United's Future

[captjim]

What do you think?

 

[Sphincter Boy]

Complete liquidation.

 

[dgs]

I wish it wasn't so, I've got some good freinds who work there. Unfortunately, I think parts of the company are so dysfunctional and the creditors are so hungry to slice it up, that the decision will be out of their (United's) control.

 

[skyking1976]

Maybe I'm looking at it all through rose colored glasses, but I believe that UAL will continue on. Their capacity, however, will be limited to high density, domestic long-haul, and trans-oceanic international flights.

Skyking

 

[trigeek]

I know the sharks are circling but I think United will pull out of it. It is a question of how they incorporate their low cost carrier into the mix to feed their International and long haul ops. They are running out of time to get their act together. I wish them the best.

 

[General Lee]

Unfortunately United cannot hedge fuel (or pre-buy at a set amount) now and must pay at a walkup rate. Oil now costs over $35 a barrel---which equates to about $1.15 a gallon. I believe the price jumped today a full $1 a barrel after that New York Gas tank explosion--because that barge was unloading 4 million gallons of Aviation fuel for the NYC airports. So, if that is true---oil is now over $37 a barrel. Most major airlines are hedged--like Delta--which is currently hedged for 65% of its fuel at about 75 cents a gallon thru June, then 50% hedged after that. That buys them time. This Iraq crisis, combined with the Venezuealan fiasco has not helped any of this. I hope the war is quick.

Bye Bye---General Lee

 

[banned username 2]

I believe the price jumped today a full $1 a barrel after that New York Gas tank explosion--because that barge was unloading 4 million gallons of Aviation fuel for the NYC airports.

Wow... lets keep the story straight folks...

it wasn't "4 million gallons of Aviation Fuel" it was "100,000 barrels of unleaded gasoline"

"The barge was in the process of unloading 100,000 barrels of unleaded gasoline, said company spokeswoman Tracy Mason. The explosion occurred at 10:10 a.m. EST."

http://www.cnn.com/2003/US/Northeast/02/21/staten.fire/index.html

 

[ifly4food]

Everyone go read the recover plan that's been posted above before you answer..
They seem to have a solid, well researched plan.
If they can actually pull off what they're proposing, I see them coming back a lot smaller and much more profitable.

 

[General Lee]

Fox News initially reported the Avgas story--so sorry. (Fuel prices did jump $1 a barrel within seconds of people learning that---and that is a fact)

As far as their recovery plan, they first have to pay for their gas bills, and the costs are mounting. They do not get to abstain from paying for gas, and the judge cannot help them hedge. They probably have a great plan, but will they be able to use it?
They are still burning $10 million a day---or $280 million this month. (Continental is burning $1.5 million a day) Next month we probably will go into Iraq. Can United handle it all? I don't know, and it really is sad. I have plenty of friends there.

Bye Bye---General Lee

 

[witchdoctor]

They will make it. albeit as some alter ego of their former selves. I can't say the same for AAL however.