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Upon exit, UAL will post profits for five years!

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

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