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-04.22.24

Airborne-Unlimited-04.16.24

Airborne-FlightTraining-04.17.24 Airborne-AffordableFlyers-04.18.24

Airborne-Unlimited-04.19.24

Join Us At 0900ET, Friday, 4/10, for the LIVE Morning Brief.
Watch It LIVE at
www.airborne-live.net

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

SpaceX to Launch Inversion RAY Reentry Vehicle in Fall

Inversion to Launch Reentry Vehicle Demonstrator Aboard SpaceX Falcon 9 This fall, the aerospace startup Inversion is set to launch its Ray reentry demonstrator capsule aboard Spac>[...]

Aero-News: Quote of the Day (04.23.24)

"We are excited to accelerate the adoption of electric aviation technology and further our journey towards a sustainable future. The agreement with magniX underscores our commitmen>[...]

Aero-News: Quote of the Day (04.20.24)

"The journey to this achievement started nearly a decade ago when a freshly commissioned Gentry, driven by a fascination with new technologies and a desire to contribute significan>[...]

ANN's Daily Aero-Linx (04.20.24)

Aero Linx: OX5 Aviation Pioneers Each year a national reunion of OX5 Aviation Pioneers is hosted by one of the Wings in the organization. The reunions attract much attention as man>[...]

Aero-News: Quote of the Day (04.21.24)

"Our driven and innovative team of military and civilian Airmen delivers combat power daily, ensuring our nation is ready today and tomorrow." Source: General Duke Richardson, AFMC>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

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