United Revenues Increasing

[LGA Fleet Service]

However, I have been told US Airways is interested in United gates/facilities in ORD, DEN, LAX, & SFO. In addition, Dave Siegel was quoted in the Washington Post stating dependent upon the Atlantic Coast discussions, US Airways would be interested in IAD. Finally, Siegel personally told me (after Atlantic Coast's announcement that it would break from United) that US Airways and Atlantic Coast previously held discussions about the RJ operator joining US Airways Express and they would likely talk again.

Regardless, as you know, US Airways' chairman of the board has publicly said that if United were to sell assets, he would consider backing the purchase of some "if it would be beneficial to US Airways."

I think with the exception of DEN you'd be hard pressed to find an airline that wasn't interested in those cities.

You also seem to think that all the other airlines would sit idly by and watch this happen.

It's a safe bet that jetblue would love to get into ORD if the opportunity presented itself, and you continue to overlook the fact that AMR is pulling a lot of metal out of STL in November and has the capability to bracket any new Airways service at ORD or any of the other cities you mentioned with relative ease.

While you'd be busy rebranding gates and check in facilities AMR would simply add service and smother you from go.

Care to play that game?

Finally, do you have any recent commentary from your chairman of the board? This constant quoting of three and four month old articles as gospel truth is pointless.


That being said, I don't think UAL is going to come apart at the seams and sell itself off in pieces to U or any other airline in a last ditch effort to survive.


Like the stickers say, "United will stand."

 

[RowUnderDCA]

Even IF there is any possibility of asset or operations transfer between U and UAL, surely, there is no evidence that there would be a massive re-branding of service from 'United' to 'US Airways,' is there?

U is not investing in its brand, while United is advertising. Could there be an asset transfer without re-branding?

It all seems so unlikely. But, I guess I'd expect that UAL's plans for re-org would have leaked out somewhere, by now. I think it's the lack of speculation and rumor that makes it seem like UAL doesn 't have a plan. And anyway, what fun is bankruptcy, if the bankrupt entity doesn't make big changes, other than lower its employee expenses and reject capital costs.

Maybe the compensation situation at United was so out of whack, that simply fixing that was enough of a massive change to really change the prospects of the business model.

Again, it would be more fun if something would change that wouldn't just be on the back of the employees.

 

[Busdrvr]

Fly & Busdrvr:

Every CEO for every bankrupt airline is the company's best cheerleader. Why? To provide customer and employee confidence. Without words similar to Tilton's what do you think would happen to United?

Regardless, the parties are discussing a fragmentation of United where the United would sell some of its assets to US Airways, backed by RSA

, to provide United with exit financing. This is no different than when Pan Am sold United assets in the 90's.

Will it occur? Maybe, maybe not, but it's currently being discussed within WHQ and CCY.

Busdrvr, I have been told RSA holds United B767/B757 EETC's. In regard to what assets US Airways would acquire, that has not been made public. However, I have been told US Airways is interested in United gates/facilities in ORD, DEN, LAX, & SFO. In addition, Dave Siegel was quoted in the Washington Post stating dependent upon the Atlantic Coast discussions, US Airways would be interested in IAD. Finally, Siegel personally told me (after Atlantic Coast's announcement that it would break from United) that US Airways and Atlantic Coast previously held discussions about the RJ operator joining US Airways Express and they would likely talk again.

So Chip, when your COB was saying he'd buy UAL assests, wasn't that about the time he terminated YOUR pension? Was he being a cheerleader? It's called verbal KY Chip. Made a few gulible employees take it a little easier.

How many 767's, 757's does Dave control? Of course he is having trouble making money with the ones at U, so he definately wants even more 🙄 ..
Pan Am wasn't in BK when it sold the pacific, and in any case, that was a case study in why you SHOULDN'T sell your strengths. But I'm sure U, with it's vast experience and reputation in the west would excel with any UAL assests.

 

[novaqt]

Fly says:

He was most assuring about exiting from bankruptcy.....we are! He also said, "Why would we ever announce our strategy unless we had to?" (makes sense to me) Another statement: "We have NO intention of selling off our assets, we plan to hold our ground"

Chip says:

Every CEO for every bankrupt airline is the company's best cheerleader. Why? To provide customer and employee confidence. Without words similar to Tilton's what do you think would happen to United?

Moreover, when has a company attempted a formal reorganization and then the CEO state in public that the airline would fail?

Novaqt responds:

Thanks Fly for your update of Mr. Tilton's very positive comments. Never mind Chip's usual negative slamming. UAL employees know full well, without Chip's negative comments, how well the airline is running these days. How well the planes are full so much so that employees have a hard time getting on. How well the phones are ringing off the hooks, so much so that the airline has had to hire several hundred new employees and bring others back from furlough to cover the calls. The airline is finally showing the results of a competent senior management team. Chip's focus on UAL serves only to "redirect" his insecurities about the survivial of US. After all, US has Rono Dutta (RSA) onboard to help bring US down like he did while President of UAL.

