UAL selling assets

[buzzer]

There may be more to than this that meets the eye. UAL is not using those slots right now. Some people believe that the slot controls may be lifted or changed in the next few years. If that is the case than those slots my be worth a lot less in the future. Perhaps is was a good idea. On the other hand more and more flying seems to be going to the STAR partners on Int. routes and too much of that doesn't look good as some have mentioned. The globalization of the airlines is slowly coming into focus.

 

[Boeingman]

Burning the furniture to heat the house? This alone may or may not be a concern. But if other asset sales are announced it sure means there are some real financial problems developing.

The third, fourth and first quarter will either make or break them.

 

[skykid]

From the Gen
I know UAL is delaying emerging from Chap 11 until it can find exit financing.......

Nope - look at the original time frame and strategy that called for middle of 2004. UAL put out word they were CONSIDERING early exit last Summer in my opinion to draw attention to early progress in restructering.

---and Sen. Fica from Florida (who is on the Aviation sub-comittee) said he doesn't want to give any of the airlines any more money....

Sooo! Sen Fica will not be in the top 20 of politicians trying to influence the ATSB. Do you understand this is not a give away? These are loan guarantees already approved by Congress and UAL can apply past the deadline because the rejection last year was left open-ended.

They will be looking for other investors, but the huge pension problem makes them unattractive....

Other investors from who?

They may have to sell assets to pay off creditors and try to re-emerge with a smaller investor that offers less....

You are way off if you think trimming LHR by 15% is the start of a sell off to pay creditors. UAL's cash balance improved by over 100mil in Aug alone. You are right on by seeing that the pension problem is the major hurdle. UAL is working several different avenues including Congress and the IRS and hopefully wont have to come to employees. Retirement funding is a scary thing in this business if you ask me. Even if you work for a smaller airline and are in love with your stock options, you are exactly one bad day away from seeing it go. Take care!

 

[banned username 2]

This alone may or may not be a concern. But if other asset sales are announced it sure means there are some real financial problems developing.

SpeedNews.com just reported United Airlines has posted 18 767-222s as available for sale. Six aircraft are available for immediate sale, while the remaining twelve will be available for sale as they retire from United Airline's schedule over the next 15 months.

 

[sstearns2]

I think they've been planning to get rid of the 767-200s for a while now. They are the only type using that engine and it's uneconomical to operate such a small fleet of engines. The 767-300 and 747-400 use the same engine.

Scott

 

[skykid]

sstearns2 - you are correct. the 767-200s were on the chopping block way before Ch11 and have been decertified for ETOPS in prep for this for a long time. Still not good to see aircraft leave the fleet, but no surprise. UAL sold 22 737-200s and around 50 727s right after 9-11. A handful of 747s have been sold, and UAL is paying big bucks to reject leases. I think it sucks, but this was bound to happen and it sure aint news. Ultimately it will be block hours that determine the amount of pilots kept and this will be driven by the amount of aircraft rejected in the 1110 process.

 

[Boz]

The 767-200 were always scheduled to be gone as the new EGPWS would require a great deal of funding that we simply can't afford. Nothing new here.

 

[G4G5]

Hey Skirt,

Felling a little better about you decision? You are looking very wise today. Good luck.

 

[beech1900kid]

ual selling more stuff

from yahoo airline news.....




Reuters
United seeks to sell stakes in Orbitz, Hotwire
Wednesday October 15, 5:13 pm ET


CHICAGO, Oct 15 (Reuters) - The parent of bankrupt United Airlines is seeking court permission to sell part of its stakes in online travel companies Orbitz and Hotwire, the company said in court documents.
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UAL Corp. (OTC BB:UALAQ.OB - News), parent of the No. 2 U.S. airline that has been operating in bankruptcy since last December, said the sale of part of its 26-percent stake in Orbitz would raise $26 million to $52 million. Orbitz, which was founded by five major U.S. airlines, has plans to go public in November or December.

The airline said it expects proceeds of $85 million from the sale of its 16.5 million Hotwire shares to media mogul Barry Diller's InterActiveCorp (NasdaqNM:IACI - News). IAC is acquiring Hotwire for $665 million.

United said it would put the proceeds from the two sales toward paying off its revolving credit line and term loan under its bankruptcy financing package. A United spokesman said the sales would help the carrier reorganize more quickly and efficiently.

A bankruptcy court judge is due to consider the issue at an Oct. 24 court hearing.

UAL said it does not expect its ownership interest in Orbitz to drop below 17 percent, leaving its remaining stake worth between $176 million and $258 million.

Orbitz and Hotwire allow travelers to purchase airline tickets and make reservations for hotels and rental cars on their Web sites.