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US Airways! Has anyone heard???

Lynzchat

By Lynzchat,
in Cruise Air

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Globaliser

Globaliser

Posted
Posted

US Airways' unsecured creditors will meet on Monday 20 September 2004 to discuss forming a creditors' committee.

 

And US has lost the financing on almost 100 regional jets ordered from Bombardier and Embraer, the financing contracts having been terminated by the manufacturers. (I have heard a rumour that GE (presumably GE Capital) pulled the plug on these deals because they did not want to take on any more risk.)

 

More detail (though not much more) in this Washington Post article.

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vivian02

vivian02

Posted
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I booked a trip to Europe last week for Munich Germany and was suprised at the great deal I got. I notice that amoung the choice of carriers half were with US Air. I have flown US Air to Europe before and was very impressed. However I picked my air carrier according to stability of the air carriers listed. For the first time ever I klicked on the insurance coverage for flight cancelation. Question: Had I picked US Air would I have any problem in with an insurance claim down the road if US Air liqudates? There is always those loop holes that insurance companies like to include in the fine print. Any follow up would be appricated. Tim

 

Norwegain Sky 5/03

Norwegian Star 11/03

Royal Caribbean Splendor of the Seas 5/04

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bUU

bUU

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In some of the most recent, and disturbing news about US Airways, late this week, the AP reported that US Airways told U.S. Bankruptcy Court Judge Stephen Mitchell it needs an answer on its request for imposition of a 23% pay-cut on its workers by the end of next week or it faces possible liquidation. In Friday's Charlotte Business Journal, Mitchell was quoted as saying that he would not be rushed into making a judgement. So that makes it sound like US Airways could potentially go under within two weeks. (Of course, I think US Airways is making their situation sound more dire than it is at the moment. However, if the decision is substantially delayed, or if the decision goes against them, or if any other decision goes against them, or if the creditors get even more antsy,... then the demise of the airline could be imminent.)

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Globaliser

Globaliser

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What happens to our FF miles if they go under? Better plan some trips real fast.
I wouldn't count on them to do anything other than vanish into thin air. If US goes under, you might get lucky. But that's a big "might".
Is Delta next???
No, United is still at much greater risk of shutting down - at least IMHO. They seem to be merely rearranging deckchairs at the moment.
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bUU

bUU

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They're saying this is a critical two-week period for US Airways. They face the judge again next wee, and the final vote of the pilots will be October 21. If both go poorly, then I think my early-November flights aren't going to happen.

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Globaliser

Globaliser

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It's difficult to give any definitive advice, because basically it boils down to one of two things: hang in there and gamble that they'll still be around, or buy a second set of tickets on another (more stable) airline and count that as your insurance premium.

 

One way of doing the second is to buy fully refundable tickets for the dates you want. If US goes under, then see if you can get cheaper tickets for those dates. If you can, buy them and cancel the refundable tickets. If you can't, then you've still got refundable tickets on which to travel. But it'll be likely to be an expensive trip if you have to use those refundable tickets - but on the other hand, if you buy non-refundable and/or non-changeable tickets as a backup, then that money has gone whether you fly on those tickets or not.

 

Where are you flying from/to?

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bUU

bUU

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Globalizer crystalized the issue: Either gamble that the airline will survive that long, or buy a second set of tickets as insurance.

 

We originally chose the first choice, and then as things began to go downhill for US Airways, we switched to the second choice, using FF miles to get tickets on another airline.

 

The bankruptcy judge is supposed to have ruled today (or to have decided to rule later) about a US Airways request for labor-contract relief. I was expecting a new alert about that, but I haven't gotten one yet.

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finally928

finally928

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Thank you all for the information in this thread.... i had been looking at using US Airways for my carrier for my cruise in March and thanks to you all, I am going to find another carrier. I had NO idea that any of this was occuring. That's what happens when you're a single mom .. no time to keep up on current events!!

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finally928

finally928

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Bicker ---- :) HI -- I'm from Malden!! Nice to see others from Massachusetts here ...

 

I hope the judge decides something positive today -- i bought my tickets .. knowing i have 24 hours to cancel them -- but i wanted to lock in the rate as it kept changing and going higher.

 

I hope US Air doesn't go under -- I always liked them for their service -- never had an issue with them.

 

If you do see something about the decisions today, since you know better than I where to find out the information, could you post the link here? I have till around 10:00 tomorrow morning to cancel these tix if its bad news.

 

Thanks again!!

