UAL chapter 11

TurboS7

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I saw on another board that UAL was going to file Chapter 11 at the end of this week. Anyone heard anything about that.
 

I.P. Freley

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Sounds like baseless rumor-mongering to ME, but what do I know? I can't find a job to save my life. :)
 

1900laker

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Last I had heard, they had enough funds and loan guarantees to carry them through the summer at least. But who knows, I could be wrong.
 

TurboS7

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With renewal of a pilot contract looming if they went Chapter 11 they could enforce emergency work rules and bend the contract to whatever they would need. Guess we'll see.
 

dashtrasher

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Loan guarantees? I thought only AWA and Vangaurd had applied for them?
 

TurboS7

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Right now UAL is loosing 16M per day. Even the greatest of loan guarentee's isn't going to help you.
 

skykid

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UAL Chapter 11

TurboS7 - I had to jump in here on this one. I don't know how much money UAL is losing a day. I bet very few people do. 16 mil a day? Maybe back in Sep or Oct, but not today. UAL has not taken any government loans. UAL pilots are in not even close to being up for a new contract. Bankrupt on Monday? I'm not going to pretend to know the answer to that. Here's what I do know. Pres Bush appointed a three member Pres. Emergency Board. They listened to United Mgt talk for two days about how the rough shape of the company. Then IAM 141M got to talk for two days pleading the case for a raise for mechanics. The PEB then recommended a 37% raise. Would you recommend that kind of wage increase for a company about to go bankrupt? Can a company with 3 billion (according to the Wall Street Journal) in liquid assets even go bankrupt? Has United repeatedly said in the press - as late as last weekend - that bankruptcy is not being considered now, so they can look stupid next Monday? My guess is probably not.
 

RueterF16

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I was in a class of 6 at Midway who were told they were financially stable too...... $ 16 million a day is about right for the size of airline they are....
 

ifly4food

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You think just maybe this rumor you've bought could be one last desparate attempt to influence the PEB?
 

hawkerjet

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I also heard that rumor out here in LA and I heard it from a furloughed United pilot. Maybe he was disgruntled,I don't know, but they are also looking for a buyer for their fractional start up, Avolar.
 

sydeseet

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They aren't looking for a buyer for Avolar, just another investor. "Risk sharing" is a standard way to fund an undertaking like Avolar. Let's all remember that there is hardly a major airline flying that hasn't been on the brink of Chapter 11 before. They will get through it, but a 37% raise on behalf of the mechanics is probably not a step towards recovery. Raises period are out of the question for any of us, I just want my job back.............
 

TurboS7

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All I have done is repeat facts that were presented on another board. There were also many rumors from employee's posted etc. I did not repeat that, I was just asking if anyone else had any more information. Thanks for your input.
 

1900laker

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Hey sydeseet,


Raises period are out of the question for any of us, I just want my job back.............
Shhhhhhh dude. Careful how you say that. You are being recalled, and from all the inside info, we aren't doing that bad. That's why they couldn't justify keeping that pay cut around for more than 2 months. So it kind of depends on the situation of your company and whether you are making money. I would agree however that many of the majors are in financial trouble, so a big pay raise SEEMS to be out of the question for any of their labor groups right now. But Mgmt has a way of making their bottom lines look bad around contract time anyway. Delta was famous for showing a loss on paper when in truth, they were making record profits quarter after quarter. They were taking the profit and expanding the airline, calling this a restructuring expense. I find it strange too, that companies are not divulging just how much help they got from the Gov't. (ours included). You should have seen the CFO explaining the scenario in such a way as to completely leave out any shred of evidence as to how much we got other than to tell us that we did get some. It reminds me again why I wanted to be a pilot and not a pencil pusher.
 

A1FlyBoy

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UAL

Consider the source of information, especially from message boards. While this may be the finest board I've found to date, things written from those not in the know may have some basis, but are usually unfounded. UAL is NOT going to file Chapter 11 and will make it through these turbulent times. Support UAL and buy some stock or write them for an Annual Report and keep up with the WSJ, NY Times, and Chicago Tribune.
 

MartinFierro

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I have no clue about the validity of UAL filing chapter 11 or what not. I personally find it hard to believe UAL is in that serious trouble. But, at the same time, back in the day, who would have ever thought that there would be no more Pan Am or Eastern? How things change....
 

SaifAir

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I read in the Wall Street Journal that they had enough cash until mid March.

Who Knows until it happens.....
 

flydog

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If you take a look at the latest SEC findings you will see...

UAL has assets of 5.6 billion + inventory of 300 million for a grand total of about 6 billion in assets

They have debt of 8.3 billion. This is about 2.3 billion in the hole

As far as cash on hand it is close to 300 million and they are losing 2.3 million per day. This is about 4 months of working capital

Obviously short of turning a profit the only way to continue to operate is to borrow more money
 

MsFan

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Yeah, but would you loan them money right now? I wish them luck because UAL going down would be bad for all of us. But they seem to be running out of aces pretty quick.
 

TacoTurbine

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Yes.
UAL

According to "Union Sources", from the mouth of Jack Creighton:

IF the mechanics strike: Chapter 11

IF concessions cannot be worked out: Chapter 11

IF revenues do not continue to improve: Chapter 11

Apparently it was presented in a non-threatening, matter-of-fact way.

But look, Chapter 11 is "reorganization" and many airlines have emerged from this before. Ugly yes, but not the end of the road. I personally think it won't come to that; but it absolutely could.

Keeping the faith,

Taco
 
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