Ladies,
UAL will NOT get the ATSB funding if it doesn't sweeten the pot for Uncle Sam. UAL has too many assets that it can use to save itself. UAL has too little Union participation to entice the Board to assist. UAL has too much money in the bank and too many options still left to use until it's out of options and MUST use the tax payers money. I know it's a loan but UAL must demonstrate the ability to repay within 7 years regardless of and domino effect conspiracy theorys may or may not exist. The US gov will let UAL fail if it decides to fall on it's sabre. Labor costs are but one piece of the puzzle as well. In order to survive, UAL must take a strong look at ALL of it's contractual expendatures from airplanes to coke in the galleys. UAL may not (I think definetely not) be able to avoid BK only because the vendors and lessors want what they've been promised in their contracts. As far as amending the labor contracts before BK as opposed to after.... it's a good thing. The judge can only do 2 things to a contract in BK. He/she can completely throw it our or leave it alone. I doubt the judge will resist the temptation to leave the industrys most breath-taking pilot contract alone when UAL files later this year.
UAL will NOT get the ATSB funding if it doesn't sweeten the pot for Uncle Sam. UAL has too many assets that it can use to save itself. UAL has too little Union participation to entice the Board to assist. UAL has too much money in the bank and too many options still left to use until it's out of options and MUST use the tax payers money. I know it's a loan but UAL must demonstrate the ability to repay within 7 years regardless of and domino effect conspiracy theorys may or may not exist. The US gov will let UAL fail if it decides to fall on it's sabre. Labor costs are but one piece of the puzzle as well. In order to survive, UAL must take a strong look at ALL of it's contractual expendatures from airplanes to coke in the galleys. UAL may not (I think definetely not) be able to avoid BK only because the vendors and lessors want what they've been promised in their contracts. As far as amending the labor contracts before BK as opposed to after.... it's a good thing. The judge can only do 2 things to a contract in BK. He/she can completely throw it our or leave it alone. I doubt the judge will resist the temptation to leave the industrys most breath-taking pilot contract alone when UAL files later this year.
