BestWestern From Hong Kong, joined Sep 2000, 6784 posts, RR: 57 Posted (9 years 7 months 16 hours ago) and read 2677 times:
Londons Financial times today reports a new hole in the United finances that threatens its survival
"The crisis comes as the Air Transportation Stabilisation Board, the federal body set up after September 11 to aid the airline industry, is preparing to decide on whether to grant United a $1.6bn loan guarantee."
"If the ATSB says no, United faces an uncertain future as it has few other sources of financing available to help it come out of bankruptcy."
Uadc8contrail From United States of America, joined Sep 2003, 1782 posts, RR: 10 Reply 3, posted (9 years 7 months 11 hours ago) and read 2345 times:
$776 mln hole in UALs finances due to what????FUEL....ua like most other carriers have big fuel costs now, im sure this will launch gerrys p.r. guys in atl to get the word out that without cuts from the pilots soon they could go the the courthouse in atl. WN is the only carrier i know of that has hedged its fuel.
Elwood64151 From United States of America, joined Feb 2002, 2477 posts, RR: 6 Reply 5, posted (9 years 7 months 11 hours ago) and read 2209 times:
Not quite. WN has its fuel hedged roughly 80%. That's different from being the only airline that is "hedged." CO has roughly 35% of its fuel hedged, and other airlines also have taken up this practice, though to lesser degrees.
As for UAL being doomed? I'd say US is the carrier to watch, actually. UA only if its situation does not improve over the next year.
Those who fail to learn history are doomed to repeat it in summer school.
Flyf15 From , joined Dec 1969, posts, RR: Reply 7, posted (9 years 7 months 9 hours ago) and read 2025 times:
The ATSB was created to help out the airlines right after 9/11. Am I the only one not exactly happy that tax dollars are still being spent, almost 3 years later, to help out airlines with failing business plans that have almost nothing to do with 9/11?
Uadc8contrail From United States of America, joined Sep 2003, 1782 posts, RR: 10 Reply 8, posted (9 years 7 months 9 hours ago) and read 1961 times:
what tax dollars are going to be spent?????the a.t.s.b. is cosigning on the proposed loan, that means if ua/us or any other carrier that has loans that are not repaid then you and i will be footing the bill.
Artsyman From United States of America, joined Feb 2001, 4745 posts, RR: 36 Reply 9, posted (9 years 7 months 8 hours ago) and read 1961 times:
Not quite. WN has its fuel hedged roughly 80%
Yes, but they are still hedged at a really high price, just not quite as high as everyone else. People always assume that when "hedged" that airlines are all of a sudden paying peanuts for fuel. Airlines buy fuel in advance and take a chance on the price going up or down, but fuel has been high for a long, long time now, and WN while hedged, still hedged at a real high rate.
If fuel prices were to drop today down to $28 bucks a barrel, WN would still have to honor their hedged purchase, and would be paying way more than they could be.
B747-437B From , joined Dec 1969, posts, RR: Reply 10, posted (9 years 7 months 8 hours ago) and read 1951 times:
Am I the only one not exactly happy that tax dollars are still being spent
Not to defend UA's business plan (or lack thereof), but the ATSB does not spend any tax dollars (beyond the typical bureaucratic administrative costs). They simply provide collateralized loan guarantees to airlines. The actual money comes from commercial lenders.
Usatoeze From United States of America, joined Feb 2004, 358 posts, RR: 2 Reply 13, posted (9 years 7 months 4 hours ago) and read 1673 times:
UA's problems are much deeper than 9/11, and they, as all airlines, should deal with it in that context or go the way of the dinosaur.
Most airlines will, unless they change their business plans. Loans and Ch. 11s are just buying them more time.
The sad thing about UA in CH 11 is that United is another airline trying to be all things to all people, instead of focusing on its core customer base. If DL goes into CH. 11 it will also be because of trying to be all things to all people without finding its niche within the industry. UA's core customers used to be the business traveler, but even before 9/11 business travel was slowing down and yet UA failed(Because of many reasons) to adjust and keep pace. I love UA, but unless the world economy develops at an unbelievable pace I feel like ultimately they are doomed to fail because there are superior domestic options as well as superior foreign options. I wish them luck.