Air Whisky

[roz]

So what does the announcement today regarding Air Wisconsin investing
in US Airways and getting the rights to fly 70 RJ's. Does this mean
they kick out Mesa, CHQ, etc.? Does this mean they become US Airways?

Read it for yourselves:

ARLINGTON, Va., Feb. 18, 2005 ñ US Airways Group, Inc. today
announced that it has reached agreement with Eastshore Aviation, LLC,
an investment entity owned by Air Wisconsin Airlines Corp., and
shareholders, on a $125 million financing commitment to provide a
substantial portion of the equity funding for a plan of
reorganization (POR).

The $125 million facility will be made in the form of a debtor-in-
possession (DIP) term loan, to be drawn in the amount of $75 million
(immediately upon approval by the U.S. Bankruptcy Court) and two
subsequent $25 million increments. This loan would be second only to
the Air Transportation Stabilization Board (ATSB) loan with regard to
the company's assets that are pledged as collateral. Upon emergence
from Chapter 11, the $125 million financing package would then
convert to equity in the reorganized US Airways.

Air Wisconsin, based in Appleton, Wis., is the nation's largest
privately held regional airline. In 2004, its 87 all-jet fleet
generated approximately $700 million in revenue and flew more than 7
million passengers under the United Express brand. As part of this
agreement, US Airways and Air Wisconsin will enter into an air
services agreement under which Air Wisconsin may, but is not required
to, provide regional jet service under the US Airways Express brand.
Air Wisconsin's arrangements with United Airlines are unaffected by
this agreement with US Airways.

"This agreement has a number of benefits that are consistent with our
restructuring efforts," said Bruce R. Lakefield, US Airways president
and chief executive officer. "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. Air Wisconsin is a top-notch airline
that has had its own success in completing a turnaround, so we see
tremendous upside from building a business and financial
relationship."

"US Airways has done a remarkable job in its restructuring efforts
and has built a solid foundation from which to grow. We and Air
Wisconsin look forward to the opportunity to be part of its success,"
said Eastshore principal Richard Bartlett.

Terms of the agreement will be filed with the U.S. Bankruptcy Court
for the eastern district of Virginia, where the US Airways case is
being heard. The DIP facility, which is subject to Bankruptcy Court
approval, will be secured by liens and security interests in the same
package of US Airways assets that are pledged as collateral to the
ATSB, with the ATSB in the first priority position, and Eastshore in
the second position. In addition to the DIP financing facility, the
agreement provides for the conversion of the DIP into equity, in the
form of new common stock, that will be issued in conjunction with US
Airways' emergence from Chapter 11.

"This agreement with Eastshore Aviation provides the cornerstone from
which we can obtain additional financing and construct a plan of
reorganization," said Lakefield. "While we have more work to do, this
is another positive signal to the marketplace."

[roz]

ARLINGTON, Va., Feb. 25 /PRNewswire-FirstCall/ -- US Airways announced today that it will adjust systemwide capacity, slowing growth, by returning 11 Boeing 737 aircraft to lessors beginning in May, as the benefits of increased aircraft productivity expand across its network.

Persistent and sustained high fuel costs as well as the weak revenue environment caused by industry overcapacity and low fares also played a significant role in the company's decision.

Overall, the return of aircraft will result in a net reduction of only 14 flights systemwide compared to the February 2005 schedule, and the discontinuation of service to two destinations, as most service will be replaced with regional jets or by increased utilization of the mainline existing fleet. Even with the May 2005 capacity adjustments, systemwide available seat miles (ASMs) are expected to increase between 4 and 6 percent year-over-year.

The May schedule includes a small change in service at US Airways' Charlotte, N.C., and Philadelphia hubs as well as the discontinuation of some flights at Fort Lauderdale/Hollywood International Airport.

With the new schedule, US Airways will operate one less daily departure between Charlotte and Atlanta, Raleigh-Durham, N.C., Orlando and West Palm Beach, Fla. In Philadelphia, US Airways will operate one less Hartford, Conn., Buffalo, N.Y., Norfolk, Va., Seattle, Fort Lauderdale and Orlando, Fla., flight. Additionally, three Philadelphia-Tampa, Fla., flights will be discontinued.

Nonstop service between Fort Lauderdale and Panama City, Panama; San Salvador, El Salvador; San Juan and Newark also will be discontinued. With the exception of Panama City and San Salvador, which US Airways no longer will serve, customers in these cities still will be able to connect to Fort Lauderdale via other US Airways cities.

Despite these reductions, US Airways has tripled the number of destinations served (from five to 15) at Fort Lauderdale, with 80 percent more capacity, since February 2004.

Pending the outcome of the company's voluntary early-out program and retirement decisions, at this time, US Airways does not foresee employee furloughs as a result of these actions (with the exception of San Salvador and Panama City).

"The revenue and fuel environment requires that we move quickly to retire some of our older aircraft and weakest flying that simply cannot be sustained," said Bruce Ashby, US Airways executive vice president of marketing and planning. "We are pleased with the positive impact of our new productivity and scheduling enhancements and this decision will have minimal impact on our customers. We must make some difficult decisions in order to complete our restructuring and position the company for success."

<font color="blue"> Cutting capacity before the busy summer season is worrisome to me. And if you read between the lines, they are actually cutting 34 mainline flights. And what about the much bantered FLL hub--cutting back one month into it? </font>

[Kristie]

the 80% more capacity has me concerned.. sounds like they're doing pretty good in the FLL market.

maybe they're just making sure they have 90-95% capacity instead by limiting the flights?? or will they scare off any pax they have left because they're taking flights away?

[roz]

http://biz.yahoo.com/prnews/050404/cgm028.html?.v=5

The race to the bottom continues....

[Kristie]

that's just lovely! [img]images/graemlins/banghead.gif[/img]

I don't think i've ever heard of GoJets...is that a new company?

[roz]

The whole GoJet thing is being done because AA's scope clauses prohibit the non-Eagle AA affiliates operating as AmericanConnection from operating jets with more than 50 seats. This is actually the same reason why Wexford/Republic is trying to operate the EMB-170 at Republic, rather than Chautauqua.

[lucky81698]

[ QUOTE ]
roz said:
The whole GoJet thing is being done because AA's scope clauses prohibit the non-Eagle AA affiliates operating as AmericanConnection from operating jets with more than 50 seats. This is actually the same reason why Wexford/Republic is trying to operate the EMB-170 at Republic, rather than Chautauqua.

[/ QUOTE ]

Airline management = a big bunch of scumbags!

Just my opinion!

Jan

[Kristie]

So I'm sitting here doing laundry[img]images/graemlins/dryer.gif[/img] and wondering...

need a bat Jan?[img]images/graemlins/bat.gif[/img]




[img]images/graemlins/grinning-smiley-044.gif[/img] [img]images/graemlins/rotflol.gif[/img]

[lucky81698]

[ QUOTE ]
Kristie said:

So I'm sitting here doing laundry[img]images/graemlins/dryer.gif[/img] and wondering...

need a bat Jan?[img]images/graemlins/bat.gif[/img]




[img]images/graemlins/grinning-smiley-044.gif[/img] [img]images/graemlins/rotflol.gif[/img]

[/ QUOTE ]

Bat, brick, 2 x 4, any of those would do! Especially since some news I just heard but cannot repeat as it's "top secret". They all just suck!

Jan [img]images/graemlins/curse.gif[/img]