United
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United Airlines version of what was said. Looks like the reporter indeed heard what he wanted to and wrote a misinformed, inflamatory piece.
From 'Jake' Brace, United Airlines Executive Vice President and CFO:
"Good evening. By now, many of you have read or heard reports that United is planning to ground 100 aircraft. The reports are based on comments I made at a Goldman Sachs conference yesterday in New York. I want to put the story straight and get the facts into the right context. First, let me be clear, we are not grounding airplanes.
At the conference, I was talking with analysts about how the industry would respond to an economic environment where oil is hovering near $100 a barrel. I was reinforcing to the analysts a point that I believe strongly: United has more flexibility to respond to economic challenges than our competitors. We have a great network that gives us the opportunity to move our aircraft around in response to changes in worldwide economics. We have managed our U.S. domestic capacity very well. We have a strong cash balance and good cash flow. We are in a very good fundamental position.
As part of that conversation, I also brought up, as one point about our flexibility, the fact that we have more than 100 aircraft that are debt-free. Because they are unencumbered, if oil prices stay high and if we cannot pass the costs on to our customers, one way to manage our capacity could be to ground aircraft, which we could do without incurring ongoing costs. It was one point in a larger conversation about the possible responses we would have in an extreme environment, which the analysts in the room understood. Unfortunately, the point was picked up by reporters listening to the webcast as something we were considering, rather than a possibility if certain conditions occurred.
There is no underestimating the impact the price of oil has on our industry. It’s a significant issue for every airline and something we are watching every day. Just today, we announced a $10 fare increase on U.S. domestic flights to offset higher fuel costs. We will continue to weigh our options to manage the impact the price of oil has on our business and we will certainly inform you in a much more deliberate way if we ever get to a point where decisions as serious as grounding 100 aircraft are necessary.
In the meantime, as Pete reinforced in a recent email, the best course for all of us is a continued focus on fuel conservation, efficiency and looking for cost savings at every opportunity.
Jake"
From 'Jake' Brace, United Airlines Executive Vice President and CFO:
"Good evening. By now, many of you have read or heard reports that United is planning to ground 100 aircraft. The reports are based on comments I made at a Goldman Sachs conference yesterday in New York. I want to put the story straight and get the facts into the right context. First, let me be clear, we are not grounding airplanes.
At the conference, I was talking with analysts about how the industry would respond to an economic environment where oil is hovering near $100 a barrel. I was reinforcing to the analysts a point that I believe strongly: United has more flexibility to respond to economic challenges than our competitors. We have a great network that gives us the opportunity to move our aircraft around in response to changes in worldwide economics. We have managed our U.S. domestic capacity very well. We have a strong cash balance and good cash flow. We are in a very good fundamental position.
As part of that conversation, I also brought up, as one point about our flexibility, the fact that we have more than 100 aircraft that are debt-free. Because they are unencumbered, if oil prices stay high and if we cannot pass the costs on to our customers, one way to manage our capacity could be to ground aircraft, which we could do without incurring ongoing costs. It was one point in a larger conversation about the possible responses we would have in an extreme environment, which the analysts in the room understood. Unfortunately, the point was picked up by reporters listening to the webcast as something we were considering, rather than a possibility if certain conditions occurred.
There is no underestimating the impact the price of oil has on our industry. It’s a significant issue for every airline and something we are watching every day. Just today, we announced a $10 fare increase on U.S. domestic flights to offset higher fuel costs. We will continue to weigh our options to manage the impact the price of oil has on our business and we will certainly inform you in a much more deliberate way if we ever get to a point where decisions as serious as grounding 100 aircraft are necessary.
In the meantime, as Pete reinforced in a recent email, the best course for all of us is a continued focus on fuel conservation, efficiency and looking for cost savings at every opportunity.
Jake"
niknak
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Since none of the major American airlines can run at a profit, perhaps it's about time those who can't remain solvent should be shut down and let the people who know how to run a business operate to and from the USA.
In the short term, employees would suffer, but in the long term aviation in America would re emerge as a far leaner and competitive industry.
Bankruptcy protection in the USA is a disgrace and a complete political sham, it only exists to serve the interests of the morally bereft and industrially incompetent.
In the short term, employees would suffer, but in the long term aviation in America would re emerge as a far leaner and competitive industry.
Bankruptcy protection in the USA is a disgrace and a complete political sham, it only exists to serve the interests of the morally bereft and industrially incompetent.
