US Partner UA in play...how could this be?

[pitrescsd]

[P]
[BLOCKQUOTE][BR]
[P][BR]But the post in question was extremely condescending to the very employees whose attitude you called into question. That was my point. You're always going to get a few bad apples in any bunch. But the good far outweighs the bad. We live in an era where negativity and pessimism sells. How about highlighting good service. The bad ones always get noticed. But the good ones often are taken for granted. Being a flight attendant or customer service agent is a completely thankless job. Neither are paid exhorbitant salaries, yet their job is arguably one of the toughest. They have to be apologists for their company and the problems that 99.9% of the time, they didn't create yet must answer for.[BR][BR]From the perspecitve of a Customer Service Desk supervisor agent in reservations, many times when a caller gets the answer of NO, they turn it around and cry rudeness. Many customers, when they don't get the answer they desire, try to turn it against the messenger who gave them the answer they didn't want to hear. I've heard and seen it happen too many times to count. That's not to say that there was not an instance of perceived rudeness. When it comes to customer complaints regarding perceived rudeness, the customer is ALWAYS right, the agent doesn't have a snowball's chance.[BR][BR][/P][/BLOCKQUOTE]

 

[Cosmo]

[blockquote]
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On 11/18/2002 2:46:03 PM PineyBob wrote:

My real dilema is I want a good second carrier for those GRR segments because I will have about 160 segments next year and after I make CP I want to get elite status on another carrier in case "The Chapter 22 Aliance" (US/UA) falters.
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[/blockquote]
I believe you mentioned in a previous post that you fly out of Atlantic City. If that's true, why not try the new Comair/Delta Connection service through Cincinnati? You would even have a chance, depending on the time of day that you travel, to fly on a Delta mainline flight from CVG to GRR.

 

[UAL777flyer]

If either US or UA ultimately fail, you can rest assured it won't be due to The Chapter 22 Alliance as you keep calling it.

 

[Cosmo]

Sorry, I don't fly Delta very often so I'm not too familiar with the upgrade and elite status requirements of SkyMiles. But I'm sure other posters on this board will be able to help you out. Or if necessary, you can go over to the Delta board and ask your questions there.

 

[Slam&Click]

I'm not a native of the Garden State, however, I now believe everything I've been told about the Pineys!

Note - PINEY* - [Middle English, from Old French, from Medieval Latin. Pineioca. First appeared 18th Century America in 1736.]

capitalized
a: Forest dweller
b: to live amongst the forest
obsolete: Savage - Inhabitants of the Pine Barrens.
a: Inbred (modern translation) Hill-Billie, to breed within
b: Distinct features, Pineys - bad smelling, dirty hair, no teeth, possible perversion, fondness for alcohol, setting traps, dangerous

This was all meant in humor, of course! We must remember to choose laughter in the face of adversity, right Piney?!

 

[chipmunn]

Lenders may be wary of UAL

New York (TheDeal.com) - UAL Corp. is unlikely to find lenders willing to extend the $2 billion in debtor-in-possession financing the company says it will need should it have to file for bankruptcy later this year.

The Elk Grove Township, Ill.-based parent of United Airlines admitted publicly last week that it was in talks with unnamed lenders for up to $2 billion in DIP financing. UAL is in the process of trimming costs in hopes of qualifying for $1.8 billion in federal loan guarantees, but it has warned that without government assistance debt payments could drive the company into Chapter 11 protection.

Although United maintains it can avoid a filing, executives did concede last week that they are working on the bankruptcy contingency plan. UAL chief financial officer Jake Brace told reporters that the company is seeking enough money to cover a two-year stay in bankruptcy protection.

Observers have cited large DIP lenders such as Citigroup, J.P. Morgan Chase & Co. and GE Capital as potential sources for UAL's financing. Officials for those companies declined to comment on their plans.

But industry sources say that no group of lenders is likely to be willing to provide billions to UAL. At that level the company's DIP would rival Kmart Corp.'s loan as the largest ever, a substantial risk considering the depressed state of the airline industry.

If $2 billion is not simply a bargaining figure, UAL has got to get some new advisers, said one bankruptcy expert. Considering that no large airline is expected to make money this year or next, there is substantial risk that money lent to UAL will never be seen again.

The expert, who asked not to be identified, said UAL would be hard-pressed to win more than $1 billion in financing. Given the airline's financial state, a DIP lender would likely be asked to provide some post-bankruptcy funding as well, adding to the lender's exposure.

Why would anyone be in a rush to partner with United Airlines? the expert asked.

Smaller US Airways Group Inc. received a $500 million DIP commitment when it filed for bankruptcy protection earlier this year. But industry watchers are quick to note that US Airways went into Chapter 11 with substantial labor concessions already in place and with conditional approval for a government loan guarantee upon its emergence from bankruptcy. That made the carrier a far-less risky company to lend to than United, one analyst said.

Lately, investors have been wagering that UAL will win Air Transportation Stabilization Board support for government loans, making a near-term DIP package unnecessary. Shares of UAL rose 18.6% to close at $3.50 Monday, Nov. 18, after the company announced that its financial recovery plan would leave it profitable on an operational basis by 2004.

United's turnaround plan includes $1.1 billion in annual labor cost savings and $1.4 billion in so-called revenue enhancements, such as greater use of regional jets and more profit-sharing with code-share partners.

We believe that the plan we submitted to the ATSB makes a compelling case for loan guarantees, Glenn Tilton, United's chairman and CEO, said in a statement. The plan aligns our costs and revenues, while building a platform for future growth.

Sources say that the company is also pressuring aircraft lessors for almost $25 million in concessions to assist in the turnaround.

With the loan guarantees at stake, United will be unlikely to disclose any progress it makes toward arranging standby DIP financing. Because the federal panel is mandated to provide aid only to airlines that are unable to secure financing from the private sector, winning a $2 billion DIP loan could weaken UAL's case before the government, sources note.