United bankruptcy could mar US Airways recovery

[Imamec.itsmyfault]

These talking heads, are just that, talking! They were very careful to omit some basic, but impertinent facts. The idea that UAL going into BK will be a death sentence for U due to lower fares, overlooks the reason the two wanted to merge in the first place. That is, they have the fewest overlapping flights. Therefore UAL cutting fares will effect U the LEAST, not the most. Also, they fail to mention one of the main reasons U has been able to cut so many flights of late, and therefore employees... That is, they intend to let UAL fly the longer routes, while we feed them. This will work the same in reverse, UAL can now start cutting routes, and employees, because they will have us to feed them from these smaller markets, with all of our new RJ's. It's no coincidence that U started a full out assult, right after receiving approval for the code sharing pact. Now with a BK filing, UAL will be able to take their full measure. All with the blessing of our beloved government.
I have said it before, and I'll say it again... Dave is not going to give up, and neither is UAL. They will take all that they can, while the getting is good, and then they will put it together in a way that gives them the best hope for sucess. This will NOT equal employee friendly!

 

[Imamec.itsmyfault]

These talking heads, are just that, talking! They were very careful to omit some basic, but impertinent facts. The idea that UAL going into BK will be a death sentence for U due to lower fares, overlooks the reason the two wanted to merge in the first place. That is, they have the fewest overlapping flights. Therefore UAL cutting fares will effect U the LEAST, not the most. Also, they fail to mention one of the main reasons U has been able to cut so many flights of late, and therefore employees... That is, they intend to let UAL fly the longer routes, while we feed them. This will work the same in reverse, UAL can now start cutting routes, and employees, because they will have us to feed them from these smaller markets, with all of our new RJ's. It's no coincidence that U started a full out assult, right after receiving approval for the code sharing pact. Now with a BK filing, UAL will be able to take their full measure. All with the blessing of our beloved government.
I have said it before, and I'll say it again... Dave is not going to give up, and neither is UAL. They will take all that they can, while the getting is good, and then they will put it together in a way that gives them the best hope for sucess. This will NOT equal employee friendly!

 

[FrugalFlyer]

[blockquote]
----------------
On 12/5/2002 311 PM chipmunn wrote:
Both companies applied for the ATSB loan and in the case of UA the board said the application had "fundamental deficiencies in the business plan" while on the other hand the board complicated US and the strength of the Arlington-based carriers application (albeit there is now a revenue shortfall).
----------------
[/blockquote]

I think the 'fundamental deficiencies' means that UAL put in a sloppy application. Sure they had an temporary CEO, but once they did hire Tilton, it should have been his job to say to the ATSB - UA needs more time to put in our application instead of just handing one in and hoping for the best outcome.

BTW - does a UA chpt. 11 filing affect US's ATSB loan status in any way?
I think US was counting the chpt. 11 and ATSB to restructure while UA was counting of receiving the ATSB loan and code-sharing with US. I think US was counting on the ATSB and chpt. 11 to restructure and code-share with UAL (and * alliance) to survive in the future, whereas UA was counting on the ATSB and US code-share money. Now, if the other * alliance partners (or some other financing) do not come through for UA, then UA heads for chpt. 11. Does a restructured UA (courtesy of chpt. 11) really need US? I hope US management has a PLAN B.

 

[FrugalFlyer]

[blockquote]
----------------
On 12/5/2002 311 PM chipmunn wrote:
Both companies applied for the ATSB loan and in the case of UA the board said the application had "fundamental deficiencies in the business plan" while on the other hand the board complicated US and the strength of the Arlington-based carriers application (albeit there is now a revenue shortfall).
----------------
[/blockquote]

I think the 'fundamental deficiencies' means that UAL put in a sloppy application. Sure they had an temporary CEO, but once they did hire Tilton, it should have been his job to say to the ATSB - UA needs more time to put in our application instead of just handing one in and hoping for the best outcome.

BTW - does a UA chpt. 11 filing affect US's ATSB loan status in any way?
I think US was counting the chpt. 11 and ATSB to restructure while UA was counting of receiving the ATSB loan and code-sharing with US. I think US was counting on the ATSB and chpt. 11 to restructure and code-share with UAL (and * alliance) to survive in the future, whereas UA was counting on the ATSB and US code-share money. Now, if the other * alliance partners (or some other financing) do not come through for UA, then UA heads for chpt. 11. Does a restructured UA (courtesy of chpt. 11) really need US? I hope US management has a PLAN B.

 

[ITRADE]

[P]
[BLOCKQUOTE][BR]----------------[BR]On 12/5/2002 311 PM chipmunn wrote:
[P]Just one more point...it has been widely speculated in the news media, on Wall Street, and in industry observer offices that both UA and US would end up in bankruptcy.[BR][BR]----------------[/P][/BLOCKQUOTE]
[P]I think foregone conclusion is the more apt term - rather than speculation. Frankly, UAL probably would've been before the judge earlier had it not been able to renegotiate its payment with KFW.[/P]

 

[ITRADE]

[P]
[BLOCKQUOTE][BR]----------------[BR]On 12/5/2002 311 PM chipmunn wrote:
[P]Just one more point...it has been widely speculated in the news media, on Wall Street, and in industry observer offices that both UA and US would end up in bankruptcy.[BR][BR]----------------[/P][/BLOCKQUOTE]
[P]I think foregone conclusion is the more apt term - rather than speculation. Frankly, UAL probably would've been before the judge earlier had it not been able to renegotiate its payment with KFW.[/P]

 

[1ab]

The main thing is that U gets into the star alliance ..I believe code-sharing with United was step one to achieving that gold...
But with code share with United ..U brings the caribbean and the east coast...United brings U Asia South America and the Pacific and oh yeh the rest of Canada.

In the eyes of either passengers its awesome opportunities..

 

[1ab]

The main thing is that U gets into the star alliance ..I believe code-sharing with United was step one to achieving that gold...
But with code share with United ..U brings the caribbean and the east coast...United brings U Asia South America and the Pacific and oh yeh the rest of Canada.

In the eyes of either passengers its awesome opportunities..