"Bankruptcy is the better alternative to concessions." Isn't that Delle's intelligent opinion?????
Amfa made their bed and now must lie in it. What will they do next?????
WASHINGTON (CBS.MW) -- UAL Corp. was rejected for a third and final time Monday in the United Airlines parent's bid to win federal aid. (sounds a bit like amfa and the NMB!!!!!)
All three members of the Air Transportation Stabilization Board voted
against giving UAL a $1.1 billion loan guarantee. (I bet amfa thinks they are corrupt just like the NMB!!) UAL, the nation's second-largest airline, was seeking the loan guarantee to help it emerge from Chapter 11 federal bankruptcy protection from creditors.
The ATSB reiterated that granting the requested aid wasn't necessary to
maintaining a safe and viable commercial airline system in the United
States. UAL had taken positive steps to lowering its costs, the federal
board said, adding that an improved credit market for the airline
industry increases the likelihood that UAL will survive.
"After carefully considering the additional financial information
submitted as part of United's request for reconsideration, the board
determined that this information does not alter in a material manner the
rationales underlying the board's June 17 decision," the ATSB said in a
statement.
Last week, UAL reported earnings from operations totaled $9 million in
May, a reversal from the carrier's $155 million loss from operations in
May 2003.
"The board will not accept any further submissions from United," the ATSB
said.
UAL, based in Elk Grove Village, Ill., is seeking to cut costs further.
The company is on track to reduce its annual expenses by $5 billion,
which would represent a 30 percent reduction since it filed for
bankruptcy protection in December 2002. The carrier already has
identified another $300 million in other cost cuts.
Lender talks
Undeterred, UAL soon plans to start talks with potential borrowers about
the company's business plan. (some of the associate amfa members like to give up their money freely, mabye they should ask them for donations!!!!)The company had hoped to secure $500 million from private investors as part of its plan to get the federal loan guarantee.
A major portion of its financing to exit bankruptcy would consist of
debt, according to UAL.
"The work we have done over the past 18 months has created a solid,
highly competitive business platform that we expect will attract the
capital necessary to exit," UAL said in a statement. "We are now holding
discussions with our lenders and others to determine what an appropriate
overall capital structure might be."
Airline consultants and analysts say UAL will have to dig up at least
another $700 million to $1 billion in cost savings to lure private
investors. (HMMMM, now where will they get that kind of money?????)
"United is a very powerful worldwide franchise and they should be able to
attract capital if they have the right cost structure," said Blaylock &
Partners analyst Ray Neidl. "They are not in serious trouble." Listen to
interview.
The company's pensions "may now be a target for reduction," added
Standard & Poor's credit analyst Philip Baggaley. UAL has over $4 billion
in minimum pension payments due through 2008. (and you are surprised?????????)
Other labor concessions are also likely. (Imagine that!!) So far, UAL's workers have
agreed to cost cuts to the tune of $2.5 billion.
In addition, some UAL assets may be sold to generate cash. Those might
include its lucrative Asia-Pacific routes, its slots at London's Heathrow
airport, and its longer-haul Airbus A320 planes, observers said. (more loss of jobs?????)
Shares of rival carriers -- most notably, AMR Corp., Delta Air Lines and
Continental moved higher.
Houston-based Continental applauded the loan rejection, saying the "most
appropriate course of action is to allow the marketplace to determine the
shape of the industry."
Only time will tell what kind of (more) damage amfa will have caused.
GO AMFA!!!!!!!
:down: :down: :down:
Amfa made their bed and now must lie in it. What will they do next?????
WASHINGTON (CBS.MW) -- UAL Corp. was rejected for a third and final time Monday in the United Airlines parent's bid to win federal aid. (sounds a bit like amfa and the NMB!!!!!)
All three members of the Air Transportation Stabilization Board voted
against giving UAL a $1.1 billion loan guarantee. (I bet amfa thinks they are corrupt just like the NMB!!) UAL, the nation's second-largest airline, was seeking the loan guarantee to help it emerge from Chapter 11 federal bankruptcy protection from creditors.
The ATSB reiterated that granting the requested aid wasn't necessary to
maintaining a safe and viable commercial airline system in the United
States. UAL had taken positive steps to lowering its costs, the federal
board said, adding that an improved credit market for the airline
industry increases the likelihood that UAL will survive.
"After carefully considering the additional financial information
submitted as part of United's request for reconsideration, the board
determined that this information does not alter in a material manner the
rationales underlying the board's June 17 decision," the ATSB said in a
statement.
Last week, UAL reported earnings from operations totaled $9 million in
May, a reversal from the carrier's $155 million loss from operations in
May 2003.
"The board will not accept any further submissions from United," the ATSB
said.
UAL, based in Elk Grove Village, Ill., is seeking to cut costs further.
The company is on track to reduce its annual expenses by $5 billion,
which would represent a 30 percent reduction since it filed for
bankruptcy protection in December 2002. The carrier already has
identified another $300 million in other cost cuts.
Lender talks
Undeterred, UAL soon plans to start talks with potential borrowers about
the company's business plan. (some of the associate amfa members like to give up their money freely, mabye they should ask them for donations!!!!)The company had hoped to secure $500 million from private investors as part of its plan to get the federal loan guarantee.
A major portion of its financing to exit bankruptcy would consist of
debt, according to UAL.
"The work we have done over the past 18 months has created a solid,
highly competitive business platform that we expect will attract the
capital necessary to exit," UAL said in a statement. "We are now holding
discussions with our lenders and others to determine what an appropriate
overall capital structure might be."
Airline consultants and analysts say UAL will have to dig up at least
another $700 million to $1 billion in cost savings to lure private
investors. (HMMMM, now where will they get that kind of money?????)
"United is a very powerful worldwide franchise and they should be able to
attract capital if they have the right cost structure," said Blaylock &
Partners analyst Ray Neidl. "They are not in serious trouble." Listen to
interview.
The company's pensions "may now be a target for reduction," added
Standard & Poor's credit analyst Philip Baggaley. UAL has over $4 billion
in minimum pension payments due through 2008. (and you are surprised?????????)
Other labor concessions are also likely. (Imagine that!!) So far, UAL's workers have
agreed to cost cuts to the tune of $2.5 billion.
In addition, some UAL assets may be sold to generate cash. Those might
include its lucrative Asia-Pacific routes, its slots at London's Heathrow
airport, and its longer-haul Airbus A320 planes, observers said. (more loss of jobs?????)
Shares of rival carriers -- most notably, AMR Corp., Delta Air Lines and
Continental moved higher.
Houston-based Continental applauded the loan rejection, saying the "most
appropriate course of action is to allow the marketplace to determine the
shape of the industry."
Only time will tell what kind of (more) damage amfa will have caused.
GO AMFA!!!!!!!
:down: :down: :down:
