http://www.rockymountainnews.com/drmn/busi...2197793,00.html
This is certainly good news for UAL. Now it only it could find that elusive equity investor . . .
United Revenues Increasing
- Thread starter FWAAA
- Start date
http://www.rockymountainnews.com/drmn/busi...2197793,00.html
This is certainly good news for UAL. Now it only it could find that elusive equity investor . . .
Cosmo
Veteran
- Aug 20, 2002
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Today's Rocky Mountain News in Denver had an article describing some comments made by United's EVP John Tague. He noted that the carrier had seen a "tremendous revenue turnaround" in the third quarter and said that "there shouldn't be any doubt" that United will emerge from bankruptcy in "mid-Spring" 2004.
Here's the article.
This certainly appears to be good news for United, its employees and its customers. Of course, the first real test of Tague's predictive capabilities will come within the next couple of weeks when United reports its July monthly results to the bankruptcy court, and certainly the positive trend would need to continue in subsequent months for this to be anything more than an aberration. But if those numbers support Tague's comments in the newspaper article, then United might really be on the road to recovery. We'll find out soon enough.
Moderator note: Duplicate topics have been merged. Todd
Here's the article.
This certainly appears to be good news for United, its employees and its customers. Of course, the first real test of Tague's predictive capabilities will come within the next couple of weeks when United reports its July monthly results to the bankruptcy court, and certainly the positive trend would need to continue in subsequent months for this to be anything more than an aberration. But if those numbers support Tague's comments in the newspaper article, then United might really be on the road to recovery. We'll find out soon enough.
Moderator note: Duplicate topics have been merged. Todd
Ukridge
Senior
Lies Cosmo, Lies. Lies, Lies and more Lies! This cannot be true. Prevarications, canards, and dissembling abound. The sky really is falling. The business cycle model is no longer valid and the economy will never recover. Mr. Tilton does not know what he is doing etc .... 
Cheers!
Cheers!
whatkindoffreshhell
Veteran
Hooray for John Tague! He certainly has the real numbers available to him, why not share the facts instead of just sales rhetoric?
"Killer business model"??? Words like that sound like the hollow proclamations from the dotcom era. Certainly it is good that John is sounding the trumpet call but the musical notes have to be coherent...
"Killer business model"??? Words like that sound like the hollow proclamations from the dotcom era. Certainly it is good that John is sounding the trumpet call but the musical notes have to be coherent...
Airmech737
Member
- Jun 10, 2003
- 29
- 0
Sounds good.....But!
Is UAL still charging the fee that was waived for the summer? The passengers were to pay $3.00 per security leg fee that the gov't waived and will be actived again in Sept or Oct.
Sure when you have millions of passengers paying X number of dollars more that you can pocket, revenue will be better.
tumbleweed
Member
- Sep 5, 2002
- 22
- 0
I can't help but relish in the thought of the disappointment that this article must bring to the "chip" types waiting to benefit from our demise. Discussions with our upper mgmt. seem to indicate that the Dip hurdles should be achievable and that we now have a very strong position at which to request the ATSB loan. Details of the LCO (low cost operation) should be released within a few weeks and they look promising. United will retain virtually all of it's sought after route structure and grow domestically thru the LCO.
I would like to thank the chip munns, gordon bethunes and their ilk for energizing our workforce into the industry leading operation that they now can take pride in.
Tumbleweed
I would like to thank the chip munns, gordon bethunes and their ilk for energizing our workforce into the industry leading operation that they now can take pride in.
Tumbleweed
savyinvestor
Senior
Funny Chip doesn't mention this good news! Does it not also affect U? He posts all those negatives about UAL because of the relationship with U, but misses this positive. Why is that? Savy767jetz said:Here! Here! I second that notion!tumbleweed said:
(of course we should save the champagne until after we emerge
USA320Pilot
Veteran
John Tague, United Airlines, executive vice president for customers told the news media last Wednesday the airline has "turned the corner" in its battle to boost revenues and stop losses. Tague's comments came on the heels of the July ATA airline performance report, which has indicated the industry is starting to see improved performance.
The ATA said the positive industry RASM trend of recent persisted in July, but the demand situation remains relatively unchanged year-over-year. Domestic RASM improved 10.2%, while system RASM improved 8.1%. The Atlantic and Latin regions improved 4.0% and 4.9% respectively, however, the Pacific region still appears to be problematic off 4.0% year-over-year.
