Pure Unadulterated Rumor

[jimntx]

Heard from a friend who flies for another airline that she had seen a news item that United Airlines had retained a law firm that specializes in Ch. 7 bankruptcy. Tried to Google it, but couldn't find anything. Anyone heard anything similar?

(The friend's airline would have not much to gain from this news if true.)

 

[FWAAA]

A Wednesday story mentioned that the fear of liquidation had subsided (UAL was up over 18% on Wed), leading to large gains for the second straight day:

http://www.marketwatch.com/story/ual-set-t...5?siteid=yhoof2

Retention of a law firm, regardless of specialty, is generally a well-guarded secret. The duty of confidentiality owed by lawyers to clients extends to the question of whether a client has hired a particular lawyer or law firm.

I'm guessing that Jim's friend is guilty of repeating/spreading galley gossip.

 

[Winglet]

I would expect a CH 7 to kept as a surprise to the employees. This would give time for Tilton and the company officers to loot the company prior to striking the proverbial match. Then, of course, there's the kickbacks from the BK lawyers as a bonus. It's not easy leading a company into BK. Tilton's worth every dime of it. Doesn't Tilton keep a BK law firm on retainer?

 

[whatkindoffreshhell]

UA moving everyone from Elk Grove to the Sears Tower (yes it will always be Sears not Willis) is just a distraction.

When you are gasping for air you don't move into a new house.

Again, the winners will be the consultants/lawyers/exec management.

Good luck UA folks!

 

[robbedagain]

Is UAL in that bad of shape if this is true? I understand the bad mgmt but I didnt think that UAL was close to ch 7 if true Good luck to all of you folks at UAL

 

[Bear96]

Is UAL in that bad of shape if this is true? I understand the bad mgmt but I didnt think that UAL was close to ch 7 if true Good luck to all of you folks at UAL

Well, duh, obviously it is true.

A rumor posted on USAviation by a friend of a poster who saw an unspecified "news item" that cannot be verified. <_<

Good luck indeed. You are all DOOMED, I tell ya . . . DOOMED ! ! !

 

[HottootrotNyc]

UAL has quite a bit of heavily mortages assets, that if sold, will keep it flying for a while, much like Pan Am did. The problem is UAL masked a huge loss this past quater, almost $400 million, by a small profit from a fule hedge, so you really never know what tilton is planning. He was brought in for one thing, to take UAL through Chapter 11 and make it a merger partner. The problem is even after 3 years of reorganizing, they are still in poor shape if not worse then before. All UAL did was drop it's pensions and chop pay, they never really did much else.

 

[Dave]

UAL has quite a bit of heavily mortages assets, that if sold, will keep it flying for a while, much like Pan Am did. The problem is UAL masked a huge loss this past quater, almost $400 million, by a small profit from a fule hedge, so you really never know what tilton is planning. He was brought in for one thing, to take UAL through Chapter 11 and make it a merger partner. The problem is even after 3 years of reorganizing, they are still in poor shape if not worse then before. All UAL did was drop it's pensions and chop pay, they never really did much else.

If UAL has assets that are heavily mortgaged, how would selling those assets allow them to keep flying longer?

 

[FWAAA]

If UAL has assets that are heavily mortgaged, how would selling those assets allow them to keep flying longer?

Excellent point, and I tend to agree with you, but I suppose that Hot's assertion was that if UA sold off a bunch of heavily mortgaged assets (and thus was relieved of the associated debt), UA's cash flow would be improved now that UA would be freed of making the payments on the debt. Debtors in distress often try to stay above water by selling their new car and getting someone else to take over the payments. But you're right - it probably wouldn't result in a pile of cash that would give UA a lot of breathing room.

 

[scuba]

So let me compare side by side what I get from two seperate airlines for a family of four. Both booked 36dayse prior to departure

Item Southwest United
Round Trip MCI-DEN $240.40 $270.90
Each bag upto 8 $000.00 $800.00
Parking (10days) $092.00 $0920.00
Car Rental $875.00 $875.00
Hotel $1200.00 $1200.00
Routing both MCI-DEN-SLC-DEN-MCI

Total $2407.70 $4050.60

Savings by flying public for flying WN= $922

Loss of Revenue by UA= $1,83.6 (just airfare)

Same trip, same hotel, same car rental and yet, United looses the family of four. Unbundling only works for the insane who do not do their homework. In this instance United looses a cusotmer and Southwest flys more passengers and in this case, in their own backyard of Denver. While all other carriers have also incrased baggage fees, in this instance United looses out on 100% of the ticket price AND their excess charges. No wonder United faces extinsion. Just like PanAm, Eastern, the original Frontier, TWA, et al. My guess is that once UA is gone, so will be this insane 'unbundling' as Mr. Tilton likes to call it.

By the way Mr. Tilton if you really want to avoid a complete shutdown of United Airlines, right now is the time to contact me! I have ideas of how to not only save United but return it to its proper place in American Avaition. I'm sure you will call. Plus I con't cost nearly the cost of your retained 'specalists.'

 

[Bear96]

Loss of Revenue by UA= $1,83.6 (just airfare)

By the way Mr. Tilton if you really want to avoid a complete shutdown of United Airlines, right now is the time to contact me!

$1,83.6? Que?

Obviously, we have a mathematical and financial genius on our hands with scuba.

Yes, Tilton would indeed be an idiot not to contact scuba with his/her ideas on how to save UA. 🙄

Thanks for playing.

 

[Borescope]

So let me compare side by side what I get from two seperate airlines for a family of four. Both booked 36dayse prior to departure

Item Southwest United
Round Trip MCI-DEN $240.40 $270.90
Each bag upto 8 $000.00 $800.00
Parking (10days) $092.00 $0920.00
Car Rental $875.00 $875.00
Hotel $1200.00 $1200.00
Routing both MCI-DEN-SLC-DEN-MCI

Total $2407.70 $4050.60

I feel sorry for you. It's amazing your wife carries that much luggage for a 10 day trip. Maybe you all need the extra underware to ride on an airline that puts unapproved parts on there aircraft. Hey, this might be the reason your getting a cheaper ticket. BTW, your figures don't add up.

 

[mrman]

I feel sorry for you. It's amazing your wife carries that much luggage for a 10 day trip. Maybe you all need the extra underware to ride on an airline that puts unapproved parts on there aircraft. Hey, this might be the reason your getting a cheaper ticket. BTW, your figures don't add up.

This amount of luggage is very reasonable for a family of 4 for a 10 day scuba trip or cruise. One wonders the reason or need to get so personal?

You realize these are Customers and not "The Enemy"?

 

[spacewaitress]

I feel sorry for you. It's amazing your wife carries that much luggage for a 10 day trip. Maybe you all need the extra underware to ride on an airline that puts unapproved parts on there aircraft. Hey, this might be the reason your getting a cheaper ticket. BTW, your figures don't add up.

...unlike united, that doesn't even put the parts on...any of em

 

[phasersonstun2]

Is UAL in that bad of shape if this is true? I understand the bad mgmt but I didnt think that UAL was close to ch 7 if true Good luck to all of you folks at UAL

It was just a few years ago when some UAL posters would talk about waiting for US Air to fold and take their assets. I do not wish the same for U. I hope we all survive.