bobcat
Posts: 1141
Joined: Thu Jun 28, 2007 2:28 pm

UA Emails Customers About Possible Bankruptcy

Fri Aug 16, 2002 7:24 am

Just received this email from UAL... It sounds depressingly similar to
another email that I received from US Airways last month...  Sad


______________________________________________


Dear Mr. ******,

United Airlines has been in the news lately as we, and the
rest of the airline industry, grapple with how to respond to
the dramatic changes in our business environment as a result
of the economic slowdown. Because of your continued loyalty,
I wanted to share important steps our company is taking to
ensure that United continues to meet your needs in the years
to come.

Our efforts in the past 11 months have been focused on
bringing our costs in line with reduced revenues. While we
have made considerable progress, this week we announced we
are changing the company's business plan to build a stronger
and more competitive company. With the improvements, our
goal is to ensure we get the significantly broader, deeper
and longer-term cost savings we need to compete given the
new realities of the aviation industry.

Over the next 30 days we are intensifying our cost-cutting
efforts and presenting new proposals to our suppliers, union
leadership and employees. In the event we are unable to
reach agreement with our stakeholders on necessary cost
reductions, we are simultaneously preparing for the
potential of a Chapter 11 bankruptcy filing this fall. While
no decision has yet been made, we would consider
reorganization under Chapter 11 to ensure continued normal
business operations while we restructure our company.

Regardless of how we implement our cost reductions, you
should be confident that we will CONTINUE TO FLY A SAFE AND
RELIABLE AIRLINE, and you will continue to reap the benefits
of Mileage Plus(R) membership. WE WILL HONOR MILES PREVIOUSLY
EARNED IN MILEAGE PLUS, AND YOU WILL CONTINUE TO ACCRUE
MILES FOR TRAVEL ON UNITED AND OUR MILEAGE PLUS PARTNERS.

We are committed to building a stronger and more competitive
company that meets your needs today and for years to come.
We will keep you informed of our progress going forward. In
the meantime, on behalf of the 84,000 employees of United,
thank you for your continued loyalty and support.

Sincerely,

Chris Bowers
Senior Vice President
Marketing and Sales
 
aamd11
Posts: 867
Joined: Sat Nov 17, 2001 11:54 am

RE: UA Emails Customers About Possible Bankruptcy

Fri Aug 16, 2002 7:30 am

Hmmm...
you think then, based on the fact US Airways sent you the same sort of email 1 month ago, that UA will go into Chapter 11??
I wouldnt doubt it, thats the same thing we heard before, preparing for Chapter 11, just incase concessions cannot be made.

We shall see how it all unfolds over the coming week, fall isnt that far away now, and 30days will soon fly.

My money is on a Chapter 11 filing, and if that is the case, they will more than likely emerge from it.

Regards,
A^A MD-11
 
User avatar
EA CO AS
Posts: 13645
Joined: Wed Nov 14, 2001 8:54 am

RE: UA Emails Customers About Possible Bankruptcy

Fri Aug 16, 2002 7:34 am

Don't they have something like an $800 million payment due next quarter? That's the killer lurking in the wings, from what I've heard.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
donder10
Posts: 6944
Joined: Sun Oct 21, 2001 5:29 am

RE: UA Emails Customers About Possible Bankruptcy

Fri Aug 16, 2002 7:43 am

$800M for what?
 
aamd11
Posts: 867
Joined: Sat Nov 17, 2001 11:54 am

RE: UA Emails Customers About Possible Bankruptcy

Fri Aug 16, 2002 7:43 am

I'd guess thats why they have said 30days!
prepare for C11 just incase concessions are not made, and if they are not made, then go into C11 as soon as you can to avoid that killer payment!

Would make sense dont you think?
$800m is a hell of a lot of money to shell out in any case, let alone for a company in a state as Uniteds.

A^A MD-11
 
Guest

RE: UA Emails Customers About Possible Bankruptcy

Fri Aug 16, 2002 8:55 am

At least they're honest about their financial statement. It's good to see they're not the 2nd Worldcom or Enron.

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