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Since none of the major American airlines can run at a profit
Honorable mention to DHL even though it has now been sold overseas.
If one really wanted to willy wave this is the point in the debate where European/Mid East airlines and/or aircraft manufacturers who are directly and indirectly supported financially by their national governments are mentioned. They compete in the Atlantic market as well.
Myopia, stones, and glass houses.
Moderators, sorry for the thread drift. We now return you to your originally scheduled thread topic of a crap journalist making a crisis where none exists in order to sell papers.
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UAL grounding planes
So what are we talking here? 757/737/A320s or 747/767/777 being grounded?
I'm sure the likes of AI and others would be happy to get their hands on some extra widebodies...
I'm sure the likes of AI and others would be happy to get their hands on some extra widebodies...
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United and Delta Merger?
http://www.washingtonpost.com/wp-dyn...111401527.html
ATLANTA -- UAL Corp.'s United Airlines and Delta Air Lines Inc. have been discussing a combination between the nation's second- and third-largest carriers that would keep the United name and the corporate headquarters in Chicago, The Associated Press has learned.
Shares of both airlines surged on the news.
There is a sense of urgency in the talks, which have been going on for some time and continued as recently as a week or so ago, an official with knowledge of the talks said Wednesday. The official spoke on condition of anonymity because the person was not authorized to speak publicly.
"They want to get something done before a new administration gets in and so they get the clock ticking on" federal regulatory approval, the official said.
The exact financial details of the transaction being discussed are not clear. But the talks involve United being the name of the combined airlines, the headquarters staying in Chicago and Delta's Atlanta hub being an operational center for the two carriers, the official said. One possible scenario involves Delta CEO Richard Anderson being the chief of the combined airline, the official said.
Delta also has had talks with other airlines, the official said, without specifying which airline or the status of any such talks.
A spokesperson for Chicago-based United did not immediately return a call Wednesday seeking comment. Delta spokeswoman Betsy Talton declined to comment.
Shares of Delta rose $1.92, or 10.2 percent, to $20.67 in afternoon trading. UAL shares gained $4.20, or 9.7 percent, to $47.70.
Delta said in a statement Wednesday that its board has established a special committee to work with management to review and analyze strategic options for the airline. Top executives have said recently they are trying to determine whether consolidation makes sense for Delta.
When Anderson was named in August as Delta CEO to replace Gerald Grinstein, there was immediate speculation in the investment community that Delta and Northwest might eventually merge. Anderson is a former CEO of Northwest Airlines Corp.
Anderson immediately tried to dispel such speculation, telling Delta employees he wasn't coming to Delta to facilitate a deal with Eagan, Minn.-based Northwest.
Delta's statement Wednesday was responding to pressure by a hedge fund that owns 7 million Delta shares to consider combining with UAL.
Pardus Capital Management LP said in a letter to Delta's top management on Tuesday that it is "imperative" that the company undertake a merger transaction with another airline in view of soaring fuel prices and what it described as the increased risks of going it alone.
"Consolidation is needed to de-risk the industry and time is of the essence as now is the right regulatory environment," said Karim Samii, president of Pardus, and Shane Larson, a principal.
The hedge fund executives said they had determined since making a similar recommendation in a Sept. 7 letter that "the most attractive and practical combination would be a Delta and United Airlines combination."
It cited figures from a consulting firm estimating that the benefits of such a pairing would be about $585 million and said a combined Delta-United would boast a broader network than any other combination.
Pardus also owned 5.6 million shares in Chicago-based UAL as of Sept. 30.
Pardus executives said a Delta combination with Northwest would produce even bigger benefits of about $1.5 billion, primarily from combining the smallest hubs _ Detroit/Cincinnati and Memphis/Atlanta.
"However, Northwest may not enable Delta to complete the breadth of network that business travelers require, resulting in the need for a potential follow-on transaction at a later date in order to achieve the same breadth of network that UAL would provide out of the box."
Pardus, citing information provided by the air transport consultancy Simat, Helliesen & Eichner Inc., said a third potential combination, with Continental Airlines, would produce no synergies and would raise other challenges.
Robert Mann, an airline consultant in Port Washington, N.Y., said United's broad Pacific network and Delta's huge Atlantic presence would complement each other. However, he said, combining fleet information systems and labor could pose challenges. The biggest problem would be that neither carrier has any recent track record of integration, he said.
