US Airways seeing 'clear skies' ahead
According to Washingtontimes’s business news in February 6th 2005’s, the US Airways is getting better despite since many analysts assumed that the business of airline would be end soon after the US Airways field has had bankruptcy in September,
During that bad time, many airline unions got some changes to make sure they can still exist in that environment. For instance, the International Association of Machinist changed its labor contract to reduce its payment for employees by 12 percent to 20 percent. In addition, the Arlington based air carrier used its own money to maintain the company can operate normally. After all the US airline unions’ effort, recently, Bruce Lakefield, who is the chief Executive officer, declared that the most difficult time of US Airways has gone.
Now, the US Airways is getting start to expand its operations and hire more employees. Although there are still some people do not accept the changing of the US Airways, many accept it and affirm those changes.
The US Airways’ achievement is obviously. However, it still has a big problem that it needs an investor to offer $230 million in new finance. Nevertheless, no matter who is the investor will take a high risk. Furthermore, the airline says that it will get profit till 2008. Because the airline has already promised to the employees that it would give them money based on the profit margin, some of the money may not go back to the investor. The last one and also the most important obstacle that may cause no investors offer that much money is the fact that the US Airways still own the federal government $600 million.
Do you really think the US Airways is getting better? Will there be any investor interested in offering that much money? How’s US Airway’s future? For my own, I think if there is someone who invests in the US Airways; its future will be good. On the other hand the investor may have the ability and prepare to endure that he may not receive the profit as he expect.
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