Ua's Fleet....

[TravelDude]

Looking for some inside scoop.

In this weeks press release of UA's October financial results they stated some aircraft were being given up as the fleet is aligned, so the obvious question!

Anyone know what type and/or aircraft will be around after bankruptcy or what have already been given back?



Here is the quote...
"UAL Corp., parent of United Airlines, reported a net loss of $124 million for Oct. including $149 million in reorganization expenses, but said positive cash flow during the month averaged $7 million per day and it managed an operating profit of $60 million, a $300 million improvement compared to Oct. 2002.

The company said the majority of the reorganization expenses were noncash items resulting from the rejection of aircraft leases as United "aligns its fleet to the market." It also said its systemwide passenger unit revenue rose 9% year-over-year. "

 

[bigJ]

a number of 737's gone...how many remain depend on negotiated lease rates vs. outsourcing of "RJ's"

 

[Busdrvr]

off the top of my head:

2 747-400 sold
1 757 rejected
4 777's rejected
5 737's rejected
1 A320 rejected

Those rejections would be net losses. HOWEVER, just because you "reject" a lease doesn't mean you lose the jet. UAL rejected some leases and lost an equity stake in the jet only to retain that same jet at a new lease rate. The loss in equity shows up as a charge.

 

[TravelDude]

Thanks for the reply Busdrvr!

 

[Cosmo]

off the top of my head:

2 747-400 sold
1 757 rejected
4 777's rejected
5 737's rejected
1 A320 rejected

Those rejections would be net losses. HOWEVER, just because you "reject" a lease doesn't mean you lose the jet. UAL rejected some leases and lost an equity stake in the jet only to retain that same jet at a new lease rate. The loss in equity shows up as a charge.

Busdrvr:

I have seen stories in the press about the sale of 7 B747-400s to Thai and another 5 such aircraft to Corsair (the French charter operator). Do you have any info on those potential deals?

 

[TravelDude]

"Our Section 1110 fleet restructuring is far
along, but we need to resolve negotiations with our
public aircraft debt holders because of our
operational need for a significant portion of that
part of the fleet. This open issue is closely
related to the ACA issue, the resolution of which
will help determine precisely how many aircraft we
need going forward.

We remain in a constructive, but exceedingly complex
negotiation with a group representing our public
aircraft debt. That group represents 174 aircraft
and more than 100 financial institutions with
significant stakes in the debt. The parties
continue to work in good faith toward a rational and
constructive solution and we are confident that a
mutually beneficial agreement covering this
component of the fleet can be achieved."

Anyone have more specifics on what the fleet is looking like?

 

[Busdrvr]

off the top of my head:

2 747-400 sold
1 757 rejected
4 777's rejected
5 737's rejected
1 A320 rejected

Those rejections would be net losses. HOWEVER, just because you "reject" a lease doesn't mean you lose the jet. UAL rejected some leases and lost an equity stake in the jet only to retain that same jet at a new lease rate. The loss in equity shows up as a charge.

Busdrvr:

I have seen stories in the press about the sale of 7 B747-400s to Thai and another 5 such aircraft to Corsair (the French charter operator). Do you have any info on those potential deals?

Hey, get off me!! I said "off the top of my head!!! From the latest 10Q (Q3 report)



"Property additions, including aircraft and aircraft spare parts, amounted to $86 million. In the first nine months of 2003, we acquired one B757 aircraft off lease, sold two B747 aircraft and rejected one B757, four B777, one A320, five B747 and nine B737 aircraft under Section 1110 of the Bankruptcy Code. In addition, six B767 aircraft were transferred to non-operating status."