Tilton looking for private funding (why not just close DEN?)

[G4G5]

Looking for private sector funding makes sence. UAL has plenty of assets. The gov is only going to back the loan guranteeing a descent interest rate. If UAL can get the same rate without having to deal with the gov, then they are coming out ahead.

As far as DEN. Crandel did it with SJC, BNA and RDU during the last economic slow down. When things got better Carty said it was a bad move to give up on SJC and re introduced it. RDU on the other hand turned out to be the right move(see Midway). Sometime's it works and sometimes it doesn't. BNA went to LUV.

As far as DEN, I'll leave that to the UAL experts.

 

[Taipan]

Denver has nice load factors and is literally always open, weather very very seldom effects Denver.I hear the problem is the price for sq foot of space at Denver is very high , as for landing fees I dont know, but I highly doubt Denver would ever close down as a hub for United.I dont buy the Frontier challenge they flew into IAH I think 3 times a day right behind some of our flights,within a month they were canceling the flight alot and calling us to rebook there passengers now its an RJ.PS during ski season Denver RULES

 

[KCFlyer]

I'm no UAL expert, but when I think Denver, I think United Airlines. Besides, given the choice of changing planes at a hub, I'll take Denver over ORD any day. And if Denver were debhubbed, where would that traffic go? Surely not every plane is leaving DEN empty.

 

[whatkindoffreshhell]

Tilton says airline in talks to gain private funding
Dateline: Tuesday October 15, 2002
United Airlines Chairman and CEO Glenn Tilton, in a taped message, told employees yesterday that the airline is working very closely with a number of potential sources of out-of- [bankruptcy] court funding and that the board of directors will be updated on progress this week.
United previously stated that the capital markets are closed to it and has not publicly identified a source of funding for the $1.8 billion government-guaranteed loan it is seeking. Its dialog with the unions that make up its labor coalition continues on a daily basis as we work to update and improve our business plan and ATSB loan application, Tilton stated.

 

[UAL777flyer]

Close DEN? In my opinion, that would be a lousy idea. DEN is an outstanding connecting hub. UA gets great E-W connecting flows through DEN and it complements ORD very well. Look at the marketshare UA enjoys in DEN. Even with F9, we still have the overwhelming majority of traffic. And DEN is ideally suited for longer term growth once we get beyond our current financial quagmire and the economy/industry recovers.

 

[ualdriver]

DEN won't close. But will SEA, MIA, and/or JFK?

That would be great if we could get the outside financing, but I doubt that isn't even close to ending our problems. I mean, how much are we going to lose this year, a couple of billion? If all the employees get together and save the company a billion a year as reported, where's that other billion going to come from just to break even?

 

[UAL777flyer]

Clearly, the $1 billion per year in cuts isn't enough. More is going to be needed from every group to make up the shortfall.

 

[whatkindoffreshhell]

Not even a year ago very very few of you would've thought either of these options even remotely possible.

Private funding? Now?? How about code words for debtor-in-possession? Loan sharks don't care about past concessions either. (go ahead and spin away doctors!!)

Yeah, DEN gives UA great numbers, many runways, blah blah. How high are the costs?
What will the fare-paying locals do when given a real choice? (didn't you think Airtran was nuts for going into ATL after EA had cleary demonstrated that you can't be profitable in someone else's hub?)

Please, somebody at UA: do something bold!

 

[Busdrvr]

[blockquote]
----------------
On 10/15/2002 5:38:45 PM KCFlyer wrote:

THe fare paying locals in Denver do have a choice...Frontier. But UAL still does well out of DEN. Perhaps you are right, if UA were to just threaten to pull out of Denver, costs might drop dramatically. Because I don't think the government leaders in Denver are quite ready for Frontier to cover the bulk of the costs at that airport. [/P]
----------------
[/blockquote]

FRNT's Sept load factor was 46.7%, UAL's system load factor was nearly 20% higher (i don't know what DENs were). FRNTs average ticket price was also down 16% yoy to $111. FRNT seems to be re-evaluting cities to serve lately, dropping business location (BOS, STL) in favor of leisure. I think we're doing great there. DEN does have some of the highest landing cost in America from what I hear, but there are few delays. DEN would be one of the LAST places UAL would leave.

 

[KCFlyer]

busdriver - hope you didn't hurt your jaw as I'm sure it dropped to the floor with my pro UAL comments...

 

[KCFlyer]

[P]
[BLOCKQUOTE][BR]----------------[BR]On 10/15/2002 5:31:07 PM whatkindoffreshhell wrote:
[P]Not even a year ago very very few of you would've thought either of these options even remotely possible.  [BR][BR]Private funding? Now?? How about code words for debtor-in-possession?  Loan sharks don't care about past concessions either. (go ahead and spin away doctors!!)[BR][BR]Yeah, DEN gives UA great numbers, many runways, blah blah.  How high are the costs?[BR]What will the fare-paying locals do when given a real choice?  (didn't you think Airtran was nuts for going into ATL after EA had cleary demonstrated that you can't be profitable in someone else's hub?)[BR][BR]Please, somebody at UA: do something bold![BR]----------------[/P][/BLOCKQUOTE]
[P]THe fare paying locals in Denver do have a choice...Frontier. But UAL still does well out of DEN. Perhaps you are right, if UA were to just threaten to pull out of Denver, costs might drop dramatically. Because I don't think the government leaders in Denver are quite ready for Frontier to cover the bulk of the costs at that airport. [/P]

 

[Busdrvr]

[blockquote]
----------------
On 10/15/2002 5:51:43 PM UA777DEN wrote:

That means, DEN is currently there most profitable hub.
----------------
[/blockquote]

....or least Unprofitable hub

 

[UA777DEN]

Ummmm.....why on Earth would United close DEN?

FYI, DEN is the highest yielding hub for United currently and the one with the highest loadfactor.

That means, DEN is currently there most profitable hub. Why on earth should United close it's East-West Gateway that is performing better than any of there other hubs?

 

[KCFlyer]

[P]
[BLOCKQUOTE][BR]----------------[BR]On 10/15/2002 6:41:21 PM Busdrvr wrote:
[P]
[BLOCKQUOTE][BR]----------------[BR]On 10/15/2002 5:58:03 PM KCFlyer wrote: [BR][BR]busdriver - hope you didn't hurt your jaw as I'm sure it dropped to the floor with my pro UAL comments... [BR]----------------[BR][/BLOCKQUOTE][BR][BR]LOL, i know you love us!  You just want the cheapest price.  Fare enough.  Think I did a pretty good job of profiling you? (at least with cars)[BR][IMG src=http://www.usaviation.com/idealbb/images/smilies/9.gif]
[P][/P]
[P]----------------[/P]
[P]Nope...you pegged the WIFE's car (although you were a year off). I drive a Chrysler 300M.[/P][/BLOCKQUOTE]
[P][/P]

 

[Busdrvr]

[blockquote]
----------------
On 10/15/2002 5:58:03 PM KCFlyer wrote:

busdriver - hope you didn't hurt your jaw as I'm sure it dropped to the floor with my pro UAL comments...
----------------
[/blockquote]

LOL, i know you love us! You just want the cheapest price. Fare enough. Think I did a pretty good job of profiling you? (at least with cars)
[img src='http://www.usaviation.com/idealbb/images/smilies/9.gif']