Got this last night:
Because of your loyalty to US Airways, I want to make you aware of an important
step our company has taken. US Airways Group and certain of its subsidiaries
today filed voluntary petitions for reorganization under Chapter 11 of the U.S.
Bankruptcy Code to complete our restructuring initiatives and obtain
cost-savings from some of our aircraft lessors and financiers and other key
stakeholders as a means of ensuring the company's return to profitability. We
anticipate that our court-supervised restructuring will be accomplished on a
"fast-track" and have targeted emergence from Chapter 11 in the first quarter of
2003.
It is important for you to 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 day-to-day operations. Every ticket
will be accepted and honored in accordance with current US Airways policies,
refunds and exchanges will be made as usual. Interline and reciprocal agreements
with other carriers, including affiliates and code share partners, will remain
fully intact and continue without interruption.
Our Dividend Miles program will continue to offer you significant award
benefits. This means that we will continue to honor miles previously earned in
the Dividend Miles program and you will continue to accrue miles for travel
during the reorganization and beyond. Dividend Miles members should expect the
same high quality service and safety standards they have come to rely on from US
Airways. Be assured that US Airways plans to be here to serve you for many years
to come.
The US Airways Clubs network will continue to operate without interruption for
its members.
US Airways has secured $500 million in new financing from a group of
institutions led by Credit Suisse First Boston and Bank of America Corp. US
Airways is also pleased to announce that Texas Pacific Group joins the company
as equity investor. Participation of these top-tier institutions is a strong
endorsement of US Airways and the steps our company is taking to build a better
airline for you. We are committed to enhancing our services to you with more
regional jets and marketing alliances such as our recently announced agreement
with United Airlines.
Since early 2002, US Airways has put in place a three-part restructuring plan
that involved improving liquidity, increasing revenues, and reducing costs, to
allow the company to take advantage of its competitive strengths and return to
profitability. US Airways' restructuring plan is predicated upon achieving
binding commitments for cost-savings from employees, aircraft lessors and
financiers and other parties. The majority of our employee groups and their
union leaders overwhelmingly supported our business plan objectives in the form
of wage reductions, revisions to benefits and some work rule changes. While US
Airways was able to successfully negotiate cost-savings from most of its
employee groups, we determined that we were unlikely to conclude consensual
negotiations with certain vendors, aircraft lessors and financiers in a
timeframe necessary to complete an out-of-court restructuring.
While we are disappointed at the outcome of our efforts to obtain the support of
our business plan by some of our lessors and other key stakeholders -
particularly in the face of the sacrifices our employees have agreed to make -
we will now focus our energies on utilizing the Chapter 11 process to achieve
these cost-savings and return US Airways to a profitable and highly competitive
position, dedicated to safe, convenient and reliable air service.
We believe that a financially sound and competitive US Airways benefits all of
our constituents - our passengers, our suppliers, our employees and the
communities we serve. US Airways has long been an integral member of the cities
and towns in which we live and work - as an employer, a customer and a service
provider. Our ability to complete a successful reorganization is important to
many people and we intend to remain a viable contributor for many years to come.
We look forward to continuing our relationship as we work to make a newly
reorganized US Airways a reality.
We will update our website (http://www.usairways.com) regularly and provide you
with more detailed updates as appropriate. Thank you for your continued support.
Sincerely,
David Siegel
President and Chief Executive Officer
Because of your loyalty to US Airways, I want to make you aware of an important
step our company has taken. US Airways Group and certain of its subsidiaries
today filed voluntary petitions for reorganization under Chapter 11 of the U.S.
Bankruptcy Code to complete our restructuring initiatives and obtain
cost-savings from some of our aircraft lessors and financiers and other key
stakeholders as a means of ensuring the company's return to profitability. We
anticipate that our court-supervised restructuring will be accomplished on a
"fast-track" and have targeted emergence from Chapter 11 in the first quarter of
2003.
It is important for you to 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 day-to-day operations. Every ticket
will be accepted and honored in accordance with current US Airways policies,
refunds and exchanges will be made as usual. Interline and reciprocal agreements
with other carriers, including affiliates and code share partners, will remain
fully intact and continue without interruption.
Our Dividend Miles program will continue to offer you significant award
benefits. This means that we will continue to honor miles previously earned in
the Dividend Miles program and you will continue to accrue miles for travel
during the reorganization and beyond. Dividend Miles members should expect the
same high quality service and safety standards they have come to rely on from US
Airways. Be assured that US Airways plans to be here to serve you for many years
to come.
The US Airways Clubs network will continue to operate without interruption for
its members.
US Airways has secured $500 million in new financing from a group of
institutions led by Credit Suisse First Boston and Bank of America Corp. US
Airways is also pleased to announce that Texas Pacific Group joins the company
as equity investor. Participation of these top-tier institutions is a strong
endorsement of US Airways and the steps our company is taking to build a better
airline for you. We are committed to enhancing our services to you with more
regional jets and marketing alliances such as our recently announced agreement
with United Airlines.
Since early 2002, US Airways has put in place a three-part restructuring plan
that involved improving liquidity, increasing revenues, and reducing costs, to
allow the company to take advantage of its competitive strengths and return to
profitability. US Airways' restructuring plan is predicated upon achieving
binding commitments for cost-savings from employees, aircraft lessors and
financiers and other parties. The majority of our employee groups and their
union leaders overwhelmingly supported our business plan objectives in the form
of wage reductions, revisions to benefits and some work rule changes. While US
Airways was able to successfully negotiate cost-savings from most of its
employee groups, we determined that we were unlikely to conclude consensual
negotiations with certain vendors, aircraft lessors and financiers in a
timeframe necessary to complete an out-of-court restructuring.
While we are disappointed at the outcome of our efforts to obtain the support of
our business plan by some of our lessors and other key stakeholders -
particularly in the face of the sacrifices our employees have agreed to make -
we will now focus our energies on utilizing the Chapter 11 process to achieve
these cost-savings and return US Airways to a profitable and highly competitive
position, dedicated to safe, convenient and reliable air service.
We believe that a financially sound and competitive US Airways benefits all of
our constituents - our passengers, our suppliers, our employees and the
communities we serve. US Airways has long been an integral member of the cities
and towns in which we live and work - as an employer, a customer and a service
provider. Our ability to complete a successful reorganization is important to
many people and we intend to remain a viable contributor for many years to come.
We look forward to continuing our relationship as we work to make a newly
reorganized US Airways a reality.
We will update our website (http://www.usairways.com) regularly and provide you
with more detailed updates as appropriate. Thank you for your continued support.
Sincerely,
David Siegel
President and Chief Executive Officer
