Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR

 
VC10er
Topic Author
Posts: 4268
Joined: Tue Feb 20, 2007 6:25 am

UNITED: investments stopped and continuing

Mon Aug 31, 2020 9:28 am

I was on my way through EWR to LA, I departed from the concourse to the far left of the Polaris lounge. There are enormous plastic (floor to ceiling) construction barriers made of a very think plastic curtain, exactly where the elevator/escalators would be to the new rooftop United Club. And there was quite a bit of construction noise.
I would have assumed UA put a hold on the construction of that (rumored) big glass lounge, but has UA decided to keep going so it’s built and ready in a couple of years?

Prior to the pandemic UA was clearly spending more and more, investing throughout the net work. I would have assumed that most if not all of the NEW UNITED look and renovations would be put on hold. Or perhaps some already had been financed and accrued for. (Ex: the public bathrooms at EWR seem to still be getting their major renovations.

I’m curious what has been put on hold for another day, and which projects are continuing?

Thanks!
To Most the Sky is The Limit, For me, the Sky is Home.
 
User avatar
enilria
Posts: 10284
Joined: Fri Feb 22, 2008 7:15 pm

Re: UNITED: investments stopped and continuing

Mon Aug 31, 2020 1:09 pm

I don’t know about United but I think Delta has basically said they are only going forward with projects that can be done more cheaply during this time of reduced air travel. That includes things like the Salt Lake City terminal upgrade.

I think even that policy may be revisited.
 
MIflyer12
Posts: 8310
Joined: Mon Feb 18, 2013 11:58 pm

Re: UNITED: investments stopped and continuing

Mon Aug 31, 2020 1:15 pm

VC10er wrote:
I’m curious what has been put on hold for another day, and which projects are continuing?


U.S. carriers don't typically give much detail of annual capital spending. They'll give a range ('$4-$4.5 Billion next year') and some major elements: '$3 Billion in aircraft, $400 Million IT projects...'

You might observe some things that are stopped - as you did - and you might find some local news stories, but you won't get a comprehensive picture. AFAIK, no U.S. carrier has detailed aircraft delivery deferments with new dates by type, for example, and aircraft are commonly the biggest elements of capital spending.
 
DLASFlyer
Posts: 172
Joined: Wed Jun 15, 2016 4:06 pm

Re: UNITED: investments stopped and continuing

Mon Aug 31, 2020 1:16 pm

enilria wrote:
I don’t know about United but I think Delta has basically said they are only going forward with projects that can be done more cheaply during this time of reduced air travel. That includes things like the Salt Lake City terminal upgrade.

I think even that policy may be revisited.


Also the Skyway at LAX is forging ahead.
 
Nicknuzzii
Posts: 1249
Joined: Sat Sep 15, 2018 5:57 pm

Re: UNITED: investments stopped and continuing

Mon Aug 31, 2020 1:22 pm

I think they said they were suspending construction but that has probably since changed following DL’s speeding up of LGA.
 
DoctorVenkman
Posts: 216
Joined: Mon Mar 21, 2016 10:10 pm

Re: UNITED: investments stopped and continuing

Mon Aug 31, 2020 1:50 pm

The US3 are burning somewhere on the order of $20M-$30M in cash per day. This construction project is probably somewhere in the range of $50M-$100M over the course of a couple years. It's insignificant compared to their other expenses like fuel and payroll.
 
codc10
Posts: 2899
Joined: Sat Jul 08, 2000 7:18 am

Re: UNITED: investments stopped and continuing

Mon Aug 31, 2020 1:59 pm

Right now there is no construction activity in the space and I imagine that will be the case for the rest of 2020. I assume capital projects currently underway will be very conservatively managed in 2021 and suspended as necessary. Projects managed by airport authorities from which UA will benefit (EWR T1, DEN A/B concourse extensions) are continuing.
 
User avatar
vhtje
Posts: 1213
Joined: Sat Jan 10, 2009 12:40 pm

Re: UNITED: investments stopped and continuing

Mon Aug 31, 2020 2:13 pm

Even if UA wanted to, presumably for some projects contracts are in place with construction companies that would be difficult and/or expensive to break and/or defer - meaning the work has to go ahead regardless of the change in circumstances, because stopping it would prove even more costly.
I only turn left when boarding aircraft. Well, mostly. All right, sometimes. OH OKAY - rarely.
 
