UAL Rumor

[Uncle Bunkle]

Well, here's the source:

United Airlines' Bankruptcy Draws Near, Leaving Fate of Employees Uncertain.
The Indianapolis Star (Indianapolis, IN) |12/26/02| Copyright

Byline: Jack Naudi
--United Airlines, whose stock was battered Friday after the company's request for $1.8 billion in federal loan guarantees was denied, is expected to declare bankruptcy sometime this weekend, sources said.
The board of directors of the world's second-largest airline will meet Sunday, and a Chapter 11 filing is expected before Monday.
The carrier was finalizing the terms of a $1.5 billion loan with private banks that would enable the airline to keep flying during bankruptcy, the sources told several news services.
Such a move would put United Airlines on a long list of current and former competitors who have taken the same route.
But whether United would emerge successfully -- like Continental Airlines has twice before, or go under like Eastern Airlines -- remains unclear.
Even more cloudy: What is the fate of United's 2,000 local employees, including 1,500 mechanics who work at its Indianapolis maintenance hub? What happens to the $218,000 a month United pays toward operations at Indianapolis International Airport?

http://www.accessmylibrary.com/coms2/summary_0286-8919079_ITM

 

[suupah]

ha ha Dec 6, 2002. oldest trick in the book

 

[densoo]

Though our management at CAL have become a ruthless bunch . . . they are not stupid enough to take over United's balance sheet.

Management could care less if a merger is a good business decision or not. They and the banks, creditors, and lawyers will decide what course of action will make them the most money, period. Fit or doesn't fit, route structure, engine types, plane sizes mean nothing. If merging the two airlines, sucking all the cash out of CAL to UAL, then bankrupting the whole thing in five more years makes a pile of money for a few people, that's what they'll do.

 

[ATR-DRIVR]

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 if this REALLY from your "source", you might want to read it again.
Has to be the most illiterately written email there is.....count the words that are not spelled correctly...

 

[wscrj]

Forget something?

Like...the date?

December 06, 2002

What is the point of trying to pass off old articles as new?

Nevermind....pure FI.com entertainment.

 

[xanderman]

Ya wanna check the date on that article maybe...?

 

[another cfii]

Just like the news thread couple months back stating UAUA's impending 2nd bk entry, and it sent its stock plummets to the floor.... Someone made a quick buck on that fiasco. The SEC better prosecute things like that to stop helping those day traders ruin our us average joe's hard earned money.

 

[contrail67]

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.

What mental math problem did you screw up in the interview....sounds like you still are ticked you got shot down....just go away and quit posting stupid old articles.

 

[scoreboardII]

Read between the lines, this is the "new way" of how airline mergers and Aq will be accomplished to circumvent the requirement to take on employees, 20% here, 40% there, 30% another place. Employees not needed...

good luck UAL guys and gals.

 

[Uncle Bunkle]

Like...the date?

December 06, 2002

What is the point of trying to pass off old articles as new?

Nevermind....pure FI.com entertainment.

Actually, just trying to show the stupidity of the original post in this thread. How come some people take sarcastic responses such as my post as the truth.
I thought it was obvious that I was poking fun at the OP.
In fact, I purposely left the original 2002 date in the article...Jiminy Cricket!