US Airways yesterday said creditors had extended until March 15 the deadline for the carrier to file a reorganization plan with the court overseeing its Chapter 11 bankruptcy case. The earlier deadline was today. The court last month also had given US Airways' current management team until March 31 to file a new business plan before outside parties can present alternatives. The deal with GE Capital Aviation Services and GE Engine Services also reiterated that US Airways develop a strategy to emerge from court protection by the end of June
(BTN, Jan. 17).
The carrier's new business plan will include stronger emphasis on leisure routes. US Airways yesterday officially launched an expanded flight schedule from Fort Lauderdale-Hollywood International Airport, linking 11 cities on the East Coast to nine destinations in the Caribbean and Latin America. It began adding the new services earlier this month and will continue ramping up the schedule in the coming weeks. In all, US Airways plans to offer 44 daily flights from its Ft. Lauderdale gateway.
The carrier also has been adding flights from hubs in Charlotte and Philadelphia. At Reagan Washington National Airport, US Airways last week tacked on nonstop service to Atlanta, Chicago, Cleveland, Dallas, Detroit and Houston.
In other airline bankruptcy news, Indianapolis-based ATA Airlines yesterday also received court approval to extend the deadline for filing a plan of reorganization. The company filed for Chapter 11 protection in October and now has until May 24 to submit a new business plan.
ATA yesterday also said the union representing pilots and flight engineers ratified a new agreement expected to save the carrier $3 million per month for four months. ATA now is working with the Air Line Pilots Association on a long-term agreement. ALPA leadership cited "renewed confidence in the direction our new management has taken to save our airline."
Recent developments at ATA included reductions in the carrier's Indianapolis schedule, a decision to sell the Chicago Express feeder operation and a new codeshare and financial transaction with Southwest Airlines
(BTN, Dec. 16, 2004).
Washington Dulles-based Independence Air also may be inching closer to its own bankruptcy filing unless it can shore up liquidity concerns and restructure obligations with lenders and lessors. The carrier last week in a Securities & Exchange Commission filing said one lender in late January opted not to continue negotiations and moved to repossess a single leased regional jet. Meanwhile, Independence Air said January load factor was just 45.7 percent. It expects to record higher loads this month due in part to capacity reductions at Washington Dulles
As it trims regional jet flying, Independence Air is adding Airbus A319s to its fleet, which will support the carrier's planned westward expansion, announced last week. By May 1, the airline plans to offer nonstop service from Dulles to Los Angeles, San Diego, San Francisco, San Jose and Seattle. Service to Las Vegas is scheduled to start March 1.
"The fares are as low as $85 one way and are likely to be matched by United Airlines, the other major airline in Washington," said Helane Becker, analyst with The Benchmark Co., referring to the new transcontinental routes. "As a result, we do not anticipate an improvement in the profit picture or the outlook for either of these two companies."