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On 6/1/2003 9:09:08 AM Ukridge wrote:
"Rod Eddington (chief of BA, and yes, from Australia) was a Rhodes and read physics while at Oxford. He deigns not to play the blue collar sweaty and cavort with the workers. His propositions are not leaked from various sources. In turn the workers do not insinuate themselves into the executive suite. The same goes with the head of Lufthansa and even more so with Air France whose leader himself is an X (very pedigreed French background)."
Which is one reason why US businesses have typically done better over the long term. If there was only one or two MAJOR airlines in the US, you can bet they'd be profitable, and the strength derived from home markets would prob have them destrying most overseas competitors. Whe have no "elite" classes. You can be born in a barn in the US and still rise to the top.
"Mr. Munn write so extensively concerning United and why in the name of all that is good and right in the world would Wall Street analysts relay information to him that could be better used to serve their clients?"
Chip reads a lot, and amazingly here in the US, executives WILL sometimes talk to employees. I've had face to face talks with Glenn Tilton, and we've exchanged e-mails. however, I also realize Glenn has an agenda, so I must ALWAYS consider that when listening to answers. Chip has an agenda (as does Dave and Dave), and he often IMHO looks at things that happen in such a way as to support his dreams.
"I would think that the other airlines smelled blood in the water and have done everything possible to make life miserable for United."
And it cost Carty his job, and may lead to even bigger troubles for Andersen. It's ironic that Carty lobbied lobbied against UAL's plan because his wouldn't work ("we know it won't work because it's the same as ours"), and that Anderson (NWA) made the case against UAL's pension obligations, while his were LARGER on a revenue adjusted level ("UAL can't pay pension expenses because our pension plan owes more and without an elaberate Ponzi Pinicle stock scheme, we can't possibly fund ours").
"Dissension in the executive staff at UAL? Yes, I hope so. Even your vaunted Bush administration has a rift as large as Europe between state and defence."
yes, dissension is GOOD!! BTW, we never shot, disembowled or beheaded political advisaries over here, so they are much more likely to speak their minds.
"The last question I have is that the October dip requirements are quoted as an almost drop-dead date. In other words, if United does not meet them then, ergo, liquidation is automatic. Would not these dip lenders reconsider the situation on a case basis?"
Just ask Chip. U missed it's last DIP requirements. The DIP requirements serve two purposes. They give us hurdles to use when beating lenders and labor over the head for concessions, and also set a level below which the lenders absolutely can't pull the plug (gives confidence to everybody else who extends credit on a day to day basis, like credit card companies). Is missing Dip a bad thing to do? YES, you lose what ever small control over you destiny. is it always the end of the world? NO. As to the threat of liquidation, consider this. What would someone pay for the PAC operation? How about LHR slots? IAD hub? ORD hub? SFO hub? LAX hub? Den hub? owned assets? How much more are those assest worth when taken together (ie NRT hub worth more when taken with the SFO hub, Lax hub, and even the tech laden DEN and IAD hubs). If you had money, why would you want pieces when you could get the entire thing for a whole lot less, with cheap labor, cheap leases, and defaulted debt? Missing DIP does NOT give the Dip lenders the right to "sell off" the airline. It gives them the right ot demand their money back. If somebody else steps up, it's now their game. There ARE other players willing to play. Our management had the ability to get a higher quality dip, which allowed them to have a bigger say in the direction of the company over a deal that put ONE egomaniac fund manager in charge.
"Ah, the real last question. If the government guarantees a loan, is this not a significant boost for United? "
Yes, a loan guarentee essentially equals a loan.
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