US Airways misses payment on jets

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US Airways misses payment on jets

ARLINGTON, Va. (AP) =97 US Airways missed $19.7 million of payments due
Thursday on public debt instruments related to five Airbus A330 planes.

The airline said in a statement it's in talks with "certain interested
parties" and predicts it will reach an agreement within the allowed
10-day cure period.

The airline is also in discussions with the provider of its
debtor-in-possession financing, the Retirement Systems of Alabama, or
RSA, on conditions required to draw the final $200 million of available
financing.

The parties are discussing a requirement that the company "demonstrate
to the reasonable satisfaction of RSA that it is likely to satisfy all
of the conditions for" the Air Transportation Stabilization Board's $1
billion loan guarantee.

The ATSB has conditionally approved $900 million of a $1 billion
refinancing package, but the approval depends on resolution of the
airline's pension issues.

US Airways is seeking court approval to replace the pension plan for
pilots with another plan, a move supported by the creditors' committee
but opposed by the pilots' union. Under the company's proposed new
defined contribution pension plan for pilots, US Airways would
contribute $850 million over a seven-year period.

Virginia-based US Airways, which filed for bankruptcy in August, plans
to emerge from Chapter 11 by March 31.

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