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Q&A: John Luth on US Airways and refinancing
04 November 2008
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[John Luth]
[Seabury]
[US Airways]
[refinancing]
John Luth, chief executive of Seabury Aviation & Aerospace, talks US Airways and refinancing.
US Airways is expecting a net operating loss for the full year of 2008. With high oil prices, capacity reductions and passenger numbers falling, the airline is expecting to reveal losses for the year, despite making profits in the first and second quarters.
However, the company has embarked on an ambitious refinancing programme. It has a balance of $700 million in unrestricted cash, and raised around $950 million in the third quarter. In August, with fuel prices easing and the stock price up the airline seized the opportunity to raised $179 million on the New York Stock Exchange.
The airline has been able to gather together business partners, creditors and credit card banks to provide almost $400 million of secured financing to pay down $400 million of the bank facility. Seabury, which advised US Airways on the programme,...
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