Gummer, that's funny.

Actually the term "Gummer" is a throw back to the age 60 retirement days, when there was a "special unit" of the training department that did all of the test flying and no-revenue repositioning flights, where a maintenance issue(s) precluded the use of the aircraft for service. They did all of the ferry permit flights, engine inop takeoffs, re-rig return to service flights etc...

Tightly held, "Gummers" were hand chosen, older than age 60 guys, that got a full line of time pay (as a consultant...most had taken their lump sums) for being available at the drop of a hat to go fetch broken planes and the like. To make it into the "Gummer Squadron" you had to "know somebody".

And didn't they also squeeze through a loophole in the age 65 law and are flying CAL planes beyond 65?

Not so much as a loophole as it's the same situation as when then age was 60. They can't fly 121 line ops after the FAA mandated retirement age but they can ferry aircraft.

USA Today, Sept 6--they're making money
 

Fliers pinched as airfares take off; blame fuel, mergers, profits - USATODAY.com

Recently, Catlette, a business consultant, drove even farther, when he found out a round-trip flight from Memphis to Jacksonville would cost $900 for a seat in coach.

"They're totally putting the squeeze on us," Catlette, who regularly flies out of Memphis, says of Delta, the city's dominant airline. "It's not that I like driving that much, but at some point, it's nuts. At least I don't have to take my shoes off."

Fares were up this year, from facilities such as Memphis International Airport to Atlanta's Hartsfield-Jackson to Boston's Logan. Don't expect them to drop any time soon.

The volatile price of jet fuel, multiple airline mergers that have winnowed competition and a determination by carriers to not offer more seats than there are passengers to fill them have let airlines boost prices and their bottom lines.

"While nobody wants to pay more for anything, including airline tickets, we have to remember that airlines are businesses," says airline and travel analyst Henry Harteveldt. "They're going to do whatever they can to earn a profit."

"Investment grade equal to Southwest."
 

The cash is there! This is the contract we'll live under for 10 years. The company knows how healthy they are. They can afford $1B retro. MECs will vote yes, pilots vote no. THAT's when leverage comes into play.

TEXT-Fitch affirms United Continental Holdings ratings | Reuters

As of June 30, 2012, UAL's total liquidity was $8.2 billion including a new $500 million revolving credit facility (issued Dec 2011). At 22% of revenues, UAL's liquidity is currently one of the strongest amongst its peers, but is expected to decline by year-end 2012, as the company continues to pay down debt through the integration period. To that end, UAL has about $7.2 billion in scheduled debt and capital leases over the next four years, including $4 billion of non-aircraft debt which the company intends to pay down as they come due. On the other hand, Fitch expects UAL to fund its sizeable orderbook in the EETC market over the next few years. Fitch expects UAL to stay on track with its debt reduction plans, notwithstanding a severe fuel shock or collapse in air travel demand that is not accompanied with further capacity cuts. Over time, UAL's capital structure will likely mirror legacy Continental where the majority of secured debt will be comprised of aircraft financing. Importantly, as the company pays down its upcoming maturities, UAL is expected to shore up a sizeable pool of unencumbered assets. By year-end 2012, the unencumbered pool is estimated to be about $3 billion but is expected to approach levels similar to Southwest (the only investment grade rated carrier in the U.S.) in just two years. This is an important consideration for UAL's ratings that could significantly boost the carrier's credit ratings over time.

USA Today -- Airfares look to be on the rise again, with Southwest Airlines initiating a $5 each way hike on about 400 routes.

That represents about 10% of Southwest's routes. United Airlines quickly followed suit but expanded it to all domestic routes except for Hawaii.

American, Delta Air Lines, JetBlue Airways, Virgin America and US Airways also raised fares in select markets.

This is the industry's 13th attempt this year to raise fares. If successful, it would be the sixth airfare increase.

Typically when Southwest raises fares, others follow and the increase lasts.

"I have never seen a hike with Southwest participating that didn't stick," says RickSeaney, founder of FareCompare.com, which tracks fare increases.

Last year, airlines made 22 attempts to increase fares. Nine were successful.

"Industry Leading Revenue"
 

8-k summary.

As current as you can get. Lots of cash, paying down debt, hitting on all cylinders. But an airline without pilots in the glamor shot on slide 18.

Form 8-K

Look for it
 

CHICAGO, Oct. 18, 2012 -- United Continental Holdings, Inc. will hold a conference call to discuss third-quarter 2012 financial results on Thursday, Oct. 25, at 10 a.m. CT/11 a.m. ET. A live, listen-only webcast of the conference call will be available at ir.united.com.

Half a billion in one quarter
 

Major US Airlines Projected to Report Record Revenue for 3rd Quarter

By the end of this week, AirlineFinancials.com LLC is projecting the seven largest US airlines will have collectively reported $1.8 billion in profits from $36.9 billion in revenue for the recent 3rd quarter. This will be a record for 3rd quarter revenue and the 3rd consecutive year of Q3 profits.

For full year 2012, we project these seven airlines will collectively report $4.2 billion in profits from a record $140 billion in revenues -- a paltry 3% profit margin --. For the first time since the 1990’s, the industry will have annual profits three years in a row.

Individual airline projections for third quarter 2012-
United (UAL) - $463 million profit from 9.9 billion revenue

http://247wallst.com/2012/10/21/majo...r-3rd-quarter/