767jetz, Cosmo, & BoeingBoy:
USA320 Pilot said: “By the way, there are new financial community reports that United may have to go the same route as US Airways to obtain exit financing. I am hearing that United may have to shed maybe as many as 100 of its mainline jets in exchange for financing so the airline can be "rightsized" and the aircraft sent offshore where the lease rates are higher.â€
Cosmo said: “Could you please post or provide a link to those "financial community" reports? Or at least name the people and/or organizations issuing them? Otherwise, this appears to be yet another case of offering your unsubstantiated opinion as fact. â€
767jetz said: So where are these reports from the financial community that prove your assertions about UA’s ability to emerge? Who ever your sources are, they are wrong, as usual. Or are you going to lie again and post some Op-Ed article stating the opinion of one uninformed person and claim it represents the views of the “financial community.â€
BoeingBoy said: “It could possibly be that if you didn't apparently take such pleasure from putting a little dig at UA in your posts, those pesky UA folks wouldn't feel that it was necessary to defend their airline on this forum so much.â€
767jetz said: How many jets did you say we were going to lose???? Care to admit you were wrong???? Any chance you might admit to exagerating the truth in order to mislead people????
USA320Pilot comments: Yesterday in an article titled “UAL fails to reach new terms with lessors, will return 4 planesâ€, the Wall Street Journal (WSJ) said United Airlines must return four Boeing 767-300 aircraft to leasing companies because the airline and the lessors couldn’t agree to new rental terms.
Yesterday, a United spokeswoman confirmed that four of the eight planes will be taken out of service soon and returned to their owners. The spokeswoman said UAL remains in negotiations with the lessors that own four other airplanes, which remain at risk of being returned.
UAL has interim lease agreements with multiple investors who own about 130 planes. Last year, the carrier tried to reach a global settlement with the group on new terms. The airline’s creditors committee objected. Since then the dispute has become mired in the courts, aircraft rental-values have risen and some of the investors being paid agreed-upon, court approved lower rates have grown impatient.
Conceivably,
UAL could face other repossessions – or be forced to pay higher market rates – for a larger number of leased planes in its fleet, at a time when it is battling to lower its costs.
Reuters reported today that “Analysts have warned that United must brace for possible loss of aircraft that fly profitable international routes.â€
See Story
The AP noted today, “Heading the to-do list is resolving a costly standoff over airplane leases. United's initial goal of slicing $900 million a year off its plane rental costs was dealt a major blow last month when it lost a risky court bid to have the leasing companies declared an illegal cartel, giving them the upper hand in negotiations.â€
See Story
Finally, in a column titled “United's skies still cloudy - Despite union pact, airline's expenses too high, experts say†that newspaper echoed my comments made earlier this week.
United Airlines made huge headway Tuesday in obtaining the $700 million in annual labor savings it needs to emerge from bankruptcy this fall. The nation's second-largest carrier also defused the immediate threat of worker strikes, which some experts say would doom the airline. Despite its progress, though, observers say United still faces turbulence ahead. "If this had gone the wrong way and led to strikes, I think it would've meant the end for United," said Anthony Sabino, a law professor at St. John's University in New York. "But does this mean United is out of the woods? Heck no. They still have a long way to go. The patient is still very, very sick and remains on life support."
A bankruptcy court judge initially barred lessors from repossessing their planes if United didn't pay the full price for its leased planes, but an appeals court recently overturned that decision. United said Tuesday it will return four of its Boeing 767s because it couldn't reach an agreement on new contract terms. The airline also warned it could lose four more if ongoing negotiations fail.
Because of the appeals court ruling, the carrier could have to pay more than it expected for other leases or give up more of its planes.
See Story
Cosmo, I believe the WSJ, Reuters, and Rocky Mountain Times reports, published after I made my comments regarding further United aircraft repossessions, meets your request for “people and/or organizations issuing them.â€
I do not "take such pleasure from putting a little dig at UA" or anybody else for tata matter. I simply report information with people who have knowldege of airline discussions. What's interesting is that if my comments do not have merit, then why would certain United employees visit the US Airways message board on a daily basis, seek obscure comments about their company, and then dispute them with so much emotion and vigor? Why would the United employees go out of their way to dispute my claims if they're not true and why so much emotion, especially when the information is proven to be right over-and-over again?
Finally, I was wrong about 100 United aircraft that have a risk of repossession -- because according to the WSJ it's 130 aircraft with interim agreements that need to be renegotiated...since the court ruled against the company and in favor of the creditors committee.
Regards,
USA320Pilot
