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

[klhoard]

No more borrowing ability + no more physical cash = ?

Geeze, that never stopped my ex-wife. . . . she just started writing checks!!

 

[SWA/FO]

LCC employees make good money. The difference is in the productivity. UAL had something like 163 employees per airplane (at their peak). SWA has something like 88 employees per airplane. SWA is still trying to lower that number with the buyout offer early this month. You will not make much money at SWA by sitting at home like you can at some carriers. SWA does not give money away.

Anyway, this is not very good news for the folks at UAL. Seems like their only plan B was to reapply for the government backed loans.

 

[AirBoard]

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.

I'm sure you're not implying this is any other carriers fault, right????

 

[Gumshoe]

Airboard

No, just the arrogant stick a fork in 'em attitude that I see in here at times makes me wonder if those that are fortunate in this industry know how lucky they are. Also, that luck might run out even for the blue kool aid drinkers---I would gladly partake..I do not wish a furlough, Ch7, or CH11 on any of the pilot group. It really bites. In this industry you can go from flying F-15s to 767s to the street in the blink of an eye. All dumb luck and lucky timing IMO.


Cheers
Gumshoe

 

[AA717driver]

Gumshoe--You said it, bro! Go from MD80 Capt. to 757 FO to the street, too!

Now, UA can hit the public capital markets, borrowing at prime + a million and pay top dollar for leases on the planes.

Hey, I'll bet Carl Icahn will loan them some money! TC

 

[AAPilot]

No, just the arrogant stick a fork in 'em attitude that I see in here at times makes me wonder if those that are fortunate in this industry know how lucky they are. Also, that luck might run out even for the blue kool aid drinkers---I would gladly partake..I do not wish a furlough, Ch7, or CH11 on any of the pilot group. It really bites. In this industry you can go from flying F-15s to 767s to the street in the blink of an eye. All dumb luck and lucky timing IMO.


Cheers
Gumshoe

F-15 to a 767. that always drove me NUTS!! Anyway I think they'll start selling their routes off first, the gate space, etc. I'm glad AA is stashing cash and getting ready for the big selloff.

BTW lately the FX station has been playing the movie "Commando" and in one seen at LAX it a matter of mintutes it showed three airlines in the backround, TWA, Eastern, and Western, all out of business...I think UAL is headed down that road. This industry is a joke!

 

[Mugs]

It drove you nuts why? Because he didn't serve his 8 years in the right seat at Eagle? Good grief.

The amount of debt on AA's balance sheet is, should we say, massive. Do you really think they will be in a position to buy up a whole lot? The fun part is going to be watching AA try and compete with the low cost explosion that would come out of a UAL failure. Afterall, you are still overpaid. Don't believe it? Just wait.

 

[Frac Daddy]

LCC employees make good money. The difference is in the productivity. UAL had something like 163 employees per airplane (at their peak). SWA has something like 88 employees per airplane. SWA is still trying to lower that number with the buyout offer early this month. You will not make much money at SWA by sitting at home like you can at some carriers. SWA does not give money away.

Anyway, this is not very good news for the folks at UAL. Seems like their only plan B was to reapply for the government backed loans.

This is what has alway amazed me. How come it takes some carriers twice as many employees per plane than Southwest? What is the magic formula at SWA? Sure, some things like maintenance might get outsourced, but there is a lot more to it than that. Can anyone tell us what makes SWA(or other so-called LCCs) so efficient?

 

[Gumshoe]

Frac

UAL has a global route structure, which at this point requires several different airframes. People are constantly bidding up or bumping from one type to the next, leaving them in training for 5-6 weeks. This lowers the annual flight time considerably. Might be part of the reason.

Gum