hoya
Posts: 453
Joined: Wed Jun 23, 2004 2:25 pm

UA To Be "guiding Light" For DL, NW

Sat Sep 17, 2005 7:02 am

Hello all,

Just came across an interesting article on MSNBC. It basically says that UA's bankruptcy process will be the model DL and NW will try to pursue, calling UA at one point the 'bankruptcy leader.' Some facts they list from UA's bankruptcy:

10 fleet types reduced to 5
UA fleet reduced from 567 to 455
Half of passenger revenue is from international routes

Also, one analyst predicts that NW's bankruptcy will be similar to US's first one, meaning NW should emerge in about 8 months.

http://www.msnbc.msn.com/id/9369497/
Hoya Saxa!!
 
AirRyan
Posts: 2398
Joined: Wed Mar 30, 2005 9:57 am

RE: UA To Be "guiding Light" For DL, NW

Sat Sep 17, 2005 7:11 am

Quoting Hoya (Thread starter):
Also, one analyst predicts that NW's bankruptcy will be similar to US's first one, meaning NW should emerge in about 8 months.

I would agree that NW will be the first to emerge between they and DL but unlike US's first Ch11 filing NW will not be back in BK court anytime soon after that.

As for the rest of the article I agree - both will be able to take the lessons learned from UA's Ch11 filing and make effienct use of the legalities available to them. I think DL will emerge perhaps a little sooner than UA and while there is a chance they don't come out I think it is slim. NW is in a much stronger posistion entering into Ch11 here and think they will be one of the strongest airlines upon emergence out of the BK protection.
 
srbmod
Posts: 15446
Joined: Tue Mar 20, 2001 1:32 pm

RE: UA To Be "guiding Light" For DL, NW

Sat Sep 17, 2005 12:18 pm

Oh so they'll spend about three years before emerging from CH. 11 protection?  duck 

Quoting Hoya (Thread starter):
Also, one analyst predicts that NW's bankruptcy will be similar to US's first one, meaning NW should emerge in about 8 months.

And will they follow US's path and file again in a year or so?  duck 

In all honesty, holding UA up as the example to follow is not too clever. While some of the things they are doing can serve as a model for them, some of the bankruptcy law reforms (especially for corporations) can be attributed to United's protracted bankruptcy. Typically, if a company in most industries stays in CH. 11 more than 18 months, CH. 7 soon follows.
 
StevenUhl777
Posts: 3281
Joined: Sun Jul 08, 2001 11:02 am

RE: UA To Be "guiding Light" For DL, NW

Sat Sep 17, 2005 1:27 pm

Quoting Hoya (Thread starter):
Just came across an interesting article on MSNBC. It basically says that UA's bankruptcy process will be the model DL and NW will try to pursue, calling UA at one point the 'bankruptcy leader.'

In more ways than one, United Airlines is a true pioneer and trailblazer in the airline industry. To quote the license plate frame: lead, follow, or get out of the way... Wink

Quoting Srbmod (Reply 2):
And will they follow US's path and file again in a year or so?

Depends all on the cardinal rule of Ch. 11: Don't leave a penny of potential cost savings on the table. Don't leave a day too early or a day too late. How you determine when that day comes depends on how well you know your (and that of your competition) business... Wink

Personally, as a life-loyal UA fan, I'm cheering 110% for Delta !!!!!
And the winner for best actress is....REESE WITHERSPOON for 'Walk the Line'!!!!!!!!

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