State of the Airlines

Friday, February 18, 2005

NEWS: US Airways Finds a Benefactor

US Airways announced today that it has secured a $125 million financing deal with Eastshore Aviation. Now for the interesting bit..Eastshore Aviation is an investment entity owned by Air Wisconsin Airlines, a privately held regional airline. The money comes at a key time for US Airways and will be used to help finance their restructuring.

OK, I'd be lying if I said that I'd like to congratulate Eastshore Aviation on their investment. It doesn't seem like sound business practice to least not on the surface. But I find it rather interesting that a company wholly owned by another airline would be the one to step in and offer up some cash. I don't have to stretch my overactive imagination too far to wonder if somebody is thinking that US Airways is ripe for a merger.