Is there discontent at US business partner UA?

[USA320Pilot]

Judge Sets Trial Schedule In UAL, Atlantic Coast Dispute

CHICAGO (Dow Jones) - A bankruptcy-court judge on Thursday set a trial schedule for the ongoing dispute between UAL Corp. and Atlantic Coast Airlines Inc. over rates for 2003.

Atlantic Coast, of Dulles, Va., believes it is contractually entitled to receive higher compensation levels for the regional-airline service it provides to UAL, parent of United Airlines, under the United Express brand name.

After months of negotiations, Atlantic Coast told UAL in April that the airline was in default on a contract between the two. UAL, of Chicago, responded by asking Judge Eugene R. Wedoff for a temporary restraining order to prevent Atlantic Coast from walking away from the original deal.

In court Thursday, attorneys for the two sides said they had reached a deal setting the trial schedule and continuing the cure period on the contract. The trial would begin on July 28, though Wedoff may still rule on the dispute at UAL's June omnibus hearing.

In court documents, Atlantic Coast said that while it gave the default notice, it never intended to end its relationship with United. Atlantic Coast said the temporary restraining order should therefore be rendered as unnecessary.

The issue centers only around the rates that Atlantic Coast charges for the 2003 calendar year. UAL's plans for Atlantic Coast in its reorganization are a separate matter.

 

[Busdrvr]

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On 5/29/2003 6:54:15 PM PineyBob wrote:


What in my post had word one to so with Star Alliance? My point was and is that if Lufthansa were all that certain of UA''s survival they would just wait until US joined Star. My post had to do with the behind the scenes thought process that allowed US & Lufthansa to do a deal. There must be a hidden benefit or they aren''t all that certain of UA''s survival, or they are positioning themselves for one of Chip''s UCT Theories.

I''ll try to remember that the axis of the civalized world is in Elk Grove Village! Thanks for pointing that out for me.

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Bob, UAL began codesharing with U BEFORE the U/LH deal. LH also had deals with Lot and a few other carriers before formal admittance in Star. That''s how it''s always been done. Sorry, I thought you were paying attention

 

[savyinvestor]

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On 5/29/2003 252 PM eolesen wrote:

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On 5/28/2003 10:30:54 PM Chip Munn wrote:

Nobody knows if and when a transaction could occur, but I find it interesting UA continues to have disputes with these airports, where three of the four were mentioned in the UCT thread.

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Sheesh. Haven''t been in this forum for months, and the first thing I see is Chip still talking about his fabled UCT...

Never mind the facct that all of the places mentioned except for NY are hubs, and the only place where UAL can get away with threatening to leave as a way of driving their rent down. Expect the Port would say "see ya!" in a heartbeat regarding JFK.

They can''t do that at ATL, SEA, MSP, or anywhere else where they don''t have a fortress presence. Even at ORD, it is questionable how much they can play hardball with the City. The City likes having UAL as a major tenant, but there are lots of other airlines who would love to get their gatespace.

Munn has never had one good word for UAL. Why? If they go under he hopes to trade in his narrowbody for a widebody. Same reasoning behind his never ending UCT! Savy


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