US Airways' Advisers Submit Hefty Tab
US Airways' bankruptcy case was a boon for lawyers and consultants, who stand to collect roughly $57 million from the airline.
That's an average of about $1 million a week for their work on the company's yearlong court case, which ended last month when the airline merged with America West.
Eight consulting companies and six law firms submitted their final bills this week for a judge's approval. Included in the bills: hundreds of pages of records detailing the meetings, e-mails and phone conversations that characterize the work of lawyers and consultants.
A typical entry: "Reviewed term sheet and amended and restated credit agreement with ATSB" (the federal panel guaranteeing bank loans). That task, performed by Michael Oshima at a rate of $526.50 an hour, took 91/2 hours on July 27 and generated about $5,000 for his firm, Arnold & Porter, US Airways' lead law firm.
That firm took in $13.6 million in fees. Records show 43 partners, 57 associates and 69 paralegals worked the case.
The biggest bills, though, came from Seabury Aviation Advisors, which has submitted $19.3 million in bills. It was US Airways' restructuring consultant and helped put together the merger and raise money for it.
Charlotte is US Airways' largest hub.
Other airlines are spending big money on hired help, too. United Airlines, a carrier twice the size of pre-merger US Airways, has been in bankruptcy court for nearly three years and has spent about $350 million on professional fees. Lawyers have said the cases are complicated and require extensive expertise.
US Airways spokesman Philip Gee, who came to the airline from America West, said the fees are "par for the course." And he says you can't argue with success.
"They're out of bankruptcy, right?"
Tony Mecia: (704) 358-5069; [email protected]
Professional fees related to US Airways bankruptcy:
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