USAir (3 threads combined)

[pcumberl]

Jumping on this thread as I too have a flight coming up for our Cruise in March on US Airways. We're traveling from Rochester, NY to San Juan and back through Philadelphia.

 

Here's a link to the aforementioned story that broke today:

 

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=7317643

 

The IAM in Philly is voting today as well. Votes will be counted on the 21st. Not sure what impact the extension will have on this, if any.

 

~Paul

[nutbrown]

Let's hope the judge approves this soon. I fly USAirways in February - first class with FF miles, and could use the money I put toward refundable tickets on Delta to pay for my side trips and any shopping I want to do!

[hdawson]

Sadly, this action may/probably will mean more costs to the US taxpayer.

[Breezey]

Let's hope the judge approves this soon. I fly USAirways in February - first class with FF miles, and could use the money I put toward refundable tickets on Delta to pay for my side trips and any shopping I want to do!

 

I'm with you. We leave 2 weeks today with FF points on US Air, a partner with Aeroplan. We cross our fingers and hope that our luggage gets to San Diego when we do.

[Christina1003]

Not sure if this is the same link, so I'll post it anyway

 

Feds agree to extend US Airways financing, judge approves

MATTHEW BARAKAT

Associated Press

 

ALEXANDRIA, Va. - US Airways will have access to the cash it needs to keep flying through June as a result of a bankruptcy judge's approval Thursday of a deal between the nation's seventh biggest carrier and the federal Air Transportation Stabilization Board.

 

An interim financing deal between the two parties had been set to expire on Saturday, but U.S. Bankruptcy Judge Stephen Mitchell gave his blessing to an extension through June 30. By then, the airline hopes it will have found a new investor to provide hundreds of millions of dollars needed to emerge from bankruptcy protection.

 

The extension comes after US Airways, a unit of US Airways Group Inc., extracted more than $800 million in annual concessions from its labor unions. Most unions reluctantly agreed to accept pay and benefit cuts, but Mitchell last week imposed an estimated $269 million in concessions on the International Association of Machinists when that union failed to reach a deal.

 

US Airways, which has major operations in Philadelphia and Pittsburgh, said it needed those savings to convince the ATSB to extend the financing agreement. The airline had previously warned it would likely have been forced to liquidate if it had not obtained an extension.

 

Airline executives said the six-month extension from the ATSB is a sign that they have confidence in the airline's efforts to transform itself into a low-cost carrier.

 

"While we still have much work to do, I think our most difficult period is behind us and my sense is that our employees are united in working with us to complete the restructuring," CEO Bruce Lakefield said. "Our customers should book us with confidence, knowing that we have sufficient cash to operate as well as to implement the many changes that are already under way."

 

Under various deals with its creditors, US Airways is required to emerge from bankruptcy by June 30. Those deadlines could be extended, though.

 

The biggest obstacle facing the airline now is finding an investor willing to risk $250 million or so in a weak industry, particularly in an airline that has gone bankrupt twice since 2002 and projects it will not turn a substantial profit until at least 2008.

 

After Thursday's hearing, Chris Chiames, the airline's senior vice president for corporate affairs, said the new labor deals, along with the extended financing agreement, create the atmosphere in which investors will be willing to take a look at the airline.

 

The ATSB, created after the Sept. 11 attacks to help the industry recover from a severe downturn, gave the airline a $900 million federally guaranteed loan when it emerged from its first trip into bankruptcy in March 2003.

 

According to court documents, US Airways still owes the ATSB about $646 million of the original $900 million loan as of year's end. The airline has been using the cash to fund basic operations while in bankruptcy.

 

Two other airlines that received federal loan guarantees - ATA Airlines and Aloha Airlines - have also subsequently filed for bankruptcy.

 

Wednesday, the airline announced that its senior vice president of marketing, B. Ben Baldanza, is leaving the company to join low-fare carrier Spirit Airlines. Baldanza had been responsible for route planning, scheduling and pricing as well as marketing.

 

He is one of several top executives to leave the airline in recent months; he will be replaced by Bruce Ashby, who had been vice president of alliances and president of US Airways Express.

 

Ashby, in a memo to other marketing employees Wednesday, wrote "There is much to be optimistic about. We have turned the corner with our labor groups, and we are now engaged together in the competitive fight that the company faces. We are leaner, tougher, and ready to win."

