Trisha

Hello,
I really advoided United Airlines this summer for my summer vacation because, of all the rumors that it would liquidate due to financial problems. It's August and United seems to be hanging on. I'm flying again in December and have noticed some decent airfares with United. I haven't heard anything about it going under in a long time. Does anyone know if the situation with United has improved? I have always liked United and wouldn't mind flying them but, still hesitate buying a ticket from them. Thanks for any advice.

janis

Even if they had filed bankruptcy they would have stayed in operation. The filing would be for re-structuring, not for closing down oprations or "liquidating" as you call it.

there was no reason (unless you simply dislike them) to avoid UA all summer, nor to avoid it in the foreseeable future.

Rusty

What makes you think that United will be restructuring and not liquidating ?

GoTravel

Liquidation and bankruptcy are two different things. United has never mentioned liquidation.

United filed to restructure debt. I wonder how many people are thinking the same way you are thinking. Sure doesn't help United.

HowardR

Fear not, my friends at United say that things are definitely looking up!

Rusty

"United has never mentioned liquidation."
Do you really think that United or any other company is going to publicly state that they might be forced to liquidate? Liquidation and bankruptcy aren't the same thing. Liquidation is what ofen happens as a result of bankruptcy.

What do you think will happen if United is not able to successfully restructure?

GoTravel

I honestly think the gov't will step in if United can't restructure and I've seen heavy mention of it in newspaper articles.

The biggest reason stated is because if United is allowed to go under, Delta and AA will have a monopoly and that would bring anti-trust (which ironically is the reason they were not allowed to merge with USAirways in the late 90s) in to play.

Another reason is because the airlines play such a huge part in business (got to get those business travelers on flights) and flights and travel are a large part of this.

Lastly, the huge numbers of individuals that would be thrown out of work (hundreds of thousands), the impact on local economies where United has hubs, and pensions and retirements lost.

Baxter

Chapter 11 bankruptcy, which united is in now, allows for company reorganization. Chapter 7 bankruptcy requires the comoany to liquidate it's assets. In the event that United files for Chapter, you will be out of luck being that United's creditors will be the one to get anything that is left over. No one can predict if or when United will file for Chapter 7. The link below is to an article discussing that very possibility.


http://nashville.bizjournals.com/pac...7/daily22.html

Baxter

My third sentence should have said "In the event that United files for Chapter 7..."

Rusty

Thank you Baxter. It is obvious that you either have a background in bankruptcy and insolvency ot that you did some research.
It is totally amazing that some people have no hesitation to present their opinions in complex areas where they don't have any idea what they are talking about.

Trisha

Thanks, for your replies. I guess it's still very possible that they could still go under. I avoided United this summer because I didn't want to be stuck without a flight to my desitation. Thanks Baxter for your link to the article about the possiblity. I wonder if there is any recent documents or articles about possible improvement in their status.

Baxter

Rusty and Trisha,

Your welcome. Rusty, actually I don't have a background in bankruptcy, I have heard it talked about on the news before and did some research too.

Trisha, I could not find any more recent articles discussing the possibility of liquidating United Airlines. Hopefully things will pick up for United and it won't happen.

GoTravel

So Rusty I guess you are saying I have no idea what I am talking about?

Linda0515

I have to fly United because I live in an area that's 90% served by United and USAir. Two suggestions for steps to take to relieve your anxiety:

1. If you're flying to something with a firm, important deadline, like a cruise, tour, or important business meeting, if you want reassurance fly out a day in advance. That way, if disaster strikes you've given yourself an extra day to get to where you need to go.

2. You can always buy trip cancellation insurance. If you miss your flight for virtually any reason, the insurance will refund your money.

I rarely do either of these myself, but for some people the peace of mind these provide is worth the expense.

KT

I have a little background in bankruptcy, and here's the nitpicky stuff: The Bankruptcy Code (Title 11 of the U.S. Code) covers five separate types of bankruptcy relief. They include Chapter 7 (liquidation) and Chapter 11 (reorganization). (The others are Chap. 9 for local gov'ts, Chap. 12 for family farms, and Chap. 13 for individuals.)

United is indeed "in bankruptcy." Its reorganization plans and the rights of its creditors are under court supervision. This doesn't mean that it will file for Chapter 7 and stop flying, and it doesn't mean that it won't. US Airways was in Chapter 11 for something like 8 months, but emerged from bankruptcy protection this spring. Other corporations haven't done so well and have gone from Chapter 11 to Chapter 7.