...According to Reuters William Warlick, senior airline analyst at Fitch Ratings, the company who would audit another United loan guarantee application, said t around 9.5 to 9.7 cents per mile, UAL's unit costs are not that different from other bigger, older airlines, Warlick noted. "They still have a lot of work to do if they're going to achieve a sustainable competitive advantage over the other network carriers," he said.
Moreover, I understand the prevailing view among the ATSB staff continues to be that a "chunnk" of existing domestic capacity (read about 4% of total North American ASMs, or about a third of UAL domestic) needs to go permanently.
Thus, that could lead us back to the UCT or something else.
Siegel's comment to the Washington Aero Club, where the DOJ, DOT, and ATSB had representatives in attendance, were provided with a purpose.
"Again, I don't have all the answers, but I do sense that increased cooperation, coordination, and potentially consolidation between and among network airlines must be another source of strength through enhanced efficiencies, in both marketing and operations," Siegel said.
What did Siegel mean with hs comment that he senses "that increased cooperation, coordination, and potentially consolidation between and among network airlines must be another source of strength?"
Regardless, something is being negotiated between the two companies with one in bankruptcy and unable to obtain exit financing and its bankruptcy judge telling Omnibus hearing participants that "This IPO (Orbitz) will undoubtedly be of assistance to the debtor," Wedoff said. UAL needs liquidity and is constrained by its ability to raise cash by other means, he said.
