KarlB737
Topic Author
Posts: 2635
Joined: Sat Mar 20, 2004 9:51 pm

United Creditors Want $ Paid Out To Air Wisconsin

Fri Apr 01, 2005 6:41 am

Courtesy: Pittsburgh Post-Gazette

http://www.post-gazette.com/pg/05090/480273.stm
 
FriendlySkies
Posts: 3540
Joined: Fri Aug 13, 2004 3:57 pm

RE: United Creditors Want $ Paid Out To Air Wisconsin

Fri Apr 01, 2005 6:47 am

Yet another twist on Mr. Tilton's wild ride...but this time UA seems to be the good guy and AWAC the bad. That's if I read the article right. Seems like UA's creditors are trying to make sure their money ("UA" money) doesn't get paid to AWAC if AWAC doesn't do what it got paid for.
 
avek00
Posts: 3160
Joined: Mon Oct 25, 2004 5:56 am

RE: United Creditors Want $ Paid Out To Air Wisconsin

Fri Apr 01, 2005 7:05 am

IANYAL, but United has an extremely difficult case to make, and I doubt that they will prevail.

1. Air Wisconsin has done nothing wrong unless there was contractual language present which extended the duty of good care to a prohibition against working with United competitors. This seems unlikely, given that AWAC has done flying for other airlines while offering commuter services to United.

2. There is no unjust enrichment issue present. United received a benefit from the Air Wisconsin contract in the form of continued (and indeed, expanded after ACAI left UAX) flying in exchange for the consideration provided to AWAC in the form of bonuses.

3. United's failure to anticipate a prolonged stay in bankruptcy does not create any sort of obligation on Whisky's part, nor does it raise any issues of unconscionability with the AWAC contract itself. The parties had equal bargaining power and access to pertinent information at the time the contract was formed.

In short, it's United and its creditors posing as the bad guy while AWAC is the good guy who has done nothing wrong.
Live life to the fullest.
 
jetdeltamsy
Posts: 2688
Joined: Tue Nov 14, 2000 11:51 am

RE: United Creditors Want $ Paid Out To Air Wisconsin

Fri Apr 01, 2005 7:20 am

i think for UA to want money back is ridicilous.

Air Wis earned the money per the contract.
Tired of airline bankruptcies....EA/PA/TW and finally DL.
 
UAL Bagsmasher
Posts: 1839
Joined: Wed Sep 08, 1999 12:52 pm

RE: United Creditors Want $ Paid Out To Air Wisconsin

Fri Apr 01, 2005 7:35 am

You have to remember that this is the way UA operates, ass backwards. Then they wonder why they are in BK going on 3 years.
 
AV8terORD
Posts: 7
Joined: Sat Jan 08, 2005 4:40 am

RE: United Creditors Want $ Paid Out To Air Wisconsin

Fri Apr 01, 2005 9:27 am

I think the biggest issue is whether we (AWAC) used the 90M from United (which is supposedly sitting in an Escrow account) to fund the 125M given to US, of which US has already received 75M. If this is true, then our company is dumb and probably are the bad guys. If AWAC's loan to US was from seperate funds, then screw United, its our money if they cancel the contract, and THEY are the bad guys. I'm PRAYING our company didn't jeopordize everything by using "United's money" to prop up US.  Sad
 
PSU.DTW.SCE
Posts: 6118
Joined: Mon Jan 28, 2002 11:45 am

RE: United Creditors Want $ Paid Out To Air Wisconsin

Fri Apr 01, 2005 10:14 am

This is like a bad Jerry Springer episode......

United issues and RFP, forcing AWAC to put in a bid in to save their flying.
United threatens to drop AWAC.
AWAC goes and props up US, and hopes to secure additional flying for them
AWAC may or may not have used $ from United
United & US have a codeshare argeement and attempted to merge not so long ago
United & US are both in Ch. 11
AWAC may or may not have seriously ticked off the hand that currently feeds them.

Seriously, how much more messed up can these situations get?
 
uadc8contrail
Posts: 1636
Joined: Thu Sep 11, 2003 1:23 am

RE: United Creditors Want $ Paid Out To Air Wisconsin

Fri Apr 01, 2005 5:36 pm

Id be willing to bet that ual knew what was going on from the get go and some how the word got out.....and ual had to react as if this they had no knowledge of it....did whq "forget"that they were paying zw more than what was agreed to ?????(gentlemans handshake)ual and awac are just as guilty as ual was the pimp and awac was just doing what it was told to do until their little secret wasnt a little secret anymore.....
bus driver.......move that bus:)
 
PlanesNTrains
Posts: 5494
Joined: Tue Feb 01, 2005 4:19 pm

RE: United Creditors Want $ Paid Out To Air Wisconsin

Fri Apr 01, 2005 5:43 pm

Quoting PSU.DTW.SCE (Reply 6):
United issues and RFP, forcing AWAC to put in a bid in to save their flying.
United threatens to drop AWAC.
AWAC goes and props up US, and hopes to secure additional flying for them
AWAC may or may not have used $ from United
United & US have a codeshare argeement and attempted to merge not so long ago
United & US are both in Ch. 11
AWAC may or may not have seriously ticked off the hand that currently feeds them.

Boy, I can't understand why DH chose to go it alone  Smile

-Dave
-Dave