Mr. Boland, the former chairman of the US Airways Shuttle and a longtime executive with Citigroup, advised America West in its successful loan guarantee bid last summer. Mr. Boland noted that even with provisional approval from the air transportation board, US Airways still had to resort to Chapter 11 bankruptcy. He was skeptical of United's plan, outlined on Sunday, that calls for the airline to return to an operating profit in 2004 and to begin repaying the loan guarantees, if granted, in 2005.
It sounds like they're putting a plan together that's saying everything is going to be good in two years, Mr. Boland said. What happens if everything isn't good in two years, and everything comes home to roost, and they'll be in the soup again? They haven't fixed anything, they've just deferred the problem.
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I am sure this is no conflict of interest to have an ex U employee commenting about the viability of UAL's business plan. As to his everything is going to be good in two years... Isn't that what a business plan is. Somebodys' best guess as to what the future will hold. Where was the business plan that predicted the current market? If they could not accurately predict this, then who is to say that UAL is wrong in saying our market will be better in two years with the changes that are taking place. Some former U employee? Give me a break, if this guy was any good he would running an airline as opposed to shooting his mouth off without any true idea as to what is going on at UAL. The press release on Sunday was just that, a press release. The real numbers are to come with the finalization of the pay cuts and revenue gains from the changes that are taking place.