 

The airline projects that it will not turn a substantial profit until at least 2008 even with the reduced labor costs and has said that at best its new cost structure gives it a "fighting chance" for survival.

[nutbrown]

Breezey,

 

I am definitely going to make sure my carryon piece has enough clothes for 2 days in it. I am not really too worried about the baggage, but just in case. We have to go through Philly. SFO shouldn't be as bad with the luggage problems.

[Breezey]

Breezey,

 

I am definitely going to make sure my carryon piece has enough clothes for 2 days in it. I am not really too worried about the baggage, but just in case. We have to go through Philly. SFO shouldn't be as bad with the luggage problems.

 

Me too, because we fly from Toronto to San Diego via Philly too!!! At least we arrive in San Diego at 1pm and leave on our cruise the next day so hoping for the best. Good luck to us huh? At least on the way home, for us is another carrier. Using points sometimes options are limited.

[bUU]

So the only issue left pending is whether the machinists will strike or not.

[nutbrown]

Thanks for the reminder Bicker, I am not planning on cancelling anything until the cruise gets closer.

[bUU]

Here's the current status:

 

Members of the International Association of Machinists Local 1776 who are baggage handlers for US Airways at the Philadelphia International Airport will be voting today on a company proposal reducing pay and benefits. However, the votes won't be tallied until Jan. 21, as voting continues at several dozen locations nationwide...

 

 

Some analysts are worried that if the union balks, it might strike or disrupt the airline's operations in some way. A scheduled rank-and-file vote to be completed by Jan. 21 could hinge on the willingness of some members to vote themselves out of a job. The airline's proposed cost cuts show 2,500 positions being pared, including 2,000 from the unit that represents mechanics, stock clerks and cleaners, and an estimated 500 from the baggage handlers.

[Jimbo]

US Airways Financing Extended

 

ALEXANDRIA, Va. - January 13, 2005 — US Airways will have access to the cash it needs to keep flying through June as a result of a bankruptcy judge's approval Thursday of a deal between the nation's seventh biggest carrier and the federal Air Transportation Stabilization Board.

 

 

 

VIDEO: John Rawlins reports

 

 

 

An interim financing deal between the two parties had been set to expire on Saturday, but U.S. Bankruptcy Judge Stephen Mitchell gave his blessing to an extension through June 30. By then, the airline hopes it will have found a new investor to provide hundreds of millions of dollars needed to emerge from bankruptcy protection.

 

The extension comes after US Airways, a unit of US Airways Group Inc., extracted more than $800 million in annual concessions from its labor unions. Most unions reluctantly agreed to accept pay and benefit cuts, but Mitchell last week imposed an estimated $269 million in concessions on the International Association of Machinists when that union failed to reach a deal.

 

US Airways, which has major operations in Philadelphia and Pittsburgh, said it needed those savings to convince the ATSB to extend the financing agreement. The airline had previously warned it would likely have been forced to liquidate if it had not obtained an extension.

 

Airline executives said the six-month extension from the ATSB is a sign that they have confidence in the airline's efforts to transform itself into a low-cost carrier.

 

"While we still have much work to do, I think our most difficult period is behind us and my sense is that our employees are united in working with us to complete the restructuring," CEO Bruce Lakefield said. "Our customers should book us with confidence, knowing that we have sufficient cash to operate as well as to implement the many changes that are already under way."

 

Under various deals with its creditors, US Airways is required to emerge from bankruptcy by June 30. Those deadlines could be extended, though.

 

The biggest obstacle facing the airline now is finding an investor willing to risk $250 million or so in a weak industry, particularly in an airline that has gone bankrupt twice since 2002 and projects it will not turn a substantial profit until at least 2008.

 

After Thursday's hearing, Chris Chiames, the airline's senior vice president for corporate affairs, said the new labor deals, along with the extended financing agreement, create the atmosphere in which investors will be willing to take a look at the airline.

 

The ATSB, created after the Sept. 11 attacks to help the industry recover from a severe downturn, gave the airline a $900 million federally guaranteed loan when it emerged from its first trip into bankruptcy in March 2003.

 

According to court documents, US Airways still owes the ATSB about $646 million of the original $900 million loan as of year's end. The airline has been using the cash to fund basic operations while in bankruptcy.

