US Airways files for bankruptcy

Old Aug 11th, 2002, 02:49 PM
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US Airways files for bankruptcy

From the US forum: All Flights and Customer Programs To Continue Without Interruption; Airline Targets First Quarter 2003 Emergence.

read full announcement at
Old Aug 11th, 2002, 07:32 PM
Oh dear
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They claim it's not going to affect most airport schedules, but I don't see how it can not.

Hope everyone used their Freq. Flyer miles.
Old Aug 12th, 2002, 03:15 PM
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Do you think it is safe to book with them for travel to the carribbean in late September or late October?
Old Aug 12th, 2002, 05:21 PM
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If possible, book another airline.
Old Aug 13th, 2002, 04:53 AM
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I bought tx for us airways via expedia for travel over xmas holidays. I hope they're still flying by then.
what happens if they don't? Hm, better contact expedia.
Old Aug 13th, 2002, 08:16 AM
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US Airways is stressing no flight cancellations and business as usual. My feelings as to the US Airways goals from this Chapter 11 filing are:
1) A cash flow protection stabilization move
2) Some union stabilization tactics without the normal wear and tear
3) Ability to deflect long term aircraft purchase commitments and other long term obligations.
Until something different plays itself out, business as usual will probably be the case. I would expect more attention being paid to flights with low advance passenger bookings by US Airways which may result in a slight increase in US Airways advance flight cancellations. I believe there is no fear at this time. If anything, it’s possible this may help US Airways get on track, even though they’ve been off for decades.
Some other associated problems with this as with any Chapter 11 filing are;
1. Any claims anyone had prior to the filing will be put on-hold.
2. Any future claims will be handled by the courts. On-hold will also apply
3. Many insurance carriers do not permit advance cancellation insurance on bankrupt carriers. This should not affect most business travel, but will affect vacation travelers.
4. There is an increased risk of going out of business. Many Chapter 7 filings or sale of company assets, begin with a Chapter 11 filing.
5. Even though US Airways has stressed that it will be business as usual and may truly believe it, under any reorganization plan, there will managerial events that are no longer under the control of US Airways and instead will come under court control. The courts may on occasion pick a different course of action.
At the moment it appears that all airlines are accepting US Airway tickets in the same way they were doing prior to the bankruptcy and in accordance with prior US Airways policies.
Under no event should someone pay for any US Airways tickets with anything other than a credit card. This may at least provide some protection in the event of a going out of business. As we have seen, on-line purchasers of tickets will have a whole additional set of worries.
How will this end? Unknown… Historically the airline bankruptcy losers have a clear edge over the winners. Continental is one of the few major airline bankruptcy survivors. The losers among them are Eastern, Braniff, Pan AM, TWA.
I believe the federal government will do all possible to avoid any further “out of business” events with a major carrier. I also believe that restructuring is an integral part of streamlining in the airline industry even though it’s an industry that has not had many players, yet for many years, most players have routinely suffered losses. I think it is a good beginning and probably, a necessary evil. The ultimate success will be subject to the management team at US Airways, as well as the avoidance of further industry trauma.
I also consider it likely this will not be the only Chapter 11 filing that will occur.
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