What Else Is United Selling? Raising Cash

[USA320Pilot]

Discussing US Airways in this thread is probably off topic, however, 737nCH11's point regarding losing money emerging bankruptcy is probably germane to the United formal reorganization.

However, Let's put this into perspective. US Airways has nearly $2 billion cash on hand, saw its unrestricted cash position drop by $42 million, and took a $24 million charge for the employee stock distribution.

Therefore, US Airways real loss was about $66 million.

The company's business plan and loan guarantee application did not predict a profit until 2005 and yesterday S&P said, "US Airways' results are expected to be somewhat worse than average among peer airlines in the third quarter, despite the cost and balance sheet improvements achieved in the company's Chapter 11 bankruptcy reorganization. Liquidity continues to be adequate, with unrestricted cash of $1.38 billion at Sept. 30, 2003, little changed from the June 30 figure, and manageable cash obligations in the near term."

The company's business plan is yet to unfold with many cost cuts and revenue improvements have not yet been realized (Pref Bid, MDA, RJs, Star, United alliance, etc.).

There is no question US Airways must further lower its unit costs and increase revenues to survive, just like United and the other network carrier's.

Regards,

Chip

 

[Fly]

Discussing US Airways in this thread is probably off topic

You are correct!!!

 

[737nCH11]

Chip,

When you think about it you have just described UAL. It's cash balance has steadily improved. Many of it's cost cutting efforts have yet to take effect. And yet you still continue to say that it must shed assets to survive. Using your logic it looks like U and UAL are in the same boat, so how can U possibly be the beneficiary of your supposed UCT?????

I would also like you to take a look at some of your previous posts regarding UAL's past quarterly results. You seem to apply a different set of standards when you speak of U's performance than when you address UAL's. Your quote of " Therefore U's real loss was about $66 million" is quite similar to what some UAL employees were trying to tell you about UAL's situation, yet you were fully prepared to point out that UAL's situation was becoming more dire by including all of their restructuring costs in their quarterly losses. What gives????? :huh:

 

[scot]

😱ff:

This IS the UA board. Thanks.

 

[novaqt]

Did everyone see yesterday's WSJ full page ad depicting the new partnership between Lufthansa and US Airways? The partnership is already in place between United and US Airways. This is the lining up of U's membership in the Star Alliance soon to go into effect sometime in January or, in the least, 1st Quarter 2004.

 

[Fly]

It is definitely in effect at United. I flew to Tokyo the other day and the announcement of the code share for US was part of my announcements.

 

[767jetz]

Discussing US Airways in this thread is probably off topic,

You are correct. But since you brought it up, there was an article in USA Today yesterday in which Benchmark Co. analyst Helane Becker was quoted as saying, "I think they(US Airways) emerged from Chapter 11 way too soon. There are rumors they may have to go back into Chapter 11 to get costs down further."

Ouch! Now that hurts! Not to get into a "he said - she said" contest, but who was the first to predict what some analysts are now privately and publicly saying? Didn't you shoot the messenger when I said this, because you didn't like what you heard?

To stay on topic here, I don't think UA will be selling anything significant to raise cash. Certainly not selling assets to USAir. I think the above quote doesn't bode well for USAir, and if anything UA's codeshare partner may be the first to start letting go of major assets.

Respectfully,

767jetz

 

[737nCH11]

Come clean jetz! You're really Ray Neidl in disguise, aren't you?? 😀