US Airways! Has anyone heard???

I'm listening to the news right now, and they are saying that US Airways is doomed! They made it sound like US Airways was going to shutdown by September. Our cruise is in Nov, and we booked US Airways for our flights. Should I panic? Has anyone else seen news like this? What did you do????:confused: :confused: :confused:

Don't panic. The news is that some analysts believe that US Airways will be in Chapter 11 bankruptcy protection again by the end of September if there aren't some seriously renegotiated contracts with the workforce.

 

However, that's different from the airline actually shutting down. Although these analysts believe that if US goes into Chapter 11 again, it will not come out and it will be liquidated, that may not happen quite as fast. United Airlines has been in Chapter 11 for over 18 months now, and remains a candidate for never coming out, but it has continued operations throughout that period.

 

If I were a betting man, I would say that US will probably still be around at the time of your cruise in November. But there are no guarantees, so check to see whether you can still get airline failure insurance (or check that your credit card company will reimburse you the cost of your tickets if the airline fails) - or if you are really nervous, make some backup plans.

Don't panic. The news is that some analysts believe that US Airways will be in Chapter 11 bankruptcy protection again by the end of September if there aren't some seriously renegotiated contracts with the workforce.

 

However, that's different from the airline actually shutting down. Although these analysts believe that if US goes into Chapter 11 again, it will not come out and it will be liquidated, that may not happen quite as fast. United Airlines has been in Chapter 11 for over 18 months now, and remains a candidate for never coming out, but it has continued operations throughout that period.

 

If I were a betting man, I would say that US will probably still be around at the time of your cruise in November. But there are no guarantees, so check to see whether you can still get airline failure insurance (or check that your credit card company will reimburse you the cost of your tickets if the airline fails) - or if you are really nervous, make some backup plans.

It's so nice to see your post. I was really in a state of panic. I'm still deciding whether to go ahead and purchase a backup tix, since they are so cheap right now. I guess I'll just watch the news in the next month and see how it goes.....

It's so nice to see your post. I was really in a state of panic. I'm still deciding whether to go ahead and purchase a backup tix, since they are so cheap right now. I guess I'll just watch the news in the next month and see how it goes.....

Again, no guarantees, but this week US managed to reach a deal with the pilots - so they have taken a first step towards the cost cuts they think they need to get in order to stay out of Chapter 11 for the foreseeable future.

 

However, the price of oil must be a worry.

Again, no guarantees, but this week US managed to reach a deal with the pilots - so they have taken a first step towards the cost cuts they think they need to get in order to stay out of Chapter 11 for the foreseeable future.

I'm sorry, I was misinformed about this. The union has said that it believes that a deal is close, but negotiations are in fact still continuing. In any event, as I said, even a deal would only be a first step.

I'm sorry, I was misinformed about this. The union has said that it believes that a deal is close, but negotiations are in fact still continuing. In any event, as I said, even a deal would only be a first step.

I'm not very good at finding this kind of news, so your posts are calming my nerves a slight bit. If the pilots are willing to negotiate, it must mean that there is some hope. I just want them to keep flying until the end of November, then I'll be a 'happy cruiser'!

A mixed response for you, Lynzchat:

 

I've heard that negotiations with the pilots have in fact now broken down. I can't see that confirmed anywhere so I don't kow how accurate that is.

 

But I still think that the chances are that US will still be flying in late November. There's much time between now and the end of September, and as I say that will still just be the airline entering Chapter 11.

 

It isn't easy to find news about the detail of these things - you tend to have to get a mixture of open source news and informed insider gossip, and the latter has to be discounted for the usual factors as far as gossip is concerned.

I'm getting really nervous myself. I have a flight booked for Sept. 19th to San Juan and a return flight for Sept. 26th, both on USAirways. The flight was booked with the cruise, but I've been told if the airline fails, I still lose my money. That doesn't seem fair at all since I didn't CHOOSE USAirways...the cruise line did! Like I said, I'm getting really nervous about the whole deal.

I'm getting really nervous myself. I have a flight booked for Sept. 19th to San Juan and a return flight for Sept. 26th, both on USAirways. The flight was booked with the cruise, but I've been told if the airline fails, I still lose my money. That doesn't seem fair at all since I didn't CHOOSE USAirways...the cruise line did! Like I said, I'm getting really nervous about the whole deal.

I would think that if you booked a cruise/air package, that the cruiseline would find a way to get you to the ship.

 

We booked separate air/cruise. We found the air on our own. As a reassurance, we went ahead and bought a really cheap tix, through AirTran(not exactly a prime airline, but worth the price), and now I have piece of mind. Just needed that extra insurance.:cool:

Even if US Airways went completely out of business, any passengers would be accomodated on another airline. It wouldn't be the passengers that would be harmed, only the employees.

