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[IP] US Airways files for Bankruptcy again today





Begin forwarded message:

From: Alexandros Labrinidis <labrinid@xxxxxxxxxxx>
Date: September 12, 2004 7:36:50 PM EDT
To: dave@xxxxxxxxxx
Subject: US Airways files for Bankruptcy again today

Hi Dave.

[for IP if you wish]

US Airways files for Bankruptcy again today - here's their announcement:

On September 12, 2004, US Airways Group announced that the Company and certain of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The action is intended to provide the airline the opportunity to implement its Transformation Plan built on lower costs, a simplified fare structure, and expanded service in the eastern U.S., Europe, the Caribbean and Latin America. The case will be heard in the U.S. Bankruptcy Court for the Eastern District of Virginia in Alexandria, Virginia.

Customers should notice no changes to flight operations or customer service programs because of the filing. All bookings will be honored, and ticketing policies are unchanged. Existing marketing partnerships with other airlines remain in place. Employees will be paid and their benefits will continue. Vendors will be paid in ordinary course for provided goods and services going forward. In the future, if there are any changes to schedules or policies, they will be announced in advance.

US Airways has also received permission from the Court to allow the company to honor all key agreements related to its Dividend Miles program and the co-branded Bank of America/Dividend Miles credit card.

Despite the tremendous strides made by US Airways to transform the airline since its emergence from Chapter 11 in March 2003, and the reduction of nearly $2 billion in annual operating expenses, dramatic changes taking place in the industry require the company to do even more to achieve a competitive cost structure. These changes include the rapid growth of low-cost carriers, unprecedented fuel cost increases and consumer demand for lower, simpler fares. As the restructuring proceeds, US Airways will be taking the necessary steps to transition itself into a successful low-cost airline.

This Web site has been established to provide information related to US Airways’ restructuring efforts, and background on the dramatic changes taking place in the airline industry. It will be updated regularly.

------------

What is interesting is that the site they are using to communicate the details of the restructuring to the public, www.transformingusairways.com has been registered on May 22nd, 2004 (thinking ahead :-)), and belongs to Burson-Marsteller which is their PR firm.

Domain Name.......... transformingusairways.com
  Creation Date........ 2004-05-22
  Registration Date.... 2004-05-22
  Expiry Date.......... 2005-05-22
  Organisation Name.... Marsteller/Burson-Marsteller
  Organisation Address. 230 Park Ave South
  Organisation Address.
  Organisation Address. New York City
  Organisation Address. 10003
  Organisation Address. NY
  Organisation Address. UNITED STATES

take care,
alex

_____________________________________________________________________
 Alexandros Labrinidis    | web:    http://www.cs.pitt.edu/~labrinid
 Assistant Professor      | email:  labrinid@xxxxxxxxxxx
 Dept of Computer Science | office: 6105 Sennott Square
 University of Pittsburgh | phone:  412-624-8843

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