big dog1
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- Oct 28, 2002
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Dow Jones Business News
UAL Mulls Hub Closures in Reorganization
Monday February 24, 7:55 pm ET
By Erik Ahlberg
CHICAGO -- An executive for UAL Corp. (NYSE: UAL
<<http://finance.yahoo.com/q?s=ual&d=t>> - News
<<http://biz.yahoo.com/n/u/ual.html>>) said Monday that the airline
is mulling the closure of its hubs in Los Angeles, Denver and
Washington as part of its reorganization plan.
Senior Vice President Gregory T. Taylor said in court testimony that
UAL, parent of United Airlines, was asked by its board of directors
to consider the hub closures as an alternative. The board also asked
the company to look into the possible sale of the airline's Pacific
operations, he said.
Separately, the judge overseeing UAL's bankruptcy case here denied
Atlantic Coast Airlines Holdings Inc.'s (ACAI) motion to force UAL to
assume or reject a contract between the two companies.
Atlantic Coast, of Dulles, Va., provides regional airline service for
UAL under the United Express brand. United Express generates about
85% of Atlantic Coast's revenue.
Among other things, the contract calls for Atlantic Coast to add 47
regional jets and retire 30 older turboprop planes by April 2004 at a
total cost of $940 million.
Attorneys for Atlantic Coast said that such capital spending,
particularly without any assurances from United, put an undue
financial burden on the company.
But attorneys for UAL said that the company shouldn't have to make
any decisions about the Atlantic Coast contract because of the
evolving nature of the reorganization plan.
In his ruling, Judge Eugene R. Wedoff said that United's need to keep
its reorganization free of any early obligations was greater than
Atlantic Coast's need to have answers about the contract. He said
that Atlantic Coast still has a number of options, including
negotiating new terms with the planes' manufacturer, Bombardier Inc.
(BBD.B)
In court testimony, Atlantic Coast Chief Financial Officer Richard J.
Surratt said the uncertainty surrounding UAL could make it difficult
to obtain outside financing for the new planes.
Though the company has one of the best balance sheets in the industry
with $ 189 million in cash and $44 million in deposits, that position
could be threatened by the burden of the upgrades, he said.
He declined to comment on the judge's ruling after the hearing.
UAL's Taylor said UAL's reorganization plan is still very much in the
formative stages. The company continues to evaluate several options
in addition to the creation of a new, low-cost airline, he said.
-By Erik Ahlberg; Dow Jones Newswires; 312-750-4141;
erik.ahlberg@d... <<mailto:erik.ahlberg@d...>>
21730 From: redheadedclown <Mickey.Bowman@m...>
Date: Wed Mar 5, 2003 9:11am
Subject: Interesting Article on United
Dow Jones Business News
UAL Mulls Hub Closures in Reorganization
Monday February 24, 7:55 pm ET
By Erik Ahlberg
CHICAGO -- An executive for UAL Corp. (NYSE: UAL
<<http://finance.yahoo.com/q?s=ual&d=t>> - News
<<http://biz.yahoo.com/n/u/ual.html>>) said Monday that the airline
is mulling the closure of its hubs in Los Angeles, Denver and
Washington as part of its reorganization plan.
Senior Vice President Gregory T. Taylor said in court testimony that
UAL, parent of United Airlines, was asked by its board of directors
to consider the hub closures as an alternative. The board also asked
the company to look into the possible sale of the airline's Pacific
operations, he said.
Separately, the judge overseeing UAL's bankruptcy case here denied
Atlantic Coast Airlines Holdings Inc.'s (ACAI) motion to force UAL to
assume or reject a contract between the two companies.
Atlantic Coast, of Dulles, Va., provides regional airline service for
UAL under the United Express brand. United Express generates about
85% of Atlantic Coast's revenue.
Among other things, the contract calls for Atlantic Coast to add 47
regional jets and retire 30 older turboprop planes by April 2004 at a
total cost of $940 million.
Attorneys for Atlantic Coast said that such capital spending,
particularly without any assurances from United, put an undue
financial burden on the company.
But attorneys for UAL said that the company shouldn't have to make
any decisions about the Atlantic Coast contract because of the
evolving nature of the reorganization plan.
In his ruling, Judge Eugene R. Wedoff said that United's need to keep
its reorganization free of any early obligations was greater than
Atlantic Coast's need to have answers about the contract. He said
that Atlantic Coast still has a number of options, including
negotiating new terms with the planes' manufacturer, Bombardier Inc.
(BBD.B)
In court testimony, Atlantic Coast Chief Financial Officer Richard J.
Surratt said the uncertainty surrounding UAL could make it difficult
to obtain outside financing for the new planes.
Though the company has one of the best balance sheets in the industry
with $ 189 million in cash and $44 million in deposits, that position
could be threatened by the burden of the upgrades, he said.
He declined to comment on the judge's ruling after the hearing.
UAL's Taylor said UAL's reorganization plan is still very much in the
formative stages. The company continues to evaluate several options
in addition to the creation of a new, low-cost airline, he said.
-By Erik Ahlberg; Dow Jones Newswires; 312-750-4141;
erik.ahlberg@d... <<mailto:erik.
