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Old 04-10-2006, 08:57 PM   #1  
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Angry US Air's Parker gets $3.26 mln in restricted stock

I love the fact that he was awarded all this stock after HIS pension went away. I guess Delta guys have nothing to worry about, I'm sure they'll get the same deal.

WASHINGTON - US Airways Group Inc. chief executive Douglas Parker received $3.26 million in restricted stock in 2005 and another senior officer got $1.2 million in cash after the company terminated his pension plan, the airline said in regulatory filings Monday.

In another filing with the U.S. Securities and Exchange Commission, the carrier said Canada's Ace Aviation Holdings plans to sell a partial stake in US Airways to PAR Investment Partners L.P. for $67.6 million.

And US Airways also said it had restructured debt on key loans. It announced a $1.25 billion financing package that includes more favorable terms mostly covering the balance of old U.S. government loan guarantees.

Prior to last year's merger of old US Airways and America West Airlines, the two carriers were each obligated to repay federal guarantees.

The aid to old US Airways kept the airline aloft during its bankruptcy. After the carriers merged, the government sold the loans to private lenders.

The airline said that in addition to 136,875 shares worth $3.26 million in restricted stock for 2005, Parker also received long-term incentive pay of $1.8 million, which was more than double what he was awarded in 2004. Parker's salary remained unchanged in 2005 at $550,000.

The restricted shares for Parker, who led the merger, and varying amounts for other executives do not vest until November 2007 at the earliest.

US Airways said its board had approved a $1.2 million cash payment to Alan Crellin, the only senior executive from the old US Airways to join management of the new carrier in Arizona, after terminating his former pension plan.

Crellin is US Airways' executive vice president of operations. Other former US Airways executives who did not make the jump to the new company also received incentive and other cash payouts.

ACE Aviation, the parent of Air Canada, plans to sell 1.75 million shares of common stock to PAR at a price per share of $38.60, US Airways said. ACE is a rare foreign investor in the U.S. commercial airline industry.

The sale is scheduled to be completed April 13. ACE will reduce its interest in the low-cost carrier from 6 percent to 3.96 percent based on the number of outstanding shares. PAR will in turn own nearly 15 percent of the airline.

ACE and PAR's partners were among equity investors that raised more than $560 million to help US Airways' step out of bankruptcy last fall and merge with America West.

US Airways shares closed off $1.73, or 4.3 percent, at $37.92 on the New York Stock Exchange.
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Old 04-12-2006, 05:28 AM   #2  
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Last edited by War Eagle 83; 04-13-2006 at 10:45 AM.
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Old 04-12-2006, 06:29 PM   #3  
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Had no idea Air Canada was a part owner of US air. I knew they owned a huge share of Continental for a long time, helped bail them out.
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