 

A good source indicates that the company is asking for concessions that the union is not willing to provide - in some cases it amounts to very large cuts in pay.

Just my 2 cents.

Even if US Airways went completely out of business, any passengers would be accomodated on another airline. It wouldn't be the passengers that would be harmed, only the employees.

Presumably you mean passengers who booked their air travel through the cruise line? If you booked directly, there's no guarantee that any other airline will honour the ticket, although history suggests that many try to help out where they can.

A good source indicates that the company is asking for concessions that the union is not willing to provide - in some cases it amounts to very large cuts in pay.

And you have to remember that many groups at US have already taken very large cuts in pay since the company first started to struggle. Flight deck crew and cabin crew pay is already down by something like 40% since then - and they're now being asked for another huge whack. It is very difficult to see what the long-term future is for this airline.

Remeber also, if USAirways ceases to operate, other carriers MAY accept their tickets, but only on a NON-REVENUE SPACE AVAILABLE basis. Keep in mind that usually such customers come at the bottom of the boarding priority, i.e. the companies NON-REVENUE employees, and family members are cleared FIRST. Also keep in mind that the other airlines are booking the flights, not counting on accomodating the displaced customers from a carrier that has ceased operations.

 

As far as AirTran being "Sub-Prime", they are not the line in danger of having to cease operations and liquidate their assests. I have flown them several times and their service is just as professional as any U.S. carrier I have flown.

I bought my tickets for Feb 17th and return on Feb 28th from United and found out that the flights we booked are actually on US Airways planes. I'm really confused about that, and I also understand that United is also on the verge of bankruptcy. If US Airways goes out of business first who will be responsible to find us other flights? United? or nobody?

 

Really confused about all of this.

I bought my tickets for Feb 17th and return on Feb 28th from United and found out that the flights we booked are actually on US Airways planes. I'm really confused about that, and I also understand that United is also on the verge of bankruptcy. If US Airways goes out of business first who will be responsible to find us other flights? United? or nobody?

If your tickets were issued by United and have United (UA) flight numbers on them, then (IIRC) UA ought to remain responsible for your carriage if the operating carrier (US Airways) ceases operations.

 

However, UA is not in fact only "on the verge of bankruptcy" - it went into Chapter 11 bankruptcy protection in December 2002, where it remains.

 

Update on the situation at US: The pilots are intent on resuming negotiations but it seems unlikely that there will be enough agreements with enough unions to avoid a bankruptcy (Chapter 11) filing by the middle of September. One pilots' union spokesman is reported to have used the formula "by 12 September". However, that doesn't mean the airline will stop flying immediately.

Thanks for the updates Globaliser. If you don't mind, please keep us posted. I have two tickets booked on USAir over Thankgsgiving and they were very expensive. When I booked the air, I didn't realize there were problems, otherwise I wouldn't have taken the chance. I checked into travel insurance but you have to buy it within so many days of buying the airfare. Now I'm too late. :(

The pilots union appears to have rejected the company's latest offer. From the Pittsburgh Post-Gazette's website:-

US Airways pilots union rejects offer

 

Tuesday, September 07, 2004

By Dan Fitzpatrick, Pittsburgh Post-Gazette

 

Leaders of the US Airways pilots union decided last night not to allow 3,000 rank-and-file pilots to vote on the company's latest $295 million cost-cutting proposal, increasing the likelihood of a US Airways bankruptcy this month.

 

The union's 12-member Master Executive Council made its decision at an Arlington, Va., hotel, where it gathered to consider an offer that called for a 21 percent pay reduction and a 50 percent cut in the company's contribution to the pilots' retirement plan. The two sides have been negotiating since June 1 and talking around the clock for the past week.

 

The company is seeking $295 million from the pilots and $800 million from all unions to avoid its second bankruptcy in two years.

Remainder of story available at that link, and CNN Money's story also available here.

 

Interestingly, there is another reference to the airline going into Chapter 11 bankruptcy protection by the coming weekend (11/12 September), suggesting wider credence being given to that date.

:mad: Ughhhh..

 

Thanks for the update.

Possibly slightly better news on CNN Money today:-

Talking again at US Air

Airline's pilot union agrees to new talks on $295 million giveback plan.

September 11, 2004: 8:21 PM EDT

 

WASHINGTON (Reuters) - US Airways and its pilots union said Saturday that they were willing to resume talks over a $295 million package of concessions, as time ran short for the company to strike giveback deals with its labor groups and avert another trip into bankruptcy.

 

"The ball is in their court," said Jack Stephan, a spokesman for the US Airways unit of the Air Line Pilots Association, about the next move in long, difficult negotiations.

