Us Airlines Seen Losing $3 Billion

[cavalier]

I ran out of blank ink and have yet to get to CompUSA for an ink cartridge.

 

[dbcwaar]

This article says UA is planning on adding capacity! Providing that they are still here this Fall/Winter.

http://biz.yahoo.com/rc/040701/airlines_ma...l_united_1.html

 

[latreal]

I ran out of blank ink and have yet to get to CompUSA for an ink cartridge.

 

[Fly]

This article says UA is planning on adding capacity! Providing that they are still here this Fall/Winter.

http://biz.yahoo.com/rc/040701/airlines_ma...l_united_1.html

United Airlines (OTC BB:UALAQ.OB - News) is expected to expand its capacity by 5 to 6 percent this year, Engel said. "When an airline like United adds that kind of capacity, it's equal to creating an airline the size of Frontier," Engel said, referring to Denver-based low-cost carrier Frontier Airlines (NasdaqNM:FRNT - News).

No it doesn't say ANYTHING about Fall/Winter. Even if United were to fail, it wouldn't happen for a long time.

 

[mweiss]

I wonder if anyone figured out for giggles that if U employees worked for absolutely free for one solid year what net affect that would have on the bottom line, with everything being status quo? I really wonder if then U would make a substantial profit.

I didn't until you mentioned this. But I looked at US's financials for the past several years. If nothing but the wages changed in 2001 or 2002 (2003 has weird numbers because of the bankruptcy), US would break even with an across-the-board 50% paycut in wages and benefits. Unfortunately, the annual report didn't break down the difference between wage costs and benefit costs. If it's a 50/50 breakdown, then working for free would have brought the company to breakeven. But you'd still get to keep your pension and health insurance.

 

[USFlyer]

No it doesn't say ANYTHING about Fall/Winter. Even if United were to fail, it wouldn't happen for a long time.

The one big variable you are overlooking is the creditors. So far UA has been able to hold them at bay, but at some point they will be given the opportunity to file their own reorganization plan if management doesn't get moving soon.