Will United Survive?

[KingAirKiddo]

Okay, maybe it's not ALL doom and gloom...any glimmer of hope is better than nothing in the current predicament.

I sure as h@ll hope they make it.

 

[boeingav8r]

I really have not been keeping up with the UAL/ch. 7 thing, but I keep hearing how it's getting worse and worse. How do you think the industry will be affected if one of the worlds largest airlines are liquidated. Over 10,000 or so pilots out of a job (including the ones already furloughed). Will this benefit AA and DL or cause them to file ch11? How much worse can things get for all of us.
I've been furloughed for over a year now...I've dealt with it, moved on and have finished feeling sorry for myself, but seeing UAL liquidated is like re-living that hell all over again. So very depressing...good luck to all UAL employees

 

[120% Torque]

Business
United cites business fare cuts for revenue gain, but rivals scoff

March 4, 2003

By Dave Carpenter

United Airlines said Monday it is pulling in an extra $20 million to $25 million per month in revenue as a result of the sharp reduction in business fares it made eight weeks ago.

But in a reflection of the controversy stirred by the January fare change, the claim was greeted skeptically by at least one competitor.

Bankrupt United issued a statement saying the lower fares have proven ''good for United's bottom line,'' despite rival airlines' claims that the fare war was taking a toll on the revenues of not only other major carriers but United itself.

''Contrary to some reports in the media, the increase in business passenger volume has more than offset the lower fares,'' said Doug Hacker, executive vice president for strategy at United.

United put the revised pricing structure into effect Jan. 6 on last-minute fares out of Chicago and Denver--its top two hubs--giving customers up to 40 percent off unrestricted fares.

Other carriers and some industry analysts criticized the move, which came after a year in which the nine major U.S. airlines lost more than $11 billion combined.

Northwest Airlines said last month it was losing $10 million in monthly revenue as a result of the lowered fares, as did US Airways. Northwest also estimated that United was losing $30 million a month because of it.

A Northwest spokeswoman did not immediately respond to a request for comment on United's estimate.

Minneapolis-based airline travel analyst Terry Trippler said United's statement clearly was a response to Northwest's earlier comment, underscoring the high-stakes competition between the two.

''It's all about Asia,'' said Trippler, of cheapseats.com. ''United and Northwest are neck and neck [on routes] to Asia. It's a highly competitive market and a profitable run.''

If United ultimately is forced to cut back on its Pacific routes or sell them to stay in business, he said, Northwest would be the big benefactor. ''I really think those two airlines are battling for survival, and for growth,'' he said. ''Northwest clearly has the upper hand, but in this industry things can change very quickly.''

US Airways officials expressed skepticism about United's estimate. They said they see no evidence that the fare structure is generating more travel in the industry and questioned whether United could have gotten enough passengers to shift from other airlines to account for $20 million in additional revenue.

Regardless of the short-term effect, said Stephen Usery, US Airways' vice president of marketing and revenue management: ''I find it very difficult to believe that there would be enough sustainable share-shift [from other carriers] to support a long-term increase in revenue for United.''

Lehman Bros. analyst Gary Chase said he was ''shocked'' by United's claim and eager to see the details backing it up. ''We thought for sure it would be revenue-negative in the early going,'' he said.

United, which filed for Chapter 11 bankruptcy protection on Dec. 9 and lost $3.2 billion for the year, must show regular and swift progress toward becoming profitable again or risk losing its interim financing.

Northwest lost $798 million last year.

In bankruptcy court Monday, the airline lost a bid to force the government to hand over $388 million in long-disputed tax payments after Judge Eugene Wedoff refused to go along with its tactics for recovery under an emergency motion. The company said it would initiate a new proceeding, Dow Jones Newswires reported.

Shares in United parent UAL Corp. fell 2 cents to close at $1.06 on the New York Stock Exchange.

AP

 

[HA25]

I really have not been keeping up with the UAL/ch. 7 thing, but I keep hearing how it's getting worse and worse. How do you think the industry will be affected if one of the worlds largest airlines are liquidated. Over 10,000 or so pilots out of a job (including the ones already furloughed). Will this benefit AA and DL or cause them to file ch11? How much worse can things get for all of us.
I've been furloughed for over a year now...I've dealt with it, moved on and have finished feeling sorry for myself, but seeing UAL liquidated is like re-living that hell all over again. So very depressing...good luck to all UAL employees

Don Carty said over and over a year ago that there is one too many "major" airlines out there... so I would imagine if UAL or US Air went under, they would all pick up the slack and the industry would be better off... The dislocated "junior" pilots at the failed airlines would also likely find work fast at the remaining majors as their fleets grow with the sale of the assets of the failed airline.

BTW.. what's with the Christopher Lowell Avitar?