Is USairways going under

[deelam]

I'm flying out of Philly 10/29-11/2. I've been hearing allot of talk that US air may be going under. Does anyone think this will happen? And will it be months down the road to shut down, well after my travel dates?
And what happens when they go under. Will another airling honor my ticket?

Deneen

 

[DebbieB]

They probably will declare bankrupcy shortly. But I doubt they will shutdown before your trip. Bankrupcy in the airline industry usually does not equal shutting down immediately. They were in bankrupcy before, then emerged. They are trying to reorganize their routes.

 

[deelam]

I really like US airways. They have great fares out of Philly. Many of their flights are non stop. I hope they may it through this. I guess we will no more within the next week. The thought of them going under before our trip scares me. We may not be able to get another flight and I don't want to cancel this trip.

Deneen

 

[Kae]

They pulled out of South Bend, IN. This week.

Kae

 

[deelam]

I wonder if them pulling out of airports will help keep them afloat. It sounds like they are downsizing. And doing it before they file again. I don't think they would pull out of Philly because that is a major HUB. Were these other stops major HUBS.

 

[pumpkinboy]

I also expect USAir to go back into bankruptcy, but Chapter 11 again, so they will likely continue operating. But let's see, you're coming back on November 2nd? In that case USAir will undoubtedly still be operating no matter what their finances look like, bcs the aviation authorities aren't about to let a major airline stop flying leaving lots of folks stranded anytime before election day. If you were coming back in December, you might have more reason to worry.

 

[deelam]

That is good news.

Now, I'm just hoping that they can pull it together to stay in bussiness. I'd like to book a trip in May, and I like to book early for the best price.
I'll be a wreck if I have to wait for southwest's rates to come out.

Deneen

 

[safetymom]

If US Airways decides to liquidate instead of bankruptcy it can be at a moments notice. That is a possibility. Then people would be scrambling to find seats on other airlines.

I suggest visiting www.flyertalk.com for information on the airlines.

 

[Donalds_best_pal]

Safety mom is correct. If they do decide to liquate which actually is still bankruptcy, its chapter 7. Chapter 7 is deemed by the federal courts when the company liqudates its assets. There was press release released to airline investiors from the vice president that they plan on declaring chapter 7 or 11 bankruptcy by this sunday. They will declare ch 11 if they find investors by sunday. Which I heard is very unlikely. The new york times says they will be publishing a article tommorow about what will happen this sunday. If they declare ch 7 sunday it could be as little as 1 day when flights start being canceled. I am not trying to spread bad news but thought I would let you know. If this happesn it will hurt lots of people including all the people who loose there jobs. We have to wait until Sunday now.
Matt

Chapter 7: This Chapter addresses liquidation and is available to both individual and business debtors. Chapter 7 aims at achieving a fair distribution to creditors of whatever non-exempt property the debtor has and to give the individual debtor a fresh start through the discharge in bankruptcy. Chapter 7 bankruptcy is also known as a "straight bankruptcy" or "liquidation bankruptcy" because the Trustee gathers and sells your nonexempt assets and then distributes the proceeds to your creditors in accordance with the provisions of the bankruptcy code.

Chapter 11: This chapter addresses reorganization and is available for both individual and business debtors. The purpose of Chapter 11 is to rehabilitate a business as a going concern or reorganize an individual's finances. The Chapter 11 debtor is given a fresh start through the binding effect on all concerned of the order of confirmation of a reorganization plan. A bankrupt company, the "debtor," might use Chapter 11 of the Bankruptcy Code to "reorganize" its business and try to become profitable again. Management continues to run the day-to-day business operations but all significant business decisions must be approved by a bankruptcy court.

 

[CarolA]

You want to know how quickly they can shut down

Read this

http://www.braniffinternational.org/history/finalhours.htm

This airline shut down 20 years ago, but this would probably still be the way it would work.

Yes, the other airlines do have to honor the ticket. You could fly standby and could be charged $25 for the fun!

If they do shutdown and your flight is sometime in the future contact your CC company and file a claim. Then go buy a new ticket.

