US business parter UA plans to return to basics, Business blueprint presented to creditors

[TheLarkAscending]

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On 6/18/2003 4:46:19 PM avek00 wrote:

UAL, OTOH, can''t seem to forecast a profit unless it fudges the numbers to the point of almost being illegal...

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In which class, at your college, did you see this data? When will you actually receive your undergraduate degree? Have you found it diffcult, with the current economy, to locate a summer job this year?

 

[Bear96]

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On 6/15/2003 1:02:50 PM PineyBob wrote:


I''ll type slower so you can follow along....

It is my God given right to choose whom I associate with business and personal.
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Maybe it is I who should type more slowly so YOU can follow along.

It is your right to choose with whom you associate... that is pretty much what I said. If you choose not to fly United for whatever reason, don''t fly United.

No sweat off my back.

 

[novaqt]

Capt. Munn:

I realize you are an internet expert at US Airways, but how in God''s name are you such an expert on United Airlines?

You seem to have overlooked the fact that just like the Bush Administration operates in secrecy, so is United Airlines. Any good company in an increasing competitive enironment is not going to reveal their plans until all plans are finalized. Reuters, AP, UP, Crains Business, Chicago Tribune, Denver Post, Rocky Mountain news, and the Washington Post and NYT only gets the news when United is ready to put forth their plans. All your cutting, pasting and posting of other peoples'' work, does not make you a United Airlines analyst or expert.

Please stick with your real forte, US Airways, which you alluded to in a previous post on this board, that you have inside information through your attendance at management meetings with high level VP''s and/or David Siegel. It appears they use you, since you were a former United Airlines pilot, to try to run down the competition.

United and US Airways are working together now or haven''t you noticed.

 

[USA320Pilot]

Let’s be honest here. The only reason UA employees do not like what I post is they are petrified my information will come true.

I enjoy researching, analyzing, and studying US and the only reason I discuss UA is the two airlines have continuously talked during the past eight years, maybe longer, on some form of a corporate transaction. No more, no less. If US and NW had the same type of relationship as US and UA, then you would not hear me talk about UA. However, the business partners continue to work closely together and I know for fact US is interested in acquiring UA assets (in my opinion some UA employees will be included in the deal). Furthermore, UA ALPA seems to agree with this point or they would have not changed their seniority integration language from a "pre-nuptial" clause to ALPA International Merger & Fragmentation language.

Choose to believe it or not, it really doesn’t matter to me. However, the US chairman of the board has said he wants to acquire UA assets in three interviews and "inside" reports within US plus those parties interested in US, confirm it.

Finally, when people try to discredit my information and a public report is made available to support my claim, I make the information known as supporting documentation.

As I have said before, I do not know if a transaction will occur, however, where there is smoke there is usually fire and we will know more later.

Best regards,

Chip

 

[USA320Pilot]

Just one more thing…

According to Reuters, DL CEO Leo Mullin said yesterday consolidation was one way struggling "hub and spoke" carriers like his could meet their ambitious cost-cutting targets and compete with successful low-fare, point-to-point competitors, like Southwest Airlines Inc. and JetBlue Airways Corp. "The situation that almost certainly would result in much needed hub consolidation and, thus the removal of at least some of the excess capacity which continues to cripple the industry -- is successful merger or acquisition activity,"

I agree with Mullin’s comments. However, in the case of US & UA, two likely consolidation candidates, how can UA be the surviving business entity if the airline has been unable to obtain exit financing, a loan guarantee, or an equity plan sponsor? Furthermore, if UA does win approval of its $1.8 billion federal loan guarantee request, $1.5 billion of that money has to pay off the DIP financing.

However, in the case of US the airline had all three of these forms of financing in place before its filing for Chapter 11. In addition, the US chairman of the board has $25 billion in liquidity, not financing, but his own assets and has said he wants to acquire UA assets in three separate interviews.

Best regards,

Chip

 

[Fly]

Chip, Chip, Chip

You left UAL to go to USAir thinking it was a great career move but you were wrong. Now you want us all to believe that your intentions are purely about US Air and not about UAL. If typing it over and over makes you believe your nonsense............then type away. US Air wants to acquire UAL, ok, and I want to acquire Trump Towers..........but it isn''t going to happen. I don''t have the money and neither does US Air. If United were to liquidate, I can assure you that the LAST airline who could afford to pick up pieces would be US Air. Please, when UAL emerges, leaner and better, go get counseling! No one should carry this much anxiety around with them, it''s just not healthy.

