UAL getting 43 New 777's

[Twotter Driver]

A buddy called me today saying yahoo finance had an article stating that UAL had put an order in for 43 new 777's to replace older aircraft in UAL's widebody fleet. A split of 200's and 300's with the first to be delivered in late 2010. Then the article was removed from yahoo finance. Interesting none the less. It also stated UAL had options for up to 10 freighters. Maybe a premature news leak?? Any UAL folks hear similar info?

 

[AWACoff]

UALALPA,

This is Glen Tilton. I have announced an order for 43 777s which will dramatically better your career. We have procured financing contingent on our pilot contract. I know you have taken draconian pay cuts and had your quality of life degraded to that of a sewage plant blockage technician but in order to take delivery of these 43 aircraft, we cannot afford to give you any increases in your current contract. Concessions have not been discussed at this time but are of course a possibility.

Love,

Glen

 

[Volasl]

Hoax. Mod you should remove thread

 

[General Lee]

Bait and switch for CAL. United and Tilton would love to have the merger (so he can cash out), so maybe he let it out so CAL would be more interested?? Probably is a hoax.


Bye Bye---General Lee

 

[EMBpilot]

Haven't heard anything.

What would they be replacing?

 

[Metro752]

777 they merge with continental
A350XWB they merge with US Airways

http://www.chicagotribune.com/business/chi-united-planeorder-nov19-,0,867224.story


chicagotribune.com

United close to first new plane order in more than a decade

By Julie Johnsson
Tribune reporter
7:17 PM CST, November 19, 2009

United Airlines is close to placing its first aircraft order in more than a decade and has narrowed its search to two ground-breaking airplanes: Boeing's 787 Dreamliner or Airbus's counterpart, the A350-XWB, sources told the Tribune.

United is being furiously courted by both Chicago-based Boeing Co. and France-based Airbus SAS, sources said, even though the carrier's finances appeared shaky just months ago.

 

[Yuppyguppy]

I say an order first a merger eventually second...proly early mid 2010. UAL-CAL have to compete head on with the likes of DAL. Somebody has to shut up General Lee.

 

[sstearns2]

My WAG is that a big 777 order by UAL would result in the the rest of the 747 fleet being parked.

Scott

 

[ualdriver]

1) I think that thread on our internal forum was a hoax, which led to the start of this thread.

2) I don't think our management is stupid enough to believe that we're going to exchange pay for an aircraft order. Well, maybe they're stupid enough but we aren't.

3) I, for one, am not particularly excited about the anticipated order. If they're not growth aircraft and just replacement aircraft, well, I guess it's nice to have shiny new jets but it won't do much for our career prospects or those of the guys we have on the street and want to come back. We'll still have the worse management team in the business.

4) I'd second the opinion that if there is a 777-XXX order, the 747's will be gone at some point.

 

[General Lee]

I say an order first a merger eventually second...proly early mid 2010. UAL-CAL have to compete head on with the likes of DAL. Somebody has to shut up General Lee.

NEVER! WE WILL CRUSH YOU! Whatever dude, I can't wait to see that seniority list merge.


Bye Bye---General Lee

 

[ACL65PILOT]

Look at your media page and post the other financing that you did yesterday. That is more interesting.

 

[wmuflyguy]

Analyst Blog
UAL Corp. Raises Funds


By: Zacks Equity Research
November 18, 2009 | Comments: 0
Recommended this article (1)
UAUA | AMR | DAL | LCC | JPM | GS | MS

Print Share


UAL Corporation (UAUA - Analyst Report), the parent company of United Airlines, has announced the issue of $810 million notes to pay off existing debt. The $810 million in pass-through securities raised consists of $697 million of Class A certificates with a coupon interest rate of 9.75% expiring in Jan. 2017 and $113 million of Class B certificates with an interest rate of 12.0% expiring in Jan. 2016. A pass-through security is a fixed-income certificate against certain mortgage-backed securities, generally aircraft.

Of the total proceeds raised from the offering, $493 million will be used to pay off equipment trust certificates issued from 2000 to 2002, while the remaining of the funds will be used for general corporate purposes. J.P. Morgan (JPM - Analyst Report), Morgan Stanley & Co. (MS - Snapshot Report), Goldman Sachs & Co. (GS - Analyst Report) are acting as joint book-running managers for the issue.

In addition to the drop-off in travel because of the recession, United and other airlines have been struggling as profitable business travelers either stay home or fly cheaper elsewhere. United Airlines reported a 1.6% fall in October 2009 traffic. Capacity was reduced 4.3% to 11.64 billion available seat miles. With jet fuel prices on the rise, the company’s cash flow is expected to remain under pressure.

