UAL news....We aint dead yet.

[Heavy Set]

What about increases in fuel costs with the impending war? UAL ain't hedged like SWA or Delta... Mr. Brace better "brace" for impact - with reality...

I wish all UAL pilots well, but I am a little skeptical of UAL's case in light of these current economic conditions (and impending war). Positive cash flow of $1 million per day now but perhaps a lot less in the coming weeks...

 

[Boeingman]

I just drive the bus, I do not want Gordo over here at UAL actually I think the BOD wanted the "other" guy.

They tried to get both. If you'd rather have the non airline experienced CEO's dictating you future, have at it. Personally, I think Bethune is brilliant and his results at CAL speak for themself.
The guy says what's on his mind and not what he thinks you want to hear.

Didn't CAL leverage a bunch of spare parts?

Yes, so what? It was a great tactical move to generate cash on an asset lying dormant. With the war coming around this added liquidity will help get us through any forecasted revenue shortfalls. Don't forget the banks lined up to offer CAL below market rates for this money. The mere fact that this transaction went through in a timely fashion, in this revenue depressed environment speaks volumes of our ability to borrow money.

I wouldn't get excited thinking that we are down to borrowing money on spare parts. Don't forget we own Chelsea and Air Micronesia outright. They are both worth over a billion and a half to two billion and are not leveraged. We also have over a billion four in cash and other instruments (financial).

I don't wish ill will on anyone, as far as UAL losing 25 million a day you would have to factor in that they are trying to write of a ton of debt and OTC's (Other Considerations)

It looks like creative accounting to me. Just look at your operating results for January for the airline, not the parent company.
I'm not versed enough to understand all the accounting issues taking place, but I seriously doubt writedowns and "OTC's" were being factored. When you are trying to get a loan, you don't make the books look as bad as possible.

I also don't think Bethune (or any other persons commentary) had anything to do with the denial of the loan. It had everything to do with exaggerated inaccurate revenue projections, a weak business plan and a cost structure out of control.

 

[tbkane]

Remeber all positive cash flow is not profit. It is much easier under chapter 11 to get positive cash flow because you don't have to make your debt payments. All the other solvent airlines for the month are losing cash including Delta (who was positive cash flow).


If I don't have to pay my mortgage, credit card, car loan, it I would always be cash positive too.

 

[Ski]

"If I don't have to pay my mortgage, credit card, car loan, it I would always be cash positive too."

Or contributions to your 401k. - UAL does not have to contribute to the B plan due to concessions or the A plan due to chapter 11.

 

[XShuttle]

Hey Ski, I'm not sure what you are talking about UAL is still making payments to A and B funds!

 

[LivinDaDream]

Back to the Bethune issue...

He has always held fast to the idea of filing Chapter 11 earlier rather than later. Just after 9/11, he stated that he would not let cash dry up below 800 million. They are at 1.4 Billion. The theory that he floats is that it is much easier to fly out of bankruptcy than beg and liquidate your way out.

Maybe some other carriers shouldn't have waited so long.....

I hope they all pull through, but the industry has to start thinking outside of the box or we'll ALL lose.

 

[Extra300S]

I think we are all pretty much screwed, some more than others! Things will get better but only after our pay at the majors is so low many will want to look for other lines of work.


Such a sad state if affairs! We have regional guys acting with much "Glee" that their brothers and sisters at the large carriers are having hard times, but I am sad to say as a Mainline guys wage is reduced so will the "Express" pay rates...in other words we are all in this together!

As far as UAL not paying into our A or B plan...that's news to me. why not wait and see on March 17th? I wouldn't put it past them.

It will be interesting what Carty will say to the Government when he asks for aid (and he will) but wasn't it a few months ago when Carty and ol' Gordo said they didn't need any aid?

Times are a changin

 

[SMMustang]

tbkane

It appears that you aren't the only one questioning UAL's position.

http://www.marketwatch.com/news/yho...o&guid={C489F59A-2C97-4555-BA05-34D505C76A2C}

 

[Ski]

from Xshuttle-Hey Ski, I'm not sure what you are talking about UAL is still making payments to A and B funds!

You gave up your B fund in consessions. You're in a dream world if you think they are funding the pension plan. Get a grip. Just take a look at what USair is doing to our brothers on that property!

 

[XShuttle]

Ski, the only consessions so far have been the pay cut 29%. The B fund is still being paid at the full 11%! The A fund is still being funded and as of January was much better funded than Delta's. This is sure to all change soon enough.