 

A spokesman for the seventh-largest U.S. airline also said on Saturday it was ready to negotiate, but by late in the evening no meetings had been scheduled.

So possibly no Chapter 11 filing today, but unless there is strikingly rapid progress it still looks likely within a matter of days.

US Airways has in fact file gone into Chapter 11 bankruptcy protection today. The main US Airways home page has a link near the top saying "US Airways' Restructuring", which takes you to this page. That in turn leads to a dedicated website at www.transformingusairways.com.

The key paragraphs about the company's immediate intentions are:-

Customers should notice no changes to flight operations or customer service programs because of the filing. All bookings will be honored, and ticketing policies are unchanged. Existing marketing partnerships with other airlines remain in place. Employees will be paid and their benefits will continue. Vendors will be paid in ordinary course for provided goods and services going forward. In the future, if there are any changes to schedules or policies, they will be announced in advance.

 

US Airways has also received permission from the Court to allow the company to honor all key agreements related to its Dividend Miles program and the co-branded Bank of America/Dividend Miles credit card.

All of which means that the earlier reporting of the Chapter 11 filing date was scarily accurate.

I booked flights to San Juan in February (President's day week) using FF miles on USAirways. Based on what I have been hearing I just booked back-up refundable tickets on Delta.

 

The sad thing is based on where I live (CT), the best flights and connections to SJU are on USAirways. The only non-stop flight had only 5 seats left.

I think most all of the airlines are fairly unstable since 9/11...We are flying United to FLL also on Feb 17th. CHECK YOU AIR, as our flight times have changed twice since we booked in April. Just keeping our fingers crossed.

Don't worry too much if your flight times change. That's entirely normal - airlines change their schedules usually every week; eventually your flight will be one of the changes if you've booked far enough in advance. Zurmolly's right though - make sure you check on the status of your flights, no matter the airline. They most likely WON'T call you to inform you of a change that may ruin your vacation!!

I also booked with United for Feb 17th out of Pittsburgh to FLL and my flights have changed twice, but I also noticed that even though I thought I was flying United (because that where I booked them) I found out that they are on US Airways planes and flights.

 

So I wonder whats going to happen there?

I am still deciding if I should book the cruise as I will have to use my frequent flier miles to get to San Juan in december. Yes I am very concerned. I do not want to be out the cost of the cruise. I called the travel guard insurance they tell me they will not cover any flights on USAirways as of today.... that sounds bad to me..

 

good luck everyone.. lets go cruising !!!

US has been to the bankruptcy court today, as reported by CBS Marketwatch:-

US Airways falls on Chapter 11 filing

By Matt Andrejczak, CBS.MarketWatch.com

Last Update: 2:39 PM ET Sept. 13, 2004

 

SAN FRANCISCO (CBS.MW) -- Shares of US Airways plunged over 34 percent in midafternoon trade Monday, turning the nation's seventh-largest carrier into a penny stock after it filed for Chapter 11 bankruptcy again.

 

US Airways (UAIR: news, chart, profile) stock fell 50 cents to 96 cents.

 

In its first court hearing Monday in Alexandria, Va., the airline's lawyers told Judge Stephen Mitchell it has no intention of liquidating it assets, according to media reports.

 

US Airways Chairman David Bronner has said in recent interviews that the airline might have more value to shareholders if it were liquidated, though he did not advocate taking such action.

 

US Airways listed its assets at $8.8 billion, including $2.5 billion in goodwill, alongside debt of $8.7 billion. The airline said it plans to file its reorganization plan by year-end.

 

One of its biggest hurdles will be finding new sources of cash, observers said. All of US Airways' available collateral has already been pledged to back a $1 billion emergency federal loan.

 

In a statement, the airline said it would have access to a "portion" of the $750 million in cash that serves as one part of the collateral supporting the Air Transportation Stabilization Board loan.

 

US Airways' current cash position is $1.45 billion, nearly half of which -- $718 million -- is the ATSB loan.

 

The airline filed for Chapter 11 to preserve its cash as it faced a Sept. 15 pension payment of $110 million, which could have jeopardized its financial standing with its creditors.

 

The ATSB said it will "continue to work with US Airways as it seeks to restructure and will work with the bankruptcy court to ensure that the taxpayers' interests are protected." The U.S. government has a 10 percent stake in the airline.

 

...

Remainder of story available at that link. Interesting commentary at the end:-

US Airways aims to remake itself into a JetBlue, the upstart low-fare airline, and an America West, the hybrid low-cost carrier. It wants to use its fleet of regional jets to reach smaller markets in the eastern U.S., as well as Latin American and Caribbean destinations.

Also, there's some earlier but more financially driven commentary reported on CNN Money, including various views on the likelihood of liquidation and the length of time the airline can continue operating before it runs out of cash.