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UAL Rumor

stillflyn

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I have no idea how much truth there is to this.

"Also according to Washington insider law firms, United has retained bankruptcy counsel. (Again) Thoughts are that it will be a Chapter 7 filing possibly as early as late 2009 or early 2010, with most assets going to STAR Alliance partners in such a fashion so as to avoid disruption of the Mileage Plus program (and others), the financial integrity of the STAR Alliance, and allow for transfer of other assets (aircraft, etc.) in such a fashion so as to avoid union “involvement” or interference. United owns very little at this point so it would merely involve termination of leases which is easy in either Chapter 11 or 7. Such transfers could involve number levels below “fragmentation policy” triggers (20%?), and would be done so as to transfer zero or an absolute minimum number (if any) of aircraft related pilots to the surviving airlines. Transfers could also be made to other entities such as the proposed IAD to Madrid outsourced airline. Any such transfers would be made on a seat by seat process as opposed to sen iority with either United or USAir. Neither airline has airplanes that are deemed valuable. Other non-pilot transfers would also be held to a minimum. There probably would be no “merger” in a traditional airline sense. The administration and the “loyal opposition” seem to have accepted that either United, USAir, or both are not survivable entities. Interestingly enough, American is considered to be the next worse off airline. If American were to file Chapter 11, AND attempt to dump its pensions on the PBGC, the PBGC believes that it can go back 5 years and reclaim those pensions paid out to pilots. Highly speculative thoughts, however interesting. These ideas have come from sources that are currently associated with the two carriers in one form or another and admit that their thoughts are “speculative” in nature. Changes to these concepts would change as the political realities come to a head.
 

Scope out RJ's

Banned
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The demise of UAL has been predicted for years.
They aren't going anywhere. Especially with them being in Obamanation territory.
 

Full of LUV

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Back to old times!!!!

The demise of UAL has been predicted for years.
They aren't going anywhere. Especially with them being in Obamanation territory.

This is getting back to the FI that I remember, predicting the demise of UAL. Finally a post not referecing the SWA, FAPA, RAH spectacle.
 

BILL LUMBERG

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Sounds about right.

ACL....It's better to shut your mouth and people think your ignorant, than to open it and prove them right....

Save the comments......
 

GuppyWN

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Straight to Chapter 7?

No way. UAL might be poorly managed but they aren't going away anytime soon. I can see a CAL merger fo sho tho.

Gup
 

Lear70

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Don't know about that...

Certainly they'd file reorganization first, and it sounds like the person in the know is combining fact (UAL most likely HAS inquired about its bankruptcy options with legal professionals) with speculation (the unlikelihood of obtaining exit financing and the resultant Chapter 7 filing if they did in this economy).

We'll see what happens, but if they did go Ch. 7, the executives would likely secure bonuses for themselves by fragmenting in small chunks to airlines interested in those assets (leases, gates, slots, etc).

One thing is for certain: they can't keep bleeding cash like this forever. Something's gotta give.
 

Homer Jay

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Straight to Chapter 7?

No way. UAL might be poorly managed but they aren't going away anytime soon. I can see a CAL merger fo sho tho.

Gup

Though our management at CAL have become a ruthless bunch of spiteful pr!cks, they are not stupid enough to take over United's balance sheet. I think all CAL wants is their Pacific ops. and west coast presence. I have nothing against United pilots and would push our union to take the pilots that would come with any sort of asset acquisition. Tilton is the worst thing to ever happen to United and I feel sorry for all lives he has ruined. HOW HAS HE NOT BEEN FIRED?!
 

TZtoSWA

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Though our management at CAL have become a ruthless bunch of spiteful pr!cks, they are not stupid enough to take over United's balance sheet. I think all CAL wants is their Pacific ops. and west coast presence. I have nothing against United pilots and would push our union to take the pilots that would come with any sort of asset acquisition. Tilton is the worst thing to ever happen to United and I feel sorry for all lives he has ruined. HOW HAS HE NOT BEEN FIRED?!

I thought John Tague was running UAL now. Ask any former ATA pilot about Tague. We called him "the closer."
 

Ty Webb

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Tilton is the worst thing to ever happen to United and I feel sorry for all lives he has ruined. HOW HAS HE NOT BEEN FIRED?!

I'm sure someone is getting an offer package and the press releases ready for his next job, probably a cushy board seat somewhere.

But, what do I know? I've been predicting UAL to go TU since Clinton was President.
 

SpauldingSmails

Aboard the sloop.
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I think all CAL wants is their Pacific ops. and west coast presence.

What a twisted effed up web the airlines weave. Weren't United's Pacific operations bought from a cash strapped Pan Am back in the '80's?
 

F/O

Smells like....
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They have been hanging on for years but the difference this time is management WANTS to get rid of the airline. They have no interest in running the company whatsoever; they just want to get rid of it. Loads are near 100% with them still losing money. They are all out of ideas.
 

JimmyKool

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I have no idea how much truth there is to this.

"UAL a whooley owned subsidieray of United Corp annuonced yestersday that it has just fired its bankruptcy coucil and expects to return to double profitibility next quatter. In light of this new informantive information UAL has announced that all stewdards will be fired and all stuardises will be replaced by Hooooters waiteresess. This announcement was accompanied by another annoucement stating that all RJ flying will be stopped immediatly (meaning now) and replaced with new 777 and -400 routes. Gate Garbage will also looose its contract and crew meals will be catered by Moes and Five Guys. The new TA is anything SWA gets but better."

This was sent to me in an email. I can't tell you my souce but its probably most likely true.
 

NEDude

yada yada yada
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What a twisted effed up web the airlines weave. Weren't United's Pacific operations bought from a cash strapped Pan Am back in the '80's?

And up until the late 1980's Continental was LAX, DEN and IAH with several Asian/Pacific routes out of LAX.
 

b707guy

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I have no idea how much truth there is to this.

"UAL a whooley owned subsidieray of United Corp annuonced yestersday that it has just fired its bankruptcy coucil and expects to return to double profitibility next quatter. In light of this new informantive information UAL has announced that all stewdards will be fired and all stuardises will be replaced by Hooooters waiteresess. This announcement was accompanied by another annoucement stating that all RJ flying will be stopped immediatly (meaning now) and replaced with new 777 and -400 routes. Gate Garbage will also looose its contract and crew meals will be catered by Moes and Five Guys. The new TA is anything SWA gets but better."

This was sent to me in an email. I can't tell you my souce but its probably most likely true.

Well, it sounds like one of those Nigerian widows trying to enlist my help in
securing her late husband's fortune. Man there sure are a lot of them.

I don't know about the inner workings of UAL, but as a frequent passenger and occasional jump seater, their flights sure are full. And they can't make money? Makes you go hmmm.
 

poppi

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Looking at after hours trading UAL does not indicate any real decline. So probably not.
 

Noserider76

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No way. Worse case for United is a merger, especially with this administration. Best of luck to all at UAL. Hope to see the good days back in your near future.
 
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