UAL going out of business?
05-23-2008, 10:01 AM
#21
New Hire
Joined APC: Apr 2008
Posts: 7
The government has a lot more than airlines to worry about. The entire transportation infrastructure in the US is in danger of collapsing. If a carrier like UAL or any other major goes under, it will get a lot of lip service, but I don't really think the government can do much. Looks like OPEC is gonna finish the job that Bin Laden started.
05-23-2008, 10:06 AM
#22
I have shiny jet syndrome
Joined APC: Jan 2008
Position: ELACS, FACs and SECs. Who doesn't love 'em?
Posts: 984
The government has a lot more than airlines to worry about. The entire transportation infrastructure in the US is in danger of collapsing. If a carrier like UAL or any other major goes under, it will get a lot of lip service, but I don't really think the government can do much. Looks like OPEC is gonna finish the job that Bin Laden started.
05-23-2008, 10:07 AM
#23
Gets Weekends Off
Joined APC: Sep 2006
Position: B-737
Posts: 392
The government has a lot more than airlines to worry about. The entire transportation infrastructure in the US is in danger of collapsing. If a carrier like UAL or any other major goes under, it will get a lot of lip service, but I don't really think the government can do much. Looks like OPEC is gonna finish the job that Bin Laden started.
05-23-2008, 10:17 AM
#24
Gets Weekends Off
Joined APC: Feb 2006
Position: B-737NG preferably in first class with a glass of champagne and caviar
Posts: 5,995
The pin head in DC did not help matters by going into Iraq. Not that you can put a price on human life, but how much money has been spent with no end or return on cost in sight? We got bigger problems than airlines tanking, and it ain't gonna get any better any time soon. Since the Carter administration, never has any group of worthless politicians been so disconnected from reality. Well at least Dick "Gunner" Chaney and is friends, George and who? are making a bundle from the oil situation ala Haliburton. Lets all learn to tap dance.
Last edited by captjns; 05-23-2008 at 11:20 AM.
05-23-2008, 11:07 AM
#26
Gets Weekends Off
Joined APC: Mar 2008
Posts: 1,083
- 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. This is very important. Banks profit 1 billion dollars a year from this frequent flyer program, and you can bet they are willing to pump tons of money into UAL to make sure they stay alive. We saw this after 9/11. If anything, UAL can spin this off for a huge amount of money (I think they were talking 12-14 billion dollars by selling their frequent flyer program). Of course even after this sale, they would need to stay in business to keep the frequent flyer program valuable.
- They have 3 billion dollars in cash, and do own approximately 100 of their aircraft (assets).
- Would the US government let United go out of business. I doubt it. 60,000 jobs. The nations 2nd largest airline. Probably will not happen.
- 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. 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.
05-23-2008, 11:11 AM
#27
HOSED BY PBS AGAIN
Joined APC: Mar 2005
Posts: 1,713
I'd really love to see what all these "speculators" on Wall Street tell their loved ones when they go home at night after they've run oil up a few more dollars,screwed a few million more people in the USA, and helped the oil companies and OPEC some MORE. Personally I hope all the jerks end up homeless and in a sewer. They must be real proud of themselves.
05-23-2008, 11:27 AM
#28
A moment please...
Joined APC: Sep 2007
Position: Just passin' thru
Posts: 769
I think a Chapt 11 filing is imminent, probably shortly after the next earnings report in July.
05-23-2008, 12:03 PM
#29
Gets Weekends Off
Joined APC: Aug 2007
Position: A319 320 321 LEFT GOOOOOD
Posts: 377
The pin head in DC did not help matters by going into Iraq. Not that you can put a price on human life, but how much money has been spent with no end or return on cost in sight? We got bigger problems than airlines tanking, and it ain't gonna get any better any time soon. Since the Carter administration, never has any group of worthless politicians been so disconnected from reality. Well at least Dick "Gunner" Chaney and is friends, George and who? are making a bundle from the oil situation ala Haliburton. Lets all learn to tap dance.
You said it, oil rises and the pin head finances his war!!!!!!!!!!
05-23-2008, 12:13 PM
#30
Senior by choice
Joined APC: Mar 2008
Posts: 427
[quote=JetPiedmont;389374]The last bankruptcy UAL performed showed 2 Billion cash on hand at filing. As of the Q1 '08 earnings report, they showed 2.4 billion unrestricted cash, with .4 billion restricted, for 2.8 billion total.
This was with fuel prices being about 1/3 of what they are now...I'm sure the cash on hand required would be greater now...
This was with fuel prices being about 1/3 of what they are now...I'm sure the cash on hand required would be greater now...
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