UAL to resubmit ATSB loan application


Aug 20, 2002
To state the obvious:
-UAL was told backchannel that their original loan application was not going to be accepted.
- Will employees agree to concessions by Sep. 15th. (I say "no")
- Will UAL have a CEO in place by Sep. 15th (I say "no", no one will take this job until they clearly see what''s in front of them. Any prospective CEO will not assume command until either labor concessions are in place or Chapter 11 filed)


Aug 20, 2002

To answer your first question, I don't think the answer can be a clear-cut "no". ALPA will come up with a satisfactory proposal. As for the AFA, who knows. They continually have their head in the sand. And the IAM situation is a political hot-potatoe.

As for your second question, there is much speculation that the CEO question could be answered by the end of this week. Creighton supposedly will not be taking any appointments after September 1st. My feeling is that if a clear-cut CEO is not announced, Jake Brace will be named interim CEO until we get our restructuring on a more solid foundation. And that is what really worries me. The LAST thing UA needs right now is another "temporary" or "interim" CEO. Wall Street and the employees need to have confidence in this company again. Naming Brace interim or temporary CEO will be a quasi-admission that they could not get a top-quality candidate who was willing to take the job. That would speak volumes. So I continue to hope that a solid leader will be found and announced shortly.