UAL Faces Dec. 2nd Deadline

Aug 20, 2002
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(GOD only knows), That my opinion, and $3/4, will purchase a cold one for anybody, at most emporium's, but here goes;

I feel pretty confident, and hopefull that this nightmare will begin to turn the corner(with ATSB loan in hand), by 12/02.
I fully realize that 99% of UAL folks are not able(at this moment)to be as confident as I am, but plz. allow me to say I told you so.
I can't really put my finger on it, but I feel your Mr. Tilton is going about his business in a VERY confident(low key), and determined manner !!
My money's on you guys/gals. UAL is one great corp, and will live to(IMHO)continue to do, what it has always done best. That is to be the(argueable) # 1 airline in the US/and abroad, fully engaged in their familiar War Games, with AA !!!!!!!!!!

Try to remember the old saying that there's HERTZ, and AVIS, and then there's EVERYONE else !!!!

Good Luck, and best whishes.

NH/BB's
AA/AFL-CIO
 

UnitedChicago

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Aug 27, 2002
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Great article...thanks for posting. This up and down isn't helping my heartburn :). I think Tilton's comments are great...always nice to push back on the nay sayers. But I like his behind the scenes approach.

I read in Crains today that GOP Speaker Dennis Hastert is no longer considered the accidental speaker after the GOP wins in the house last week.

He specifically mentions his priority is to help UAL win the loan. I know the board has thumbed their nose a lobbying...but any bit helps.
 

UAL777flyer

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Aug 20, 2002
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Pretty good article. One comment Tilton made is something I wholeheartedly agree with. People seem to have adopted the notion that a Chapter 11 filing is a great way for United to fix its problems. That line of thinking ignores the many cons that come with bankruptcy. First off, you lose control of the direction of the airline. Ultimate control rests with the creditor's committee and the bankruptcy judge. So the company would have to petition the court for virtually ever major decision. That is extremely time-consuming. You also experience an inordinate amount of customer book-away during the early stages of bankruptcy. Morale amongst employees usually worsens. Basically you no longer control your own destiny. Having been through 2 airline bankruptcies at my former employer, I can't for the life of me understand why so many people believe that bankruptcy is the best answer for UA. Bankruptcy is an ugly, ugly process that wreaks total havoc with a company and its employees. Going down that road is not in the best interests of United, despite the fact that it would allow the governance of the company to change. That fact alone is not reason enough to take that route.

However, it is nice to finally see a deadline admitted by Tilton for achieving the cost cuts and ATSB loan guarantee approval. With December 2nd only 2 1/2 weeks away, it doesn't allow for any mis-steps. And with no agreement yet from the IAM, the tension is mounting over whether they will be an impediment to an out-of-court restructuring.
 

DB Cooper

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Aug 20, 2002
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UAL denies Dec. 2 as 'drop-dead' date
By Jennifer Waters, CBS.MarketWatch.com
Last Update: 9:38 AM ET Nov. 14, 2002


CHICAGO (CBS.MW) -- UAL Corp. said Thursday that it's continuing to seek alternatives to Chapter 11
bankruptcy as the clock ticks down toward a crucial Dec. 2 debt payment.

The date is significant because the parent of United Airlines (UAL: news,
chart, profile) is scheduled to make a $375 million payment that will eat away a big chunk of the carrier's limited
cash. However, it is not a drop-dead deadline, a UAL spokeswoman said, denying a New York Times report.

The newspaper reported Thursday that Chief Executive Glenn Tilton set Dec. 2 as a D-Day of sorts if he doesn't
have his plan to overhaul the company's financial future in line, as well as some sort of loan guarantee from the
federal Air Transportation Stabilization Board.

That's not quite true, according to spokeswoman Chris Nardelli. It is an important date for us, but it doesn't mean
that if we don't have things taken care of, we will file that night, she said.

We are continuing to work on these issues, Nardelli said.

Specifically, UAL executives held meetings both this week and last with ATSB officials in their ongoing efforts to
reach agreement on what would be a $1.8 billion backup on $2 billion in loans that United says it needs to stay
financially airborne.

UAL has received preliminary wage concessions from United's unionized pilots, flight attendants and
meteorologists toward its goal of cutting $5.8 billion in operating costs over a 5 1/2-year period. It still must
hammer out an agreement with the mechanics' union, the company's largest employee group.

Tilton told the Times he believes there is a very good chance of UAL management getting the details in line by
the Dec. 2 date, despite it being earlier than analysts had projected. He also believed that the company would
survive a bankruptcy proceeding if it comes to that, the report said.

After closing Wednesday's trading down 2 cents, UAL shares lost 14 cents to $3.53 in early action.