"I would see this as a very risky move from the standpoint of the actual implementation," Mann said
ATLANTA -- UAL Corp.'s United Airlines and Delta Air Lines Inc. have been discussing a combination between the nation's second- and third-largest carriers that would keep the United name and the corporate headquarters in Chicago, The Associated Press has learned.
Shares of both airlines surged on the news.
There is a sense of urgency in the talks, which have been going on for some time and continued as recently as a week or so ago, an official with knowledge of the talks said Wednesday. The official spoke on condition of anonymity because the person was not authorized to speak publicly.
"They want to get something done before a new administration gets in and so they get the clock ticking on" federal regulatory approval, the official said.
The exact financial details of the transaction being discussed are not clear. But the talks involve United being the name of the combined airlines, the headquarters staying in Chicago and Delta's Atlanta hub being an operational center for the two carriers, the official said. One possible scenario involves Delta CEO Richard Anderson being the chief of the combined airline, the official said.
Delta also has had talks with other airlines, the official said, without specifying which airline or the status of any such talks.
A spokesperson for Chicago-based United did not immediately return a call Wednesday seeking comment. Delta spokeswoman Betsy Talton declined to comment.
Shares of Delta rose $1.92, or 10.2 percent, to $20.67 in afternoon trading. UAL shares gained $4.20, or 9.7 percent, to $47.70.
Delta said in a statement Wednesday that its board has established a special committee to work with management to review and analyze strategic options for the airline. Top executives have said recently they are trying to determine whether consolidation makes sense for Delta.
When Anderson was named in August as Delta CEO to replace Gerald Grinstein, there was immediate speculation in the investment community that Delta and Northwest might eventually merge. Anderson is a former CEO of Northwest Airlines Corp.
Anderson immediately tried to dispel such speculation, telling Delta employees he wasn't coming to Delta to facilitate a deal with Eagan, Minn.-based Northwest.
Delta's statement Wednesday was responding to pressure by a hedge fund that owns 7 million Delta shares to consider combining with UAL.
Pardus Capital Management LP said in a letter to Delta's top management on Tuesday that it is "imperative" that the company undertake a merger transaction with another airline in view of soaring fuel prices and what it described as the increased risks of going it alone.
"Consolidation is needed to de-risk the industry and time is of the essence as now is the right regulatory environment," said Karim Samii, president of Pardus, and Shane Larson, a principal.
The hedge fund executives said they had determined since making a similar recommendation in a Sept. 7 letter that "the most attractive and practical combination would be a Delta and United Airlines combination."
It cited figures from a consulting firm estimating that the benefits of such a pairing would be about $585 million and said a combined Delta-United would boast a broader network than any other combination.
Pardus also owned 5.6 million shares in Chicago-based UAL as of Sept. 30.
Pardus executives said a Delta combination with Northwest would produce even bigger benefits of about $1.5 billion, primarily from combining the smallest hubs _ Detroit/Cincinnati and Memphis/Atlanta.
"However, Northwest may not enable Delta to complete the breadth of network that business travelers require, resulting in the need for a potential follow-on transaction at a later date in order to achieve the same breadth of network that UAL would provide out of the box."
Pardus, citing information provided by the air transport consultancy Simat, Helliesen & Eichner Inc., said a third potential combination, with Continental Airlines, would produce no synergies and would raise other challenges.
Robert Mann, an airline consultant in Port Washington, N.Y., said United's broad Pacific network and Delta's huge Atlantic presence would complement each other. However, he said, combining fleet information systems and labor could pose challenges. The biggest problem would be that neither carrier has any recent track record of integration, he said.
"I would see this as a very risky move from the standpoint of the actual implementation," Mann said
Delta & United in merger talks
Associated Press are reporting that DL & UA are in merger discussion talks.
Fairly advanced it would seem, as they are suggesting the joint airline HQ would be Chicago, the airline name would be United & the CEO would be from Delta. Shares in both companies up about 10% on the news. United being heavy on the Pacific Routes & Delta more so on the Atlantic routes would make it a good merger.
Interesting to see if this is just kite flying or if there is any real substance to it.
Fairly advanced it would seem, as they are suggesting the joint airline HQ would be Chicago, the airline name would be United & the CEO would be from Delta. Shares in both companies up about 10% on the news. United being heavy on the Pacific Routes & Delta more so on the Atlantic routes would make it a good merger.