 

Two other airlines that received federal loan guarantees _ ATA Airlines and Aloha Airlines _ have also subsequently filed for bankruptcy.

 

Wednesday, the airline announced that its senior vice president of marketing, B. Ben Baldanza, is leaving the company to join low-fare carrier Spirit Airlines. Baldanza had been responsible for route planning, scheduling and pricing as well as marketing.

 

He is one of several top executives to leave the airline in recent months; he will be replaced by Bruce Ashby, who had been vice president of alliances and president of US Airways Express.

 

Ashby, in a memo to other marketing employees Wednesday, wrote "There is much to be optimistic about. We have turned the corner with our labor groups, and we are now engaged together in the competitive fight that the company faces. We are leaner, tougher, and ready to win."

 

The airline projects that it will not turn a substantial profit until at least 2008 even with the reduced labor costs and has said that at best its new cost structure gives it a "fighting chance" for survival. (Copyright 2005 by The Associated Press. All Rights Reserved.)

 

 

Here's the link to the story also

http://abclocal.go.com/wpvi/news/011305_nw_usair.html

 

Jimbo:)

[bUU]

The only thing that can get in the way of that is a strike, which seems like a 50%/50% chance now, for later this month. After the strike vote is over, and if it fails, I think we'll rebook our US Airways credits for later this Winter, with some level of assurance. However, given the extent to which airlines will have to reduce fares over the next few months, I cannot see how extending the financing to June 30 will help US Airways survive. It almost seems to me to just be providing five more months of losses to leave even fewer assets behind to pay off creditors (in other words, the US government, we-the-people) at liquidation.

[Christina1003]

At the very least, my fears have been calmed a little in hope that yes, we actually might be able to use our tickets. Now it's a matter of praying it's on time or not cancelled.

 

What's the carry on limit - 2 bags per person? Is it really possible to take all of the items you need in just carryon's?

 

(Wondering if we should revert to that commercial we seen on t.v., the man with the 18 layers of clothing on him for assurance purposes)

 

That brings a thought of shipping my suitcases to the hotel we're staying at the night before a few days early, to ensure they get there.

[bUU]

Also keep in mind that even if the union does vote to strike, they may not strike immediately, and may even be prevented from striking by some court action.

 

Carry-on limits depend on the airline. Many have a One Plus One rule now: One carry-on suitcase and one "personal item" which could be a briefcase, pocketbook, personal computer, camera bag, etc. A second suitcase often gets checked at the gate, especially if the flight is close to full.

 

Be careful with the 18 layers of clothing idea: On some airlines, you'd have to purchase a second seat! :D

[phlydude]

 

Be careful with the 18 layers of clothing idea: On some airlines, you'd have to purchase a second seat! :D

 

hmmmmmmm....could we be refering to Southwest??? That C.O.S. (customer of size) rule is BS. If they give you a little more leg room, you won't be compacted making things spread <-------> this way. An extra inch or 2 on the seat width wouldn't be bad either! ;)

 

I'm a big guy and I am very aware and try to be accomodating as possible when flying. Most of the time, I am flying with my wife and we book an aisle and a middle so I can sit on the aisle and she can buffer the other person in our row. I can put the arm rest down but it is more comfortable to have it up. My last flight on Southwest, I had the gate agent ask me if I had flown with them before and was I comfortable with the arm-rest down. Now knowing if I said that I would prefer to have it up, I would be charged for an extra seat (even though I fit just fine in a single seat) I emphatically said I have flown with them and was comfortable with the arm-rest down. I was waiting for the "I don't think so" comment but it never came. Didn't matter anyway, wy wife was with me as my buffer! :o

[nutbrown]

Bicker, I think one of the reasons they are extending the credit is because of the revenue USAirways can expect between now and Easter. In the NE, the public schools have vacations in Feb & April while the colleges have time off in March. A lot of those flights are already booked pretty full.

[bUU]

If they're losing money on each passenger-mile, as they have been up to now, then the longer they fly the more money they lose. I suppose they've gotten their costs in line now that they've cut all the salaries, but any job action will disrupt the result of that analysis.

