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.

 

[Publishers]

GB

Gordon Bethune has done a very credible job of bringing back CAL from its earlier problems.

It is his job to protect his shareholders. That includes being frist in line at the trough and also seeing that one airline does not benefit to the exclusion of his.

Think about it, would you expect the other carriers be in favor of a United bailout.

 

[Boeingman]

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

Well lets see..... He was "squawking" for the entire industry and turns out we don't need or want the loans after all. Only those in desperate financial straights are crying for the loan guarantees.

I assume from your whining, attitude and profile you're a UAL pilot. If so, too bad for you. But your complaining is an insight to the systemic problem over there. Your unions, employees and management have refused to face economic and market reality for so long your company is on the brink of disaster. A guy like Bethune who pulls no punches and gets straight to the problems
is giving you people good advice. Unfortunatley, and especially in UAL's case what he and others have been saying for a long time are coming true but you fools keep shooting the messenger.

In the past your methods of dealing with people (the messengers) who try to fix or suggest fixes has been to replace them because they are not telling you all what you want to hear.
Real smart moves in this environment.

As a taxpayer I say tough crap if you shutdown. As an airline employee I say to you........Wake up from your coma over there before it is to late.

Although, I believe it already is. And I don't mean a Chapter 11 standpoint.

P.S. The only squawking about money from the ATSB lately has been from UAL. At least USAir is trying a viable plan of reorganization.

 

[Lifestyle]

Hey Boeingman,
Relax a little, Try and look at it another way. As a former CALEX and UAL pilot I must state some facts here. I tend to recall CAL pilots not supporting a one list staple and then as soon as 9/11 happened they gladly sent CAL pilots back to CALEX. CAL pilots have not been the most fair pilot group I've ever seen. Tripson and his gang are real fair and objective....NOT. Are they enjoying their ALPA pins? CAL has no scope clause and mainline CAL is just slowly withering away to CALEX. You want to talked about legalized B scale. Way to protect the industry standard CAL pilots. I hope you put a stop to this but I doubt it. Don't knock UAL pilots for trying to protect their airline and profession.

On another point, Can you blame UAL pilots and other labor groups to try to bring the airline industry pay up. Is that really a problem for you? It's great that a pilot can one day make 300K a year if he's lucky and has 30 plus years at United. What about all the guys who have been flying forever and still make no money! It's not United's fault to demand unreasonable pay it's the low cost carrier that is putting pressure on business. Control them and we have a decent profession to work in. It's only a matter of time before CAL feels some serious pain from low cost carriers. Have fun when your hero Gordo asks you for concessions to the point where you can't make a living pushing airplanes around. Remember, Gordo doesn't care about you, he must protect his investors. It's not fun so stop bagging UAL for trying to protect the industry for everyone. Don't receive joy from another persons misfortune. Happy Landings!

 

[eaglefly]

Gee, a senior CAL pilot.

Any chance you're a SCAB ?

That you Jimmy ?

 

[LEDSLEDDRVR]

We had some of those CAL "SCAB" types at a scheduled charter I worked at, including the son of a former CAL Chief Pilot.
As for the low cost carriers, they may be a thorn in the side of the majors, but they're here to stay and will probably get even larger. If you're trying to get rich in this industry, you is in da wrong bidness. I suggest you become a lawyer, they seem to be raking in the cash what with Enron and all.