UAL Asset Sale/Breakup
#11
Gets Weekends Off
Joined APC: Feb 2006
Position: B-737NG preferably in first class with a glass of champagne and caviar
Posts: 5,909
#14
Gets Weekends Off
Joined APC: Feb 2006
Position: B-737NG preferably in first class with a glass of champagne and caviar
Posts: 5,909
#15
Too much noise not enough fact...."c"aptain.
#16
Gets Weekends Off
Joined APC: Feb 2006
Position: B-737NG preferably in first class with a glass of champagne and caviar
Posts: 5,909
The Eastern Airlines which was made of many companies within a company either sold off at lower than market value, or transferred divisions to, I beleive it was Texas Air Corp., ranging from a sophisticated reservations system, and fueling service which were then leased back to EAL at inflated prices. So in that case it was a double whammy if you will.
So tell me Lambourne, put down the Kool Aide and tell me why it can't happen to UAL? What makes you think that the Board of Directors will do the right thing by its shareholders, and employees?
#17
Drop in United Airlines (UAUA) provides buying opportunity
Posted Aug 16th 2007 12:47PM by Eric Buscemi
Filed under: UAL Corp (UAUA), Bargain stocks, Stocks to Buy
UAL Corporation (NASDAQ: UAUA), the parent of United Airlines, got beat up pretty good along with the rest of the airline group yesterday.
However, investors should not stampede away from this sector, or more specifically, from UAL. As discussed in a Bear Stearns report released yesterday, the airline, which recently emerged from bankruptcy, continues to explore ways to utilize its massive cash hoard of $5 billion to maximize shareholder value, $1 billion of which management believes is excess cash.
Also, UAL is seeking ways to unlock value for its Mileage Plus program, a business that generates $800 million per year in revenue and has a large deferred revenue stream which provides some visibility for future revenue. Aeroplan, the Canadian-based loyalty marketing service business that was spun off from Air Canada's holding company, sells for a 60% premium to its former parent and a 200% premium on an enterprise value/EBITDA basis to the pure airline, Air Canada.
The Bear report places a $65 price target on UAL, with the asset break-up value of the company going as high as $80. Operational turnaround, huge free cash flow generation and the potential to realize value for the mileage plus business are all cited as reasons that could lead to a considerably higher stock price.
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To see an analyst talk about breaking the company apart is eye-opening.
No airplanes on order
Nothing from Tilton about the future other than operational status quo (keep the stock/cash flow up)
SFO Maint. Base is for sale
Mileage Plus is for sale
If I were a UAL employee, merger would be the least of my worries.
Posted Aug 16th 2007 12:47PM by Eric Buscemi
Filed under: UAL Corp (UAUA), Bargain stocks, Stocks to Buy
UAL Corporation (NASDAQ: UAUA), the parent of United Airlines, got beat up pretty good along with the rest of the airline group yesterday.
However, investors should not stampede away from this sector, or more specifically, from UAL. As discussed in a Bear Stearns report released yesterday, the airline, which recently emerged from bankruptcy, continues to explore ways to utilize its massive cash hoard of $5 billion to maximize shareholder value, $1 billion of which management believes is excess cash.
Also, UAL is seeking ways to unlock value for its Mileage Plus program, a business that generates $800 million per year in revenue and has a large deferred revenue stream which provides some visibility for future revenue. Aeroplan, the Canadian-based loyalty marketing service business that was spun off from Air Canada's holding company, sells for a 60% premium to its former parent and a 200% premium on an enterprise value/EBITDA basis to the pure airline, Air Canada.
The Bear report places a $65 price target on UAL, with the asset break-up value of the company going as high as $80. Operational turnaround, huge free cash flow generation and the potential to realize value for the mileage plus business are all cited as reasons that could lead to a considerably higher stock price.
*******************************************
To see an analyst talk about breaking the company apart is eye-opening.
No airplanes on order
Nothing from Tilton about the future other than operational status quo (keep the stock/cash flow up)
SFO Maint. Base is for sale
Mileage Plus is for sale
If I were a UAL employee, merger would be the least of my worries.
You don't know what is going to happen in this industry, life or world. No one here has a crystal ball. No one here can give any advice on what airline to apply to.
When I was applying the rule of thumb was to apply to all airlines and just stay with the first one that hires you.
Back then United was the place to go. I think they were putting new hires in the -400 and they had the quickest upgrade time to the left seat.
Things suck now but things could turn around. So please get off your high horse looking down on everyone and telling them what to do.
All this reminds me of a second officer I flew with who got on with American in the 1960's. He was in class with them when he got the call from Braniff. He left for Braniff and 30+ years later he was a 727 s/o at NWA.
You don't know if you made the right career choice until you are collecting your pension. (after 3 years)
#18
You're probably too young to remember but, Pan Am sold off assets to stay afloat ranging from a major hotel chain, Hotel Intercontinental, and routes to various airline, including UAL who got the Pacific Routes. I remember when Pan Am boasted it would be the first airline to provide commercial space travel.
The Eastern Airlines which was made of many companies within a company either sold off at lower than market value, or transferred divisions to, I beleive it was Texas Air Corp., ranging from a sophisticated reservations system, and fueling service which were then leased back to EAL at inflated prices. So in that case it was a double whammy if you will.
So tell me Lambourne, put down the Kool Aide and tell me why it can't happen to UAL? What makes you think that the Board of Directors will do the right thing by its shareholders, and employees?
The Eastern Airlines which was made of many companies within a company either sold off at lower than market value, or transferred divisions to, I beleive it was Texas Air Corp., ranging from a sophisticated reservations system, and fueling service which were then leased back to EAL at inflated prices. So in that case it was a double whammy if you will.
So tell me Lambourne, put down the Kool Aide and tell me why it can't happen to UAL? What makes you think that the Board of Directors will do the right thing by its shareholders, and employees?
In your diatribe about PanAm (remember you compared us to PA in the earlier post, re deaux is what you called it, remember....) so where is the similarity to PA? What theater of operations have we sold off? Just went through BK and kept the route intact, have billions in the bank, yet you say we are just like PA? Doesn't really seem like sound logic for such a big airplane pilot that likes to call himself "c"aptain.
As to your question. Is UAL immune from a change in the path of the company? Absolutely NO. However, to preach gloom and doom as you do while shooting from the hip with no data to support your claims is hugely irresponsible. You can not formulate an argument.
Why not try to compose something substantial rather than just sniping all the time?
Tilton may sell it to the devil, Tilton may run it as a stand alone. I have more insight than you from your position on the sidelines and I do like our chances for the long term. I am sorry that you were passed over but you need to move on with your "existence" and enjoy your personalized "hvyirn" or "capn" plates and catchy "jetguy" email.
I am sure your company that survives on the spoils of the ACMI world will never see a downturn........
#19
Gets Weekends Off
Joined APC: Feb 2006
Position: B-737NG preferably in first class with a glass of champagne and caviar
Posts: 5,909
I am sure your company that survives on the spoils of the ACMI world will never see a downturn........
#20
I fly planes because I hate working for a living.
Never wanted to put the old career thing in one basket and worry about the neanderthal malevolent malcontent types in management controlling my destiny as far as income, benefits, retirement and quality of life
You have still failed to properly align UAL with your EAL and PA analogy. So far the pilots have not enacted a sympathy strike for the IAM ala EAL. UAL has not sold the company in pieces to other leaving nothing. If you remember PA did not have a true us hub presence. Whereas UAL has significant hubs in the US and Japan.
Again I am not saying it will never happen. I just believe that your knowledge of what is "UAL" is limited to the excrement filtered glasses you wear.
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