yeah, right....

[a320drivr]

UAL poised to emerge from bankruptcy “obscenely strong”

Robert P. Mark
1/6/2006​

Analysts say United Airlines' parent, UAL Corp., is perhaps just weeks from ending a three-year stay in bankruptcy and should emerge strong. But they also warn the hurdles are far from over for the carrier, including high fuel costs and a high debt load.

Bill Warlick, an analyst at Fitch Ratings added that United is set to emerge only with the aid of $3 billion in exit financing, which represents a big claim on the company's cash flow. "Obviously, there's a requirement that United will have to sustain strong operating performance for an extended period to service those obligations," Warlick said.

Some analysts see good things ahead for United, which used its time in bankruptcy to cut costs by $7 billion, restructure contracts with its United Express unit and dump its underfunded pensions.

"Fundamentally, the airline is obscenely strong. The future belongs to legacy carriers like United," airline consultant Michael Boyd said.

But he tempered his optimism for the airline, noting that United's plan assumes an average cost of $50 per barrel of oil over the course of the plan -- 2006 to 2010. Some analysts believe that forecast is unrealistically low, considering that NYMEX oil futures currently are trading above $62 a barrel. "They have a track record of putting out happy numbers," Boyd said.

 

[RJ_Driver]

I'm just waitin' for the "Now we're gonna buy CAL" clowns to come out of the woodwork.

 

[Whale Rider]

United Airlines to emerge stronger from bankruptcy-analysts CHICAGO (Reuters)

-United Airlines' parent, UAL, perhaps just weeks from ending a three-year stay in bankruptcy, is poised to emerge strong, but analysts warn that fuel costs and a high debt load still present high hurdles for the No. 2 U.S. carrier.
UAL last week got the green light from creditors to proceed with a reorganization plan. The plan still needs court approval and airline managers must address lingering objections.
Nevertheless, analysts are confident that United will indeed leave court protection in February after missing previous timetables for exit.
"It looks like the last hurdles are something they can get over here," said Bill Warlick, an analyst at Fitch Ratings.
He noted, however, that United is set to emerge only with the aid of $3 billion in exit financing, which represents a big claim on the company's cash flow.
"Obviously, there's a requirement that United will have to sustain strong operating performance for an extended period to service those obligations," Warlick said.
United entered Chapter 11 protection from creditors in December 2002, hammered by low-cost competition and sagging travel trends due to concerns about terror attacks and SARS.
Today, United and the airline industry remain under pressure as they face soaring fuel prices and low-fare competition that makes it difficult for airlines to pass their expenses on to customers.
United will seek court approval for its reorganization at a hearing scheduled to begin on Jan. 18. The carrier faced about 50 objections to its plan in mid-December.
Chief among those objecting were creditors and labor groups who disapprove of an incentive plan that would grant the airline's management 18.75 million shares, or 15%, of the restructured United.
The airline has said it hopes to resolve as many objections as possible before the hearing begins.
Better times ahead
Some analysts see good things ahead for United, which used its time in bankruptcy to cut costs by $7 billion, restructure contracts with its United Express unit and dump its underfunded pensions.
"Fundamentally, the airline is obscenely strong. The future belongs to legacy carriers like United," airline consultant Michael Boyd said.
But he tempered his optimism for the airline, noting that United's plan assumes an average cost of $50 per barrel of oil over the course of the plan — 2006 to 2010. Some analysts believe that forecast is unrealistically low, considering that NYMEX oil futures currently are trading above $62 a barrel .
"They have a track record of putting out happy numbers," Boyd said.
Boyd also criticized United's management team led by Chief Executive Glen Tilton. He said the airline's leaders lack creativity and direction. United has yet to fully exploit opportunities on profitable Asian routes, Boyd said.
Tilton, however, has dismissed such criticism, saying cost cutting and product diversification is the key to survival.
"Our commitment to reduce unnecessary costs, at the same time that we are improving revenue by focusing on our customers and differentiating our products and our services ... is moving United in the right direction," Tilton said this week in a recorded message to employees.
"Are they going to be hugely profitable? No, not now because of the way fuel is," Morningstar equity analyst Chris Lozier said. "They're going to be strong enough to live to see better fuel prices and future profitability as the cycle strengthens."

Hope its true......the industry needs somethng.

 

[P-Dawg_QX]

When labor costs half as much now as it did 4 years ago, is it really a surprise that you're going to "emerge stronger"?

 

[dogg]

If you are stoned enough to believe that labor had anything to do with that steaming pile of dung called United filing for bankruptcy

 

[P-Dawg_QX]

Not saying that it was the cause of their filing, simply that their labor costs are just a taaaaaaad bit less now than they were.

 

[Draginass]

Unfortunately, UALs leadership and management is just as stupid and venal as ever. They're just milking the cow for a while longer.

 

[elag777]

Michael Boyd AKA not too bright...

 

[koko nw]

I'm just waitin' for the "Now we're gonna buy CAL" clowns to come out of the woodwork.

Continental chief touts United combo
No talks in works; United sees industry `benefit' in mergers

Bloomberg News
Published December 9, 2005


NEW YORK -- The flight networks of Continental Airlines and United Airlines would make a "knock-em-dead combination" if the carriers were to merge, Continental Chief Financial Officer Jeff Misner said.

Continental prefers to stay independent, Misner said, and a United spokeswoman said it hasn't made any offer for Continental.

If United were to offer a "bucket of dough," Continental would consider it, Misner told an investors conference Thursday. "We're not going to sit by and have the world rush by."


I believe it was YOUR CLOWN who first proposed it.

 

[GuppyWN]

United can do no wrong in the eyes of Michael Boyd. This guy loves anything United and rips everyone not United.

Gup