US Airways has satisfied crucial terms of a new aircraft financing agreement with its biggest creditor, General Electric Co, that will boost the airline's chances of surviving bankruptcy, both companies said late on Friday. The agreement is a cornerstone of US Airways' reorganisation under Chapter 11 and factors heavily into its plan to emerge as a leaner airline operating more like a low-cost carrier.
The deal requires US Airways to step out of court protection by June 30.
Eric Jones, a GE spokesman, confirmed that US Airways had found $100 million in new cost savings by Friday night's deadline to satisfy terms of the deal struck in November.
A Virginia bankruptcy judge approved the package in December.
While the GE deal gives US Airways important breathing room during bankruptcy, it does not assure its successful emergence.
Comments
Comments are closed.