US Rejects United bid for loan guarante

[vixin]

Reuters
US Rejects United Bid for Loan Guarantee
Wednesday December 4, 5:45 pm ET


WASHINGTON (Reuters) - The federal government on Wednesday rejected an application by United Airlines for a $1.8 billion loan guarantee the company said was crucial for avoiding bankruptcy.
The Air Transportation Stabilization Board, set up to help airlines struggling financially after the Sept. 11, 2001, attacks, voted 2 to 1 to not accept United's loan guarantee bid.

The decision came one day before mechanics at the No. 2 airline were to vote again on concessions that are part of a $5.2 billion give-back package the airline has negotiated with its unions.

United, a unit of UAL Corp. , had counted on the loan guarantee to support 90 percent of $2 billion in private financing it hoped to get from its banks. The company planned to use that money to repay debt and help fund operations, while it overhauled its operations outside bankruptcy court.

UAL shares closed up 7 cents, or 2.3 percent, to $3.12 on the New York Stock Exchange.

More bad news!! Man when is it going to get better?

 

[LEDSLEDDRVR]

UAL

I guess it was an all around bad day for United. First they lost the Government Loan and a 200 Million Dollar loan that was tied to the the Federal Loan, the final bit of bad news was an $805,000 fine from our friends at the FAA ,who are always there to help, for using speed tape to repair something. Good grief, and I thought I had a bad day.
Don't worry guys, United will come out of this.

 

[BLUE BAYOU]

You forgot to also mention the additonal layoff of 200+ pilots in Jan/Feb. On the positive note, they led in 90%+ on time within 14 min!!!

 

[BLUE BAYOU]

You can also thank the likes of NWA, Continental and Delta for lobbying against the loan guarantee! This business is truly for the blood-loving. Bafoon from CAL had the most to say against UAL; did anybody hear his quotes? What's with this guy?

 

[LEDSLEDDRVR]

UAL

Actually, it 300 plus, but at this point who's counting

 

[rjcap]

Bafoon from CAL had the most to say against UAL; did anybody hear his quotes? What's with this guy?

Oh, you mean Gordon Bethune. Yeah, he's the guy who pulled Continental out of a potential third and final bankruptcy and then on to financial solvency.

I think his point is that why should United get a handout when Continental didn't.

Gordon is the real deal like him or not and I don't work for Continental.

 

[LEDSLEDDRVR]

GORDO

Hey Like it or not Gordo has a good point. Why should the taxpayers bailout United? If they don't have a sounds business plan, that's management's problem. It shouldn't be the TAXPAYERS' problems.
As for Gordon's comments, hey you've gotta admire someone who comes from MX to CEO regardless of how he got there. I'm sure CAL and NWA will be turning the corner before anyone else will be.

 

[BLUE BAYOU]

If CAL is so great financially, then why were they the first to squawk for money after 9/11?

 

[climbhappy]

he squawked because

CNBC loves his outspoken, charismatic style. that's why he was first....if you're ugly or can't talk coherently like our president...then they love you on camera.

 

[LEDSLEDDRVR]

GOVERNMENT CASHOLA

Everyone cried "money issues" after september 11th. The airlines were hurting before Sept 11th. They just used that as a reason to get a baleout. United and a few others just thought it would be nice for a second helping of that pie.