Pilots Issue Finance Warning To US Airways | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Airborne-Unlimited-05.13.24

Airborne-NextGen-05.07.24

Airborne-Unlimited-05.08.24 Airborne-FlightTraining-05.09.24

Airborne-Unlimited-05.10.24

Tue, Aug 17, 2004

Pilots Issue Finance Warning To US Airways

They say company will go out of business in months, unless...

Warning, Will Robinson! Warning!

If US Airways doesn't do something fast, it will go the way of the dinosaur -- and soon. That's the word in a financial report commissioned by the ALPA.

But here's the odd thing. Even though the airline's 3,400 pilots commissioned the report by Glazner and Company, the text of the report seems to bolster the airline's position in ongoing concession talks. Ironically, the pilots' union and others have said they doubt the situation is as bad as US Airways says it is. But unless the company changes its cost structure, Glazner and Company thinks US Airways will go belly-up in less than 270 days.

Even though it's not necessarily what they wanted to hear, pilots' spokesman Jack Stephan said the ALPA doesn't "disagree in principle with the conclusions reached by our investment banker."

Topping the list of upcoming expenses: US Airways is required to make a $130 million payment to its employee pension plan. If that doesn't happen, agreements reached during the company's bankruptcy could fall through and its creditors could demand immediate payment. The IRS could sanction US Airways, the Air Transportation Stabilization Board could demand its $900 billion loan be paid off and the company's aircraft lease holders could back out.

If that were to be the case, the report said it would result in "a run on the bank. If anyone of them begins executing on these capital calls, they all will, and the airline will fail."

FMI: www.usairways.com, www.alpa.org

Advertisement

More News

Airborne 05.10.24: Icon Auction, Drunk MedEvac Pilot, Bell ALFA

Also: SkyReach Parts Support, Piper Service Ctr, Airliner Near-Miss, Airshow London The Judge overseeing Icon's convoluted Chapter 11 process has approved $9 million in Chapter 11 >[...]

ANN's Daily Aero-Term (05.13.24): ILS PRM Approach

ILS PRM Approach An instrument landing system (ILS) approach conducted to parallel runways whose extended centerlines are separated by less than 4,300 feet and at least 3,000 feet >[...]

ANN's Daily Aero-Linx (05.13.24)

Aero Linx: FlyPups FlyPups transports dogs from desperate situations to fosters, no-kill shelters, and fur-ever homes. We deliver trained dogs to veterans for service and companion>[...]

Airborne-NextGen 05.07.24: AI-Piloted F-16, AgEagle, 1st 2 WorldView Sats

Also: Skydio Chief, Uncle Sam Sues, Dash 7 magniX, OR UAS Accelerator US Secretary of the Air Force Frank Kendall was given a turn around the patch in the 'X-62A Variable In-flight>[...]

Airborne 05.08.24: Denali Update, Dad-Daughter Gyro, Lake SAIB

Also: NBAA on FAA Reauth, DJI AG Drones, HI Insurance Bill Defeated, SPSA Airtankers The Beechcraft Denali continues moving forward towards certification, having received its FAA T>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2024 Web Development & Design by Pauli Systems, LC