 

[USA320Pilot]

Fly:

Who has more liquidity, US or UA?

Whose chairman of the board said he wants to buy the other airlines assets, US or UA?

Best regards,

Chip

 

[Fly]

lol.....you never stop Chip

Right now.......UAL has much better chance of liquidation (Mr Obvious says: "Doh, we''re in Chapter 11).
That''s not what I''m saying though is it? If Donald Trump files bankruptcy doesn''t mean that I can just run down the street and buy up his house (even though I say I''d like to) because I DON''T HAVE ENOUGH MONEY ANYWAY! Get it? US Air can talk about pieces of UAL forever but they can''t buy anything anyway....it''s a pipe dream my friend. Must stink that you can''t fly the big ol 747 even if we liquidate, doesn''t it?
I''m sorry that things are so tough for all of us in this industry. My neighbor is a pilot at U and me here at UAL......we used to joke about who was going to have more seniority, now we joke about who is going to get the bigger unemployment check...lol. Nothing you can do about it, so you may as well do what he and I do....................LIGHT UP THE BARBEQUE, HAVE A PARTY AND RIDE THE WAVE. It''s hell on the liver but much easier on the mind.

 

[LavMan]

The last time I checked, Chip is a pilot for US Airways, not an airline analyst for any wall street firm or bank, not all US Airways employees think like him, so please don''t think US Airways employees want to see UAL fail, we don''t.

Here is something for you Chip:

UAL Corp. Hopes to Exit Chapter 11 by 4Q 2003 or 1Q 2004
Friday June 20, 11:45 am ET
By Michael McHugh, Of DOW JONES NEWSWIRES

CHICAGO (Dow Jones)--UAL Corp. , parent of United Airlines, said Friday that it hopes to emerge from Chapter 11 bankruptcy protection by either the fourth quarter of 2003 or the first quarter of 2004.
In introductory remarks, James Sprayregen, a lawyer representing UAL, told Judge Eugene R. Wedoff of the U.S. Bankruptcy Court for the Northern District Of Illinois that the airline is seeing a recovery in revenue and is leading the industry on a number of service-related measures.
But he said there are "significant challenges" ahead.
UAL has been working with advisors on a business plan. The company showed the plan to its board and to its creditors earlier this month. The plan will form the basis of UAL''s reorganization plan, which must be approved by bankruptcy court.
UAL, based in Chicago, filed for bankruptcy protection in December 2002.

 

[Bear96]

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UAL Corp. Hopes to Exit Chapter 11 by 4Q 2003 or 1Q 2004
Friday June 20, 11:45 am ET
By Michael McHugh, Of DOW JONES NEWSWIRES

CHICAGO (Dow Jones)--UAL Corp. , parent of United Airlines, said Friday that it hopes to emerge from Chapter 11 bankruptcy protection by either the fourth quarter of 2003 or the first quarter of 2004.
In introductory remarks, James Sprayregen, a lawyer representing UAL, told Judge Eugene R. Wedoff of the U.S. Bankruptcy Court for the Northern District Of Illinois that the airline is seeing a recovery in revenue and is leading the industry on a number of service-related measures.
But he said there are "significant challenges" ahead.
UAL has been working with advisors on a business plan. The company showed the plan to its board and to its creditors earlier this month. The plan will form the basis of UAL's reorganization plan, which must be approved by bankruptcy court.
UAL, based in Chicago, filed for bankruptcy protection in December 2002.



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Of course if Chip had posted that article, he would have "forgotten" to include this paragraph:

"In introductory remarks, James Sprayregen, a lawyer representing UAL, told Judge Eugene R. Wedoff of the U.S. Bankruptcy Court for the Northern District Of Illinois that the airline is seeing a recovery in revenue and is leading the industry on a number of service-related measures."

...and put this one in big, bold type:

"But he said there are 'significant challenges' ahead. "

Chip, at least I can say this. You are ON MESSAGE.

 

[diogenes]

As a U employee, I wish Godspeed to UA, and hope y''all come out of BK BIG!

As far as a UTC, here''s my crystal ball.

1. It''s a fact U and UA have been holding hands for a long time. Generally, when I hold hands that long, something comes of it, and I expect the same regarding U and UA.

2. The major sticking point across all UA union groups reference a UA/U merger was seniority, and who can blame them? As much as I loved PI, we absolutely boned the Empire folks. Can''t blame UA for wanting to do the same.

Here''s how I think it will work out.

