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Mike M September 12th, 2004 07:46 PM

USAir Files for Chapter 11 Bankruptcy Protection
USAir has filed for Chapter 11 Bankruptcy Protection. This does not mean it will stop operations. Chapter 11 holds off their creditors and allows them to reorganize and put together a plan to pay off debt. Let's hope they do.

"US Airways said customers would notice no operational changes as a result of the bankruptcy and that it will seek permission to continue its frequent flyer program."

Take care,

rollerdonna September 12th, 2004 09:45 PM

Re: USAir Files for Chapter 11 Bankruptcy Protection
Air Canada has been under bankruptcy protection for the past year, and they're still flying - not to worry!


AR September 12th, 2004 10:48 PM

Re: Re: USAir Files for Chapter 11 Bankruptcy Protection
I don't think "not to worry" is particularly good advice.

There's plenty to worry about regarding USAirways, although Mike is right that they will not suspend operations immediately.

Me, I think it's time to start using up your USAirways miles. Many analysts believe it will be difficult for them to successfully emerge from this, their second bankruptcy.

lexxity September 13th, 2004 10:06 AM

Re: USAir Files for Chapter 11 Bankruptcy Protection
Not to worry is certainly not good advice. I have the dubious pleasure of working with the above airlines and can safely say that AC are in BIG trouble and one of the major US carriers will disappear within the next five or so years. The reason for this is that, AC operate too many aircraft types, they need to go all airbus or boeing(also true of all US carriers as well) - this will cut down on many costs- they also need to stop offering so many frequent flyer programmes, they are all aeroplan, but 19 different types and levels(!!!) is ridiculous. We have three and are now cost saving by processing applications on line and not sending cards out until 3000miles have been flown. Why spend money on something that may never be used?
AC also do not have the aircraft to operate as they used too, i know as my airline took over one long haul route, they have to focus on high yield routes more. Also streamline the inflight service consistently, not be so hit and miss. If pax know what to expect they will make a more informed choice, this is also very true of the US carriers, a meal here, no meal there. Free drinks, pay for drinks?!?!?
My personal opinion on US is that they will disappear into another guise, ie: TWA and AA. i think eventually they will possibly end up being US/United. Another great way of making money is to train your staff well. If you offer good service then you become a more attractive choice than your competitors. Passengers want good service and a couple of free drinks, soft or alcoholic, they do not want a misery and having to part with their hard earned cash for a can of sprite. Especially not on long flights!!
The airline industry has changed for ever, we cannot go back to pre 9/11, t is just not going to happen. Until the managers start seeing this, and not their final salary pensions, there will be trouble ahead. I am pleased to report that long haul loads are now back to pre 9/11 loads. Hooray!!
i am sorry for the rant, but this is my line of work (i must be mad) and wanted to give my honest opinion.

Whiteknight September 13th, 2004 12:30 PM

Re: USAir Files for Chapter 11 Bankruptcy Protection
You probably have some good insight into the whole airline situation, but worrying isn't going to change anything, so why worry. Why make yourself sick over something you have no control over? If you have tickets on US Air, they will be honored. The flights will continue to fly. There's a financial benefit to filing for bankruptcy protection that will keep them flying. Eventially, they may be bought out by another airline, but United isn't in any shape to perform that hat trick right now. If anyone were to attempt that now, it would have to be one of the lower cost airlines that wants to expand their fleets and the airports they're allowed to go to, along with their landing slots, and they would need to operate the same type aircraft in order keep tight controls on their parts and maintenance. Unfortunately, they would probably bring their own salary structures with them also, so pay cuts would probably be inevitable. That's the future, the way I see it. Of course, I could be wrong.

AR September 13th, 2004 02:06 PM

Re: Re: USAir Files for Chapter 11 Bankruptcy Protection
Just as likely would be that the routes and aircraft would be divided up among some of the other lines. It isn't necessarily all or nothing. It could be done piecemeal. I certainly agree that a US/United alliance seems unlikely. It would be like lashing two rocks together and throwing them into the lake.

My point in saying that there's plenty to worry about was not that you should fret over tickets you hold, but that you should keep your eyes open and understand that USAirways is in very big trouble and may well not survive. The only thing you really have to worry about (unless you're a stockholder) is your frequent flyer account, and I think prudence would dictate bleeding that puppy down as soon as practical.

Mike M September 13th, 2004 03:08 PM

Re: USAir Files for Chapter 11 Bankruptcy Protection
The take over of TWA by American Airlines almost did AA in and cost the jobs of thousands of employees on both the TWA and AA sides. It did save a number of senior people on the TWA side.

At this time there is no airline that is in financial shape to take over USAir as a company. As AR said they may be able to take over the routes and many of the assets (equipment) but not the company.

Take care,
Mike(Who expects to see a few more Chapter 11 filings in the airline industry in the next few months)

Whiteknight September 13th, 2004 10:08 PM

Re: USAir Files for Chapter 11 Bankruptcy Protection
I love that description of lashing two rocks together and throwing them in the lake. Right on the money!

David Starkey September 14th, 2004 02:48 PM

Re: USAir Files for Chapter 11 Bankruptcy Protection
My wife has has had over a million miles on USairways...we are booking major international frequent filer flights on United(partner) but who knows if they will be around next year when we go to redeem our long haul filights? Air Canada is a partner for them too. Who knows?
I wish the best for US as I live in North Carolina and it is the major air carrier by far and has over 5000 employee's that work and live in North Carolina..

Whiteknight September 14th, 2004 09:54 PM

Re: USAir Files for Chapter 11 Bankruptcy Protection
They may be okay if they can get some more concessions from their employees. Their federal loan was approved today, so they're back in business 100% for the forseeable future.

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