UAL Headed for Liquidation...

[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.

 

[av8instyle]

brings me down

That's kind of what I was wondering. If UAL files ch 11 they should not be allowed to set the prices IMHO. That just drags all of their competitors down with them. Airlines that do a better job of managing their companies get punished.
Any thoughts?