US Airways Group and financial supporters GE Capital Aviation Services and GE Engine Services last night agreed to extend to the end of April US Airways' deadline for filing a reorganization plan. The previous deadline had been today. Earlier this month, the court overseeing the company's bankruptcy case also had extended until May 31 the exclusivity period for management to submit a plan of reorganization.
US Airways' most recent stated target for emerging from bankruptcy protection is June 30. After securing two financing deals with regional airline companies totaling $250 million last month
(BTNonline, March 15), US Airways still must find another $100 million in cash investments. Such support could come from America West Airlines, if "early speculation on a proposed America West Airlines/US Airways linkage," as mentioned this week in a research note issued by J.P. Morgan analyst Jamie Baker, proves accurate. A US Airways official today said the company would not comment on such speculation.
In other news, US Airways this month closed airport clubs in Los Angeles, San Francisco and West Palm Beach, and said the airport club in Orlando would not re-open after sustaining damage during the 2004 hurricane season. The airline maintains 16 clubs in 13 airports.