UA pilots, get those resumes updated!!

[Little Bubba]

FROM CAL's BOARD....

Some comments from Gordon on Friday in IAH crew room:

-We will return to profitablility by March currently still at 3 mil/day loss.

-ALL airplane deliveries will continue as planned through March...then after March it was going to be a question of how we're doing for future deliveries.

-Doesn't like BA/AA even a little bit. I know...needless to say right?

-Doesn't see United coming out of their current problems, bankruptcy assured according to CAL's financial guru's. Was pretty emphatic that UAL would not be able to stay out of some kind of bankruptcy protection no matter what.

-US Air same thing.

 

[TurboS7]

I see UAL going down and taking USair with it, at least to Chapter 11, after that who knows.

 

[ifly4food]

If Mr Bethune and his "gurus" are so good, than why is Continental still furloughing pilots and losing $3 mil per day? Is even United hemmoraging cash that badly?
Seems to me that pre 9-1-1 UAL was still a bigger and more profitable operation than CAL.
And Mr Bethune, of all people, should know that Ch 11 doesn't mean much. How many had Continental had before he took over?

 

[TurboS7]

Load factors are a disaster, this whole thing is really nasty. United is loosing millions per day. It is so bad that a strike by the mechanics might not be a bad thing. Remember that UAL is basically a east west airline, the majority of their carriage is business travel. Their are no rainbow's on the horizon.....Remember Panam and Eastern, one went all over the world, the other carried more passengers per year than any airline in the world. Once things are turned to caous the ability of these monsters to operate goes down, which results in awesome losses.

 

[chperplt]

Everyone keeps saying that US Air is going to file BK or drop off the planet.

Wolf says that revenue needs to pick up quickly or else.. Wolf also said in his December update that the company will have between 900 million and 1 billion in cash sitting in the bank at years end.

I'm not a business major, but how can a company be in such dire straights if they have that kind of cash in the bank??

Can anyone explain this to me?

 

[skydiverdriver]

Stephen Wolf has a long history of getting airlines ready to be sold. Perhaps that is what is up his sleeve.

 

[publisher]

problems

Youy have to remember that you have fixed and variable costs.

When you reduce flying 20%, you may be able to reduce some of your variable costs like fuel and employees, but a good deal of your captial costs remain. You still have buildings, aircraft, and leases for which you still have a payment.

You may still be paying for that parked aircraft etc and now the remaining flying has to cover those costs. Over time, you could remove some of these costs by selling a building, a computer, an aircraft, but it does not happen quickly, especially in times like this.

While cash remaining seems like a huge number to us, the fact is that there is tremendous cash flows going on at one of the major carriers from today and future ticket sales etc.

 

[scottm]

If Mr Bethune and his "gurus" are so good, than why is Continental still furloughing pilots and losing $3 mil per day? Is even United hemmoraging cash that badly?

Actually CAL is not furloughing anymore. The total numbers ended up being 800 give or take a few displaced from their original position. This is not the total number of furloughs. About 300+ have flowed back to CALEX. Management from Calex announced plans to recall in the third quarter, I expect sooner but they are playing the conservative side. CAL has said no recalls in 2002 but again, better to say later than earlier, then they look like heros. We are apparently still losing about 3 million a day but are expecting a profit by March. There will be a substantial loss in the next quarter as well. I am not sure what United is losing a day but I know it is more than 3 million, much bigger operation, larger route structure, more planes, and employees.
I for one think United will be around to stay wih the govt bailout and expectations of the market to swing in 2002. I hope they do because they are a great airline and employ great people. Lets keep United in buisness and the competition for jobs down.
scottm

 

[snowback]

An airline going into Chapter 11 bankruptcy, especially one the size of United, is bad for all airlines. While all the other airlines are competing for business and making their usual payments, an airline in Chapter 11 is protected from it's creditors to a large degree. This includes fuel contracts, aircraft lessors, parts suppliers, and the abrogation of union contracts. It makes it difficult for non-protected airlines to compete and earn money.

 

[ifly4food]

That's an interesting spin I hadn't thought of. So in other words, a Ch. 11 for UAL would actually be good for United and bad for the others as opposed to the other way around?