Jay

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pattyk

pattyk

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I am flying from bdl in conneticut- to fort lauderdale- I do not want to buy other tickets- too expensive-i will probably talk my husband and another couple we are going with to just drive( which is what i wanted from the beginning) but others did not- but don't feel like shoveling out more money for new flight tickets- yes please if anyone has new information please keep us informed. thank-you..

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finally928

finally928

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I contemplated driving at first, but that would have added many days onto my itinerary .... being a single mother, I am already leaving my child w/ my mother for about 9 days ... I don't want to extend that to 12+ days to leave time for driving ...

 

I would like to believe that they will be able to work this out and remain flying. I understand about costs and revenues, etc, and that maybe a little restructuring is in order, but I hope that it wont come down to them having to shut down completely. They are a good airline.

 

sorry -- no real info there .. just thinking out loud, i guess. ...

 

Jay

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bUU

bUU

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They did indeed try to reorganize and restructure -- they've actually been at it for over two years, and even emerged from bankruptcy once already, but still have failed to remain solvent. I hate to be a downer, but I don't think there is much hope for US Airways. I'm a little curious why the creditors are allowing their investment to degrade so much further, as it is.

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bUU

bUU

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Well, good news for passengers -- bad news for pilots, mechanics, flight attendants, etc.

 

Update 3: US Airways Gets OK to Cut Workers' Pay

Forbes - USA

A bankruptcy judge granted US Airways authority Friday to immediately cut the pay of its union workers by 21 percent through mid-February, saying the airline's ...

See all stories on this topic

 

US Airways can force pay cuts

Washington Business Journal - Washington,DC,USA

US Airways, which has been unable to negotiate all of the concessions it wants from unions, won court approval Friday to force pay cuts on its workers. ...

 

US Airways Statement Regarding Interim Relief Approval

Yahoo News (press release) - USA

15 /PRNewswire-FirstCall/ -- US Airways Chief Executive Officer Bruce R. Lakefield issued the following statement after the decision today by Judge Stephen S ...

 

Bankruptcy judge lets US Airways cut worker pay 21%: 'fiscal time ...

Canada.com - Canada

ALEXANDRIA, Va. (AP) - A bankruptcy judge granted US Airways authority Friday to immediately cut the pay of its unionized workers by 21 per cent, saying the ...

 

US Airways to cut wages 21%

The Globe and Mail (subscription) - Toronto,ON,Canada

-- A bankruptcy judge granted US Airways authority Friday to ... Under the 2- per-cent cut, the average US Airways salary would drop from $59,509 to $47,012. ...

US Airways gets OK to cut workers' pay

Boston.com - Boston,MA,USA

By Matthew Barakat, AP Business Writer | October 15, 2004. ALEXANDRIA, Va. -- A bankruptcy judge granted US Airways authority Friday to immediately cut the pay ...

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Globaliser

Globaliser

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I have till around 10:00 tomorrow morning to cancel these tix if its bad news.
Unless it makes specific and particular sense for you to fly on US Airways, I think that my personal decision (if I were in your shoes) would be to cancel the tix anyway and book with someone else. You have the choice to do that now. These pay cuts are not in themselves going to save the airline, IMHO. They're a step, but there are many more in the journey to the hoped-for solvency and stability. And there is no guarantee about what the airline will look like at any point during that journey - most importantly for you, that includes whether they will still be flying the route you're booked on, or at what times of the day or at what frequencies.
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Globaliser

Globaliser

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Reported by Aviation Daily:-

US Air, ALPA Slam Aircraft Sale Rumors

By Adrian Schofield

10/19/2004 08:44:40 AM

 

Divisions within the US Airways' pilots union regarding a concession deal are still surfacing as the airline and union leadership moved quickly on the weekend to squash rumors that could have made pilots vote against the deal.

 

The Air Line Pilots Association (ALPA) and the airline say that some pilots have been circulating messages and Internet postings saying US Airways plans to slash its fleet size. A US Airways spokesman said this rumor is "nonsense" and was based on a two-year-old notice from the airline's previous restructuring.

 

"We have been told that sources for these rumors include some pilots who are campaigning against the tentative agreement the company has reached with ALPA," the airline spokesman said. A flight attendant union leader from Pittsburgh "has also e-mailed the posting without first confirming the facts," he said. US Airways doesn't usually comment on rumors, "but this one is so outrageous and patently false that we felt the need to correct the record," the spokesman said.

 

...

Remainder of story available at the above link.
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