Flying the Line
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- Feb 17, 2004
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United Airlines CEO coaxing carrier back from brink
By Ben Bradley
June 17, 2004 — Suburban based United Airlines makes a last ditch effort to get a loan from the government that could stop them from going under. United's CEO was called to Washington D.C. last night, where a decision will be made that ultimately could affect the airline's future.
United executives have a hearing before a bankruptcy judge tomorrow but the decision could be announced any minute. Sources say things were not looking good for Chicago's hometown airline. Now, House Speaker Denny Hastert has stepped-in and summoned the key players to Washington.
There are 14,300 United Airlines employees in our area. If the airline does not get the loan guarantee, experts predict they'll be in store for another round of painful cost-cutting.
"The loan guarantees, I don't want to say they are necessary for our survival, but it's certainly a big part. I was hoping for it," said Dan Delight, United Airlines captain.
United CEO Glen Tilton has said he believes the air carrier can fly out of bankruptcy with or without the $1.6 billion federal loan guarantee. But others aren't so sure. The airline has delayed its emergence from bankruptcy three times now. United lawyers are expected to tell a judge tomorrow that the airline won't be able to stand on its own until the fall.
"My understanding is that they were given an indication they were going to be turned down. So, they are currently ensconced in talks as we speak in Washington, trying to come up with some concessions they can make in order to get the loan," said Caroline Daniel, Financial Times reporter.
What's at stake? Experts predict if the loan guarantee doesn't go through there will be more cost cutting. Also, United's pilots may see their pension plans put on the table. For passengers, there could be a cut back in destinations and the frequency of flights. It's more uncertainty for an airline that has seen its share of turbulent times.
"The airlines, to some extent, have brought this upon themselves by the way they're pricing and their business model," said Frank Newton, United customer.
"I like the expanded seating. The service has even gotten better. It's a great airline, I hope they can stick around," said Greg Goenemann, United Customer.
Despite bankruptcy, United's employees have moved the airline from worst to first in things like customer service and on-time arrivals. If the loan guarantee doesn't come through, many wonder whether employees alone will have the strength and will power to keep the airline headed in the right direction.
By Ben Bradley
June 17, 2004 — Suburban based United Airlines makes a last ditch effort to get a loan from the government that could stop them from going under. United's CEO was called to Washington D.C. last night, where a decision will be made that ultimately could affect the airline's future.
United executives have a hearing before a bankruptcy judge tomorrow but the decision could be announced any minute. Sources say things were not looking good for Chicago's hometown airline. Now, House Speaker Denny Hastert has stepped-in and summoned the key players to Washington.
There are 14,300 United Airlines employees in our area. If the airline does not get the loan guarantee, experts predict they'll be in store for another round of painful cost-cutting.
"The loan guarantees, I don't want to say they are necessary for our survival, but it's certainly a big part. I was hoping for it," said Dan Delight, United Airlines captain.
United CEO Glen Tilton has said he believes the air carrier can fly out of bankruptcy with or without the $1.6 billion federal loan guarantee. But others aren't so sure. The airline has delayed its emergence from bankruptcy three times now. United lawyers are expected to tell a judge tomorrow that the airline won't be able to stand on its own until the fall.
"My understanding is that they were given an indication they were going to be turned down. So, they are currently ensconced in talks as we speak in Washington, trying to come up with some concessions they can make in order to get the loan," said Caroline Daniel, Financial Times reporter.
What's at stake? Experts predict if the loan guarantee doesn't go through there will be more cost cutting. Also, United's pilots may see their pension plans put on the table. For passengers, there could be a cut back in destinations and the frequency of flights. It's more uncertainty for an airline that has seen its share of turbulent times.
"The airlines, to some extent, have brought this upon themselves by the way they're pricing and their business model," said Frank Newton, United customer.
"I like the expanded seating. The service has even gotten better. It's a great airline, I hope they can stick around," said Greg Goenemann, United Customer.
Despite bankruptcy, United's employees have moved the airline from worst to first in things like customer service and on-time arrivals. If the loan guarantee doesn't come through, many wonder whether employees alone will have the strength and will power to keep the airline headed in the right direction.
