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Author Topic: AA to buy UsAir Shuttle?
AAflyingbrian67
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Maybe this means we will bring back laid off employees. I hope so!
Brian

CHICAGO, Jan 27 (Reuters) - Four U.S. airlines have bid on various assets put on the block by US Airways, including American Airlines, which wants the East Coast shuttle, according to banking sources familiar with the matter.

The airline is looking for ways to cut costs 10 months after emerging from bankruptcy protection in a bid to survive and avoid another trip to the courts.

Executives at American Airlines parent AMR Corp., which recently reported a much narrower fourth-quarter loss, have sought the shuttle for years, said the sources, who requested anonymity. In 1997, American bid about $300 million for the shuttle.

The shuttle was for sale again in 2001, when UAL Corp.'s United Airlines tried to buy US Airways. That deal failed after it was blocked by antitrust regulators.

With around $3 billion in cash and its finances somewhat stabilized since its brush with bankruptcy last year, Fort Worth, Texas-based American finds the chance to buy the shuttle worth pursuing, the sources said.

The shuttle, which flies between New York, Washington, D.C. and Boston, is expected to fetch around $100 million to $150 million, they said.

Also bidding on different pieces of US Airways assets are JetBlue Airways Corp., Delta Air Lines Inc. and AirTran Holdings Inc.

Bids were submitted last Thursday, according to bankers, and the US Airways board is to meet in early February to review the proposals.

Spokesmen at the airlines did not immediately return calls seeking comment.

JetBlue has bid for the shuttle and other assets, the sources said. Delta, which already flies an East Coast Shuttle, was said to be interested in US Airways' non-hub flying slots and "pretty much everything" except the shuttle, according to one source.

EXPLORATORY PROCESS

US Airways spokesman David Castelveter said the company has acknowledged that it has begun an "exploratory process" regarding its financial options but added: "We have not made a decision to sell any assets."

US Airways, which emerged from Chapter 11 bankruptcy last year after an 8-month stay, received a government-backed loan via the Air Transportation Stabilization Board. It must meet certain financial covenants by June 1.

In addition, General Electric Co.'s finance arm is financing the airline's purchase of regional jets, but requires a credit rating maintained at B minus.

JetBlue, the low-fare carrier based in New York, continues to expand its popular service featuring live TV and leather seats. Last week it said it filed with the U.S. Department of Transportation for 10 slots to begin service from New York's LaGuardia Airport this spring.

(Additional reporting by Meredith Grossman Dubner)


01/27/04 11:20 ET

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L1011Ret
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AA has said they would buy only gates and slots. No aircraft or crews. That could be good for furloughed AA employees. Sad for US Air.
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B-757-200
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quote:
Originally posted by L1011Ret:
AA has said they would buy only gates and slots. No aircraft or crews. That could be good for furloughed AA employees.

True, Bill. It will definately help AA crews, but not LLC ones.

Suprised?

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AAflyingbrian67
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I am sorry but I do not see how it will not help out LLC crews? I am not sure of the numbers but there are over 1000 natives laid off infront of LLC crews. So if 500 are called back that means that there are only 500 more to be called back before LLC crews are called back to flying?
The call backs for the 400 F/As in December went to June 2000 seniorty. TWA is April 2001. SO they were 10 months away from getting called back.
Yes, at this moment it did not effect LLC but in the big picture it did. The only way we are going to get laid off employees back is groth and retirements.

Brian

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L1011Ret
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I tend to think that whatever helps AA expand in the short run can only benefit LLCers in the long run. If as some posters think, AA obtains shuttle slots/gates and expands their own "baby shuttle", perhaps some of those S80s in the desert might be used necessitating the need for more crews.
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chrispy
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1000 NAAtives laid off before the LLC Crews ???

Maybe my numbers are wrong, but there were a total of 470 something NAAtives laid off shortly after Septemeber 11.

When Supp CC was put into effect, it not just brought back 200 NAAtives BUT it also stapled 1600 LLC pilots to the bottom AND HERE'S the kicker, instead of giving the stapled pilots (some with hire dates as high as 1989) an April 10th seniority date-the same as the merger, they were given June 10th which helped to bring back even more NAAtives. AMR instituted the June 10th date and Judas John and Eddie Saks were about as heartbroken as a guy winning the lottery.

This is called the ole', slap in the face and kick in the nuggets trick, worked well on the LLC pilots. Supp CC able to put almost 75% of the LLC pilots on the street and preserve the jobs of the least experienced 2000/2001 hires - THE Only Major Airline with furloughed pilots to be able to say that - WELL DONE APA !!!!

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