More interest than WordCom, Adelphia, and Kmart?
That's news to me. More that 25% of their current aircraft will be at pre-bankruptcy lease rates? The insight I got from that-Round 1 to the lease holders.
". To increase traffic he (Tilton) cut unrestricted walk-up fares by 40% in January out of United's two busiest hubs, Denver and Chicago O'Hare. That gained it some passengers but lowered the take from last-minute travel by an estimated $30 million a month."
In an environment where cash flow & cash preservation is critical, this certainly doesn't help the home team.
While I do agree with your Dems in '04 signature, I really wonder if you are looking at UAL's situation with neutral eyes.
I can understand company loyalty, and a glass half-full philosophy. I can also respect your devotion to a company to which you have been a customer, but to dismiss poignant articles wtih "blah blah blah" doesn't exactly instill confidence in your opinion.
This is one very sick company. I won't go into details, as it should all be common knowledge to anyone who pays attention to the industry. There are simply too many hurdles in front of UAL. I just can't conceive how it has any chance of survival at this point.
You can have the opionion that they will be finished soon, blah blah blah.
But...how is this article anything other than a regurgitation of what's already been reported? That's my point here.
I don't feel this reporter did anything other than pick-up a reuters article and add a snazzy graph. Again...how can you criticize UA for wanting to create a LCC and cite U and Continental as failures...ignoring Delta Express and - hello - United Shuttle? Sloppy.
Time will tell. Stay positive and don't buy in to anything just yet. There's no reason to make any conclusions or turn over and act like it's a lost cause.
And...I'm probably not neutral. But it's people like me that refuse to give up that United needs to see them through this.
Typical sensationalistic uninformed reporting. He's taken quotes out of context, and made gross assumptions that have no basis in fact.
Course, this same guy thinks the DOW is gonna end up at 11,000+ this year http://www.forbes.com/2002/12/19/sp03_finance_6.html
This is interesting banter about the imminent liquidation of United, Indeed the situation is grave but I need to pose a question concerning this. United seems to still have a cash balance. The hurdles from the creditors are high and cash is being bled. There has been however, a reduction is staffing pay (30% for the highest paid group) and a reduction in lease payments. The question then remains how much of a savings has United realized from these lease negotiations? I would surmise that it is significant. Did not the company request that the info be kept under privy seal? This then leads me to ask, if labour cost and lease costs have been markedly reduced, how do the other carriers seem to be on easy street while prognostications of United's demise are rampant.
What I am asking is this: For years I have read in the press that United must get its costs under control. They seem to be doing just that, yet the press completely ignores these efforts and moves forward with its predictions.
Again, as an outside party I am not familiar with the entire process. I do enjoy though noting the logical errors in the reporting. It has been brought to the point that if the analysts are so sure of the course then why do they not run the company? Why has the bankruptcy judge not brought them in as freinds of the court to dispense their expert opinion? What SPECIFIC actions should then United take? Are cutting costs not important? Are lease renegotiations not saving money?