Atsb Denies Loan

The employees of United are in my thoughts tonight, and undoubtedly in the thoughts of many of thier brothers and sisters at US.

Hopefully this is just a small bump in the road in UALs recovery. Please join me in positive energy and hopes that this disrupts the lives of as few airline professionals as little as possible.
 
Personally I think we need an emergency meeting. We'll hire 2 MORE VP's who will directly report to some SENIOR VP's and explain to all the OTHER VP's what this all means :up:
 
JungleClone,
That's an honest appraisal from an apparent insider. I commend you for recognizing the challenge ahead of you.
I'm not sure Glenn Tilton's credibility is going to be that great tomorrow morning either. After all, he came in and has touted that the ATSB loan was UAL's saving hope just as previous administrations have said. Yes, he has done a great deal to pull United through some tough steps but had he not pinned quite so much faith on the ATSB, he might be in a position to move forward. Now, he will have to preside over further cuts and the likely network downsizing, including possible asset sales. All of the goodwill he's built up with the employees will pretty quickly vanish.
The airline industry is likely to look considerably different this time next year, and it won't be just United making changes.
 
Lets see....I'm a ATSB board member having breafest reading the paper and I got Glenn Tilton telling the world they'll make it with or without the loan backing....mmmm, now how do I explain to the taxpayers why I voted yes after such a statement....
 
First, I am sorry to see this has happened to my friends at UAL. You folks really have tried to turn things around, and for the feds to say "screw you" instead of offering a helping hand is just wrong, IMO. Hopefully there is still a way out of this mess, but I have to admit things are looking grim.

Second, I don't seriously believe any of you thought that UAL was going to get the loan. UAL was mostly depending on the perception that the feds would gain by watching what happened at UAIR, and we all know how that has been going. Add to this bleeding the fact that not enough cuts or changes were made at UAL, plus the looming presence of LCCs in their backyard, and it was no surprise what the decision was going to be. Any fool worth his salt knew this was coming.

So now what? What to do? Asset sales may net some cash, but in this market only the assets with actual value will sell, i.e. the LHR slots, the 777's, DCA/LGA slots, etc. Anything else is stuff that is easily producable by any other airline out there, and therefore has little value and won't sell. Short of any sales of assets, maybe Star Alliance can help somehow? Then again, I hear that Uncle C is still out there looking to dip his toe in the waters again....avoid that if you can. The truth is, I bet no one has any clue what to do now, and the clock is ticking for sure.

So, what to do? Someone come with an idea, any idea...
 
Looks like the UCT being hoped for by a certain USAIRWAYS captain may come to fruition. I sure hope not !!!!!!!!!!!!!!!!!!!!!!!!!!!!! Good luck to the fine folks at United. Savy
 
savyinvestor said:
Looks like the UCT being hoped for by a certain USAIRWAYS captain may come to fruition. I sure hope not !!!!!!!!!!!!!!!!!!!!!!!!!!!!! Good luck to the fine folks at United. Savy
Click to expand...
No.....

Say it isnt so....

But the great UAL will still get a loan from the Banks right? It is just a matter of them explaining to their shareholders why they loaned shareholder money to a corp. that the US gov wouldn'!....

Kinda makes ya go HHHMMMM doesn't it 767jetz...........
 
savyinvestor said:
Looks like the UCT being hoped for by a certain USAIRWAYS captain may come to fruition. I sure hope not !!!!!!!!!!!!!!!!!!!!!!!!!!!!! Good luck to the fine folks at United. Savy
Click to expand...
Man, I can tell you right now that is NOT going to happen. UAIR is still trying to save itself, and even IF they suceed, there is not going to be enough money for them to go and buy up the assets of UAL. If anything, I am willing to bet that no one touches UAL. UAL, unless drastic measures are taken, simply rots on the vine and others fill the wound.

Beware of Virgin America, as well. They will start up, and depress yields even furthur. Interesting thing to note: GECAS is handling the financing of Virgin's initial fleet purchase. Now, who else does GECAS have as a customer right now as well. Food for thought, folks.

:ph34r:
 
Let me first preface my remark(s) by saying I like, respect, and wish good thoughts for ALL UAL employees !!!!!!!!!!!!!!!!!!


Question,

What airline benefits the most by the Feds refusal for $$$$ to UAL ???

1. NW

2. AA


NH/BB's
 
Can UAL massage some numbers and business plan and resubmit for the ATSB loan? What was the "reason" for denial?

What's plan B, if the denial is final?
 
Winglet,

I think the decision is final on the 1.6 billion. However, I think the ATSB has left the door open for a resubmission at a much lower value. These loan guarantees are very complex in structure. I suppose Tilton was in there playing hardball on UA's behalf and the ATSB Board didn't want to play on his terms.
 
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