 

[ualflynhi]

UAL Corp. today filed its July Monthly Operating Report with the U.S.
Bankruptcy Court. The company earned 35 million dollars from operations
in July, a significant turnaround from July 2002. United also
continued to generate positive cash flow during the month and met the
requirements of its debtor-in-possession financing agreements for the sixth
straight month. United expects to meet the requirements in August, as
well. Systemwide unit revenue improved 10 percent year-over-year, well
ahead of the industry average for the month of July.

Executive Vice President and Chief Financial Officer Jake Brace said,
"United is continuing to deliver major cost reductions and is now
coupling that effort with significant unit revenue improvement. All of us at
United are very proud of the solid progress we are making. As we
continue to successfully bring down cost and improve revenue, we are
building the momentum to emerge from Chapter 11 as a much more focused,
efficient and flexible business for the long term. We know there is still
much work to be done, but United is moving steadily in the right
direction."

Brace added, "United's cash balance increased by an average of about 4
million dollars a day in July, excluding a quarterly retroactive wage
payment to IAM members, allowing us to maintain our strong cash
position. What that tells us is that United's cost-reduction efforts are
kicking in and the company's new revenue improvement efforts are producing
results.

"In April, May and June, our systemwide unit revenue improved every
month," he continued. "In July our unit revenue was two points ahead of
the rest of the industry. Our recovery efforts are producing a
significant difference."

United reported non-operating expenses in July of 148 million dollars,
which included 105 million dollars in reorganization expenses. The
majority of reorganization expenses were non-cash items resulting from the
rejection of aircraft. After reorganization expenses, United recorded
a net loss of 7 million dollars for July.

UAL again improved its cash position for the month and reported an
increase in cash of approximately 48 million dollars for July, ending the
month with a cash balance of approximately 2.3 billion dollars,
including 714 million dollars in restricted cash (filing entities only). UAL
began July with a cash balance of approximately 2.3 billion dollars,
which included 674 million in restricted cash (filing entities only).
Excluding a quarterly retroactive wage payment to IAM members of 63
million dollars, the company's cash balance increased approximately 111
million dollars for the month or approximately 4 million dollars per day.

Executive Vice President-Operations Pete McDonald said, "United
employees throughout the organization continue to deliver the great service
and superior product our customers want. Despite the challenges of bad
travel weather across the Midwest and along much of the Eastern
seaboard, United's departure completion rate for July was 98.7 percent, and
80.9 percent of United's flights arrived within 14 minutes of schedule.
The company is maintaining its lead in the industry for on-time
performance for the last 12 months."

United's passenger load factor for July of 82.9 percent is an all-time
record for the Company, topping the 82 percent load factor recorded for
June.

"United is continuing with an innovative and aggressive program of
sales and marketing," says Executive Vice President-Customer John Tague.
"In July, we introduced our 'Fly the World for Free' offer for business
travelers with advertising in 22 countries in 11 languages. The
enthusiastic response from customers has exceeded our expectations, and we
will continue with similar programs over the next several months to
capitalize on United's core competitive strengths."

 

[RowUnderDCA]

The following are the two headlines listed in the WashingtonPost's 'Airline' section:


"In the News


United Airlines Remains Unprofitable (AP, Aug. 25, 2003; 1:52 PM)

UAL Makes Operating Profit in July (Reuters, Aug. 25, 2003; 1:10 PM)"


I have no business playing this game. Good luck, everyone.

 

[ual06]

The following are the two headlines listed in the WashingtonPost's 'Airline' section:


"In the News


United Airlines Remains Unprofitable (AP, Aug. 25, 2003; 1:52 PM)

UAL Makes Operating Profit in July (Reuters, Aug. 25, 2003; 1:10 PM)"


I have no business playing this game. Good luck, everyone.

OK, folks, the windows are open.

PLACE YOUR BETS.
PLACE YOUR BETS.

"Which article will the chipper use ??????? "

Personally, in at least matters of money, I would choose Reuters over AP every day.

 

[Fly]

UAL Reports July Monthly Operating Results


Reports $35 Million Earnings from Operations

July System Unit Revenue Improves 10%

Reports Positive Cash Flow and EBITDAR for July

Meets DIP Covenant for Sixth Consecutive Month

 

[USA320Pilot]

Today’s United bankruptcy Monthly Operating Report was good news for those interested in the success of the airline, however, the entire industry has benefited from the return to pre-war traffic levels as indicated by last week’s ATA report of an industry wide 8.1% increase in revenue.

As stated before, I believe United was given a 6-month reprieve due to the $365 million tax and refund and $300 million federal bailout, which has bought the airline further time to restructure without violating DIP financing covenants.

