UAL Where are they at?

[Boeingman]

I wouldn't trust the numbers coming from UAL management. Remember these were the same guys who were emphatic they were only losing around $7M a day last Dec. and at the BK filing it was more like $25M per day.

Also, lets not forget the pension obligations (zero funding) they are paying zero on pre petition debt and are UAL is in arrears with several cities for current (post BK) gate and lease expenses. Someoene mentioned asset sales as well which I do think occured last quarter.

If they were truly this close to turning the corner they would not be seeking extensions to stay under the BK umbrella.

The situation may not be a dire as it was, but honestly, I think there are still critical and mortal problems over there. The revenue for the fall and winter will either make or break the situation as it stands now.

 

[General Lee]

UAL makes an operating profit, but are they paying all of their current bills? What about the lease payments? I hope they do pull out of their slump, but it just doesn't seem like they are playing on the same level field as the other airlines.....

Bye Bye--General Lee

 

[T-Bags]

What do you think "operating profit"means? I'll give you a hint- it means when you subtract all the bills they didn't pay then it looks like they made money.

Put down the bong. You apparently haven't a clue about accounting. Please educate yourself, your lack of understanding of the most basic of GAAP principles makes you look foolish.

 

[Ty Webb]

GAAP- Generally Accepted- you're A Pudknocker

I understand them just fine, thanks. If you think my post needs some correction, then why don;t you state a specific correction. Otherwise, your post is just a waste of space.

As for the bong, I'll put it down when you lose the nerd bucket.

 

[enigma]

Questions and Answers on August 2003 MOR
----------------------------------------------------


Q: What does the company's business strategy
entail?

A: United has met monthly with its board of
directors and creditors committee to outline the
business strategy the company needs to put in place
in order to emerge from Chapter 11 as a strong,
profitable and sustainable, competitive enterprise.
The strategy centers on four key elements:

* Focusing on United's core customer -- the premier
business segment -- and reinvigorating the brand;

* Optimizing the network to profitably serve a full
range of customers;

* Achieving and maintaining a competitive cost
structure; and

* Continuing to deliver operational excellence and
building on that performance going forward.

Does anyone else find element #1 to in conflict with element #2?

It seems that UAL management is still in denial about the way this business has changed. Do they really believe that they can focus on the "premier business segment" and also profitably serve a "full range of customers"?

UAL got turned down by the ATSB because of their overly optimistic revenue projections, you'd think that the rejection might have made them look elsewhere; but no, now they still want to focus on the premier business customer.

I always allow that I could be wrong, so let me ask; do any of you UAL people see many premier businessmen traveling today? If so, I guess that there is hope. If not, it doesn't look good for a company who's management is counting on that segment for it's survival.

regards,
enigma

 

[enigma]

The biggest issue facing United, and the one that is not getting addressed, is the "people" policies. Airlines, by their very nature, are labor intensive. If labor is unmotivated, stressed, tired, unsure of their future, distrustful, etc., then the bottom line also takes a big hit. Unfortunately, number crunchers, bankruptcy judges, DIP lenders etc, don't realize what the real difference is between an inspired, motivated workforce, and what we see right now. Don't get me wrong, the United workforce has been motivated, but that was out of fear. Now the adrenaline from fear is wearing off, and the "clock-punching" is starting to set in. Sad. For the sake of the many good people at United, I sure hope management gets a clue soon that they MUST start inspiring the troops, and they have to get out of their offices to do that.

Skirt

Every once in a while someone actually posts a good message based on insight and common sense.

Ms. Skirt, I think that you did just that.

For you, UAL78, and the rest of my friends at UAL, I sincerely hope that ya'll can overcome your inept management and someday return to being an airline with a bright future.

regards,
enigma

 

[skykid]

Enigma, yes the business travel is beginning to come back. More travel to meetings, salespeople getting back on the road, and much more overseas business travel - esp to Asia. UAL has the route structure to appeal to these customers and the cost structure now to compete with LCCs. Inept mgt would have been a very accurate observation 2 years ago - 60 percent of all UAL mgt has been replaced, and not just at the VP level. News sources like the Wall Street Journal make a pretty could case that UAL mgt is making some good moves. I see a lot of highly motivated folks at United these days and the industry leading performance backs that up.

 

[Flyingtoohigh]

Skykid, if you don't mind me asking, where did you get the 60% figure?

Talking with some current and former United pilots, they did not agree that much of the management has changed. I'm not here to pick a fight, just to clarify some information for myself.

 

[skykid]

Flyingtoohigh, I got it from a union local council newsletter. It may not be the best source, but it is consistent from what I've seen. A lot of employees were upset because they wanted sweeping changes in mgt from day one of the new regime. You know how every employee is smarter than mgt, right? Thankfully, the new CEO is wise enough to make the changes gradually

 

[SWA GUY]

UAL has the cost structuring to compete with the LCC's.....I'm sorry but I can't grasp that.

HC