UAL Headed for Liquidation...

[bobbysamd]

UAL bankruptcy

I would doubt the government would let United fold. The country couldn't withstand the loss of UAL's transport capacity. Uncle Sam will find a way to prop it up.

It's just a discussion. The sarcasm was uncalled-for.

 

[FlyDeltasJets]

Some more "heavy" time in that seminole will look good to the recruiter..

Looks to me like you need a little more heavy time as well.

 

[TXCAP4228]

Financial info

Hmmm. Eaglefly, somebody might think you're a finance expert. Maybe someday you can teach ME how to spread financial statements... Until then here's some info from publicly available information based on UAL's 10Q filing for the 6 months ending 30SEP2002:

Quick Ratio: 0.52 (this is just my calculation) - The nutshell explanation is that this means that they have dimisnished liquidity - this is the sum of "quick assets" divided by current (short term) liabilities.

Total obligations (short and long term debt - in millions): $23,512

Equity (in millions): $2,167

Conclusion (for everybody but Eaglyfly): They are very leveraged (they have a lot of debt compared to what their worth is) and have reduced liquidity (they do not have sufficient cash on hand to cover all of their short term obligations).

Eaglyfly, you have just enough knowledge to be dangerous - to make a blanket statement that UAL is not at risk for liquidation is a pretty stupid. They're having trouble - I will leave it there and won't make any further speculation.

However, Eaglefly, maybe YOU should confine YOUR comments to a field YOU know more about. I invite YOU to flame ME on this subject. I think that would be a lot of fun.

Next time, don't be such an a$$.

If anyone is interested, you can access the 10Q financials using CNN.com and going to stock quote and then SEC filings (I tried to get the on United's website but could not).

 

[Timebuilder]

I had no idea that UAL was that far out on that limb.

 

[dispatchguy]

Re: UAL bankruptcy

I would doubt the government would let United fold. The country couldn't withstand the loss of UAL's transport capacity. Uncle Sam will find a way to prop it up.

Thats a good point, especially if some hefty CRAF lift will be required soon, but, if UAL were to file CH 7 (God forbid), would the Guvmint go along and bail them out ala Chrysler? If they were to, wouldnt the rest of the industry want a bite at that tete -isnt that what the ATSB was for to begin with? Do those ATSB members get a cut of what they dont spend, and is that why theyve been so, for lack of a better word, a bunch of tightwads?

One other thing to keep in mind is the status of an impending police action against Iraq. I personally think, and based on all of the philosophical discussions I've had on numerous jumpseats on my airline (since I havent been able to ride in the back to save my life - its been that full), is that if the industry can hold out over the winter, provided we dont turn Iraq into another Vietnam, the industry just might be able to stay intact, with all the current flying airlines still flying.

BUT

If we turn Iraq into a parking lot, and go in there guns blazing, and get entrenched into a Verdun-style quagmire, about the only airlines that will be left standing will be one or two of the big majors (not three - with a reduced regional network), a couple of minor players with good regional networks (AS, HP, F9), and SWA.

BUT

If we go in, get our man like we did with Noreiga down in Panama, quickly, quietly, with a minimum of loss of life (on all sides), that Sword of Damocles will be gone, and I think the economy will pick up, and hell, back will be the days of the 400 Hour regional F/O, Eagle will be able to grow again, and people will want to fly again, even at the exorbitant full fare levels of days past.

 

[MetroSheriff]

Re: Financial info

Hmmm. Eaglefly, somebody might think you're a finance expert. Maybe someday you can teach ME how to spread financial statements... Until then here's some info from publicly available information based on UAL's 10Q filing for the 6 months ending 30SEP2002:

Quick Ratio: 0.52 (this is just my calculation) - The nutshell explanation is that this means that they have dimisnished liquidity - this is the sum of "quick assets" divided by current (short term) liabilities.

Total obligations (short and long term debt - in millions): $23,512

Equity (in millions): $2,167

Conclusion (for everybody but Eaglyfly): They are very leveraged (they have a lot of debt compared to what their worth is) and have reduced liquidity (they do not have sufficient cash on hand to cover all of their short term obligations).

Eaglyfly, you have just enough knowledge to be dangerous - to make a blanket statement that UAL is not at risk for liquidation is a pretty stupid. They're having trouble - I will leave it there and won't make any further speculation.

However, Eaglefly, maybe YOU should confine YOUR comments to a field YOU know more about. I invite YOU to flame ME on this subject. I think that would be a lot of fun.

Next time, don't be such an a$$.

If anyone is interested, you can access the 10Q financials using CNN.com and going to stock quote and then SEC filings (I tried to get the on United's website but could not).

Sweet. I love to watch a good spanking. Nice job TxCap.

 

[TXCAP4228]

Eventus Stultorum Magister

Thanks Metro. What can I say? Your signature line says it all... Eventus stultorum magister. By his attitude, Eaglefly had it coming.

By the way, after that I also looked at AMR, DAL and SWA - they're all in better shape IMHO. SWA's financials are incredible considering the state of the industry - but I don't think that's a surprise to anybody.

 

[Timebuilder]

SWA=success

When you treat your employees like assetes instead of ass*****, you're bound to come out a winner.

 

[Yeti]

Disclaimer: Here's a possibly over-simple question from someone not at the airlines yet, who's an up-and-coming learner, with just enough ignorance to ask it :

Should the government allow Chapter 11 for UAL?

Essentially, if I'm not mistaken, if they re-organize they would have the freedom to operate as THE dirt-cheap carrier, thereby undercutting nearly everyone and damaging an industry already operating on a razor's edge, correct? Why would the government allow that? Wouldn't it be preferable for UAL to liquidate and allow the healthier carriers to fill the big hole that they leave? If bankruptcy does occur for United, how does this all play out? How SHOULD it play out?

 

[Aerosmith]

.
Time to go back out and practice some more touch-and-go's for you airline career. Some more "heavy" time in that seminole will look good to the recruiter.

Tip - don't try to dazzle them with your knowledge of the airline industry in the interview. You'll come across much stronger explaining the landing gear system of the 172RG.

This has got to be the sorriest, most pompous and arrogant reply I have yet seen. Is this because your own career didn't live up to your expectations?

No need to take it out on Bigr for just asking a valid question.