Separately, Jake Brace’s comment that “we know there is still much work to be done, but United is moving steadily in the right direction," appears to be appropriate. Key issues are the October and beyond EBITDAR (earnings before interest, taxes, depreciation, amortization and aircraft rent) targets because traffic is expected to decline after Labor Day (there are signs this is occurring in August as well), the underfunded pension -- where Glenn Tilton has said concessions are not enough to meet the company’s obligations -- and up to this point, the inability to obtain exit financing.

If United cannot post a profit after all of the cuts during the peak July travel season, the October and November EBITDAR targets could be major challenges to overcome, with the fall fare sales and seasonal travel drop off.

As I said before, I believe United will survive, albeit a much smaller airline, and the company could be forced to sell assets to provide exit financing. Will it occur? Maybe, maybe not, but it's being discussed.

What I find interesting is the need for some United supporters to "shoot the messenger." If my comments were not accurate than why are the United employees so emotional? Or, if my comments were not going to occur than why do United employees need to be a salesman to support their claim?

Regardless, as stated before, the fall and then into the winter season could be interesting.

Best regards,

Chip

 

[USA320Pilot]

Busdrvr:

Busdrvr said: "Of course he (Bronner) is having trouble making money with the ones (B757s/B767s) at U, so he definately wants even more."

Chip answers: Busdrvr, I normally do not get into exchanging posts that are intentional "jabs", but I feel compelled to respond to your inaccurate statement.

For the second quarter US Airways took took a $92 million charge related to the stock granted to employees as part of its restructuring. What's interesting is the has not even been distributed yet. Without this unusual charge, the net profit including other one-time items would have been $105 million, which would have been the highest of the network carriers.

United Airlines reported a number of unusual one-time items. The net profit (loss) excluding one time items only represent a credit for $365 IRS tax refund and $300 million in federal aid because the other one-time items were associated with the company’s formal reorganization. Without these two gains, United would have lost $1.096 billion during the second quarter. Regardless, United still posted a quarterly loss of over $600 million.

Busdrvr, can you tell me specifically how Bronner is having trouble making money with the ones (B757s/B767s) at U?

Best regards,

Chip

 

[Busdrvr]

Chip answers: Busdrvr, I normally do not get into exchanging posts that are intentional "jabs", but I feel compelled to respond to your inaccurate statement.

Busdrvr, can you tell me specifically how Bronner is having trouble making money with the ones (B757s/B767s) at U?

Chip, if you actually spent your time responding to inaccurate or misleading post, then this would just be a Chip vs Chip discussion board. I'll tell you about how U is unable to make moiney with the 757/767's right after you tell me how many (and which ones) Bronner thinks he controls. BTW Chip, with UAL's unit revenue up approx 10% YOY vs the rest of the industry, where would UAL be on your nifty little "August 15" matrix? About where I said they'd be a couple days ago? You need some better informants

 

[767jetz]

My appologies to everyone on this board for posting the same things over and over again. But a long as Chip insists on being a broken record I will continue to rebutt.
_______________________________________________________
Chip says: "As I said before, I believe United will survive, albeit a much smaller airline, and the company could be forced to sell assets to provide exit financing."

767jetz responds: Chip when are you going to get some new information? We've all agreed that the POSSIBILITY of asset sales has been discussed once upon a time. Gee, what do you think people talk about during a BK? I'm sure US considered the possibility of selling it's asset at some point also.

But as Tilton has said as recently as a couple of days ago, United will maintain it's size and build on it's core strengths. Do you expect the general public to take your word over Tilton's?
_______________________________________________________


Chip says: "If my comments were not accurate than why are the United employees so emotional? Or, if my comments were not going to occur than why do United employees need to be a salesman to support their claim?"

767jetz responds: I can't believe I have to explain this one to you 🙄 ... But since you asked...
It is BECAUSE your comments are NOT accurate that people get emotional. When you make unfavorable predictions based on old information, opinion, and speculation, and claim it to be factual, people who know better and care about the place your hedging your bets against want to set the record straight.

If someone made predictions about something bad happening to someone in your family, over and over again, and supported that prediction with twisted or outdated information, wouldn't you respond emotionally? Even if you knew it wasn't true?

Well??? I thought so!

Even though no one believes your opinions will come true, we also don't want your claims and mis-information to take on a life of their own. Especially since this is a public forum. Bad rumors tend to get out of control if they are not squashed. Every employee at UA is a salesperson for our product. And we are all doing an awesome job as evidenced by our RESULTS. Salesmanship and pride are inherent in all of our employees, so fear of your opinions being accurate is irrelevant to us.

