ba747
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UAL To Pull Out Of Chapter 11 In February

Sun Jan 22, 2006 9:52 am

I read in a local newspaper today at CCS that UA is coming out of chapter 11 sometime in February. They will restructure the company to make it profitable again. Good news. Does that means that we will probably see them flying again to CCS from MIA and NYC? I hope so.

Saludos

Alex
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mcdu
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RE: UAL To Pull Out Of Chapter 11 In February

Sun Jan 22, 2006 9:56 am

If we come back to CCS it will most likely be from IAD or ORD. The JFK and MIA markets were drawn down to concentrate on the hubs during bankruptcy. There was just not enough feed at the end of those flights in the states so if any new international flying is commenced it would be from one of the hubs.

Cheers
 
UAPremierGuy
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RE: UAL To Pull Out Of Chapter 11 In February

Sun Jan 22, 2006 10:03 am

Um, have you been under a rock? This is old news...
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StevenUhl777
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RE: UAL To Pull Out Of Chapter 11 In February

Sun Jan 22, 2006 10:32 am

Quoting BA747 (Thread starter):
They will restructure the company

Perhaps you're not a native English speaker, so I will go easier on you than UAPremierGuy did...  Yeah sure

UAL has spent the last three years restructuring, and to some extent, they will continue doing so after they reemerge (legally speaking) from court protection. Companies that want to stay in business and remain profitable have to constantly restructure in order to maximize profits.

Quoting BA747 (Thread starter):
Does that means that we will probably see them flying again to CCS

Never say never, but given the political situation in your country, and the fact that UAL doesn't have a lot (if any) extra aircraft to resume service to CCS anytime soon. UAL is focusing on routes that show the greatest profit potential, rather than just for prestige. About time, if you ask me.
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LTU932
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RE: UAL To Pull Out Of Chapter 11 In February

Sun Jan 22, 2006 10:39 am

Any word on how they did during the confirmation hearing? If the judge approved the reorganisation plan, then UA coming out of Chapter 11 is imminent.
 
tozairport
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RE: UAL To Pull Out Of Chapter 11 In February

Sun Jan 22, 2006 11:01 am

Quoting LTU932 (Reply 4):
Any word on how they did during the confirmation hearing?

The judge approved it. CH 11 exit is slated for Feb. 1st as long as no creditors appeal the judges decision.
Meet the new boss, same as the old boss.
 
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LTU932
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RE: UAL To Pull Out Of Chapter 11 In February

Sun Jan 22, 2006 11:16 am

Quoting Tozairport (Reply 5):
The judge approved it. CH 11 exit is slated for Feb. 1st as long as no creditors appeal the judges decision.

Thanks for the update, and good luck to UA for the future!
 
iowaman
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RE: UAL To Pull Out Of Chapter 11 In February

Sun Jan 22, 2006 12:07 pm

I'll believe it when I see it.
 
FriendlySkies
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RE: UAL To Pull Out Of Chapter 11 In February

Sun Jan 22, 2006 12:54 pm

Quoting Tozairport (Reply 5):
The judge approved it. CH 11 exit is slated for Feb. 1st as long as no creditors appeal the judges decision.

That's unlikely, considering the creditors committee overwhelmingly approved the plan, and withdrew all objections prior to the confirmation hearing. There are ZERO obstacles now preventing UA from exiting.
 
AirRyan
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RE: UAL To Pull Out Of Chapter 11 In February

Sun Jan 22, 2006 1:35 pm

Quoting FriendlySkies (Reply 8):
There are ZERO obstacles now preventing UA from exiting.

I can think of one: sanctions and/or military action on Iran force the price of oil and thereby JET-A to skyrocket even higher than they were with the Iraq War.

Being that UA's business model hedges on what, $40 or $50 dollar barrels of oil (just closed at like $68/barrell,) UA could be screwed real bad, real quick. But that wouldn't just be UA, but NW and DL just as well would face near liquidation. In fact, as WN weens itself off of less and less fuel hedges the entire US commercial aviation market would tank which would nescessitate immense action from the White House and Capitol Hill to save the entire industry. Quite frankly, if Iran's #1 customer of oil in China were to suddenly re-circulate thier $800 billion in US currency at that same time as in to protest any action against Iran, it could all be the beginning of the end - all starting with the US commercial airline industry! (Sounds like a new Tom Clancy novel, eh?!  Smile )
 
FriendlySkies
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RE: UAL To Pull Out Of Chapter 11 In February

Sun Jan 22, 2006 1:48 pm

Oil prices may screw up UA's plan for operation outside of bankruptcy (though I believe they have contingency plans for prices up to $75/barrel), but it won't delay their exit in less than 2 weeks.
 
tozairport
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RE: UAL To Pull Out Of Chapter 11 In February

Sun Jan 22, 2006 2:01 pm

Quoting Iowaman (Reply 7):
I'll believe it when I see it.

It'll happen, just as sure as the pimples on your face and the Playboy's between your mattress  biggrin  .

Quoting AirRyan (Reply 9):
Being that UA's business model hedges on what, $40 or $50 dollar barrels of oil (just closed at like $68/barrell,) UA could be screwed real bad, real quick. But that wouldn't just be UA, but NW and DL just as well would face near liquidation. In fact, as WN weens itself off of less and less fuel hedges the entire US commercial aviation market would tank which would nescessitate immense action from the White House and Capitol Hill to save the entire industry.

Or.... The carriers could just raise the airfares to pay for the gas. WN's hedges will run out eventually, and air fares will rise. If the US aviation industry hasn't collapsed yet with all that has happened, then I think it will make it through any oil spikes.
Meet the new boss, same as the old boss.
 
AirRyan
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RE: UAL To Pull Out Of Chapter 11 In February

Sun Jan 22, 2006 2:20 pm

Quoting Tozairport (Reply 12):
The carriers could just raise the airfares to pay for the gas.

The legacy carriers have been trying that for over the last decade! Legacy carriers finnally got HP/US to accept a $5ow/$10rt fare increase this last week but they are still waiting to see what the other LCC's do before even that fare hike will increase; they didn't take a fare increase as late as just two weeks ago.

The facts of the matter are that WN could raise their rates 25% and the legacy carriers would still have trouble turning a profit at those rates. I like WN as well as anyone but they opened a pandora's box for commericial airline travel in the United States and the jury is still out as to just how the US airline industry on a whole will pan out in the next decade because of it: oil is the number reason for their ills.

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