US Airways--AWA

[roz]

Paul Rice, VP of ALPA, just got off a plane from IAD to PHX. The pilot integration talks are serious now. When the new owner (investment group) buys both airlines and merges them, both will likely lose mainline aircraft in the consolidation. Republic is set to take over the 170's. It's all an ugly thing.

[lucky81698]

Roz,

I think it was in the Sunday paper here, that US was planning to get rid of 10 more planes as it is.

Jan

[Kristie]

I also heard something about that, just haven't been keeping track.

[roz]

They're eliminating 74 aircraft--including 28 E-170's that will go to Republic as they eliminate MDA. Expect some consolidation of the AWA fleet as well.

[Kristie]

does that mean they'd be furloughing???

[roz]

I think that is what is expected. AFA rules dictact DOH seniority integration which would mean the US Airways furloughed FA's could be recalled at the expense of AWA FA's. ALPA abandoned DOH a few years ago. So they have to get negotiating committees formed to iron this out. Right now the most junior US Airways pilot has a 1987 DOH. If they went by DOH, Lori's husband at AWA who has a 1985 DOH might not even hold a line. Yikes.

For the life of me I can't understand what investors are willing to take a bankrupt airline with one of the highest CASM's and put it together with an airline that is just holding on. But what do I know? I don't have billions to burn.

[CaptainsWife]

So far the word at AWA is just 6 or 7 planes will be returned. DH heard that at sim in May.
I cannot imagine a 20 year employee not holding a line. Someone would pay! LOL

[roz]

Unfortunately at AAA, 20 year employees are FO's on reserve now. At MDA, you have 20 year employees as FO's to 7 year employees who are Captains. It's a convoluted situation.

It looks like things are slowing down--now it's October:

http://www.wsoctv.com/news/4611269/d...r&psp=news

You can read the whole filing if you want in the court dockets. http://www.donlinrecano.com/mp.dr3?p1=do...amp;p6=04-13819

Here's a summary--it looks like 71 aircraft to be returned now and a reduction in the pilot force of about 250 in the very near future:

The differences appear to be several, with a revised aircraft return schedule, revised RJ leasing, and revised future financing of RJ's being among the bigger - at least on first scan.

Future RJ financing:

- The financing for 31 future US RJ's is eliminated.
- GE will provide leases for 10 Emb-170/190/195's to third party carriers.

Revised current RJ financing:

- GE will provide leases for the 3 undelivered Emb-170's to Republic.
- GE agrees to assign the leases on 15 MDA Emb-170's to Republic.
- Rents on 23 CRJ-200's will be reduced for 30 months, to be made up in the following 24 months.

Boeing/Airbus returns amended:

"With respect to six (6) A319/320 aircraft that are currently subject to the Sale/Leaseback Transaction and one (1) B737-300 aircraft, the applicable leases will be amended to modify the expiry dates thereunder to provide for their early termination and return of the subject aircraft to the applicable GE Entity during the last six months of 2005."

"The leases for five (5) B737-300s currently operated by the Debtors will be amended to provide for their termination, and attendant early redelivery of the subject aircraft, between July 2005 and the Emergence/Merger Deadline Date"

"Leases in respect of an additional thirty-eight (38) Boeing aircraft from the US AirwaysÃ* fleet shall be amended to modify the expiry dates thereunder so as to provide for their early termination and concomitant early return of the subject aircraft to the applicable GE Entity between 2005 and 2009"

The dates:

1 A319 on 9/30/05
2 A320's on 10/1/05
1 A319 & 2 A320's on 11/1/05
(presumably these are in addition to the 10 announced earlier)

1 B737-300 on 6/14/05
1 B737-300 on 7/5/06
1 B737-300 on 9/1/05
1 B737-300 on 10/15/05
1 B737-300 on 10/17/05
1 B737-300 on 10/28/05
2 B737-300 on 11/14/05
1 B737-300 on 12/1/05
1 B737-300 on 12/9/05
3 B737-300 on 12/10/05
1 B737-300 on 1/7/06
4 B737-300's on 1/15/06
1 B737-300 on 1/30/06
1 B737-300 on 1/31/06
2 B737-300 on 2/1/06
1 B737-300 on 2/7/06
1 B737-300 on 2/10/06

The following can be recalled as early as the date shown by GE. Apparently, the leases would normally expire in the second half of 2009:

1 B737-400 on 7/15/07
1 B737-400 on 10/15/07
2 B737-400 on 11/15/07
1 B737-400 on 12/15/07
1 B737-400 on 1/15/08
1 B737-400 on 2/15/08
1 B737-400 on 3/15/08
1 B737-400 on 4/15/08
1 B737-400 on 5/15/08
1 B737-400 on 6/15/08

[roz]

A victory for the little guy!

http://yahoo.reuters.com/financeQuoteCom...16344228_newsml

[roz]

http://pittsburghlive.com/x/tribune-.../s_344934.html

They are:

737-300s: 350, 385, 387, 389, 390, 560, 573
737-400s: 446, 447, 448


Looks like there won't be many planes left when this is done.