Air Transport World

US Airways sees swift bankruptcy reorganization. (News Briefs).(Brief Article)

US Airways has set an aggressive schedule to emerge from bankruptcy in the first quarter of 2003 with lower costs and a new strategy devoted to its core hub operations and expansive use of RJs. And the carrier, which filed for Chapter 11 protection Aug. 11 citing assets of approximately $7.81 billion and liabilities of approximately $7.83 billion, holds a stronger hand than predecessors such as Continental, America West, TWA, Eastern and Pan Am, the first three of which emerged successfully. US Airways already has achieved concessionary agreements from some of its key labor groups and had commitments for $500 million in debtor-in-possession financing when it entered bankruptcy.

Furthermore, at presstime the Air Transportation Stabilization Board was standing firm on a commitment to guarantee $900 million of a $1 billion loan, subject to the carriers finalizing cost-cutting agreements with employees, lenders and lessors. …

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