Regional airline buys Major! (kinda)

wheelsup

wheelsup

Well-Known Member
Off of flightinfo--
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"US Airways reaches $125 mln deal for restructuring
Fri Feb 18, 2005 06:56 PM ET


NEW YORK, Feb 18 (Reuters) - US Airways Group Inc. (UAIRQ.OB: Quote, Profile, Research) on Friday said it had reached a $125 million deal with an investor group to fund its restructuring under bankruptcy protection.

The company said it reached the agreement with Eastshore Aviation, an investment entity owned by Air Wisconsin Airlines, a privately held regional airline.

The $125 million facility will be made in the form of a debtor-in-possesssion term loan, US Airways said.

"As an initial investor, Eastshore is providing us with short-term liquidity and also is demonstrating support for our restructuring and interest in a longer-term relationship with US Airways," US Airways chief executive Bruce Lakefield said.

US Airways filed its second bankruptcy petition in two years last September. It hopes to emerge as leaner airline with a new route structure and substantially lower costs. It plans to operate as a low-cost carrier domestically, with premium routes to Latin America and Europe. "This agreement with Eastshore Aviation provides the cornerstone from which we can obtain additional financing and construct a plan of reorganization," Lakefield said. Arlington, Virginia based US Airways, has until the end of March to submit its new business plan, and has said it hopes to file the plan by March 15."

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There's a Q&A on the US Airways site:

http://www.usairways.com/about/press/qa_eastshore.htm

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" In addition, the transaction has a regional jet service agreement, which gives Air Wisconsin the right, but not the obligation, to place aircraft with US Airways, and to operate under the US Airways Express banner."

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HA! They were gonna lose their contract with UAL due to undercutters, so they went out and bought their way into providing service for USAir! I'm guessing they're gonna try and become USAir's sole feeder...

Talk about turning the tables...:)

~wheelsup

Edit: title
 
I think this is a good move. Anything to keep US Airways afloat is good news.

Poor UAL...they only have Mesa/Skywest now...
 
Probably reading too much into this. For sure it doesn't mean Air Wisconsin is going to stop feeding UAL.

My guess is that, first and foremost, they see it as an investment opportunity whether there is any feed or not. As DIPs they are at the head of the line to get their money back if USAir folds. The opportunity to get some feed work is icing on the cake, especially given that the liquidation of one of the carriers would strengthen the chances of the other.

Nice move.
 
Aren't UAL and USA on some sorta codeshare anyway?

I think it'll all be a lot simpler if UAL and USA do what they shoulda done a while ago and merge properly!!
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I think it'll all be a lot simpler if UAL and USA do what they shoulda done a while ago and merge properly!!
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Well, that's not up to them. It's up to their creditors, who now own the companies. I doubt that the government would object.
 
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Poor UAL...they only have Mesa/Skywest now...

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...and Shuttle America, Trans States, Chautauqua....
 
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And if that happens. How will that effect Mesa and the MAPD program?

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Seeing as how Mesa isn't hiring right now, I don't see much changing. I chose not to go b/c I was afraid I would be stuck without a job and out $10-12K. I decided to spend the money on my CFI ratings, and I'm happy with that decision. 'Course the promise of a quick job didn't stop some of my friends from going to the Jan class. A recuiter from MAPD called me the other day to "set me up for an interview for the April class." I politely told him I wasn't interested at this time.
 
Yeah. If Mesa loses USairways flying, it's gonna hurt the pilot group pretty bad. I'm just curious how the MAPD program would deal with something like that.
 
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Yeah. If Mesa loses USairways flying, it's gonna hurt the pilot group pretty bad. I'm just curious how the MAPD program would deal with something like that.

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They'll take concessions, then come after the Continental feed even more aggresively in 2007.
 
Well the rumors were Air Wisky wasn't going to stay with UAL anyways...but instead try to start up their own Independence Air gig...this is better for them.
 
Keep in mind young jedi, that Air Wisconsin wasn't always a UAL express carrier. It'd be more of a return to the old Air Wisconsin rather than an "Indy Air" thingy!

I'm not sure that Indy's low-price/high-cost approach is working very well.
 
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Keep in mind young jedi, that Air Wisconsin wasn't always a UAL express carrier. It'd be more of a return to the old Air Wisconsin rather than an "Indy Air" thingy!

I'm not sure that Indy's low-price/high-cost approach is working very well.

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Exactly. That's why I think they wouldn't survive on their own with 70 RJs. Just get repainted in US Airways Express Colors...and lets get back to hiring!
 
However, after thinking, if AW is going to dump UAL in favor of USA, they're nuts. It's probably just a financial transaction between old guys and we're overinterpreting the investment.
 
One of our former instructors is a 1 year FO with mesa. He stopped by a couple days back and was complaining about the job. Apparently, all of a sudden management has decided to do 9 month checkrides (conveniently these come up right before probation is up) and a lot of the guys getting tagged for them are the MAPD guys.

So Mesa sucks 'em in, takes their money for flight training, gives them a "shot" at the line then washes 'em out before probation is up. Way to inspire the rank and file JO!
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That bites!

We had six-month checks at Skyway and they were a challenge, but not impossible, even during probation.

Delta scheduled my annual recurrent after probation was up so it was a lot less "jeapordy".
 
Oh yeah it does.

Oh and it also happens to coincide with preliminary contract talks.
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Hostages already, geez.

There's always 'hostages' to be 'purchased back' during contract talks. Good time to lay low, take cover, dot i's and cross t's.

We had 'em in 2000, had to 'purchase' the jumpseat in 1996 and I'm not sure what happened before.

There were a couple at Skyway during 1997 I think.
 
But I thought CEOs and management were looking out for the good of the worker and always willing to pay fair market value for their laborers' services!















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Aww, come on John! Let's get the rates low so the company can get some more aircraft, and then we'll upgrade to captain quicker and be able to make the rent! Yeah, it's not much, but look at the year-47 captain rates!

We should start a new thread: "Stupid Pilot Statements"
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