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US Airways, citing economy, puts off delivery of 54 planes
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Published: November 25, 2009
Updated: 11/25/2009 12:55 am
TEMPE, Ariz. -- US Airways Group Inc. said yesterday that it will delay delivery of 54 Airbus jets until at least 2013 as it tries to bolster its financial strength.
US Airways said that delaying the deliveries will reduce its capital expenditures on aircraft by $2.5 billion over the next three years.
The company had planned to add 82 Airbus planes by the end of 2012. Instead, it will take delivery of 28 planes over the next three years, which it called a more manageable pace during an airline-industry slump. It has financing in place for those 28 planes, including commitments for $275 million in loans for four aircraft it will receive next year.
US Airways gave two reasons for the delay. It said that the recession has hurt revenue -- especially profitable business travel -- and that loans for new planes are expensive and harder to get.
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