[bUU]

Recent news:
[QUOTE]Analyst Bob McAdoo of Prudential Financial initiates coverage of US Airways (USG.FSE) with an "underweight" rating. The target price is set to $0[/QUOTE]

[parody]

More Recent News:

[b]"With a new financing deal reached last week, US Airways appears likely to be around until at least the spring.[/b]

[b]But the skies are a bit more cloudy for ticket-holders and would-be passengers on flights heading into the summer."[/b]

[b]Additional details at [url="http://www.charlotte.com/mld/charlotte/news/columnists/mr_watchdog/10663378.htm"]http://www.charlotte.com/mld/charlotte/news/columnists/mr_watchdog/10663378.htm[/url][/b]

[bUU]

The union is still voting. Results on Friday. Some folks were interviewed after voting yesterday -- those willing to talk voted no on the contract and yes on the strike (which doesn't mean much, since many weren't willing to talk).

[pasto5]

We just got back last night from the Carnival Imagination cruise. We left last Wednesday 1/12 and gave ourselves an extra day to travel. Good thing we did! We were supposed to fly at 3:45 pm out of Syracuse NY to Phila. We boarded at 5pm only to be told that our flight time was changed to 7:13 as Philly was backed up due to a low ceiling. We had two conencting flights in Philly we could have caught even after missing our original connection-one to Fort Lauderdale and the other to Miami. We landed in Philly in time to get at least one of the connections. But there was no one to drive the walkway to the plane so we sat for 20 minutes waiting to get off the plane. We missed both connections and we faced with staying in Philly with no hotel rooms available. We happened to walk past a flight loading for West Palm Beach. Even though we didn't know where it was in relation to Miami originally, we found out it was the only flight going to Florida that night. SO, we caught the flight, waited in West Palm for an hour for a 1 1/2 hour shuttle to Miami and got to our hotel at 2am. But we could see our ship from our room. We were very glad we had packed carefully for a four night cruise and took all our luggage on the plane. We also had delays on the way back on both flights but made our connection in Philly by 10 minutes!

[phlydude]

Fog was horrible last week in Philly. 220 minute arrival delays, 3 hours and 40 minute arrival delays!! I'm sure many flights were cancelled, you are fortunate to have mad it in!!

[pcumberl]

Snipped this from a Philly.com article. The entire (subscription) text can be found here: [url="http://www.philly.com/mld/philly/business/10668582.htm"]http://www.philly.com/mld/philly/business/10668582.htm[/url].

[i]Interviews at the union hall yesterday showed a clear voting split between the cleaners, who are considered utility workers, and the mechanics, who are skilled labor.[/i]

[i]Jim Phillips, a mechanic from Burlington, N.J., said he could not vote for a contract that would put so many people out of work - he would rather have it be the judge's decision. "Then I had no say over it," he said. Phillips, who has worked for the airline for 15 years, thinks his job prospects are good, either with US Airways or elsewhere.[/i]

[i]Connie Taylor Pratt, a cleaner from Sharon Hill, Delaware County, voted yes. Besides cleaning planes, Pratt, who has worked for US Airways for five years, and other cleaners also check for contraband.[/i]

[i]"You're going to lose your job anyway," she said, "but if you vote no, you'll lose your severance."[/i]
[size=2]
[/size]

[parody]

[b][size=1]A couple of paragraphs from today's paper:[/size][/b]

[b]US Airways employees on the way to approving $269 million in concessions[/b]

Wednesday, January 19, 2005

By Dan Fitzpatrick, Pittsburgh Post-Gazette


US Airways' mechanics and baggage handlers are on their way to approving a $269 million concessionary contract that would lower their pay, wipe out thousands of jobs and provide the savings the troubled airline says it needs to exit its second bankruptcy in two years.

Voting has concluded in the International Association of Machinists' largest US Airways bases -- Pittsburgh; Charlotte, N.C.; and Philadelphia -- and early results show a majority ratifying the company's final cost-cutting offer, according to sources close to the process.

[pcumberl]

This is good news (just finished reading the article) for us US Airways consumers. I know they're voting on 2 things. One is the new contract and the other is whether to strike or not. I'm wondering: Can they approve the contract and still strike? What do you think the possibilities of this are and what impacts there'll be if this scenario plays out? I read an ariticle in the Washington Post yesterday that talked about how the current US Airways problems parallel what Eastern Airlines went through. Eastern had the same union (IAM) strike on them and the pilots walked off as well in a sign of solidarity. If this were to happen this time, US Airways could still go under.

~Paul