|Subject: Re: United Airlines|
It looks pretty grim for UA. They have a huge debt payment due Dec 3 & needed concessions from mechanics to avoid Chap 11. The concessions didn't come to pass, although for the life of me I can't figure out why the mechanics balked. Let's see: give a little & see the company carry on, or dig your heels in & risk losing your job altogether. Hm.
My sources, biased as they are, indicate that even if in Chap 11, UA should continue to operate, altho probably on a more limited network. The new CEO has made considerable progress in the last few weeks & is pretty strong about the company's survival. One of the first items on his agenda would be dealing with the unions. I wouldn't want to be leader of any union in that scenario as this CEO is an oil guy from Texas who knows how to back up tough talk with action.
I'm confident enough in UA's prospects to have tickets for San Francisco on Dec 11, & a free mileage ticket for Oz for the month of Feb. However, UA isn't on my short list of stocks to buy for now.
Several other carriers have survived Chap 11 successfully, including Continental, & US Air isn't doing too badly. OTOH, it's a nasty environment right now & National Airlines didn't survive their quick trip to Chap 11. Too bad, too.
Gail In Eugene