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With interim wage cuts that do NOT come close to AA's request for concessions has led to positive cash flow at UAL...
Given this data, are you YES voters still inclined to give up 6 years of 25% pay and benefits?
My point is, there should be NO HURRY to rush in with 6 years of massive concessions. Many factors can change drastically in just months.
http://biz.yahoo.com/rb/030312/airlines_united_4.html
Reuters
UAL on Track to Beat Initial Targets-CFO
Wednesday March 12, 4:26 pm ET
By Kathy Fieweger
CHICAGO (Reuters) - UAL Corp. (NYSE:UAL - News) Chief Financial Officer Jake Brace said on Wednesday that wage concessions from labor unions helped bankrupt United Airlines turn to a positive cash flow for the month of January, beating the company's own forecast.
United's January cash flow was a positive $1 million per day compared with its expectations of a negative cash burn rate of $10 million to $15 million per day, Brace said at a meeting of creditors in Chicago.
Brace also said UAL expected to exceed its first target for EBITDAR, or earnings before interest, taxes, depreciation, amortization and rent. The target was set up by the lenders of its debtor-in-possession (DIP) financing package.
He attributed the performance in part to interim wage reductions from labor groups that the company secured earlier than expected. Most of UAL's labor unions agreed to temporary pay cuts while they work out long-term deals, and a judge imposed the wage cuts on the holdout machinists union.
UAL, the No. 2 U.S. airline, filed the largest bankruptcy in aviation history on Dec. 9. The airline also said on Wednesday it had a higher cash balance after its bankruptcy filing than it expected, in part due to fewer passengers booking on other airlines than originally forecast.
Brace also outlined some details of the airline's contingency plan in the event of a war with Iraq.
He said the Elk Grove Village, Illinois-based carrier would cut back its flight schedule by 10 percent if an Iraq war occurs. United would also seek additional financial assistance from the federal government in addition to covenant relief from its DIP lenders in the event of war, he said.
Brace said a war likely would force the airline to furlough more workers and possibly cut workers' wages again.
LABOR TALKS CONTINUE
United's labor groups have less than a week to finalize permanent deals with the airline before a March 17 deadline when the company has said it will take the next step in bankruptcy court to cancel its union contracts.
UAL attorney James Sprayregen said on Wednesday that negotiations with unions would continue even if the airline files the motion to void labor agreements next week.
A spokesman for the International Association of Machinists would not characterize the progress of labor talks other than to say both districts of the IAM were meeting with the company on Wednesday.
"We've told our members that Monday's not the end (of the process)," IAM spokesman Joe Tiberi said of the impending deadline.
Tiberi also would not discuss what constituted the most important issues in the negotiations, although he did say that the company's proposed low-cost carrier was figuring predominantly in the discussions.
Sprayregen declined to comment on whether United was engaged in any discussions with private equity firm Texas Pacific Group (News - Websites). The president of the machinists union told Reuters last week that the IAM was discussing possible financial participation from a number of third parties, including TPG.
"We're not going to get into those issues at this type of meeting," Sprayregen said, adding that the company was exploring all options.
Given this data, are you YES voters still inclined to give up 6 years of 25% pay and benefits?
My point is, there should be NO HURRY to rush in with 6 years of massive concessions. Many factors can change drastically in just months.
http://biz.yahoo.com/rb/030312/airlines_united_4.html
Reuters
UAL on Track to Beat Initial Targets-CFO
Wednesday March 12, 4:26 pm ET
By Kathy Fieweger
CHICAGO (Reuters) - UAL Corp. (NYSE:UAL - News) Chief Financial Officer Jake Brace said on Wednesday that wage concessions from labor unions helped bankrupt United Airlines turn to a positive cash flow for the month of January, beating the company's own forecast.
United's January cash flow was a positive $1 million per day compared with its expectations of a negative cash burn rate of $10 million to $15 million per day, Brace said at a meeting of creditors in Chicago.
Brace also said UAL expected to exceed its first target for EBITDAR, or earnings before interest, taxes, depreciation, amortization and rent. The target was set up by the lenders of its debtor-in-possession (DIP) financing package.
He attributed the performance in part to interim wage reductions from labor groups that the company secured earlier than expected. Most of UAL's labor unions agreed to temporary pay cuts while they work out long-term deals, and a judge imposed the wage cuts on the holdout machinists union.
UAL, the No. 2 U.S. airline, filed the largest bankruptcy in aviation history on Dec. 9. The airline also said on Wednesday it had a higher cash balance after its bankruptcy filing than it expected, in part due to fewer passengers booking on other airlines than originally forecast.
Brace also outlined some details of the airline's contingency plan in the event of a war with Iraq.
He said the Elk Grove Village, Illinois-based carrier would cut back its flight schedule by 10 percent if an Iraq war occurs. United would also seek additional financial assistance from the federal government in addition to covenant relief from its DIP lenders in the event of war, he said.
Brace said a war likely would force the airline to furlough more workers and possibly cut workers' wages again.
LABOR TALKS CONTINUE
United's labor groups have less than a week to finalize permanent deals with the airline before a March 17 deadline when the company has said it will take the next step in bankruptcy court to cancel its union contracts.
UAL attorney James Sprayregen said on Wednesday that negotiations with unions would continue even if the airline files the motion to void labor agreements next week.
A spokesman for the International Association of Machinists would not characterize the progress of labor talks other than to say both districts of the IAM were meeting with the company on Wednesday.
"We've told our members that Monday's not the end (of the process)," IAM spokesman Joe Tiberi said of the impending deadline.
Tiberi also would not discuss what constituted the most important issues in the negotiations, although he did say that the company's proposed low-cost carrier was figuring predominantly in the discussions.
Sprayregen declined to comment on whether United was engaged in any discussions with private equity firm Texas Pacific Group (News - Websites). The president of the machinists union told Reuters last week that the IAM was discussing possible financial participation from a number of third parties, including TPG.
"We're not going to get into those issues at this type of meeting," Sprayregen said, adding that the company was exploring all options.
58 PM bagsmasher wrote: 
21 PM RV4 wrote: 
