That's what TWA though when they had all that cash. This could make UA a take over target as a leveraged buyout, using your cash to purchase the airline.
BOD Meeting News.
- Thread starter Be Careful What You Wish For.
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That's what TWA though when they had all that cash. This could make UA a take over target as a leveraged buyout, using your cash to purchase the airline.
From AMR JetNews:
The company issued the following response to the FL Group statement. "We have received the letter and value input from our shareholders. Our Board and senior management regularly give careful consideration to the best use of our strategic assets and the impact that those decisions might have in the long run for our shareholders. We generally don't comment publicly on the actions of or our communications with shareholders or what we may or may not do in the future."
I think FL group is being told politely to go jump in a lake.
Depends if the sale is for UAL Corp or just United Airlines (a wholly owned subsidiary of UAL Corp).
Here’s a list of the UAL Corp Tethers as of 2004:
Ual Corp/DE • 10-K • For 12/31/04 • EX-21
I have never heard of ‘UAL Loyalty Services’ and what their function was until the emails started coming of what a great job they did and how they were one of the few that actually made a profit for UAL Corp. UAL Corp. also owns leasing companies that buy airplanes/engines/components and then lease them back to UAL Corp. Read the list and make the connections.
The rest of the ‘Corporations’ are no different. UAL Corp. can sell United Airlines and still be UAL Corp.
B) UT
Here’s a list of the UAL Corp Tethers as of 2004:
Ual Corp/DE • 10-K • For 12/31/04 • EX-21
I have never heard of ‘UAL Loyalty Services’ and what their function was until the emails started coming of what a great job they did and how they were one of the few that actually made a profit for UAL Corp. UAL Corp. also owns leasing companies that buy airplanes/engines/components and then lease them back to UAL Corp. Read the list and make the connections.
The rest of the ‘Corporations’ are no different. UAL Corp. can sell United Airlines and still be UAL Corp.
B) UT
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Pardon me...767jetz,
But I'm having some difficulty remembering when UAL sold anything to AA.
(Especially LHR routes)
Actually I agree with "beauty"
Providing there is MORE to be revealed down the road(like a M/A with another carrier, it would make sense to SELL duplicate International routes to raise "Do Ra Mi" $$$$$
"beauty", speaking of $$$$$$$$$$$$$$, I LOVE the view from MY window
(Ive got to log on to my Bank, to see if my DEFIND BENEFIT retirement check has posted yet)
International routes, domestic landing slots and airport gates, how is this not part of its core business? If UAL sold its maintenance operation, real estate, frequent flyer program, and its service company, it becomes Ted. If it sold all of that it would be a wind fall for the creditors and the stock holders. It would likely mean UAL was getting out of the airline business, not hording cash to blow on another carrier.
JAMAKE1
Veteran
Mikey: I think you took it out of context. In the analyst report, he appraised or valued each part of the operation: The non-core assets like UA Services and Mileage Plus, at which he estimated could be worth $7.5 Billion.
He also valued international routes, landing slots, and gates at $2.2 Billion. He didn't suggest that those were non-core assets. Obviously they are integral to the company's core operations...
He also valued international routes, landing slots, and gates at $2.2 Billion. He didn't suggest that those were non-core assets. Obviously they are integral to the company's core operations...
767jetz
Veteran
- Aug 20, 2002
- 3,286
- 2,779
My bad. It was not AA. At the moment I can't remember who they were sold to. I'm thinking it was Delta.
luv2fly
Veteran
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"beauty", speaking of $$$$$$$$$$$$$$, I LOVE the view from MY window
(Ive got to log on to my Bank, to see if my DEFIND BENEFIT retirement check has posted yet)
Poking fun at lost pensions? Tacky NHBB. I would have expected more from you.
Luv2fly, Bear is passionate and seems to be directing a jab to a poster who spends an inordinate amount of time and energy trashing everything AA, with out fact or reason."beauty", speaking of $$$$$$$$$$$$$$, I LOVE the view from MY window
(Ive got to log on to my Bank, to see if my DEFIND BENEFIT retirement check has posted yet)
PA18
Senior
- Aug 12, 2004
- 398
- 9
Okay, so how do you make money with a frequent flier program? Aren't you, like, giving stuff away?
Selling off the Mileage Plus operation could grab some quick cash but I question the logic overall. If you split it off, you continue to sell miles to Chase for the credit card and others for their efforts. Additionally, United would then have to buy miles from MileagePlus Company to award to their customers. That's a whole new revenue source.
From there, you have to now purchase seats from United (presumable at a cost lower than what UA is paying you per mile). That's not realistic. Where they really win is that many miles earned are typically not used. As a result, it's like gift cards at stores, they get the $50 and nobody uses the card.
In the long term however, as we have seen with ExpressJet at Continental, they were great during the first contract. After the first renegotiation, they had to come up with their own airline. With that said, UA will likely comeback after the first contract and say they want to pay less to buy miles and charge more for seats. Both sides will have a middle ground, but either way, it is likely to not be as good as it had been. Long term, the investor is sold something that is not performing as well.
From there, you have to now purchase seats from United (presumable at a cost lower than what UA is paying you per mile). That's not realistic. Where they really win is that many miles earned are typically not used. As a result, it's like gift cards at stores, they get the $50 and nobody uses the card.
In the long term however, as we have seen with ExpressJet at Continental, they were great during the first contract. After the first renegotiation, they had to come up with their own airline. With that said, UA will likely comeback after the first contract and say they want to pay less to buy miles and charge more for seats. Both sides will have a middle ground, but either way, it is likely to not be as good as it had been. Long term, the investor is sold something that is not performing as well.
CynicalResAgent
Veteran
Ummmmm. I've seen this one. It was on an episode of South Park. The Underpants Gnomes.
Step 1 - Steall Underpants
Step 3 - Profit
But nobody could remember what step 2 was. Gawd I watch too much TV.
767jetz
Veteran
- Aug 20, 2002
- 3,286
- 2,779
This just in from ALPA:
"ALPA is convinced and has confirmed that there are NO plans to sell or lease international or domestic routes, gates, and landing slots or sell significant portions of its real estate holdings. The Tribune article carried the pure speculation of numerous “airline analysts†who have no access to any inside information and speculate only on rumors, innuendo and their own view of the airline industry.
Any type of joint venture regarding San Francisco Maintenance facility (MOC) has been in the press for several months, but according to the Company, any transaction for that facility is subject to a vote by AMFA employees. AMFA has not taken a public position on any transaction regarding the MOC. One of the real benefits of the Union coalition is the close coordination and constant communication between the members of the Coalition, and we will work with AMFA as it analyzes whatever actions the company may take.
"ALPA is convinced and has confirmed that there are NO plans to sell or lease international or domestic routes, gates, and landing slots or sell significant portions of its real estate holdings. The Tribune article carried the pure speculation of numerous “airline analysts†who have no access to any inside information and speculate only on rumors, innuendo and their own view of the airline industry.
Any type of joint venture regarding San Francisco Maintenance facility (MOC) has been in the press for several months, but according to the Company, any transaction for that facility is subject to a vote by AMFA employees. AMFA has not taken a public position on any transaction regarding the MOC. One of the real benefits of the Union coalition is the close coordination and constant communication between the members of the Coalition, and we will work with AMFA as it analyzes whatever actions the company may take.
