UAL posts $889 million loss

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chipmunn

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[A href=http://biz.yahoo.com/rc/021018/airlines_united_earns_3.html]http://biz.yahoo.com/rc/021018/airlines_united_earns_3.html[/A]
 
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chipmunn

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[FONT face=Times New Roman size=3][STRONG]Chip comments[/STRONG]: UAL ended the third quarter with $2.0 billion in cash, $344 million of which is restricted. The company has $41 million in bond interest payments due on November 2, $375 million in debt due on November 17, and $500 million due on December 2. If the fourth quarter cash burn rate is $10 million per day, that would provide a $920 million operating loss. The total fourth quarter loss would then be approximately $1.836 billion and leave the company with about $164 million in cash on December 31 provided it can spend its restricted cash, clearly not enough to survive. In regard to delicate negotiations with its unions, the following events occured this week:[/FONT][BR]
[P align=justify][FONT face=Times New Roman size=3][STRONG]October 15[/STRONG] – The UAL IAM on its website said it created a committee to discuss the financial situation facing United Airlines and the union informed its members the committee will meet for several days before any face-to-face discussions begin with United Airlines Representatives. The UAL ALPA code-a-phone said it would participate in a conference call with UAL chief financial officer Jake Brace later this week. [/FONT][BR]
[P align=justify][FONT face=Times New Roman size=3][STRONG]October 16[/STRONG] - The UAL ALPA code-a-phone said the labor coalition has agreed on the framework for concessions, but concurred with the IAM that specific concession negotiations have not begun. ALPA said it would participate in a conference call with UAL chief financial officer Jake Brace later this week. [/FONT][/P]
[P align=justify][FONT face=Times New Roman size=3][STRONG]October 17[/STRONG] – UAL chief financial officer Jake Brace conducted a conference call with all coalition members. Specific negotiations with the IAM have not yet commenced.[/FONT][BR][BR][FONT face=Times New Roman size=3]The airline has scheduled a board meeting for October 23 to discuss the issues and if recent bankruptcies are a precedent, a bankruptcy filing could occur on October 27.[/FONT] [BR][BR][SPAN class=body-content][FONT face=Times New Roman size=3][FONT face=Times New Roman size=3]Chip[/FONT][!-- end body-content --][BR][/P][/FONT][/SPAN]
 
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