USAirways filed for

USAirways filed for Chapter 11 bankruptcy. They got a $900 federal loan guarantee and employee wage concessions. They still need to wriggle out of aircraft leases and other obligations.

As far as I can tell, this bankruptcy is not a death knell. Frankly, I’ll keep flying them. First, because their partnership with United will help them going forward. Second, because not only did they get $500 million debtor-in-possession financing, but they got a new $200 million equity investment from Dave Bonderman’s Texas Pacific Group. In exchange, they pick up 38% ownership. This is a shrewd LBO firm. They turned around Continental Airlines, and won’t be sinking $200 million down a rat hole. N

ow, it’s possible that USAirways will never prosper, and Texas Pacific Group will just make all or most of its money in management fees — but that will happen over several years. No reason to jump ship on the airline now.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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