 

[CoolDisneyCat]

What would happen if we "buy" tickets on USAir using our air miles and they go under? We will have tickets, but will anyone else let us use them? This is for a trip leaving Oct 31 and coming home Nov 7.

 

[Donalds_best_pal]

If they were tickets paid for with cash you could fly stand by on another airline for $25 probably. For miles though you are pretty much tough out of luck, I think. United a us air partner might honor them but I doubt it. The miles are property of us air so really you probably would just loose the tickets and miles.
matt

 

[deelam]

That Flyertalk forum is a great site. I'll keep checking that. It looks like US air is making a last ditch effort to settle with the pilots. There is still hope.
I checked with my credit card company. I will be creditted if they go under. But I don't want to cancel my trip. I would have to find another low priced flight, which at this point would be hard to do.

Deneen

 

[Purrrrfecta]

when TWA went under, American Airlines accepted the miles. There was no difficulty in the transfer either. It would be in United's best interest to let you use the miles. Frequent flyer vouchers usually just fill empty seats. so it is really no loss to the company.

I have miles with US air so I am thinking about booking flights with united now using the US air miles. I will let you know what happens.

 

[plutospup]

I've used USAir's Dividend Miles for United Flights with no problems. I called the "Dividend Miles" office and told them I wanted a United Flight ( I had already checked the United website so I knew which flight had FF seats available).

 

[deelam]

Anyone hear anything today? US Air MAY file today.


Deneen

 

[CarolA]

Over on FlyerTalk they seem to think that if USAir does anything today it will be late to try and avoid the Monday papers. (

By the way, SafetyMom is that you moderating over there? I never post since I can't ever remember my ID, but I lurk a lot!

 

[safetymom]

Yes that is me on the US board. I find FT a great source of information. Just like the DIS.

 

[safetymom]

I want to make you aware of an important but necessary step our company has taken. US Airways has filed a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. This action is intended to provide the airline the opportunity to implement its Transformation Plan built on lower costs, a simplified fare structure, a strong position on the U.S. East Coast, and a growing presence in Europe, the Caribbean and Latin America.

You should understand that US Airways is not going out of business. The Chapter 11 process will allow US Airways to complete its restructuring initiatives while we continue normal day-to-day operations. There will be no changes to our flight schedule as a result of this filing. Every ticket will be accepted and honored in accordance with current US Airways policies; refunds and exchanges will be made as usual. Reciprocal agreements with other air carriers, including affiliates, Star Alliance and codeshare partners, will remain fully intact and continue without interruption.

I want you to know that this announcement has no impact on your Dividend Miles account and the many benefits you receive as a member. While our restructuring efforts focus on achieving a competitive cost structure, there will be no direct impact on our ability to professionally serve you. This action will not affect your ability to earn or redeem Dividend Miles to the more than 750 worldwide destinations we offer as a Star Alliance member airline. Additionally, the US Airways Club network continues to operate without interruption for its members.

We remain committed to our Transformation Plan, which provides many positive benefits to customers, including better service, more flights and low fares. We continue to expand GoFares, which provide lower, simpler fares while not compromising amenities like seat assignments, First Class cabins and airport clubs that you have come to expect from US Airways. Enhancements to http://www.usairways.com as well as airport technology improvements will make traveling even easier. Our strong positions in Boston, Charlotte, New York, Philadelphia, and Washington D.C., allow us to offer even more service to the most popular destinations, and with our new international gateway in Fort Lauderdale, our Caribbean and Latin America expansion continues, offering even more choices for customers.

We have established http://www.transformingusairways.com as a dedicated Web site with information about our transformation. As this process continues, the site will be updated regularly.

Thank you for your continued support. We are proud that you are our customer, and we are ready to serve you on your next US Airways flight.

Sincerely,
Bruce Lakefield
President and Chief Executive Officer

 

[deelam]

It looks like US Air is really going to try and stay open. But we are heading into slower months. I wonder if they can pull this off.
Thinking ahead, do you think it is safe to book with US air for next May?

Deneen