Well, Mitch, the reality we live in is understanding that the industry changed dramatically and permanently with the Delta / NW merger. We can go back and forth all day on everything else. You seem to believe that CAL was going to do just fine growing and competing in New York and elsewhere against a vastly superior, well managed competitor. Yet, this is the kind of financial reporting that was coming from CAL while UAL and US were putting their own deal together:


2009 10K filed Feb 2010.

We have backstop financing available for the three other Boeing 737 aircraft scheduled for delivery in 2010, subject to customary closing conditions. However, we do not have backstop financing or any other financing currently in place for the balance of the Boeing aircraft on order. Further financing will be needed to satisfy our capital commitments for our firm order aircraft and other related capital expenditures. We can provide no assurance that the backstop financing or any other financing not already in place for our aircraft deliveries will be available to us when needed on acceptable terms or at all. Since the commitments for firm order aircraft are non-cancelable, and assuming no breach of the agreement by Boeing, if we are unable to obtain financing and cannot otherwise satisfy our commitment to purchase these aircraft, the manufacturer could exercise its rights and remedies under applicable law, such as seeking to terminate the contract for a material breach, selling the aircraft to one or more other parties and suing us for damages to recover any resulting losses incurred by the manufacturer.

http://www.sec.gov/Archives/edgar/data/319687/000031968710000011/f123109form10k.htm#riskfactorsterroristattack




2010 10Q 1stQuarter earnings call

Operator

Our last question from the analyst comes from Bill Mastoris with Broadpoint, please go ahead.

Bill Mastoris - Broadpoint
Thank you. Gerry, I wonder if you could give us a status report on the aircraft deliveries into the EETCs. And maybe if you could just comment on how many remaining aircraft are yet to be placed into those transactions. And I'm specifically referring to really the second half of last year 2009-1 and 2009-2.

Gerry Laderman
Bill, you are breaking up a little bit, this is Jerry. But I think you are asking about the 2009-2 EETC and the aircraft to go into that. There are some vintage aircraft that roll off an existing EETC in May that we expect to go into that EETC as the prospective outlines. And then with respect to new aircraft, the two 777s and nine 737s that were earmarked to that transaction, we expected this time to take delivery of those aircraft by the end of August, in which case they would go into that EETC.

Bill Mastoris - Broadpoint
Okay, and Gerry, if you could comment briefly on the aircraft deliveries, for 2011. Maybe the financing for those, is that all non-back stop financing from other third parties which have been lined up or is that back stop financing?

Gerry Laderman
We have no back stop financing for those aircrafts.

Bill Mastoris - Broadpoint
For any deliveries, in 2011?

Gerry Laderman
For any remaining deliveries at all.


Continental Airlines Q1 2010 Earnings Call Transcript - Seeking Alpha


When the banks see a high risk business plan, they look for a better plan with substantially less risk. Why wouldn't they, especially in this industry? The merger was that plan. No wonder Smisek and the Board had to act swiftly when they realized that a UAL / US deal was near. Would you have preferred being left for a merger with AA instead? How would that have gone for you? Carving up New York, the problem with two large, nearby hubs in Texas, and dealing with APA. You think you have a bad deal now....

I'm sure you and many of the 05-08 hires will spend all your days here continuing to believe that ALPA, L-UAL pilots, the banks and every other conspirator "took" your career away. Never admitting or understanding that in reality, you can't lose what you weren't going to have to begin with.