In my opinion, with the approaching fall season, returning capacity, and a bleak business outlook, the road ahead will undoubtedly continue to prove challenging for the entire industry. Even though the environment appears to be slowly improving, the industry is far from "out of the woods"
Meanwhile, in regard to United, Tague did not provide specific numbers and he said, (the positive trends) "are not strong enough to give us indications of profit," which is a requirement for the airline to obtain the loan guarantee.
Specifically, the company must present a business plan that projects a 7% profit margin within 7 years and have the plan endorsed by Fitch Rating. Moreover, according to the AP, analysts predict the Chicago-based Company would lose "more than $300 million in the quarter ending Sept. 30, even as the industry shows signs of improvement."
Regardless, I believe the July revenue numbers will boost United's chances of surviving, which is something I have said all along albeit a much smaller airline.
Seprately, the Rocky Mountain News reported airline is targeting mid-spring for exiting bankruptcy, which is different than Jake Brace's comments to Susan Carey and indicates the company is not progressing towards an orderly exit as previously presented in the Wall Street Journal interview. This should not come as a surprise because large bankruptcy reorganizations take time.
I agree that for those parties interested in the success of United, Tague's comments are the most positive to come from United's executive since the company filed for bankruptcy, but there still are significant obstacles.
First, there are signs the upward revenue trend may be short-lived. Last week's East Coast power outage is likely to affect August industry revenue numbers, there is the September 11 anniversary booking problem, and the fall is the slowest travel time of the year.
Jon Ash, managing director of Global Aviation Associates, told the Denver Post United has major issues to address.
The company must line up billions of dollars in exit financing, potentially re-bid for a government-guaranteed loan, address a massive pension shortfall and develop a detailed business plan. In addition, the Company must resolve issues at their Denver and Dulles and present its Plan of Reorganization to the bankruptcy court in about three months -- in December.
In my opinion, the most difficult issue will be finding exit financing and I continue to believe that United, like other bankrupt airlines in the past, may be forced to sell assets to fund it reorganization emergence, with the likely candidate to acquire such assets US Airways.
Regardless, as with the IRS tax refund and the second federal bailout, the July revenue number will boost United's chances of surviving.
Best regards,
Chip
The ATA said the positive industry RASM trend of recent persisted in July, but the demand situation remains relatively unchanged year-over-year. Domestic RASM improved 10.2%, while system RASM improved 8.1%. The Atlantic and Latin regions improved 4.0% and 4.9% respectively, however, the Pacific region still appears to be problematic off 4.0% year-over-year.
In my opinion, with the approaching fall season, returning capacity, and a bleak business outlook, the road ahead will undoubtedly continue to prove challenging for the entire industry. Even though the environment appears to be slowly improving, the industry is far from "out of the woods"
Meanwhile, in regard to United, Tague did not provide specific numbers and he said, (the positive trends) "are not strong enough to give us indications of profit," which is a requirement for the airline to obtain the loan guarantee.
Specifically, the company must present a business plan that projects a 7% profit margin within 7 years and have the plan endorsed by Fitch Rating. Moreover, according to the AP, analysts predict the Chicago-based Company would lose "more than $300 million in the quarter ending Sept. 30, even as the industry shows signs of improvement."
Regardless, I believe the July revenue numbers will boost United's chances of surviving, which is something I have said all along albeit a much smaller airline.
Seprately, the Rocky Mountain News reported airline is targeting mid-spring for exiting bankruptcy, which is different than Jake Brace's comments to Susan Carey and indicates the company is not progressing towards an orderly exit as previously presented in the Wall Street Journal interview. This should not come as a surprise because large bankruptcy reorganizations take time.
I agree that for those parties interested in the success of United, Tague's comments are the most positive to come from United's executive since the company filed for bankruptcy, but there still are significant obstacles.
First, there are signs the upward revenue trend may be short-lived. Last week's East Coast power outage is likely to affect August industry revenue numbers, there is the September 11 anniversary booking problem, and the fall is the slowest travel time of the year.
Jon Ash, managing director of Global Aviation Associates, told the Denver Post United has major issues to address.
The company must line up billions of dollars in exit financing, potentially re-bid for a government-guaranteed loan, address a massive pension shortfall and develop a detailed business plan. In addition, the Company must resolve issues at their Denver and Dulles and present its Plan of Reorganization to the bankruptcy court in about three months -- in December.
In my opinion, the most difficult issue will be finding exit financing and I continue to believe that United, like other bankrupt airlines in the past, may be forced to sell assets to fund it reorganization emergence, with the likely candidate to acquire such assets US Airways.
