Originally Posted by
UAL T38 Phlyer
I see two possibilities:
1. Using the money from this offer, United acquires 70-90 seat RJs to fill the void of the 737s and starts doing some "Mainline" RJ flying to actually serve smaller markets and grow the business. They make money, and are able to pay back the notes.
2. They blow the money and buy RJs for affiliated carriers, pay a "per departure" fee that actually makes it more expensive than Mainline, lose money, and start selling off routes, equipment, facilities, and shrinking the business.....
United became huge after profitting from Pan Am's blunder in a similar fashion. I hope it doesn't happen again, with UAL in the role of PAA.
About 2 weeks ago United announced they are seeking bids for 100 seat aircraft....if the notes are for aircraft, logic would lead one to believe the money would go towards 100 seaters....not 70-90's, but in either case....ALL flown by mainline.