Loan

[ClueByFour]

The banks have ALREADY deemed United to be too risky of a $1B+ investment on its own, hence the need to seek an ATSB guarantee in the first place.

Ever occur to you that if you were JPM and Citigroup that you could have your cake (massive percentages of equity in the 2nd largest airline on the planet, starting out again with fresh capital and much lower costs) and eat it too (get the US government to back the loans)?

$500 million investments (which seems to be the new unsecured loan amount) are not something that banks, even of that size, generally make on a whim. The ATSB knows this. The banks also know that getting ATSB approval for this is just as good as, well, robbing a bank.

 

[767jetz]

Shouldn't it say "if the ATSB says no it will be because the don't believe UA's business plan is solid?" This was the case the first time around wasn't it?

I don't agree with your reasoning at all. You are compareing apples to oranges here.

1st time, ATSB says no because they didn't agree with the business plan.

Then a year and a half goes by and MANY, MANY, MANY things changed.

2nd time around, ATSB likes the plan, and considers UA less of a risk, and is considering if UA can get access to capital without their help and if so... how much. If they didn't like the business plan, why did the ATSB meet with the creditors themselves last week? If the ATSB's answer is NO, then meeting with the banks would be a moot point.

 

[whatkindoffreshhell]

Spin all you want. The ATSB will not approve the UA loan guarantees.

Now how about Plan B?

You better hope US doesn't go CH7 before the ATSB-UA loan is considered.

Or could that be just the event our federal friends are awaiting?

 

[Fly]

You better hope US doesn't go CH7 before the ATSB-UA loan is considered.

Or could that be just the event our federal friends are awaiting?

Probably!

Of course these guys have been subpoened for some reason. Suppose they took a few "gifts" in exchange for the "You've Been Approved" letter?

 

[767jetz]

Spin all you want. The ATSB will not approve the UA loan guarantees.

Now how about Plan B?

You better hope US doesn't go CH7 before the ATSB-UA loan is considered.

Or could that be just the event our federal friends are awaiting?

Talk about spin.

I just don't get it. First you say that UA will not get the ATSB loan. Then you say we better hope US doesn't go CH7 before the ATSB considers the loan. Which is it?

If the ATSB loan is out the window according to you, what difference does it make what happens to US?

WTF, over?

Am I missing something here?

 

[Just Plane Crazy]

What in the heck is "TED" anyway, besides a paint scheme?

Looking at what UA is doing with Ted I am getting to the conclusion that Ted is part of the restructuring.

As of May'04 Ted will serve several destinations from ORD (example LAS and PHX). This for example will leave LAS with only one single UA Mainline Destination (IAD) and all the remaining destiantions are operated by Ted.

In my opinion, UA will move over the next few month and extend the Ted network and decrease the UA Domestic Network by shifting more and more Mainline Routes to Ted and UA Express. Leaving at the end only UA Mainline to serve international destinations and Hub to Hub (ORD-LAX, ORD-IAD, ORD-SFO, ORD-DIA, LAX-DIA etc.)

This will help them to restructure the fleet (A319/320/321 and maybe A318 for Ted and CRJ, EMB for UAX, B747 and B777 for UA). Cost saving has to be calculated but I estimate that it will fit into the requirements for loans etc. This might be a reason why they are not exceting Chapt11 earlier since it is going to take some time to re-write the business plan and to make sence out of the numbers for the ATSB.

 

[ual06]

Where is DIA?

 

[Fly]

DIA is Denver

 

[ual06]

Thanks. Always thought the official designator for Denver was DEN.

 

[Fly]

DEN was Stapleton, the new airport is Denver International Airport DIA. Don't know about you, but DIA looks too close to DIE and gives me the creeps. :unsure:

 

[ual06]

Fly, you can go set in your den and not worry about DIE. DEN is one of the safest airports in the world to fly into or out of.

At midnight of the day of the move, the old Denver Stapleton airport was "decertified" and the official three letter designator of "DEN" was transferred to the new Denver International Airport.

Here, years later, many politicians and news media personnel continue to use DIA when they should be using DEN.

 

[Fly]

and here I thought that United kept DEN on our id's because they were just being lazy.

Anyone else know the answer for sure? I'm under the impression that Denver is DIA but could be corrected.

 

[mweiss]

Definitely DEN. I remember finding out about it at the time of the switchover. FWIW, travel agency computers equate DIA with Days Inn.

You can see for yourself here. Incidentally, if you ask airnav.com to take you to DIA, it does take you to DEN.

 

[boeing787]

Denver International Airport is DEN. It is NOT DIA.

 

[ColoradoFlyer]

DEN is still the official designator for the commercial airport in Denver. They were able to transfer this designator to the new airport because the old airport, Stapleton, was permanently closed a few hours before the new airport opened. If you check a bag to Denver, the tag will read "DEN".

Although DEN is the official designator, DIA is how the locals refer to the new airport. It's easier than saying Denver International Airport. On the evening weather report, for example, they give the current temperature downtown and at DIA.