Mugs:
Yes, you guys survived another month and for that I am glad. Despite all the absolute dirty things UAL employees did to CAL during our bk in the 90's I do not wish to see your company fail.
However, I may be blunt, but I think the chances for UAL's survival are very bleak.
A couple of points. When you talk cash position be sure to remember that UAL got quite a bit of money from the government grant, the IRS tax refund, as well as cash on the sale of 5 744's to PIA. Of course your cash position today is healthier but you're burning money at an exponential rate over there. I believe that UAL would of been in default of their DIP covenants had it not of been for these extraordinairey revenue gains.
The General is correct. UAL has not made a dime in lease payments on aircraft or facilities. What do you think your losses would be without the protection of bankruptcy? My point is that fundamentaly, aside from hacking at labor costs....what is the plan to fix these massive losses?
It is really simple mathamatics. You have saved $2.5 b from the backs of the employees, yet you're on a path of losing over $4b
per year. All the fancy press releases and marketing plans (heard starfish is going to be canned now) will not make up that revenue shortfall. Sooner or later the creditors and the banks will pull the plug unless their is a radical change in the financial dynamics.
Good luck. The last thing this industry needs right now is more pilots on the street. Not to mention a glut of airframes for some new low cost carrier to further erode pay and working conditions.
Yes, you guys survived another month and for that I am glad. Despite all the absolute dirty things UAL employees did to CAL during our bk in the 90's I do not wish to see your company fail.
However, I may be blunt, but I think the chances for UAL's survival are very bleak.
A couple of points. When you talk cash position be sure to remember that UAL got quite a bit of money from the government grant, the IRS tax refund, as well as cash on the sale of 5 744's to PIA. Of course your cash position today is healthier but you're burning money at an exponential rate over there. I believe that UAL would of been in default of their DIP covenants had it not of been for these extraordinairey revenue gains.
The General is correct. UAL has not made a dime in lease payments on aircraft or facilities. What do you think your losses would be without the protection of bankruptcy? My point is that fundamentaly, aside from hacking at labor costs....what is the plan to fix these massive losses?
It is really simple mathamatics. You have saved $2.5 b from the backs of the employees, yet you're on a path of losing over $4b
per year. All the fancy press releases and marketing plans (heard starfish is going to be canned now) will not make up that revenue shortfall. Sooner or later the creditors and the banks will pull the plug unless their is a radical change in the financial dynamics.
Good luck. The last thing this industry needs right now is more pilots on the street. Not to mention a glut of airframes for some new low cost carrier to further erode pay and working conditions.