.
 
flyibaby
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RE: US Airways Reaches $125 Million Agreement With ZW

Tue Feb 22, 2005 12:36 am

Tockey

Granted so..but with the aquisition of piedmont and psa in the 80's, it ended all that.
 
ATWZW170
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RE: US Airways Reaches $125 Million Agreement With ZW

Tue Feb 22, 2005 9:18 am

I've heard that US had better numbers than UA...kind of scary to think about.
Success is getting what you want...happiness is liking what you get
 
avek00
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RE: US Airways Reaches $125 Million Agreement With ZW

Tue Feb 22, 2005 9:43 am

"Tockey

Granted so..but with the aquisition of piedmont and psa in the 80's, it ended all that."

Exactly - US was a MASSIVE operation by the early 1990s, and had high costs that went even higher with having to intergrate an amalgam of operations that had absolutely nothing to do with each other except a common owner. There's simply no reasonable definition of LCC that could be used to describe US from post-deregulation until at least this year, period.
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