Regardless, as with the IRS tax refund and the second federal bailout, the July revenue number will boost United's chances of surviving.
Best regards,
Chip
767jetz
Veteran
- Aug 20, 2002
- 3,286
- 2,779
Here! Here! I second that notion!savyinvestor said:
(of course we should save the champagne until after we emerge
) [/QUOTE]Funny Chip doesn't mention this good news! Does it not also affect U? He posts all those negatives about UAL because of the relationship with U, but misses this positive. Why is that? Savy [/quote]
EXACTLY! You hit the nail on the head. This is a perfect example. I might even go so far as to say it is proof that "you-know-who" is only interested in news that paints UAL in a negative light. Although he is quick to cut and paste all the bad news and claim credit for being the first to break it, he's silence is deafening when good news comes out.
Even the "Analysts" he loves to quote have admitted being suprised and impressed. Yet not even one word of good will from our "brother" at UAL's codeshare partner. Not even an honorable mention over on the US board. That seems peculiar for someone who claims to be interested in how the "Elk Grove Village based company" affects his own.
But I'm getting off on a tangent here. The bottom line is that we all know the truth about "you-know-who." The lack of negative spin is refreshing, and I for one am glad to see that this board has returned somewhat to normal. The last thing I want to do is lure him back with accusations of being a sophist or something like that.
In all fairness, maybe he has turned over a new leaf and decided to get off our backs for a while. Or maybe he is busy tendoing to business on his own turf, as he well should. Either way I wish all the USAir folks luck in their efforts, and congratulate all of my fellow UAL employees for a job well done! KEEP UP THE GOOD WORK EVERYONE!
USA320Pilot
Veteran
767jetz:
Do you think it's possible that the information I have posted is fact, but is something you do not like, thus you take exception to my comments?
I have never said that UA would not survive and unlike others I have said the airline should emerge from bankruptcy. However, there is still strong reason to believe that United may be forced to sell assets to survive, principally to obtain exit financing, and I guarantee you it's being discussed within the CCY and WHQ Executive Suites.
Why do you think the US PIT hub negotiations have not progressed? Could it be that these assets could be headed west...
Best regards,
Chip
Do you think it's possible that the information I have posted is fact, but is something you do not like, thus you take exception to my comments?
I have never said that UA would not survive and unlike others I have said the airline should emerge from bankruptcy. However, there is still strong reason to believe that United may be forced to sell assets to survive, principally to obtain exit financing, and I guarantee you it's being discussed within the CCY and WHQ Executive Suites.
Why do you think the US PIT hub negotiations have not progressed? Could it be that these assets could be headed west...
Best regards,
Chip
iflyjetz,
But thanks in advance for getting us a bunch of restrictions slapped on us and even more moderation of the UA board... except of course for the frequent poster here who is NOT a UA employee who most needs a sock put in it but who seems immune to that type of attention from the USAviation powers that be...
But thanks in advance for getting us a bunch of restrictions slapped on us and even more moderation of the UA board... except of course for the frequent poster here who is NOT a UA employee who most needs a sock put in it but who seems immune to that type of attention from the USAviation powers that be...
Cosmo
Veteran
- Aug 20, 2002
- 840
- 0
Well, I was going to make some brilliant comments about some of Chip's observations above, but iflyjetz' post distracted me. B)
BTW, to keep this thread on topic, I'm correct in assuming that one of those ladies is named "United" and the other is named "US Airways", right?
BTW, to keep this thread on topic, I'm correct in assuming that one of those ladies is named "United" and the other is named "US Airways", right?
767jetz
Veteran
- Aug 20, 2002
- 3,286
- 2,779
Chip,Chip Munn said:
Ummmmmmm.... NO.
I don't think it's possible, because I happen to know that it is NOT fact.
The only reason I take exception to your comments is because you post opinion and speculation AS fact.
The botom line is that it is your OPINION against everyone else's OPINION. Folks will judge for themselves who to believe. But only time will tell.
By the way, have you ever noticed that no one here goes to the US board to predict undesirable things to the US employees and spread rumor as fact? In fact the only things I post there are positive views on UA to rebutt your constant negativity and predictions of undesirable outcomes for UA employees.
No one here wants your negative spin. Quiet frankly I doubt any one see's you for more than the opinionated self-righteous spinster that you are. So why don't you save it for another audience who wants to hear it. You've turned into the guy that crashes a party, that know one wants around, and won't take a hint and leave.
