WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,721
UAL knows they don’t have to deal with the pension issue now because there is little chance they will be ready to get out of bankruptcy in five months. The new fare structure just whacked about $500M out of UA’s annual revenue base. Independence is obviously moving ahead with remaining as a standalone carrier now that they have bought themselves some time, returned some RJs, and announced new west coast routes that will be targeted against UA. Oil continues to hover around $45/BBL.
Unless the simplified fare structure returns an aweful lot of passengers to legacy carriers, there is nothing that says the industry or United has figured out how to survive in the current environment and being in bankruptcy is not such a bad place to be from a strategic position. There is far more flexibility to restructure the business there than outside of bankruptcy.
Unless the simplified fare structure returns an aweful lot of passengers to legacy carriers, there is nothing that says the industry or United has figured out how to survive in the current environment and being in bankruptcy is not such a bad place to be from a strategic position. There is far more flexibility to restructure the business there than outside of bankruptcy.