Many current mainline U folks will be placed into the separate RJ affiliates and divisions. Cut out from the herd, so to speak.

Much long distance flying will be given over to Star and UA. It''s already begun, and is just going to get bigger. More U mainline headcount reductions.

Sooner than you think, there will be very few U mainliners left. This small group will be palatable to UA labor.

For those U folks relegated to the RJ hinterlands, we will be affiliated with UA, much as ACA is. Shoot, we may be the next ACA.

If you''re Rj''d, don''t bet the farm you''ll have any recall rights to UA.

 

[MarkMyWords]

You people need to layoff Chip and stick to the topic. Why not take what LavMan did as an example. Fight him article for article. Personally I enjoy Chips view points, even if I don''t always agree with them. He always seems to get you to think outside of the box and view things differently. There were many occasions when US was in bankruptcy and hanging on by a thread that Chip would post something that would make me view things in a different perspective. Then when my co-workers were running around like henny-penny I could offer a different take on things.

Bottom line, if you don''t agree with his interpretation of things, so be it. Voice your view and leave the bashing stick outside. Just because you may not agree with his ideas doesn''t mean you have to beat the poor man into the ground.

 

[RowUnderDCA]

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On 6/20/2003 11:52:50 AM Bear96 wrote:​

 

[Bear96]

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On 6/20/2003 1:32:33 PM RowUnderDCA wrote:

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On 6/20/2003 11:52:50 AM Bear96 wrote:​

 

[LavMan]

Another one for you Chip:


Dow Jones Business News
UAL CFO Sees Uptick In Rev; Some Court Issues Postponed
Friday June 20, 2:55 pm ET
By Michael McHugh, Of DOW JONES NEWSWIRES

CHICAGO (Dow Jones)--UAL Corp.'s chief financial officer said Friday bookings have been good for the past month or so, and believes emerging from bankruptcy court protection either later this year or early next year is achievable.
Jake Brace told reporters after a short court hearing that both domestic and international bookings are improving, particularly to the Pacific region.
"There's definitely an uptick in revenue," he said.
UAL, parent of United Airlines, filed for federal bankruptcy-court protection under Chapter 11 in December. Airlines in general have seen bookings weaken in 2003 due to uncertainties over the war in Iraq and the outbreak of severe acute reparatory syndrome, or SARS. But that appears to be reversing.
Earlier in the day, UAL's lead attorney, James Spreyregen, told Judge Eugene R. Wedoff of the U.S. Bankruptcy Court for the Northern District of Illinois, that the company expects to emerge from under the court's supervision in either the fourth quarter of 2003 or first quarter of 2004. He said a draft of the company's business plan has been circulated to the company's board of directors and creditors. UAL's reorganization plan, which needs court approval, will be based on this business plan.
Brace said emerging from court protection depends on other factors, such as having exit financing in place and the resolution of other court matters, not just on the strength of bookings at the airline.
Meanwhile, a number of issues at Friday's omnibus hearing were put off until the July 18 hearing, including a motion by UAL to terminate its code sharing and marketing agreements with Great Lakes Aviation Ltd. . The two sides continue to negotiate.
The court granted a motion authorizing a number of waivers and amendments under its debtor-in-possession financing facilities, including the payment of certain fees to the DIP lenders and an amendment to the Bank One Corp. (NYSE:ONE - News) DIP facility. The ruling doesn't change the amounts available under the DIP loans. In December, the court approved the company's $1.2 billion DIP agreement with a number of lenders, including J.P. Morgan , Citigroup Inc. (NYSE:C - News) , Bank One and CIT Group .
Judge Wedoff also sided with the City of Chicago and dismissed a motion filed by UAL that sought to prevent the city from throwing the airline out of O'Hare International Airport for failure to pay interest on certain revenue bonds. The city has said it has no intention of doing that, and the judge said both sides are currently negotiating.
"There's no controversy requiring adjudication here," Wedoff said. "The city ought not to have to litigate a matter than can be resolved through negotiation."
The court was told that UAL and Atlantic Coast Airlines Inc. (NasdaqNM:ACAI - News) continue negotiations over 2003 rates and claims by Atlantic Coast that it should receive higher compensation for the regional feeder services it provides UAL. Wedoff said a July 28 trial on the matter should continue as scheduled.
(Erik Ahlberg in Chicago contributed to this report)
-By Michael McHugh, Dow Jones Newswires; 312-750-4142; michael.mchugh@dowjones.com