Bombardier: US AIRWAYS NEWS!!!US Airways 'very close' to announcing 'very large' RJ order
Dateline: Friday April 04, 2003
US Airways is "very close" to announcing a "very large" order for
regional jets, President and CEO David Siegel said yesterday.
The airline's business plan calls for more than 300 RJs to be
deployed across its network. Speaking at a conference of the
American Bar Assn. in Washington, Siegel said, "We're looking at
50-seaters and 70-seaters...We have some catching up do on the
50-seat side [and] we think we have the opportunity to really lead
the industry with the deployment of the 70-seat jet, which is really
uniquely suited to our route network."
Although he declined to specify whether he will order Embraer or
Bombardier models... it will give us a significant competitive advantage," he said.
In a wide-ranging address that took place three days after US
Airways emerged from Chapter 11 bankruptcy protection (ATWOnline,
April 1), Siegel said the carrier has reduced its costs by an
average of $1.9 billion annually for the next seven years, including
$1 billion annually from its labor groups. With ample liquidity and
a restructured balance sheet, it is "well-positioned to weather the
current storm." He also said there is "absolutely excess supply" in
the US market and noted that while "everyone else is down 10%-15%,
we are down about one-third [in capacity]."
Separately, US Airways reported a net loss of $98 million in Feb.,
slightly better than the net loss of $98.7 million in Jan.
(ATWOnline, March 3), in a filing with the Securities and Exchange
Commission. According to the filing, operating revenues totaled
$473.8 million, down slightly compared to $477 million in Jan.
Operating expenses reached $549.5 million, off 8% from the prior
month. As a result, operating loss was $75.8 million, down from an
operating loss of $101.3 million in Jan.--Loren Farrar and Perry
Flint