UAL Liquidation?

[stlflyguy]

Hey, pilots generally realize this. You can't keep management from being stupid.

stlflyguy

 

[d.fitz]

Just pure conjecture... but what about liquidation followed by CAL buying the assets and paying off a negotiated reduction in debt. That would give them all the routes and growth they need/want...

 

[RedDogC130]

In my mind (not talking about the people losing their jobs and careers...just talking moving people and planes business here) losing United will be a good thing for other airlines. Others will pick up the routes and people and thus may be able to charge higher fares which will equal profits..expansion...more hiring..etc. Yeah it would suck for those involved losing thier jobs but it has happened to other airline in the past it can happen to United...sad but the industry will move on as if it were never here.

 

[qxdash8]

Somehow I can't see our Government bailing out the automakers and a few months later watching UAL shutdown.
That said I could see them parted out ala PanAm.

The government is basically bailing out the ENTIRE US auto industry - UA is not the entire US airline industry. I would be surprised if the government were to step in on a UA chapter 7.

 

[freeflyer14]

In my mind (not talking about the people losing their jobs and careers...just talking moving people and planes business here) losing United will be a good thing for other airlines. Others will pick up the routes and people and thus may be able to charge higher fares which will equal profits..expansion...more hiring..etc. Yeah it would suck for those involved losing thier jobs but it has happened to other airline in the past it can happen to United...sad but the industry will move on as if it were never here.

The exact same thing could be said about Southwest.

disclaimer... In no way meant to insult Southwest, its employees, shareholders, etc, etc

 

[RedDogC130]

The exact same thing could be said about Southwest.

disclaimer... In no way meant to insult Southwest, its employees, shareholders, etc, etc

Your exactly right...what is your point?

 

[lookin4better]

Good to hear the CAL furloughs may be all back this year. Hope that true.

 

[BID]

I don't think UAL has much unrestricted cash. Their assest went from 3 billion to 2 billion, why? and who is to say they could convert these assets to cash.

There was a time when i thought, "No way" will they liquidate. But now, I am not too sure. Managment there put all their eggs in the "merger basket." A merger in the near future is highly unlikely.

So what is next? IMHO, UAL stopped running an airline back in 2000.

 

[waveflyer]

If you retired from UAL or are anywhere near the bottom of that list, it has been a form of hell. Except i know there are good guys in the middle of their list- but it would also be nice to just get it over with. Noone's happy there. And if you are-you did it by insulating yourself from the problems by outsourcing and making your narrow-body pilots fly under different, harsher rules.

 

[Bookingsareup]

Your exactly right...what is your point?

Same as your point... I'm guessing.

 

[CrimsonEclipse]

Wow are we really this lost as a people?

'fraid so.

CE

 

[NuGuy]

Heyas,

Some outfits thought to be "too important to fail" are long since gone.

Some that have been long thought to be "circling the drain" are still here with us. USAir has been going out of business since 1991.

You never know...

Nu

 

[contrail67]

Not to make light of this notion, nor to treat it with some sense of detached amusement, but has anyone out there heard about United ceasing operations sometime next month? I know this is a sensational statement (not that one would expect that to happen on this website) but we have had some company management types (CAL) make remarks along these lines and just last night a furloughed UAL pilot stated the same thing.

Anyone else hear about this?

So ...do you just get bored and then post stupid things?....do you have any credible source other than a pissed off furloughed pilot?

 

[contrail67]

In my mind (not talking about the people losing their jobs and careers...just talking moving people and planes business here) losing United will be a good thing for other airlines. Others will pick up the routes and people and thus may be able to charge higher fares which will equal profits..expansion...more hiring..etc. Yeah it would suck for those involved losing thier jobs but it has happened to other airline in the past it can happen to United...sad but the industry will move on as if it were never here.

Losing SWA would be a good thing too.

 

[iflyhigh]

Never so Never everyone.

I hate to see any airline go out of business. But it was been proven, with PanAm, Eastern, Braniff, TWA, and many more that airlines can and do go out of business.

Who remains standing in the next five years remains to be seen. You can probably pick a few that you know are certainity for sure, but others its a gamble. Being former UAL, I would hate to see them go out of business due to bad management. Before BK it was a great company, with alot of good people. Its unforunate that management can destroy morale and line their pocket books as they do it.

I wish all my friends at UAL luck, that includes those that are being furloughed. My thoughts and prayers are with you and your families.

Don't worry US Air is not doing much better than UAL. Only time will tell if they stay in existance.

 

[maxblast72]

Bailing out the Big 3 automakers vs bailing out United are two different animals. I couldn't believe that Ford would even be for the bailout since they are the best positioned out of the big 3. You would think that they would want GM or Chrysler to disappear. Supposedly their supply chains are too tied together to let one company go out of business without hurting the other two and the Big 3 were successful in scaring the government into a bailout package.

In the airline industry, the failure of one large airline would dramaticly improve the remaining airline's RASM overnight and probably prevent any other failures.

I am personally against all bailouts. Bad decisions/behavior shouldn't be rewarded with a bailout. Weaker companies should go away and be replaced with stronger companies or not replaced at all if there isn't enough demand for the product being produced.

 

[Frank Lorenzo]

Good news and bad news here.

First the bad news. The next airline that can't pay its bills will go straight to Ch. 7, as there will be no DIP financing available.

The good news is that executives such as Glenn Tilton can profit handsomely from this. Even I know that Glenn has no business even trying to manage a corner lemonade stand, much less an airline. I told him this, and he seemed to accept it. I suggested making his departure profitable by parting out the airline to save face from a Ch. 7 and to also line his pockets as a sort of severance package.

Sounds like he is taking my advice. Since Glenn and I will both be out of the airline business, I am thinking about partnering with him in the banking and finance sector. That industry seems to be filled with executives of the same competence level and lack of moral compass. We should do well there.

 

[Tweaker]

Harrumph harrumph! I say, good show Frankie, my boy. So right, you know.

 

[fullsail]

Didn't the CEO of Independance Air predict the impending and immediate demise of UAL in 2002? Where is that "expert" now? Nostradamas (sp?) he was not.

 

[clickclickboom]

Oken Skies would fill some of the gaps and the govt would fast track or even in some cases offer short term subsidies to airlines willing to step in and restore domestic routes.

Bailout? No Way it will never happen