US Airways defers 54 Airbus aircraft and reduces capital expenditure
US Airways announced (24-Nov-2009) it will significantly reduce capital expenditure over the next three years, eliminate the need to access aircraft finance markets in 2010 and extend certain debt maturities. These transactions improve projected year-end 2009 liquidity by approximately USD150 million and generate, in aggregate, approximately USD450 million of projected liquidity improvements by the end of 2010. The carrier's actions include:
- The deferral of 54 Airbus aircraft previously scheduled for delivery between 2010 and 2012 that are now to be delivered in 2013 and beyond. These deferral arrangements will reduce the Company’s aircraft capital expenditures over the next three years by approximately USD2.5 billion, and reduce near- and medium-term obligations to Airbus and others by approximately USD132 million.
- Commencement of US Airways’ Airbus A350 XWB operations, with aircraft deliveries originally scheduled to start in 2015, will now be postponed until 2017.
- Arranged credit facilities in the amount of USD95 million and USD180 million of aircraft financing commitments for the 2010 deliveries. Also, the Company has agreed with Barclays to permanently lower the monthly unrestricted cash condition precedent for the advance purchase of frequent flyer miles and defer for 14 months the amortization of USD200 million advanced in connection with the previous purchase of miles. [more]