UAL getting 43 New 777's

[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

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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.