keesje
Posts: 8598
Joined: Thu Apr 12, 2001 2:08 am

UAL Chapt 11 : Not Business As Usual :next Steps?

Tue Dec 10, 2002 12:56 am

Now that UA is chapter 11 and is still flying, what will the biggest consequences be domestic and international in the coming months ?

I fear employees will probably be hit first, their stock and probably their jobs & salaries.

1. Who is really in charge at UA under ch 11 and what can/can't he/she do ?
2. What were the most important reasons for UAL to avoid chapter 11 for he last few months ?
3. UAL is still burning millions a day, how will this be stopped in the coming months ?

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"Never mistake motion for action." Ernest Hemingway
 
FutureFO
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RE: UAL Chapt 11 : Not Business As Usual :next Steps?

Tue Dec 10, 2002 12:59 am

The airline will continue to fly as normal and will make cuts in the schedule in the next few months as well as staff reductions. And the Bankruptcy court will appoint an Overseer to watch the reoganization.
I Don't know where I am anymore
 
keesje
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RE: UAL Chapt 11 : Not Business As Usual :next Steps?

Tue Dec 10, 2002 1:34 am

United CEO Says Some Assets May Be Sold

"If they're more value to somebody else than they will be to the new United, then they're likely for sale"

http://biz.yahoo.com/rb/021209/airlines_united_ceo_2.html

.... and to be frankly, he doesn't have much choice anymore ..

Cash is King now.
"Never mistake motion for action." Ernest Hemingway
 
Greg
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RE: UAL Chapt 11 : Not Business As Usual :next Steps?

Tue Dec 10, 2002 1:41 am

They will probably start with maintainence facilities since there appears to be some redundancy---of course, the applicable number of machinists can also be made redundant.
 
UALPHLCS
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RE: UAL Chapt 11 : Not Business As Usual :next Steps?

Tue Dec 10, 2002 1:42 am

So long as we don't throw the baby w/ the bath water thats a good idea. For example: E-ticket. UA invented it, 20 some airlines use it, and pay royalties to UA for it including all of UA's US competitors. It would be silly to sell such a money maker. Especially considering that it cost nothing to maintain. UA services icluding DENTK should be maintained for thier money generating potential.
A little less Hooah, and a little more Dooah.
 
keesje
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RE: UAL Chapt 11 : Not Business As Usual :next Steps?

Tue Dec 10, 2002 1:56 am

Economic reality is that :

Money makers sell best

Nobody want's the old cows.

Choices have to be made.

"Reshaping" also cost's money.

If the e.g. boys from Minneapolis are at the table and have cash,

UAL is in no position anymore to set the agenda.

Hungry creditors are looking over their shoulder.
"Never mistake motion for action." Ernest Hemingway
 
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EA CO AS
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RE: UAL Chapt 11 : Not Business As Usual :next Steps?

Tue Dec 10, 2002 2:21 am

I'd bet UA's Latin America services will be the first to see a "For Sale" sign go up. They know enough not to let go of the Pacific or LHR operations, though. Those will likely stay intact, even if it means a total Chapter 7 shutdown and liquidation.
"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