Other carriers that have raise funds include AMR Corporation (AMR - Snapshot Report), Delta Air Lines Incorporated (DAL - Snapshot Report) and US Airways Group Incorporated (LCC - Snapshot Report). According to the IATA a total of $8 million has been raised in new cash in the past two months by the world’s leading airlines.

http://www.zacks.com/stock/news/27428/UAL+Corp.+Raises+Funds

Filler

 

[ACL65PILOT]

That is the one!

 

[EMBpilot]

Isn't Doug in heat to merge again? It might be UAL+USair.

And CAL will merge with Copa, that way they can outsoure half of their flying to $3K/month crews.

 

[whymeworry?]

NEVER! WE WILL CRUSH YOU! Whatever dude, I can't wait to see that seniority list merge.


Bye Bye---General Lee

First you gotta' make money. DAL's losses are simply not sustainable. DAL/ NW has proven to be a merger dudd on all accounts thus far. Of course, it's still early in the merge, but history is riddled with big airlines that got too big only to fail in the end (Pan Am, TWA) . Not saying that will happen to Delta but with $44 billion in liabilities and $13 billion in net losses they have a long way to go before they'll "crush" anyone. As far as UAL/ CAL needing to merge in order to compete with DAL, we'll see. If mgmt can create enough synergies within the Star Alliance, as they seem poised to be doing right now, and if DAL continues to lose money, the playing field will somewhat be leveled.

That's not to say there won't be a merger. Any merger than may occur will only occur because mgmt wants a huge payday (ala DAL/NW reasons), not because it is necessary to take on DAL (though that will indeed be the line mgmt tows in order to pass muster). All other stakeholders will lose, just as they have with DAL till date.

 

[Anonymous2]

Here comes the 748 intercontinental!

 

[EMBpilot]

First you gotta' make money. DAL's losses are simply not sustainable.

Look at the route map and think who flies politicians in their Delta Elite fleet. The losses can be sustainable for a long-long time

DAL/ NW has proven to be a merger dudd on all accounts thus far. Of course, it's still early in the merge, but history is riddled with big airlines that got too big only to fail in the end (Pan Am, TWA) . Not saying that will happen to Delta but with $44 billion in liabilities and $13 billion in net losses they have a long way to go before they'll "crush" anyone.

Delta is 17 billion in debt. I think they have 4 in cash.


As far as UAL/ CAL needing to merge in order to compete with DAL, we'll see. If mgmt can create enough synergies within the Star Alliance, as they seem poised to be doing right now, and if DAL continues to lose money, the playing field will somewhat be leveled.

UAL/CAL create a lot of overlap and massive furlowghs, both have pilots on the streets already. Not to say anything about the employee moral and sharing cockpits with so many scabs and minorities.

That's not to say there won't be a merger. Any merger than may occur will only occur because mgmt wants a huge payday (ala DAL/NW reasons),

I wouldn't say 13 mil is such a huge payday in RA's case. Think of CAL selling airplanes with one hand and leasing them with another. A LOT more and a lot quieter.

not because it is necessary to take on DAL (though that will indeed be the line mgmt tows in order to pass muster). All other stakeholders will lose, just as they have with DAL till date.

Actually, I made money with DAL stock.

Regards

 

[Fly2AK]

EMBpilot

As far as UAL/ CAL needing to merge in order to compete with DAL, we'll see. If mgmt can create enough synergies within the Star Alliance, as they seem poised to be doing right now, and if DAL continues to lose money, the playing field will somewhat be leveled.

UAL/CAL create a lot of overlap and massive furlowghs, both have pilots on the streets already. Not to say anything about the employee moral and sharing cockpits with so many scabs and minorities.

Maybe I misunderstood this comment that I underlined, but it makes you seem like a racist, correct me if I am wrong.

 

[SpauldingSmails]

United is being furiously courted by both Chicago-based Boeing Co. and France-based Airbus SAS, sources said, even though the carrier's finances appeared shaky just months ago.

Good credit? Bad Credit? No Credit?

It doesn't matter! Guaranteed financing with proof of an operating certificate!

We've got an airframe for you! Nobody walks, Everybody flys!

 

[get2flyin]

Isn't Doug in heat to merge again? It might be UAL+USair.

And CAL will merge with Copa, that way they can outsoure half of their flying to $3K/month crews.

USAir is toxic....again. I can't imagine they will be merging with anyone.