Upon exit, UAL will post profits for five years!

Widow's Son

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Oh they will definitely be "profiatbel" ... they are going to be profiatbel up the whazoo ... the question will be whether they make any money or not.

I think the answer to that question has little to do with their business plan and everything to do with a major airline shutting down to adjust capacity to the marketplace. It doesn't really matter which one, but a major needs to go away. Once that happens the rest will recover.
As they say in medicine, it isn't always the sickest patient who dies first.
 

Green

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Tilton says they'll clear 1 billion per year for the next five years but there just won't be any money to pay workers' retirements. One sick motha f%ck$r...
 

wmuflyguy

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With 50 dollar Oil alot of carriers would be more profitable.

I guess you can submit a business-plan based off of totally bogus numbers and get it approved anyway. I shoulda been a manager
 

skykid

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Talk about suckers, you people want to come to some kind of conclusion based on a biased and inaccurate article, posted by someone who uses the word (or nonword) "profiatbel." Go to the source documents.


My guess is oil is just as likely to be $30 a barrel, as it is $50 a barrel, or $70+ a barrel over the next five years. You don't know either. What United has said is it is now much better positioned to compete in the volatile industry, and that at a certain threshold the industry will increase prices to cover jet fuel, as we have witnessed to a certain extent already. The fact is, NOBODY makes money hauling pax at $70+ a barrel oil, unless prices are adjusted.
 
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Deli Guy

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Hey Dizel 8,
Don't let these guys get you down about the spelling. I am the worst "word criminal" on this board. Good post.
 

GogglesPisano

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I think UAL will prosper again. Cheap labor, cheap leases, much less debt. Lots of people willing to line up with cash. They still have one of the best route networks.


Good luck to all at UAL. Hopefully the next 3 years will be less stressful than the last.
OTOH, I think the contracts you currently see at the legacies are the best they're ever going to get.
 

Dizel8

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Huh?
skykid said:
Talk about suckers, you people want to come to some kind of conclusion based on a biased and inaccurate article, posted by someone who uses the word (or nonword) "profiatbel."

Oh, grow up!
 

Sonny Crockett

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The only suckers are the idiots who were wishing that UAL would go Chap 7.
 

AA717driver

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Legacies in Limbo...

Yeah, a limbo contest--just keep lowering the bar. They'll do ANYTHING to save their jobs.TC
 

Mugs

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GogglesPisano said:
I think UAL will prosper again. Cheap labor, cheap leases, much less debt. Lots of people willing to line up with cash. They still have one of the best route networks.


Good luck to all at UAL. Hopefully the next 3 years will be less stressful than the last.
OTOH, I think the contracts you currently see at the legacies are the best they're ever going to get.

Thanks for the vote of confidence. I think you touched on a key, which is the route structure. After the employees, it is UAL's best asset. Tilton did say from the beginning, despite much pressure to do otherwise, that he would preserve the route structure. Now with the route structure largely intact at a significantly lower cost structure, the capital markets are finding UAL to be a worthwhile investment risk. Without the current cost structure, the financing offers would not have come. UAL would have then been thrown to the wolves.
 

Widow's Son

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>>The only suckers are the idiots who were wishing that UAL would go Chap 7.<<

You'll have to explain that one. The hard reality is that a carrier needs to go down. I think the Feds realize that and will let Darwinism work its magic and let one biggie go down and then they will step in to prevent any more going down.
It really doesn't matter who it is. I wouldn't even put UAL as the most likely candidate unless an employee group strikes in the near future.
It should have been USAir, but they pulled a rabbit out of the hat.
It takes cash to file BK. You burn a couple of million a day in legal fees alone. I think the most likely to go down will be Delta or NWA because they both have waited too long to file and don't have enough money to endure a BK and re-emerge.
 

Widow's Son

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skykid said:
Really? The SEC filings show you are way off on that one.

There are fees and charges galore and if you follow the stink you will find a lawyer attached to every one.
UAL made almost a 50 million dollar operating profit last quarter yet they lost almost a billion and a half due to "regorganizational expenses."
The lawyers get their professional fees and then they also get a "cut" of all of the debts that they discharge, and that works for the lawyers on both sides plus the lawyers in the middle. Break it all down and you'll see that a couple of million a day isn't far off at all.
 
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