No one expects to change your mind Chip. If anything, maybe we fear losing even one customer due to your negativity. And our emotional response is directed at customers who may be reading this. We want them to see that we will emotionally defend our company, our turf, and their business!
_____________________________________________________

Here's a question for you Chip: If you are so sure your comments are true, why do you need to come to this site and and be a salesman for your opinions? Why do you need to repeat the same things over and over again? Do you need to have the last word? Wouldn't it be enough to say it once and then just wait for it to happen?

 

[willyloman]

However, I have been told US Airways is interested in United gates/facilities in ORD, DEN, LAX, & SFO. In addition, Dave Siegel was quoted in the Washington Post stating dependent upon the Atlantic Coast discussions, US Airways would be interested in IAD. Finally, Siegel personally told me (after Atlantic Coast's announcement that it would break from United) that US Airways and Atlantic Coast previously held discussions about the RJ operator joining US Airways Express and they would likely talk again.

Regardless, as you know, US Airways' chairman of the board has publicly said that if United were to sell assets, he would consider backing the purchase of some "if it would be beneficial to US Airways."

I think with the exception of DEN you'd be hard pressed to find an airline that wasn't interested in those cities.

You also seem to think that all the other airlines would sit idly by and watch this happen.

It's a safe bet that jetblue would love to get into ORD if the opportunity presented itself, and you continue to overlook the fact that AMR is pulling a lot of metal out of STL in November and has the capability to bracket any new Airways service at ORD or any of the other cities you mentioned with relative ease.

While you'd be busy rebranding gates and check in facilities AMR would simply add service and smother you from go.

Care to play that game?

Finally, do you have any recent commentary from your chairman of the board? This constant quoting of three and four month old articles as gospel truth is pointless.


That being said, I don't think UAL is going to come apart at the seams and sell itself off in pieces to U or any other airline in a last ditch effort to survive.


Like the stickers say, "United will stand."

<_< LGA: CHip also fails to mention the oft-repeated Siegel vision statement that he sees US as a small east coast niche carrier, similar to what Alaska Airlines has on the west coast.

 

[ual747mech]

MONTHLY OPERATING REPORT FOR THE PERIOD
JULY 1, 2003 THROUGH JULY 31, 2003

UAL CORPORATION AND SUBSIDIARY COMPANIES (filing entities only)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE MONTH ENDED JULY 31, 2003
($ amounts in 000's)


UAL
CONSOLIDATING

Total operating revenues 1,326,481

Total operating expenses 1,291,176

Earnings (loss) from operations 35,305



Now let's compare US Air's Result for the same period:

Chip, could you please post US Air's result for the same period?
Thx.

 

[Ukridge]

1. I cannot help but think when I read some of C. Munn’s recent comments of the sentiment expressed by your American author Henry David Thoreau when he wrote of the “quiet desperation of men.â€￾ I see this coming to the fore in Chip’s postings and frankly I feel rather sorry for him. At first I was pleased to see that no, not all had taken their leave and that the verbal swordplay was alive again. Then however, I noted Mr. Munn’s rather untoward remarks in calling posters on this forum “cowardsâ€￾ because they do not use their real name as he does. I find fault with this reasoning. I thought the beauty of anonymity in these postings was that it was the thought that was of prime importance and not the personality. In fact, I thought it proper forum etiquette that each poster take a nom de guerre that reflects his or her personality. Second, with respect to the distaff side of the posting audience, I would not think it wise for females to be printing their name for the world to see. It is certainly something that the females in my extended family do not do for reasons obvious to all except perhaps to Chip. Back to the first point though. Would any reader of this forum give the slightest regard if my name were Nick Price from Newcastle upon Tyne? How about Ian Worthington from the Costwolds?. Roger Parris from the Dales? John Bull from London? I am sure that no poster on this board really concerns himself with what each of our real names are. What does it matter? We are discussing United Airlines and not some freaky dating service. Seriously Chip, your accusation is baseless and uncalled for.

2. Just prior to 11 September of 2001 I had the opportunity to fly from Paris to Washington on a United flight (you can see why the office likes the Star Alliance so much. Otherwise it would have been an AF flight or back to London with BA and then on without the FF miles!). The hostess in the business class cabin, a Parisian, was reading law at the Sorbonne. I am sure by now she is close to completion. Yes, Chip, one of your industry colleagues that you so blithely label as having no skill outside the airline business is someone with whom you could not deign to match wits. She would cut through your specious drivel for what it was. So, a student at one of Europe’s classical universities is somehow not worthy of a (I assume) middle aged airline Captain who envisages himself as an astute observer and commentator? Please Chip. If one is to patronize ensure that there are the intellectual tools to back up the remarks.
I am sure that there are many like this young lady who fly because it is a passion that they have for their work. If however, I am wrong and you are a searing intellect with a piercing comprehension of financials, then may I suggest a bit of the concept of noblesse oblige? It would do well with those who do not enjoy the lofty analytical skills that you posses.
Cheers