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Author Topic: UAL Chapter 7?
Irish
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Disclaimer: I have no idea of the source of this statement nor of its validity. Consider it as a "gee wiz" typical airline rumor for entertainment use only. Bold, italicized emphasis is mine. Paul

"Also according to Washington insider law firms, United has retained bankruptcy counsel. (Again) Thoughts are that it will be a Chapter 7 filing possibly as early as late 2009 or early 2010, with most assets going to STAR Alliance partners in such a fashion so as to avoid disruption of the Mileage Plus program (and others), the financial integrity of the STAR Alliance, and allow for transfer of other assets (aircraft, etc.) in such a fashion so as to avoid union “involvement” or interference.

United owns very little at this point so it would merely involve termination of leases which is easy in either Chapter 11 or 7. Such transfers could involve number levels below “fragmentation policy ” triggers (20%?), and would be done so as to transfer zero or an absolute minimum number (if any) of aircraft related pilots to the surviving airlines. Transfers could also be made to other entities such as the proposed IAD to Madrid outsourced airline.

Any such transfers would be made on a seat by seat process as opposed to seniority with either United or USAir. Neither airline has airplanes that are deemed valuable. Other non-pilot transfers would also be held to a minimum. There probably would be no “merger” in a traditional airline sense.

The administration and the “loyal opposition” seem to have accepted that either United, USAir, or both are not survivable entities. Interestingly enough, American is considered to be the next worse off airline. If American were to file Chapter 11, AND attempt to dump its pensions on the PBGC, the PBGC believes that it can go back 5 years and reclaim those pensions paid out to pilots. Highly speculative thoughts, however interesting.

These ideas have come from sources that are currently associated with the two carriers in one form or another and admit that their thoughts are “speculative” in nature. Changes to these concepts would change as the political realities come to a head.

Posts: 1634 | From: Hampton, NH  |  IP: Logged


 
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