U.S. rejects latest (3rd) United bid for loan backing

[rvsm410]

Reuters: http://biz.yahoo.com/rf/040628/airlines_united_loan_1.html

Monday June 28, 9:27 am ET



WASHINGTON, June 28 (Reuters) - The U.S. Air Transportation Stabilization Board on Monday rejected United Airlines' bid for a $1.1 billion federal loan guarantee, and said it would not accept any further submissions regarding the airline's application.

"The board concluded that granting the loan guarantee is not a necessary part of maintaining a safe, efficient, and viable commercial aviation system in the United States," ATSB executive director Michael Kestenbaum said in a letter to United, the No. 2 U.S. airline.

 

[satpak77]

if UAL cannot go to private investors/corporations for a "helping hand", maybe by trading "promised business in the future" for "help today" such as Airbus airplanes, etc, etc, I really dont see any other recourse but to cease operations if they run out of physical cash and can no longer borrow money.

No more borrowing ability + no more physical cash = ?

God bless and good luck to the employees

 

[SMMustang]

Interesting, that they said the guarantee wasn't vital to the health of the aviation system v. the company. It sounds like IMO, they've written UAL off.

 

[Gumshoe]

Race to the bottom

US Air is offering givebacks and United will not be going away. For all that take comfort in this news: Welcome to the race to the bottom as wage concessions continue for this industry.

Cheers
Gumshoe

 

[On Your Six]

Wonder if this means a sell-off of assets might be around the corner... I bet creditors are getting a bit concerned.... Let's hope for lower fuel prices sometime soon. Yikes!

 

[RJPilott]

3 strikes for UAL. ATSB rejects loan again.

http://biz.yahoo.com/rf/040628/airlines_united_loan_2.html

Reuters
UPDATE - U.S. rejects latest United bid for loan backing
Monday June 28, 9:44 am ET


(Adds details, background)

WASHINGTON, June 28 (Reuters) - The U.S. Air Transportation Stabilization Board on Monday rejected United Airlines' bid for a $1.1 billion federal loan guarantee, and said it would not accept any further submissions regarding the bankrupt airline's application.


(OTC BB:UALAQ.OB - News), the No. 2 U.S. airline, last week cut its request from $1.6 billion after the board rejected its application. The company has sought the loan guarantee to back private financing needed to exit bankruptcy later this year.

"The board concluded that granting the loan guarantee is not a necessary part of maintaining a safe, efficient, and viable commercial aviation system in the United States," ATSB Executive Director Michael Kestenbaum said in a letter to United, echoing comments made last week to the airline.

He told United that the new information submitted "does not alter in a material manner the rationales underlying" ATSB's rejection last week.

"The board will not accept any further submissions from United with respect to the application," Kestenbaum said.

United's first loan guarantee application, for $1.8 billion, was denied in 2002, triggering the airline to seek bankruptcy protection, the largest ever in U.S. airline history.

A representative for Elk Grove, Illinois-based United was not immediately available for comment.

 

[320AV8R]

It will be interesting to see if the Capital markets will risk lending UAL any money.

While thay do have a lot as marketable assets....watch the pension $$$$$.

 

[C601]

I hate to say it ..

United Airlines = Titantic

 

[RJPilott]

UAL rejected a 3rd time by ATSB

http://biz.yahoo.com/rf/040628/airlines_united_loan_2.html

Reuters
UPDATE - U.S. rejects latest United bid for loan backing
Monday June 28, 9:44 am ET


(Adds details, background)

WASHINGTON, June 28 (Reuters) - The U.S. Air Transportation Stabilization Board on Monday rejected United Airlines' bid for a $1.1 billion federal loan guarantee, and said it would not accept any further submissions regarding the bankrupt airline's application.


(OTC BB:UALAQ.OB - News), the No. 2 U.S. airline, last week cut its request from $1.6 billion after the board rejected its application. The company has sought the loan guarantee to back private financing needed to exit bankruptcy later this year.

"The board concluded that granting the loan guarantee is not a necessary part of maintaining a safe, efficient, and viable commercial aviation system in the United States," ATSB Executive Director Michael Kestenbaum said in a letter to United, echoing comments made last week to the airline.

He told United that the new information submitted "does not alter in a material manner the rationales underlying" ATSB's rejection last week.

"The board will not accept any further submissions from United with respect to the application," Kestenbaum said.

United's first loan guarantee application, for $1.8 billion, was denied in 2002, triggering the airline to seek bankruptcy protection, the largest ever in U.S. airline history.

A representative for Elk Grove, Illinois-based United was not immediately available for comment.

 

[furloughfodder]

Welcome to the race to the bottom as wage concessions continue for this industry.

So true....just picking up where the LCC's left off....