What's the Business Solution for UA?

[brucek]

I work with several other private pilots, we're all financial analysts. We've been talking about how UA can emerge from Ch. 11 (and not slide to Ch 7!). The news reports say it's route structure is too complex and it's labor costs too high. But what about the fleet, and the debt it took to buy them?

Any ideas on how UA can survive? My outlook on the economy is not really great, but then I've always figured that a recession caused by over-supply will have the "double dip".I hope I'm wrong. But if I'm right, then getting realistic fares and business travellers back may not happen anytime soon.

I don't have the knowledge to suggest a solution. I'd be interested in any comments that you more knowledgable might have.

Thanks,

Bruce.

 

[sstearns2]

......

One of UA's major problems is that they have too many airplanes for thier current schedual. The airplanes spending too much time sitting. They also have 8 or 10 747-400s parked that they still have to make the payments on and they all need large dollar inspections before they can return to service or the lessor. I'm hoping that bankruptcy will allow them to cut thier fleet down and get the aircraft productivity up.

If that $22 mil a day number is right then the only have 60 -90 days before they burn out.

I've been dreaming of flying a 777 for united for a long time now, I hope this all works out.

Scott