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Interesting (not good) UAL news

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Registered User
Nov 25, 2001
CNN just reported that the ATSB told United today that their loan guarantee will be denied..

Why approve U (tentatively) and turn down UAL....

How about the fact that USAirways has come a long way in a short period in having their stuff together and that United cannot find the toliet to start writing their plan

The answer is in the requirements of the ATSB loan. The company must provide meaningful employee concessions and show a viable business plan. United employees have not made any attempt to give meaningful concessions. The deal their pilots had was not anywhere near enough of a concession package considering their industry leading pay rates, nor was it of the required duration for approval of the loan. ( not picking on the pilots, just stating a fact ). They were the only ones who had an agreement so even as weak as it was they were ahead of the other employee groups.

USAirways on the other hand has gone to great lengths to provide a concession package from it's employees and vendors. The pilots have approved a concession package worth over $400 million per year for six years and the flight attendants another one worth roughly $80 million per year. They have also started a series of initiatives to bolster revenue and trim expenses. USAirways still needs a good business plan but the ATSB has been swayed by the efforts to date and will most likely provide the loan guarantees once USAirways emerges from Chapter 11.
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