UAL Mulls Hub Closures in Reorganization
Monday February 24, 7:55 pm ET
By Erik Ahlberg
CHICAGO -- An executive for UAL Corp. (NYSE: UAL
<<http://finance.yahoo.com/q?s=ual&d=t>> - News
<<http://biz.yahoo.com/n/u/ual.html>>) said Monday that the airline
is mulling the closure of its hubs in Los Angeles, Denver and
Washington as part of its reorganization plan.
Senior Vice President Gregory T. Taylor said in court testimony that
UAL, parent of United Airlines, was asked by its board of directors
to consider the hub closures as an alternative. The board also asked
the company to look into the possible sale of the airline's Pacific
operations, he said.
Separately, the judge overseeing UAL's bankruptcy case here denied
Atlantic Coast Airlines Holdings Inc.'s (ACAI) motion to force UAL to
assume or reject a contract between the two companies.
Atlantic Coast, of Dulles, Va., provides regional airline service for
UAL under the United Express brand. United Express generates about
85% of Atlantic Coast's revenue.
Among other things, the contract calls for Atlantic Coast to add 47
regional jets and retire 30 older turboprop planes by April 2004 at a
total cost of $940 million.
Attorneys for Atlantic Coast said that such capital spending,
particularly without any assurances from United, put an undue
financial burden on the company.
But attorneys for UAL said that the company shouldn't have to make
any decisions about the Atlantic Coast contract because of the
evolving nature of the reorganization plan.
In his ruling, Judge Eugene R. Wedoff said that United's need to keep
its reorganization free of any early obligations was greater than
Atlantic Coast's need to have answers about the contract. He said
that Atlantic Coast still has a number of options, including
negotiating new terms with the planes' manufacturer, Bombardier Inc.
(BBD.B)
In court testimony, Atlantic Coast Chief Financial Officer Richard J.
Surratt said the uncertainty surrounding UAL could make it difficult
to obtain outside financing for the new planes.
Though the company has one of the best balance sheets in the industry
with $ 189 million in cash and $44 million in deposits, that position
could be threatened by the burden of the upgrades, he said.
He declined to comment on the judge's ruling after the hearing.
UAL's Taylor said UAL's reorganization plan is still very much in the
formative stages. The company continues to evaluate several options
in addition to the creation of a new, low-cost airline, he said.
-By Erik Ahlberg; Dow Jones Newswires; 312-750-4141;
erik.ahlberg@d... <<mailto:erik.ahlberg@d...>>
21730 From: redheadedclown <Mickey.Bowman@m...>
Date: Wed Mar 5, 2003 9:11am
Subject: Interesting Article on United
Dow Jones Business News
UAL Mulls Hub Closures in Reorganization
Monday February 24, 7:55 pm ET
By Erik Ahlberg
CHICAGO -- An executive for UAL Corp. (NYSE: UAL
<<http://finance.yahoo.com/q?s=ual&d=t>> - News
<<http://biz.yahoo.com/n/u/ual.html>>) said Monday that the airline
is mulling the closure of its hubs in Los Angeles, Denver and
Washington as part of its reorganization plan.
Senior Vice President Gregory T. Taylor said in court testimony that
UAL, parent of United Airlines, was asked by its board of directors
to consider the hub closures as an alternative. The board also asked
the company to look into the possible sale of the airline's Pacific
operations, he said.
Separately, the judge overseeing UAL's bankruptcy case here denied
Atlantic Coast Airlines Holdings Inc.'s (ACAI) motion to force UAL to
assume or reject a contract between the two companies.
Atlantic Coast, of Dulles, Va., provides regional airline service for
UAL under the United Express brand. United Express generates about
85% of Atlantic Coast's revenue.
Among other things, the contract calls for Atlantic Coast to add 47
regional jets and retire 30 older turboprop planes by April 2004 at a
total cost of $940 million.
Attorneys for Atlantic Coast said that such capital spending,
particularly without any assurances from United, put an undue
financial burden on the company.
But attorneys for UAL said that the company shouldn't have to make
any decisions about the Atlantic Coast contract because of the
evolving nature of the reorganization plan.
In his ruling, Judge Eugene R. Wedoff said that United's need to keep
its reorganization free of any early obligations was greater than
Atlantic Coast's need to have answers about the contract. He said
that Atlantic Coast still has a number of options, including
negotiating new terms with the planes' manufacturer, Bombardier Inc.
(BBD.B)
In court testimony, Atlantic Coast Chief Financial Officer Richard J.
Surratt said the uncertainty surrounding UAL could make it difficult
to obtain outside financing for the new planes.
Though the company has one of the best balance sheets in the industry
with $ 189 million in cash and $44 million in deposits, that position
could be threatened by the burden of the upgrades, he said.
He declined to comment on the judge's ruling after the hearing.
UAL's Taylor said UAL's reorganization plan is still very much in the
formative stages. The company continues to evaluate several options
in addition to the creation of a new, low-cost airline, he said.
-By Erik Ahlberg; Dow Jones Newswires; 312-750-4141;
erik.ahlberg@d... <<mailto:erik.
