How do things stand?

Ukridge

Senior
Aug 27, 2002
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www.usaviation.com
How do things stand at United these days? Will the 2.6B in concessions + the money from your government be enough to get the airline on track again? It seems that the war was a blip but SARS must be hurting. Where does the clock stand in relation to liquidation? I notice that the other carriers are finally facing the music themselves and Tilton may very well get his drawdown across the industry as opposed to United liquidating in order for the others to survive.
It is always grim, but is it not just a bit brighter?
 

Cosmo

Veteran
Aug 20, 2002
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Ukridge:

The timing of your question was perfect. There was a Reuters article issued late this afternoon, quoting unnamed banking sources (wow, that sure sounds like Chip Munn! ), indicating that United was on track to meet the monthly financial requirements of its DIP financiers. The most important point was that it appears this will be accomplished without the necessity of a waiver of terms from the DIP banks, despite the impact on United''s traffic and revenues from the war in Iraq, the SARS epidemic, and generally poor economic conditions in the U.S. and in much of the rest of the world.

Of course, this is just a "snapshot" of United''s finances at this time, and it comes from unnamed sources at that. But it may show that United''s future is indeed slowly getting brighter, with there now being somewhat less talk of the carrier''s liquidation.

Here''s the Reuters article.
 

767jetz

Veteran
Aug 20, 2002
3,286
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Also, at the pilot''s road show it was said by our Master Executive Chairman that if all groups ratified the agreements, barring any more tragic events (ie: 9/11) the chances of a United liquidation is somewhere around 0. (ZERO)
 
OP
Ukridge

Ukridge

Senior
Aug 27, 2002
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www.usaviation.com
Sounds as if there is finally a breath of fresh air. I noticed that American is posting a loss figure a bit north of 1B and they are garnering the bad press. Maybe the hand of fate is moving away from United onto some other hapless soul. The closing of Asia however, cannot help. Even with that though, it sounds as if there is a slight shift from the DIP lenders to see UAL survive. I can only imagine the consternation that this is causing those who occupy the exucutive suites of the other major carriers!
 

767jetz

Veteran
Aug 20, 2002
3,286
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On 4/23/2003 12:59:12 PM Ukridge wrote:

I can only imagine the consternation that this is causing those who occupy the exucutive suites of the other major carriers!


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Right you are! They are quaking in their boots. Especially in Texas. Look for CO to be next up at bat with the BK courts.

Every other airline''s plan A, B, & C was a UAL liquidation.

I honestly believe UAL is turning the corner.
 

mga707

Veteran
Aug 19, 2002
1,330
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On 4/23/2003 9:46:49 PM 767jetz wrote:

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On 4/23/2003 12:59:12 PM Ukridge wrote:

I can only imagine the consternation that this is causing those who occupy the exucutive suites of the other major carriers!


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Right you are! They are quaking in their boots. Especially in Texas. Look for CO to be next up at bat with the BK courts.

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Not according to Gordo "the Mouth"--according to his latest colorfully quotable remark, CO is winning "the battle of the cripples".
...which gave me an immediate mental picture of Timmy and Jimmy going at it in that "South Park" episode...
 

oldiesfan

Member
Aug 20, 2002
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Rocky River, OH
mga707 wrote...

Not according to Gordo "the Mouth"--according to his latest colorfully quotable remark, CO is winning "the battle of the cripples".
...which gave me an immediate mental picture of Timmy and Jimmy going at it in that "South Park" episode...
9.gif


And you can bet some "advocacy" group will lambast Gordo for his choice of words and demand apologies, sensitivity training, contributions (a nice honorarium from the student fund?) to the group, other appropriate P.C. stuff. I can see Jesse Jackson fronting their press conference now...(rubs chin as camera defocuses, a la Letterman)
2.gif
 

whlinder

Veteran
Aug 20, 2002
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IAD
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...which gave me an immediate mental picture of Timmy and Jimmy going at it in that "South Park" episode...


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ROTFLMAO

Oh thats good.

I also think things will be looking better for UA as the US codeshare moves forward and customers begin to realize the immense benefits. It will help steal passengers back, even from low-cost carriers.