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.