UAL Reorganization Plan Delayed....AGAIN!!!

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TheStreet.com Staff Reporter

8/2/2005 2:29 PM EDT

United Airlines' parent UAL (UALAQ:OTC BB - commentary - research) is putting off filing a reorganization plan with the court overseeing its more than two-and-a-half year trip through bankruptcy.

A month ago, the nation's second-biggest airline said it would unveil the plan around Aug. 1 and set the stage for its emergence from Chapter 11 protection.

But UAL Tuesday issued a joint statement with its unsecured creditors' committee saying it would postpone the filing at the committee's request.

"Both parties agree that this approach and timing can help facilitate an even smoother exit process," the statement said.

Jean Medina, a UAL spokeswoman, said the airline had been prepared to file the plan Tuesday, but wanted to honor the unsecured creditors' request because they are important stakeholders. UAL now expects to unveil the reorganization plan in about a month.

Under Chapter 11, the airline has taken drastic measures to cut costs and restructure, wrangling $3.2 billion in concessions from its workers, battling with aircraft lessors and getting the government's pension insurer to agree to take over its traditional pension plan.

The company's stock, which is likely to be rendered worthless if and when UAL emerges from bankruptcy, gained 4 cents, or 2.8%, to $1.48
 
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I thought their reorganization plan was retarTED - you know, The End of United (hopefully)
 

ironspud

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You know. UAL is really dragging the industry down. Why doesn't United do the right thing for the industry and just go out of business.
 

Diesel-9

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Probably too late. If they pulled the plug tomorrow it will take a decade to recover if many things go right.. The sad thing is it takes away for so many the hope of working for a Major carrier with the pay and benefits and Work Rules that were once part of a proud industry.
 
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Mugs

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ironspud said:
You know. UAL is really dragging the industry down. Why doesn't United do the right thing for the industry and just go out of business.

Because it is a heck of alot more fun hanging around and making your life miserable.

You know?
 

fam62c

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Don't blame UAL.

Don't blame UAL; blame the bankruptcy laws and bankruptcy judges that allow this B.S. to continue without end. I say let coporate Darwinism rule. Let the weak die and the strong prosper or everyone becomes weak. ******* corporate welfare.
 
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Stan

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Check out the last few sentences. Who is bringing down the profession?


NEW YORK, August 2, (Investor’s Economic Resources)

ttp://investorsresources.bravehost.com/8-21another9-11.htm
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Could 8-21 be a “9-11 type” Milestone for the Airline Industry?
p.2 continued
If a legacy airline can completely replace a unionized workforce and still operate, it is a whole new ball game. Jim Kramer, the CNBC stock market guru who is a latter day version of a cross between Joe Granville and John Maynard Keynes, was asked his opinion of Jet Blue. He quipped: If I had to buy just one airline- - I would quit the business! Kramer explained that unions have the potential to expropriate any and all shareholder wealth from an airline. He is no right-wing ideologue. He simply stated matter-of-factly that such union power is why the steel and auto industries are similarly disadvantaged.

Who are the dinosaurs of today? The answer is not as simple as one might think. Revisiting the K-T extinction event analogy it should be remembered that the dinosaurs were mighty beasts that ruled the planet. They could go anywhere they wished and take food or anything they wanted away from the puny mammals. Today, the mighty beasts who can do whatever they want in the airline business, are the low-cost carriers like Jet Blue and Southwest. If they want to enter a market, the legacy carriers cower like small mammals facing a Tyrannosaurus Rex.

If Northwest beats the union, the shareholders and board of every other legacy airline will ask: Why not us? The environment would instantly change. Just as the asteroid impact turned the dinosaur’s advantages into liabilities, a Northwest victory could take away the labor cost advantage of the low-cost carriers.

We will not know for sure until August 21. However, there are already some clues that suggest some may be anticipating the impact of 8-21. Steve A. Cohen who runs the SAC hedge fund complex has recently taken large positions in the Northwest and Delta (DAL). Delta may be waiting to see what happens on 8-21 before imposing another round of pay-cuts. UAL has delayed exit from bankruptcy at the behest of the unsecured creditors. Maybe they want to see what happens after 8-21. Every legacy airline would be very profitable if it could pay Jet Blue levels of wages and benefits. Ford and GM would make money if they could beat their unions also. Will 8-21 be the milestone?

ttp://investorsresources.bravehost.comNEW YORK, August 2, (Investor’s Economic Resources)

ttp://investorsresources.bravehost.com/8-21another9-11.htm
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pookie

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Every legacy airline would be very profitable if it could pay Jet Blue levels of wages and benefits.

hehehehehe..

Finally someone from the media gets it!
 

Ty Webb

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Pure and unadulterated B.S., and apparently, you're buying it.

UAL pilots could fly for free, and they would still be losing money every month.




.
 

iflyhigh

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To Everyone that wishes UAL dead.

If you think UAL is to blame for the current industry work rules and pay, I guess you have forgotten history.

In 2000, every pilot was thanking UAL for bringing the wages up so high. Alot of people wanted to work their. Pilots were leaving commuters, LCC and the military to fly for the legacy carriers, not just UAL.

Now five years later, people are blaming UAL for the low pay, poor work rules and wish them dead. Has everyone forgot that Jetblue operates with out individual 5 year contracts and has pilots with less than six years seniority and thus can pay a little less. Have we forgotten that Spirit, Frontier, AWA and others airliners are just about par with UAL or in some cases lower still. And lets not forget about Independance Air, who is paying crap and charging ridiculous low prices for tickets and thus impacting other airliners revenue, not just UAL.

Its funny that since Sept 11, 2001, everyone hates the legacy carriers and wishes alot of them dead, e.g. USAir, UAL, etc. Who next, NWA, DAL. Its amazing how many people have applied to CAL since they opened their application up and how so many want to work their. I would bet that when NWA or others open up their window, alot of people will be applying trying to get the a major. Just remember for each major that goes out of business, alot less jobs to apply for.

For all you people wishing the legacies dead, I hope when they start hiring we don't hear you applying to them. You don't deserve it.

When you wish an airliner dead, you are essential taking jobs away from people, ie rampers, baggages handlers and pilots. UAL or for that matter any airliner is simply a word. Without the employees UAL would not exist and for that matter no company would.

Now you can flame. And yes I am furloughed from a UAL (and will never go back) and currently work for another one major. I got lucky. But I don't wish them dead.
 

sf260pilot

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A very senior UAL captain told me back around 2000 that the new contract that the pilots got would bankrupt the airline. He is not the type of airline pilot who was glad to be retiring, he was actually sad to see this happen to his airline. Then Delta follwed suit.
 

say again

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This is getting f-ing ridiculous!!!!!! Get a plan or get out. Enough is enough!!!!!
 

WhiteCloud

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iflyhigh said:
Now you can flame. And yes I am furloughed from a UAL (and will never go back) and currently work for another one major. I got lucky. But I don't wish them dead.

No need for a flame....good post. When UAL finally goes under the UAL employees that want to continue to work for an airline will find work just like you did. I'm sure some will find it tough to start over somewhere else, but that's how it is in private business.
 
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