US Airways today won
bankruptcy court approval allowing the company to proceed with the
aircraft leasing, financing, and engine services agreement announced on
Nov. 26, 2004, with GE Capital Aviation Services (GECAS), and GE Engine
Services (GEES). The agreement provides US Airways with $140 million in interim liquidity
through a new bridge facility and the deferral of aircraft debt and lease
payments coming due over the next six months, as well as annual cash
savings on aircraft ownership and engine maintenance costs. In addition,
GECAS will lease up to 31 new 70- and 90-seat regional jet aircraft to US
Airways over the next three years, and US Airways would return 25 of its
281 mainline aircraft over the same time period.
In exchange, upon successful emergence from Chapter 11, US Airways would
issue to GECAS a 15-year convertible note for between $125 million and
$216 million, depending on future lease options selected by US Airways.