Will United Get The Loan

[Fly]

Of course! 😉 UAL should get the loan!

 

[Bigsky]

Any idea when the ATSB will finally makes it's long awaited decision on the loan guarantee?

 

[Bizman]

Sorry, Miss quote old Gordo. Should have been "It's a pretty tough criteria to meet three years later." Fly posted the whole article above.

 

[C54Capt]

My guess:

ATSB grants UA a $1,500,000,000.00 loan guarantee on a 2 billion dollar finance package on June 28th with a whole truck-load of restrictions. The guarantee will be pending the successful emergence from bankruptcy.

Anyone else care to guess?

 

[aircraft_artificer]

It's not rocket science. Look at what the present administration has been doing lately and the amount of lobbying by UAL. It is only muddied by the US Airways hassles, BUT, they are paying the loan they got. I have placed a bet with a friend on what will happen and it is definately headed the way I bet. One only has to look at the severence package penned for the new CEO of US Airways.

 

[Imagolfer]

Then all we have to do is wait and see who's right!!

Fly, are you sure?

A couple of recent developments:

United's future gets murkier as loan issue drags on
Who thought United's future could be get any murkier? The federal Air Transportation Stabilization Board (ATSB) says it wants more information on the carrier's strategy to escape bankruptcy, suggesting any decision on a vital loan guarantee won't come soon. CEO Glenn Tilton says he still hopes for a "late summer" emergence from Chapter 11, but that's starting to seem less likely as the loan guarantee issues languish on. ATSB board members representing the Transportation Department, Treasury and Federal Reserve are doing "diligence" on United's plan, Aviation Daily reports.

http://www.usatoday.com/travel/flights/today/sky.htm

 

[C54Capt]

The Congressmen in my area that I have spoken with seem to think that UAL will not get the loan guarantee, however, I don't know if that is their personal opinion or if there is other insight in Washington. My guess is that it is merely their own opinion, because UAL is not a strong player in our area. In any case, I believe UAL would be better off without the ATSB restrictions and go it alone. Let the capitalistic system work things out as the system was designed.

 

[Fly]

ATSB LoanThis is good news

However, one senior lawmaker believes UAL Corp.'s (OTC BB:UALAQ.OB - News) United, which is based in Elk Grove Village, Illinois, has positioned itself so well politically that approval by the Air Transportation Stabilization Board is inevitable despite the new developments and maneuvering by other airlines to derail the loan guarantee.

 

[46Driver]

Interesting that you have a big "Kerry" button yet are pinning your hopes on Republican Speaker of the House Hastert. I'm a Republican and even I don't like Hastert.

 

[Fly]

I'm not pinning my hopes on anybody. I was displaying a link to a news article. 😉 Oh, btw, Hastert doesn't decide, so it doesn't matter if you like him or not. Where does the article say Hastert made that quote?

 

[UAL_TECH]

“With the federal board demanding big savings, United said it is considering furloughs to offset fuel expenses.â€￾

Now we can turn employee wages into fuel?
Is this some new technology that we missed?

:blink: UT

 

[avek00]

Some more thoughts:

1. I have now switched my position on the UAL loan guarantee. In order to cover the as*es of all involved, I believe that UAL will be offered a CONDITIONAL loan guarantee that will include provisions sufficiently onerous to force the airline to cease delaying its long-needed restructuring and actually change the way it does business.

2. If Tilton COULD have secured substantial non-ATSB linked emergence financing, he WOULD have. The bottom line is that such financing does not exist - no one is willing to take a $2B risk on United unless they're guaranteed a payout by Uncle Sam.

 

[Diesel8]

"2. If Tilton COULD have secured substantial non-ATSB linked emergence financing, he WOULD have. The bottom line is that such financing does not exist - no one is willing to take a $2B risk on United unless they're guaranteed a payout by Uncle Sam."

I am not sure that is true, but I think it would be at a higher interest rate, something which UAL understandably wishes to avoid. UAL does have some great assets, which, if worst came to be, could be sold.

 

[avek00]

"2. If Tilton COULD have secured substantial non-ATSB linked emergence financing, he WOULD have. The bottom line is that such financing does not exist - no one is willing to take a $2B risk on United unless they're guaranteed a payout by Uncle Sam."

I am not sure that is true, but I think it would be at a higher interest rate, something which UAL understandably wishes to avoid. UAL does have some great assets, which, if worst came to be, could be sold.

IMHO, UAWHQ would have taken a non-ATSB backed loan if it meant a higher interest rate. The problem is that such loans aren't available to UAL at ANY price for the time being.

 

[iflyjetz]

IMHO, UAWHQ would have taken a non-ATSB backed loan if it meant a higher interest rate. The problem is that such loans aren't available to UAL at ANY price for the time being.

avek, even TWA was able to find lenders. You're misreading the tea leaves here. Tilton is going for the cheapest available money.