That said, I doubt it's going to be allowed to liquidate. Too much is at stake, and O'Hare (plus Chicago and Richard M. Daley) have some very powerful friends in Washington.
More likely than liquidation, they will re-enter Ch 11 and then get absorbed whole by someone (AA to match NWA-DAL?) in a fire-sale deal a 'la TWA. Probably within the next year. I see no way United can continue as a stand alone airline.
That said, I doubt it's going to be allowed to liquidate. Too much is at stake, and O'Hare (plus Chicago and Richard M. Daley) have some very powerful friends in Washington.
More likely than liquidation, they will re-enter Ch 11 and then get absorbed whole by someone (AA to match NWA-DAL?) in a fire-sale deal a 'la TWA. Probably within the next year. I see no way United can continue as a stand alone airline.
Obama comes to mind as well. Agree though with what you say.
First of all, the insinuations in this article, and many of the reader comments, were disgusting (blaming the pilots).
United will not be liquidated, as was stated, because the government won't allow it. People are addicted to flying, and no politician will want to be the one who allows his constituents' myopic self-interest to be denied. Never mind the consequences, it's an easy political win.
Perhaps the author needs to do a little more research? The 2.7B he is refering to was a non cash goodwill writedown. One only has to go back a few quarters to see the Delta and NWA writedowns as well. Excluding the BS accounting, the loss was 150M give or take....certainly not "more than AMR, DAL, and NWA combined." Not good, but at the current cash level, UAL is sustainable for many years to come. At least long enough (hopefully), to find a better gig and take the voluntary furlough with 4.5 months pay and 10 years travel benefits!! The biggest concern is the parking of 100 jets with nothing on order. Who are these clowns?
I've read and heard many poeple say that UAL will liquidate at some point. I find that possibility almost impossible. Given the tenuous footing of the economy, a liquidation of this size would be disasterous. More to the point, I doubt other majors would have the capital on hand to acquire the planes and routes. Who would actually want to loan large sums of money to the airlines at this point? Also, there are some very powerful politicians who come from Illinois. Obama, Durbin, Daley, and former Speaker Hastert all hail from that state. United will be around until it decides it doesn't want to be around anymore.
United will not be liquidated, as was stated, because the government won't allow it. People are addicted to flying, and no politician will want to be the one who allows his constituents' myopic self-interest to be denied.
Don't be too sure. There are many airline skeletons to go around. It has happened before.
Reply to change of management comment.............................Tilton has to go? And be replaced by whom? Another guy exactly like him (as UAL history shows). Look at the UAL CEOs' from the past 10 years--a brief honeymoon followed by a call for his head, followed by a golden parachute, followed by a new CEO, followed by a brief honeymoon, followed by a call for his head, followed by a golden parachute....and on and on and....
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United Airlines: O'Hare Today, Gone Tomorrow
The biggest concern is the parking of 100 jets with nothing on order. Who are these clowns?
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