Interesting to see if this is just kite flying or if there is any real substance to it.
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Delta has already said there are no merger talks...from CNN and the AP
the initial thoughts on the merger are based on a request from a large shareholder in both airlines.
I hope ALPA will think about mergers again...imagine combining that seniority list. That is why DOH is the only way.
the initial thoughts on the merger are based on a request from a large shareholder in both airlines.
I hope ALPA will think about mergers again...imagine combining that seniority list. That is why DOH is the only way.
Everything is under control.
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United grounds several 747s - maintenance
From the Wall Street Journal:
"United Airlines has temporarily grounded several Boeing 747 jumbo jets to check for compliance with federal maintenance requirements, in a move that signals the controversy over government oversight of airliner safety checks and repairs is spreading, according to three people familiar with the issue.
United 's move, which one person familiar with the matter said covers as many as six long-haul 747 aircraft that had some of their cockpit instruments validated as part of an overseas maintenance check, comes as U.S. airlines are stepping up self-audits of their maintenance compliance. . . .
The FAA ordered the temporary groundings after discovering that test equipment used at a maintenance station in South Korea was faulty, according to one person familiar with the issue."
http://online.wsj.com/article/SB1206..._us_whats_news
(subscription may be required)
"United Airlines has temporarily grounded several Boeing 747 jumbo jets to check for compliance with federal maintenance requirements, in a move that signals the controversy over government oversight of airliner safety checks and repairs is spreading, according to three people familiar with the issue.
United 's move, which one person familiar with the matter said covers as many as six long-haul 747 aircraft that had some of their cockpit instruments validated as part of an overseas maintenance check, comes as U.S. airlines are stepping up self-audits of their maintenance compliance. . . .
The FAA ordered the temporary groundings after discovering that test equipment used at a maintenance station in South Korea was faulty, according to one person familiar with the issue."
http://online.wsj.com/article/SB1206..._us_whats_news
(subscription may be required)
Last edited by Eboy; 20th Mar 2008 at 20:26. Reason: fix link
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United to cut a fifth of its fleet
Looks as if TED is going to be a casuality according to Bloomberg - quite dramatic.
http://www.bloomberg.com/apps/news?p..._a4&refer=news
Nivsy
http://www.bloomberg.com/apps/news?p..._a4&refer=news
Nivsy
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United rertiring 100 Boeing A/C because of fuelprice and cutting 1500 jobs..
Spiegel online, ( like Time in the U.S. ) is reporting because of high fuel prices they are cutting 1400 to 1600 jobs and parking all their 737 ( 94pcs. ) and also 6 Boeing 747. This are the oldest A/C they got and average fleet age will be 11.8 after that.
Presently they got 460 A/C.....
The article is at:
http://www.spiegel.de/reise/aktuell/...557680,00.html
But it is in german
Presently they got 460 A/C.....
The article is at:
http://www.spiegel.de/reise/aktuell/...557680,00.html
But it is in german
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United Airlines orders 25 A350s and 25 787s
So they've split the deal - 25 A350s and 25 787s, with options on 50 of each... All reported on Flight Global, BBC etc.
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Why now? To my mind it's more about a realisation by UA that they're not going to merge with anyone any time soon, rather than it being a particularly good buyers' market for aircraft at the moment. If it were that good, M'OL and Ryanair wouldn't be playing all petulant with Boeing...
Of course a lot of UA's metal is getting pretty old too.
Of course a lot of UA's metal is getting pretty old too.
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United Mileage Plus
So Air NZ tell me that they have released awards seats for use by other Star Alliance airlines on the LAX-AKL flights in Dec and Jan but United claim that there are no seats yet. (Air NZ assure us that the do still exist and have not been taken by other travellers.)
Does this mean that United are just being crafty and not releasing them yet in hopes of selling more seats first?
Anybody want to PM me and fill me in on how this United department works? Or even just point me in the right direction for asking this question (i.e. your brother's wife's second-uncle who's daughter works in Mileage Plus)?
Thanks in advance,
~FRQ CB
Does this mean that United are just being crafty and not releasing them yet in hopes of selling more seats first?
Anybody want to PM me and fill me in on how this United department works? Or even just point me in the right direction for asking this question (i.e. your brother's wife's second-uncle who's daughter works in Mileage Plus)?
Thanks in advance,
~FRQ CB
