How on earth are United still extant?
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How on earth are United still extant?
How can they go on with losses like this? $326million in January!
http://biz.yahoo.com/ap/050225/united_airlines_2.html
http://biz.yahoo.com/ap/050225/united_airlines_2.html
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Well I think because they are in chapter 11 I think these losses are actually cut and are something like half that figure.
Still, even if it was half that still works out to a hell of a lot of money lost per day!
Its to do with the ever rising fuel costs in the US (and the rest of the aviation world)
All the major US airlines are in a state of financial disaray. They are all desperately trying to hold on (with the exception of AA, CO and WN) to not be the first to go bust.
Once one goes bust, (my bet is on US of DL) then I reckon the others will all be ok as there will be less competition on routes, meaning less choice and so the other airlines will have more bums on seats.
Still, even if it was half that still works out to a hell of a lot of money lost per day!
Its to do with the ever rising fuel costs in the US (and the rest of the aviation world)
All the major US airlines are in a state of financial disaray. They are all desperately trying to hold on (with the exception of AA, CO and WN) to not be the first to go bust.
Once one goes bust, (my bet is on US of DL) then I reckon the others will all be ok as there will be less competition on routes, meaning less choice and so the other airlines will have more bums on seats.
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In that same article,it says they haven't made a profit since 2000.
I would really like to know the TOTAL loss in that time!
It also says they have $2 billion in reserves. So that's alright then!
Well,for 6 months,anyway!
I would really like to know the TOTAL loss in that time!
It also says they have $2 billion in reserves. So that's alright then!
Well,for 6 months,anyway!
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Todays FT has an article saying that a lot of the American majors have introduced a fare rise which seems to be holding, unlike the last effort which only lasted a few days. This time round it seems to be a more concerted effort, initiated by NorthWest.
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The people who own the planes would rather see them flying than sitting in the desert. That way they get at least a bit of income from the planes. Thus they go out of their way to "keep 'em flying". Similar for some of the other creditors.
Today's news is that USAir is returning about a dozen old 737s to the leasors - but I'd guess they would have been returned long ago if US hadn't had to delay Airbus deliveries.
Today's news is that USAir is returning about a dozen old 737s to the leasors - but I'd guess they would have been returned long ago if US hadn't had to delay Airbus deliveries.
