UAL/CAL Holdings gets nearly one $billion for bag fees

[densoo]

http://www.click2houston.com/travelgetaways/26121615/detail.html

Yet another billion dollars for an industry leading contract.

 

[JUNK YARD DOG]

http://www.click2houston.com/travelgetaways/26121615/detail.html

Yet another billion dollars for an industry leading contract.

All I can hear Frank Tilton and Jeff Lorenzo counting there money!!!

 

[list2002]

All these great reports and releases, yet the stock is still lower than pre-merger.

 

[JI Gone OH]

Yet another billion dollars for an industry leading contract.

It kind of reinforces the whole FUPM campaign, doesn't it? I can't wait to hear how Jeff tries to spin it that Continental is still at a "competive disadvantage" for not having the E-170's (or any 70 seat jet for that matter)at the regional level and how he can't "afford" to bring them on at the mainline level. $922 million so far this year? Sounds like a pretty good down payment on some E-170's to me. The only "competitive disadvantage" we have is that we have the most arrogant, self-serving, highest paid CEO in the business...

 

[SFR]

Cool, good management decision deciding to charge for bags.

That is good business for you non business thinking pilots...

 

[1st Rate]

Good for UAL! It's about time they start charging for the product!

 

[jonjuan]

Good for reducing their massive debt load. Have u seen their balance sheet lately? Yikes.

 

[bluefin]

Have you seen the balance sheet for the United States? YIKES

 

[densoo]

DAL had just come out of bk and merged with NWA and the pilots got $650M put into escrow, paid when they merged--all of it borrowed money. They can pay anything they want, anytime they want. It's just a matter of making them want.

 

[densoo]

$15B net profit

The International Air Transport Association revised its industry outlook for 2010 to a net profit of $15.1 billion, substantially higher than its forecast in September of $8.9 billion. It also raised projections for 2011, to a net profit of $9.1 billion from $5.3 billion.

The increase for 2010 was “based on an exceptionally strong third-quarter performance,” Giovanni Bisignani, director general and chief executive of the transport association, said.

http://www.nytimes.com/2010/12/15/business/global/15air.html?_r=1&scp=2&sq=airlines&st=cse

There is an unimaginably large pool of money out there to pay back the loan of the last decade, across the entire industry. The boom-bust is boom right now and if it can't be restored now, it never will be.