US Airways and the Retirement Systems of Alabama issued the following joint statement: “US Airways and the Retirement Systems of Alabama are fully committed partners in the airline’s reorganization plan. Just as changing conditions in the industry in recent months have led US Airways to revise its business plan, those same changing market conditions have also led to discussions about fine tuning the investment agreement and making appropriate revisions.
“The company`s agreements with its unions regarding labor representation on the board of directors and employee equity in the restructured company will be unaffected.
“In these discussions, RSA has reconfirmed to US Airways its commitment to provide the additional $200 million of financing available under the $500 million Debtor In Possession (DIP) loan facility, subject to the conditions of that loan agreement. The principal conditions to such additional drawings relate to the company obtaining a reaffirmation of the Air Transportation Stabilization Board’s (ATSB) conditional approval of the $1 billion loan facility guarantee from the ATSB as exit financing under a plan of reorganization acceptable to the ATSB. But, such ATSB reaffirmation is likely to be tied to the company achieving additional labor cost savings and efficiencies necessary, in the judgment of both the company`s management and RSA, to allow the company to weather the current industry revenue environment.”
Dr. David Bronner, executive director of RSA said, “We continue to be impressed by the caliber of the company`s executive management and the cooperative nature of its working relationship with its labor groups. Time is of the essence for the company and its labor groups to hammer out additional cost savings, but RSA remains supportive of, and confident in, the collective ability of the company`s principal stakeholders to arrive at solutions likely to be acceptable for RSA to go forward with its $240 million equity commitment.”
Reporters needing additional information should contact US Airways Corporate Communications at (703) 872-5100.