2175301
Posts: 1898
Joined: Wed May 16, 2007 11:19 am

Re: UNITED: investments stopped and continuing

Mon Aug 31, 2020 2:40 pm

In most cases, once a construction project gets past the planning and into the implementation phase... It's usually cheaper to just continue and finish it than suspend it and restart later or to just end it. Often projects may be slowed down a bit to eliminate any overtime or other things where extra charges are paid to keep a specific schedule; but, that's usually about all that can be done to reduce project cost.

Have a great day,
 
capitalflyer
Posts: 629
Joined: Tue Nov 16, 2010 2:43 am

Re: UNITED: investments stopped and continuing

Mon Aug 31, 2020 6:31 pm

I assume construction of the new C/D concourse at IAD is on schedule... :duck:
 
User avatar
airportugal310
Posts: 3670
Joined: Sun Apr 11, 2004 12:49 pm

Re: UNITED: investments stopped and continuing

Mon Aug 31, 2020 6:41 pm

DoctorVenkman wrote:
The US3 are burning somewhere on the order of $20M-$30M in cash per day. This construction project is probably somewhere in the range of $50M-$100M over the course of a couple years. It's insignificant compared to their other expenses like fuel and payroll.


Not only that, but these kinds of projects are usually paid back over the course of 20-30 years or more, depending on financing/lease arrangements etc etc etc...
“They bought their tickets, they knew what they were getting into. I say, let 'em crash.”
 
ikramerica
Posts: 15100
Joined: Mon May 23, 2005 9:33 am

Re: UNITED: investments stopped and continuing

Mon Aug 31, 2020 8:38 pm

Stopping construction can be expensive if your permits expire. Your project needs new approvals, codes may have changed requiring rework, materials meant to be covered are exposed for too long leading to degradation, etc.
Of all the things to worry about... the Wookie has no pants.
 
hondah35
Posts: 72
Joined: Wed May 16, 2007 1:55 pm

Re: UNITED: investments stopped and continuing

Mon Aug 31, 2020 8:55 pm

capitalflyer wrote:
I assume construction of the new C/D concourse at IAD is on schedule... :duck:


Yes I believe the targeted completion of March 2047 was reaffirmed
 
slcdeltarumd11
Posts: 4813
Joined: Fri Jan 09, 2004 7:30 am

Re: UNITED: investments stopped and continuing

Thu Sep 10, 2020 10:09 pm

I think united will be very tight on cash. However EWR needs a non Polaris Lounge, the current situation is dire for UA at EWR. That project is just needed and there happens to be space there and they've gotten approval and permits. They might make it less flashy but they need to make a lounge badly for EWR. That is not a flashy investment that means anything, united desperately needs a Lounge or no one will pay for it whos EWR based. That lounge is desperately needed and cheaper to finish then start over, although I bet they cut corners and save wherever possible.
 
VC10er
Topic Author
Posts: 4268
Joined: Tue Feb 20, 2007 6:25 am

Re: UNITED: investments stopped and continuing

Tue Sep 15, 2020 6:27 pm

slcdeltarumd11 wrote:
I think united will be very tight on cash. However EWR needs a non Polaris Lounge, the current situation is dire for UA at EWR. That project is just needed and there happens to be space there and they've gotten approval and permits. They might make it less flashy but they need to make a lounge badly for EWR. That is not a flashy investment that means anything, united desperately needs a Lounge or no one will pay for it whos EWR based. That lounge is desperately needed and cheaper to finish then start over, although I bet they cut corners and save wherever possible.


I would envision a UC upstairs on the roof to look a lot like the big LAX club. It’s not that flashy, but very nice and perhaps the outdoor deck. I know spending money now while burning $30/$50 million a day seems crazy, but as someone said above “there could be unbreakable contracts, or “we got this far, might as well just finish it time for when passengers come back in larger numbers”

Then they will have the contrast between the new UC and the old Presidents club which still looks so old and dingy even with new furniture and some paint.(and the bathrooms haven’t changed since it opened. YET, while it gets no sunlight, the architects and designers could do something cool with the circular spaces.

I feel so bad for UA! They were really rocking with ALL the upgrades and aircraft renovations and new livery until the unexpected hit.

I’m sure it says what the current status is in the HUGE UNITED fleet thread, but have ALL the aircraft interiors been stopped? Eg: 789’s?
To Most the Sky is The Limit, For me, the Sky is Home.

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos