Positive news is good. Once and if the loan is approved, shorts will kick the price of this up, as they start to cover. It could be a good run. Go Ual.
United Airlines parent UAL (UAL) was another highflier, its shares surging 33% in premarket trading after the troubled carrier reached a long-term deal on wage concessions with its machinists' union. The agreement bolsters United's pitch for $1.8 billion in federal loan guarantees it needs to stay out of bankruptcy. Speculators betting that United will get the help have helped the stock nearly double from its October low, even as analysts continue to cast doubt on United's survival odds.
You're correct. I had forgotten that all of the T/A's are conditioned upon approval of an ATSB loan guarantee. So I suppose that does indeed answer my question about the S.1113 letters.
However, my view is that with the IAM having now agreed to their T/A, I believe our potential to restructure successfully has dramatically increased, regardless of whether we get an ATSB loan or not. The spirit of cooperation appears to be there. I think Glenn Tilton made a significant comment when he said (and I'm paraphrasing) that the significance of getting all UA unions to agree to concessionary T/A's affords UA a tremendous competitive advantage that it leverage. I don't think this point can be stressed enough. I'm of the opinion that when the spirit of cooperation is there from all of your work groups, great things can be achieved, even in the face of all the naysayers. Let them underestimate what we can accomplish. Proving people wrong is always sweeter, anyhow. But we now have a fantastic opportunity to reshape our company into a highly competitive force; a company that is feared again in the marketplace. I think we'd all like to see that happen. I know I would. I'm tired of being slammed in the press by everyone. It'd sure be nice to get some payback going here pretty soon. It can happen. With all work groups poised to do what's necessary to effect that re-shaping, combined with the great leadership (in my view) that Glenn Tilton is providing, we have the ability to do what everyone seems to think we can't do. I'm not for a moment discounting the tough road that lies ahead. We may in fact have to file for bankruptcy protection. In fact, the majority of me still feels that we will, even though I hope I'm wrong. But even if bankruptcy happens, we now appear to have the spirit of cooperation that is absolutely vital to successfully reorganizing.
Maybe I'm putting too much stock into the IAM T/A. Maybe I'm probably putting the cart ahead of the horse because the T/A hasn't been ratified yet. But I feel that the mere fact that the IAM leadership reached agreement on a concessionary T/A with UA is a significant milestone in and of itself. Hopefully, it'll prove to be a sign of good things to come for all of us. Let's hope so.
Retaining R & D isn't necessarily a bad thing for the company. As long as the numbers crunch out to the ultimate figure, it doesn't matter. The company had a dollar target to reach and so long as whatever savings the IAM gives add up to that dollar figure, it works. While I'm still a firm believer that mechanics doing R & D is a waste of valuable, costly resources, I also can understand the union's hesitance to give in. They achieve a moral victory even though what they ultimately give up in terms of hard dollars amounts to the same. So it's a win-win, which is basically what negotiations should be when it comes right down to it. Now, let's just hope all T/A's get ratified and we can avoid a trip through the courts.
Since my friend in the IAM called me with the news I started
at least some discussion of acceptance.I believe it is a lot of huffing
and puffing on their part.When it comes done to you losing your house,car,
filing bk yourself,and jeopardizing your kids future you will vote yes.
Sometimes the medicine tastes nasty going down,but if you dont cure your
disease you could lose your life.I choose to live today right now.I starting
preparing for the worst at the beginning at the first of the year,and have
learned the lesson of saving more and planning better for these situations
if they should happen again.No I dont have a second handle.Dont know who
alexander36 is.Sorry.As to any ass whooping I dont think they will do that
I'm simply trying to get them to see the situation for what it is in black
and white no fluff.
