NCM

Does anyone have any idea where things stand re:USAir? Is June 28 still a sort of watershed deadline, where they have to decide to try to swim or give up and sink?

Lots of friends trying to use FF miles up -- when does it start to get iffy whether flights will actually go?

Bill

Heard on the news today that PA Senator Rick Santorum has been mostly assured the US Govt. will come through with the loan the airline requested. This is the same loan that USAirways declined earlier in the wake of 9/11. Then again, though, this all hinges on the practicality and good business sense (Stephen Wolfe are you listening?) of the airline's restructuring plan. That's the latest facts and a bit of opinion (I couldn't help it!).

NCM

Thanks, Bill,

One thing: USAir will be starting out their summer with many fewer FreqFlyer mile awards pending "against" their bottom line -- people are using 'em up. Not good for revenue, but gets rid of some "accounts payable" type "debt."

But I'm curious re:what you (Bill) think would be good sense and what not in reorganizing. I'm sure the big generalizations have to do with cutting out unprofitable routes, etc. but what specifically do you think their problems have been?

Bill

Good business sense for USAirways would be to clean house at the very top - unload Stephen Wolfe. He has damaged that airline more than he has helped it. I'm not a USAirways employee, but just someone who recognizes where a major problem area at that airline really is! Thanks for asking my opinion...sorry you got my vent!

x

In 2001, US Airways focused solely on selling itself ... for which the top execs were to be paid a bonus. So, no focus on operations. They lost money, a lot. No mystery to what happened. And their assets would then prop up DC Air headed by one Mr. Johnson, who was on their board, a media guy, no experience. An inside sale, conflict of interest, a bad situation. I'm using up my FF miles with that bunch asap. They will get their loan ... and I wish them well. But how loyal will they be to their clients ... they were only too willing to sell out the entire east coast. Now they say they will reorganize and work to get our business.

Karen

Could someone feel me in here? I have round trip tickets for August? Do I need to worry? I knew that price was too good to be true.

Dale

Karen, I'll be glad to feel you but won't your husband mind?? Just kidding.

USAirways is having financial problems, as are most other carriers. They may have to file Chapter 11 IF the labor unions don't cooperate, which is a distinct possibility. However, other airlines (including Continental, twice) have been through bankruptcy and survived. I wouldn't worry. I fly US often and they take pretty good care of me.

Dick

Just a clarification....

You referred to, "one Mr Johsnon..."

Mr Johnson is Robert Johnson, founder and CEO of Black Entertainment Television (BET).

He sits on several corporat boards and is worth Megabucks!

Karen

Oh that was pretty, could someone please fill me in.

Karen

Thanks Dale

Bill

Isn't it ironic that a former executive of Continental Airlines now holds a top executive position at USAirways? If Continental has survived 2 bankruptcy filings I hope that is the case for USAirways if it goes that route. Stephen Wolf's removal from the payroll should be a part of any restructuing plan!

Adam

I would not hesitate to book USAirways if they have the best schedules and/or fares. Assuming the worst, it will be months (if not years) before any kind of liquidation could happen. As previously stated, airlines have made an art out of operating in bankruptcy.

For whatever it's worth, I really like USAirways. Good frequent flyer program, nice people and generally on-time service. They've had their ups and downs but as someone who flies them weekly let me say that they have improved a lot since 1997.

x

Yes,, one Mr. Johnson, aka Robert of BET - and one their board members - and offered an insider deal to lease former US Airways planes, staff, etc. from the new owner, United. Even though a better deal was offered by Continental, and possibly others. This one Mr. Johnson knows zip about airlines, safety, customer service. He is media, 100%. And the ownership of DC Air would represent a first, for a reason, which was, some said, the purpose to start. Why should anyone accept ego as the basis for entrusting safety. Yes, one Mr. Johnson; just one piece of a deal so awful, so anti-consumer that even a Repo Admin. going to say "NO."

Greg

Living in the Philadelphia area with US Airways being a major airline here, I just wanted to jump to express my regrets about its possible departure. I have 60K frequent miles accumulated, and my 'dream' was to get 40k more to go to Europe with my wife next year. But now I guess I should spend it ASAP.

Kris

Greg - I'm exactly in the same boat - have 60K FF saved up for a trip to the Caribbean for next summer (2003). We decided to chance it and hope that they're still around then. I haven't requested the tickets yet as it's still a bit more than a year off that we want to go. As someone posted, airlines fly through bankruptcy all the time, so I'm being optimistic. Besides, I couldn't think of where else to go with those miles just to use them up...

x

I don't believe I've been a bit too optimistic about US Airways. I've already used 25k FF for San Fran next winter, and planning before that to use 120k on their Partner Alitalia for Venice. I personally believe they will stay in business. And if they cancelled their FF program, they'd lose thousands of customers, at just the worst time.

Adam

Folks, I have 729,000 miles as of today. I fly weekly and the last thing I want to do is fly for a pleasure trip! However, I'm not really worried about the airline's demise, especially to the point of the "cancellation" of Dividend Miles. I believe in a worst case scenario, the government will allow a merger with United, Continental, or another carrier and the miles will transfer.

Maybe my glasses are too rose-colored, I don't know. But USAirways is BIG TIME in Pennsylvania, Washington DC and North Carolina. LOTS of US Senators and Reps fly them to/from the capital. If any airline gets help, it's them.

x

No one will allow US Airways to merge with UAL. That would end service as we know it in DC, Charlotte, Pittsburgh and Philly. UAL would focus on Dulles, Chicago, and some other cities. UAL is juast anti-consumer. And UAL would sell or lease planes to a new carrier to service National. It's the deal the government was prepared to turn down last summer when UAL pulled out. Continental might be another matter. I think this airline will stay in service - it was in terrible shape in the 80s and is still on the scene.

GoTravel

This is one of the posts I've found that is almost three years old wondering if US Air is going under.

nancy161

Makes me wonder,too. After what happened Christmas Day: hundreds of cancelled flights, and mountains of baggage, US Airways might not be able to come out of bankrupcy which was file again in September.
So, what will happen to the travel plans of the US Airways ticket holders?