United Airlines Announces Launch of Senior Secured Notes Offering

[bluechunks]

Do your research. CAL is nowhere near the toxic levels of leverage of UAL (or DAL/NWA and AA for that matter).

Really?

What significant assets does CAL own that are unencumbered?

Show your work.

 

[freightdogfred]

I did my research...All the airlines, with LUV being the notable exception, are leveraged to the hilt, and United with eroded profit margins and a top heavy cost structure is realistically on life support at this time. Their fleet is aged, and with some serious large maturing debt, it would be a good time to start shorting their stock, IMHO. They are the equivalent on the Brontosaurus thrashing on the edge of the LaBrea tar pit, and barring a dramatic turnaround in the world economy I don't see how their fortunes can change.
Don't shoot me, I'm just the messenger...Best o luck

http://www.routesonline.com/news/24...s-structure-unsustainable-in-current-economy/

 

[freightdogfred]

Do your research. CAL is nowhere near the toxic levels of leverage of UAL (or DAL/NWA and AA for that matter).

This is true, but they will be facing some real pressure in the next two years as some 1.8 billion in debt obligation matures. Source?

http://cts.businesswire.com/ct/CT?i...lan=en_US&anchor=www.fitchratings.com&index=1

"Continental's cash obligations for 2009 are significant but manageable in comparison to March 31 unrestricted liquidity of $2.65 billion. Scheduled debt maturities for the remainder of 2009 total $442 million, and Continental now expects to make cash pension contributions of approximately $75 million over the rest of 2009. Given the maturity and pension funding profile for 2009, the need for incremental access to debt capital markets (beyond committed aircraft financing) appears limited. However, looking ahead to 2010 and 2011, heavy scheduled debt maturities will likely force Continental to access the credit markets if unrestricted cash balances are to be maintained above critical levels (in the $1.5 billion to $2 billion range). Scheduled debt maturities for 2010 total $770 million, and $1.1 billion in debt comes due in 2011. An easing of credit market tightness over the next few quarters therefore seems necessary if Continental is to avoid the need to push aircraft capital commitments out further beyond 2009."

 

[quinnlake]

It's gonna take a while to do all that research...

thanks for the laugh!

 

[g-code]

I did my research...All the airlines, with LUV being the notable exception, are leveraged to the hilt, and United with eroded profit margins and a top heavy cost structure is realistically on life support at this time. Their fleet is aged, and with some serious large maturing debt, it would be a good time to start shorting their stock, IMHO. They are the equivalent on the Brontosaurus thrashing on the edge of the LaBrea tar pit, and barring a dramatic turnaround in the world economy I don't see how their fortunes can change.
Don't shoot me, I'm just the messenger...Best o luck

http://www.routesonline.com/news/24...s-structure-unsustainable-in-current-economy/

Q2 and 3 posted positive cash flow. We will see what Q4 holds on the 16th.

 

[Russ]

Their fleet is aged

UA fleet age isn't that bad. AA and DAL have older average fleet age. Continental's fleet is approaching 10 years, just a few better than United. Stock is trending up. The street is somewhat bullish on them.

I wouldn't drop your dark suit in the cleaners quite yet.

 

[Mr.B]

All you financial wizards make me laugh. Why are you flying for a living?????

Exactly.

 

[Captzaahlie]

wow what a deal.....

Can anybody say ponzi scheme?

 

[Jon Rivoli]

The largest obstacle to raising cash through secured debt right now sits in the Oval Office. What he did to the bond holders at GM (gave them $.29 on the dollar and called them greedy for wanting what is their due.) has made creditors very leary of lending to anyone who is strapped for cash. That is why UAL paid the premium on their last issue. In bankruptcy the SECURED debt holder are supposed to get paid first, hence the term secured. With the governments demonstrated willingness to wipe out your investment while giving the company to the unions investors are justied in thier reluctance.

 

[Floatplane]

JetBlue Financial Statement

http://www.google.com/finance?q=NASDAQ:JBLU&fstype=ii