UAL going out of business?
05-23-2008, 08:54 AM
#11
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Joined APC: Sep 2006
Position: B-737
Posts: 392
I keep seeing people mention a UAL/US airways merger. How would that help UAL at all? An East coast base in PHL or CLT, how does that help? Then you have PHX, SWA is taking over that place. So now you go head to head with them in Denver and Phoenix? I just don't see the benefit of the merger between those two.
A merger could generate enough cash/investment until fares/fuel prices come more into balance. The government may step in, but that's long shot. JMHO.
05-23-2008, 08:58 AM
#12
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Joined APC: Dec 2005
Posts: 846
It's got nothing to do with how much sense it makes. Is there anything in this business that makes sense? The industry players are in a foot race. Everybody will have to raise fares, the problem is they can't be raised fast enough to save everybody. UAL needs a cash infusion, immediately. A merger could do that. Reorganization under BK is not currently possible today because they're is no one out there to invest in this business (or any business for that fact). All the big Wall Street banks are in the middle of staving off BK themselves, so there is no money there either.
A merger could generate enough cash/investment until fares/fuel prices come more into balance. The government may step in, but that's long shot. JMHO.
A merger could generate enough cash/investment until fares/fuel prices come more into balance. The government may step in, but that's long shot. JMHO.
05-23-2008, 09:02 AM
#13
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05-23-2008, 09:11 AM
#14
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My sister is a director over at EXO (now called world headquarters). They held a senior staff meeting yesterday. She called my father in tears this morning, they're planning 25% management layoff, and if things don't improve by summer, UAL will be out of business.
This is no let's scare the employees into more givebacks strategy, there's nothing left to give back...
This is no let's scare the employees into more givebacks strategy, there's nothing left to give back...
05-23-2008, 09:18 AM
#15
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Joined APC: Mar 2007
Position: Sit down comedian.
Posts: 958
United is not the only one in trouble. Everyone has more money going out the door than coming in the door, and with no end is sight we are seeing airlines cutting operations, staffing, charging fees, whatever they can do to buy more time.
05-23-2008, 09:28 AM
#16
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Thread Starter
Joined APC: May 2008
Position: Hotel
Posts: 714
The thought of 60,000 people and a great airline tubing makes me feel sick. I not only feel for that gal calling her Dad in tears, my thoughts go out to those raising kids or that have a sick spouse at home. Sometimes I wonder if this industry is worth 5 minutes of enjoyment I get out of each visual approach.
05-23-2008, 09:40 AM
#17
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Position: 757/767 FO
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- They have (IMHO) the best route structure in the entire airline industry.
- They have some of highest yield hubs in the industry (IAD, ORD, SFO, LAX, DEN)
- They have the most of the most profitable Asia flying.
- They have the most profitable frequent flyer program.
- They have 3 billion dollars in cash, and do own approximately 100 of their aircraft (assets).
- They have one of the newest fleets of the legacies (I think they are 2nd behind CAL, with a new fleet comes lower maintenance costs and lower fuel burn).
- No new aircraft on order.
All this going for it (most from good decisions made a generation or two ago) and their current management has still run it into the ground.
But the executives will still get paid, no matter how many people they put on the streets.
05-23-2008, 10:15 AM
#19
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No new aircraft on order. People rag on UAL all the time for this, but I think this is a smart move. UAL is the biggest supporter of industry mergers. Tilton has said no aircraft orders until they find a merger partner. That is a very smart move (rather than merging, and between the two merging airlines having A350's, 787's, A380's, and 737NG's on order). Wait until they merge, then I think you will see lots of orders from United.
Are you sure you this isn't Tilton posting as you're thinking is as warped as his is?
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