Most US Airways Planes Will Keep Flying
{{#rendered}} {{/rendered}}US Airways Group Inc. (search), which filed for bankruptcy protection in September, on Thursday said it reached agreements with its lenders and lessors that will let it keep flying most of its planes.
The No. 7 U.S. carrier operates 282 mainline jets, while its US Airways Express (search) unit operates 67 regional and 64 turboprop aircraft.
US Airways said it had 60 days after its Sept. 12 bankruptcy filing either to agree to meet the terms of its aircraft financing, or to negotiate alternative arrangements.
{{#rendered}} {{/rendered}}The carrier said it has agreed to meet the financing terms for all but 36 aircraft, and has reached interim arrangements governing 14 of these other aircraft.
US Airways said it will likely reject leases on at least four of the remaining 22 aircraft if ongoing talks with its lenders and lessors fail.
"Our expectation is that our mainline fleet will remain largely intact," said Chief Executive Bruce Lakefield.
{{#rendered}} {{/rendered}}He said the carrier might get rid of aircraft that cost too much to fly or maintain. "Our intent is to focus on those few aircraft that for a variety of reasons may no longer be economical to fly, and if there is a downsizing of the fleet, that it be minimal," he said.
US Airways filed for protection from creditors after being hurt by low-cost rivals, soaring fuel prices and a failure to win givebacks from its unions. The bankruptcy filing was its second in two years.
US Airways shares were unchanged at 92 cents Thursday.