United's future may be private

[UnitedChicago]

Is United Airlines charting a leveraged buyout that would place its ownership in private hands?

That's the buzz in aviation circles.

The Elk Grove Township-based carrier passed on taking equity from outside investors when it emerged from bankruptcy this year. But the current economic and political environment may cause its management to reconsider.

Private-equity firms are snapping up everything from hotels to hospital chains in a buyout frenzy that's reminiscent of the corporate-raiding days in the late 1980s.

Despite running up staggering losses during the recent aviation slump, United Airlines has plenty to offer large investors with an appetite for risk, experts say.

The nation's second-largest carrier boasts one of the best route networks in the world, a glittering hub at O'Hare International Airport and a frequent-flier program worth billions of dollars.

Led by Chief Executive Glenn Tilton, United also has a management team eager to deal and willing to consider unconventional means to achieve objectives.

http://www.chicagotribune.com/business/chi...hi-business-hed

 

[UnitedChicago]

HELLO - anybody out there????????????????????????

This board used to be lively. Where is everybody? What's UA up to behind closed doors?????????????????

 

[spacewaitress]

we're all working trying to make up for lost wages

 

[lasttoboard]

HELLO - anybody out there????????????????????????

This board used to be lively. Where is everybody? What's UA up to behind closed doors?????????????????

I've got it, let's que up to bad mouth "Ted" as we all know that concept can't work!

 

[jimntx]

For the employees sake, let's hope that the private buyout doesn't happen. With privately-held firms, it's much more difficult to get specific confirmation of the company's financial claims (such as the need for concessions, layoffs, etc) than when a company is still having to satisfy SEC reporting requirements.

 

[whatkindoffreshhell]

The only value created by taking UA private would be for Tilton et al (the people with stock options) otherwise going private is just a shell game.

I'm sure the lawyers & bankers adore the 'going private' too for obvious reasons.

But if you are Joe Passenger or a UA employee then I do not think you'll see any increased value.

UA's best hope is for Congress to relax the foreign ownership rules but that ain't gonna happen anytime soon.

Besides Glenn & Jake can't wait that long.

UA should focus on building up IAD.

Have the UA brass moved into their new plushy offices yet?

 

[Gilding the Lily]

The only value created by taking UA private would be for Tilton et al (the people with stock options) otherwise going private is just a shell game.

I'm sure the lawyers & bankers adore the 'going private' too for obvious reasons.

Agreed. After the shock value of UA going private, public scrutiny would be reduced because the amount of information and reporting requirements regarding the management of the company would be limited. This would give UA more opportunities and flexibility regarding its financial treatment towards employees in the future.

However, I think it may increase the efficiency in decision-making, as going private would create a more centralized command post. Obviously, this could create a concern for abuse-of-power. Not like airline employees have ever had to deal with abuse of power in the past?!?!?!

 

[dc3fanatic]

Have the UA brass moved into their new plushy offices yet?

You want to be bitter no matter what, don't you. UAL needs more space as they consolidate operations and the new offices are part of a deal with the city that actually SAVES the company money.

Feel free to live in whatever reality you want.

 

[spacewaitress]

But isn't that why we're here?? to increase the wealth of our senior management? Oh my...I'm disillusioned.

 

[Bear96]

I thought you were here because you filled out an application indicating you wanted to work for UA. At one point you probably really really really wanted the job (as most applicants feel when they apply to work somewhere) and would be very happy to be hired. Since you were hired you have worked for UA in exchange for a paycheck.

If the deal no longer works for you, you are free to terminate the arrangement at any time.

 

[UAL_TECH]

I thought you were here because you filled out an application indicating you wanted to work for UA. At one point you probably really really really wanted the job (as most applicants feel when they apply to work somewhere) and would be very happy to be hired. Since you were hired you have worked for UA in exchange for a paycheck.

If the deal no longer works for you, you are free to terminate the arrangement at any time.

Good point!
Shut up and go to work.
If you don't like it leave.

 

[NewHampshire Black Bears]

HELLO - anybody out there????????????????????????

This board used to be lively. Where is everybody? What's UA up to behind closed doors?????????????????

///////////////////////////////////////////////////////////

UnitedChicago,

MY feelings EXACTLY !!!

With all the potential "goings on", you and I figured that "this joint would be jumping "


Jesus, where's MAGSAU and FLY when (we) need them ??

(well in the case of my DEAR friend FLY, since World Traveler has gone UNDERGROUND, he's NOT available to gets his BALLS broken)


NH/BB's

 

[JAMAKE1]

When United makes an offer for Delta or Continental, I am sure this board will get lively again. In the mean time, it's back to a 90-100 hour work month.

Happy Holidays! (I'll be in London...working of course).