Reuters
United denial not final, but all cuts considered
Wednesday December 4, 7:02 pm ET
NEW YORK, Dec 4 (Reuters) - A federal board's denial of United Airlines' application for $1.8 billion in loan guarantees is not final, because the airline is still allowed to submit changes to its business plan and ask for reconsideration, a federal official said on Wednesday.
If United chooses to file for Chapter 11 bankruptcy protection, the Air Transportation Stabilization Board would also consider giving the airline exit financing upon its emergence, Daniel Montgomery, executive director of the board, said in a conference call with reporters.
"The action today is not a final denial of the board," he said. "It would be open for United airlines to request that the board consider a new business plan, whether developed under court supervision or otherwise."
But Montgomery said the federal board members had considered all proposed cuts by United's labor unions in its assessment of the company's business plan, including a $700 million package by mechanics up for vote on Thursday.
After a meeting several hours long, the board denied the application from United, a unit of UAL Corp. (NYSE:UAL - News), in part because its revenue projections did not match up with its high cost structure, Montgomery said.
Reuters
United denial not final, but all cuts considered
Wednesday December 4, 7:02 pm ET
NEW YORK, Dec 4 (Reuters) - A federal board's denial of United Airlines' application for $1.8 billion in loan guarantees is not final, because the airline is still allowed to submit changes to its business plan and ask for reconsideration, a federal official said on Wednesday.
If United chooses to file for Chapter 11 bankruptcy protection, the Air Transportation Stabilization Board would also consider giving the airline exit financing upon its emergence, Daniel Montgomery, executive director of the board, said in a conference call with reporters.
"The action today is not a final denial of the board," he said. "It would be open for United airlines to request that the board consider a new business plan, whether developed under court supervision or otherwise."
But Montgomery said the federal board members had considered all proposed cuts by United's labor unions in its assessment of the company's business plan, including a $700 million package by mechanics up for vote on Thursday.
After a meeting several hours long, the board denied the application from United, a unit of UAL Corp. (NYSE:UAL - News), in part because its revenue projections did not match up with its high cost structure, Montgomery said.
According to CNBC (scepticism) they will be able to resubmit their business plan. Apparently UAL was told on more than one occassion by the ATSB that their business plan was flawed. It was too optimistic in it revenue projections. I wonder, did the ATSB learned a lesson from U?
According to CNBC (scepticism) they will be able to resubmit their business plan. Apparently UAL was told on more than one occassion by the ATSB that their business plan was flawed. It was too optimistic in it revenue projections. I wonder, did the ATSB learned a lesson from U?
Hardly surprising - labor has far too much say at UA (bloody cheeky peasants who should know their place) and actually has a reasonable standard of living (the nerve!).
The ATSB will remedy that - bust the unions.
Hardly surprising - labor has far too much say at UA (bloody cheeky peasants who should know their place) and actually has a reasonable standard of living (the nerve!).
The ATSB will remedy that - bust the unions.