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-   -   United Airlines - is it going under? (https://www.fodors.com/community/united-states/united-airlines-is-it-going-under-299954/)

FAYZIE Mar 22nd, 2003 05:53 PM

United Airlines - is it going under?
 
We are planning to fly to California in August, 2003. United Airlines seems to have the best (cheapest) fare. However, someone told me they are going bankrupt and may not be going anywhere soon. Can anyone confirm?

Livesincali Mar 22nd, 2003 06:25 PM

I just topped a post which has a link to a USA Today article which stated that United may liquidate by the end of June. If I were you I would look inot another airline. It would not be so bad if United had an affiliation with another airline which was in better financial condition. But as you know United is partnered with US Airways, which is also in Chapter 11 bankruptcy.<BR>

Andrew Mar 22nd, 2003 09:16 PM

Er - have you looked into travel insurance?<BR><BR>Andrew<BR>

Loki Mar 23rd, 2003 08:39 AM

Depending on how much cheaper it is, it's probably not worth the hassle. Bankruptcy and liquidation is very possible. At least make sure your credit card will cover it under their purchase protection plan.

Andre Mar 23rd, 2003 12:41 PM

FAYZIE,<BR><BR>Your credit card will refund your ticket if UA goes under, but that won't get you to California... You'll still have to purchase another ticket and that probably won't be cheap at short notice. If you're travelling just because you can get a good fare, then do it. If however you absolutely need to take the trip, I would choose a more stable carrier.<BR><BR>Hope this helps,<BR>Andre

Nina66 Mar 23rd, 2003 01:14 PM

Over a year ago, we wanted to purchase CSA travel insurance for a European trip, using United. At that time CSA at a clause that specifically eliminated air ticket purchases for any airline that had financial or labor problems, and United was one of them. We have been ticketed with United for almost two months now for NY in May with a June 1 return. We really don't want to purchase tickets with another airline and risk paying for two separate flights. BUT, that would be better than scrambling at the last minute for another flight. At this point, it is a crap shoot, but we have no choice but to wait and see what happens. I can think of worse places to be stranded than Manhattan :-)

Grasshopper Mar 23rd, 2003 02:50 PM

How sad. I love United. If everyone feels this way they will surely go out of business.

Nina66 Mar 23rd, 2003 04:15 PM

Grasshopper, I didn't quite understand what you mean about everyone feeling that way about United. We live in SF, which is their gateway city and have traveled almost exclusively on United for years and years. I chose them, not just for the convenience, but for the prices, and ease of dealing with them. I have always found their telephone representatives to be friendly and accommodating as well as their airport and flight personnel. It would be a tragedy not only for their customers, but mainly for their employees. We would be willing to do anything in our power to save them from going under. In fact when we booked these latest tickets, we knew of their problems, but did not even bother to check prices, schedules etc.. with other airlines. I find American, also in trouble, to be difficult to deal with, both the personnel, on and off of the ground.<BR><BR>We are not abandoning United, we may have no choice, through no fault of our own. <BR><BR>Naturally we are all worried about our planned trips.<BR><BR>GRASSHOPPER: are you holding any paid UniTed tickets now? If so, what are your feelings about their future?

Nina66 Mar 23rd, 2003 04:22 PM

Grasshopper,<BR><BR>I didn't mean to sound so harsh. With so any things going on right now, I think that we are all apprehensive, and dread the changes that we are threatened with, and have no control over.

Grasshopper Mar 23rd, 2003 07:06 PM

Nina, You express my exact feelings. As a premier exec. flyer I always choose United. (I too live in SF) Bt if people like Fayzie, Livesincali and Andre all choose another airline out of fear of United's future, don't you think they, and thousands like them, are writing the story of United's future. Yes, I hold prepaid tickets and will continue to use United as long as I am able.<BR><BR>Frankly, call me what you will, I don't believe that the government will let United fail. I think they will be bailed out at the last minute. Their profile is not unlike the other big airlines and somehow the business model has to change.

Livesincali Mar 23rd, 2003 08:09 PM

Grasshopper,<BR><BR>I think that we must be realistic about the distinct possibility of United going under in the near future, instead of putting our heads in the sand. Personally I do not think that the government will bail them out in the end, because if the feds have the intention of helping United why didn't they approve the loan guarantees back in December?<BR><BR>Even though I am an American Airlines frequent flyer and never fly United, I would hate to see them go under because then the remaining airlines will most likely raise their fares.

gocats2002 Mar 23rd, 2003 08:43 PM

My husband travels extensively for work, and we have harvested many, many United frequent flier miles. I dread the thought of our losing our miles if United liquidates. In fact, I was so loyal to United I didn't believe they could liquidate until I flew another carrier, Southwest, recently. O my gosh! I had leg room!!! And the air as actually breathable. I don't know if that was just a flukey flight, or if United is removing more oxygen for the jets than Southwest. I do know I didn't feel sick when I landed.<BR>Sorry folks, but in my opinion United blew it big. They forgot that human beings fly on airplanes, not cattle. Now I have to figure out how to salvage frequent flier miles, somehow....

Hiroshi Mar 23rd, 2003 09:06 PM

United Airlines filed for bankruptcy several months ago. In the US, the bankruptcy court usually protects the company from having their planes seized.<BR><BR>I think there is some possibility that United will not exist in a few years because the war will make it very difficult for United to make a profit. However, there is a reasonably good chance that you will have no trouble at all in August, 2003.<BR><BR>All of the large airlines (except Braniff in 1982) continued to fly after bankruptcy. Some have done quite well, such as Continental Airlines. US Airways is exiting bankruptcy on March 31st.

Livesincali Mar 23rd, 2003 09:15 PM

gocats,<BR><BR>If you want legroom, try flying American. They increased room by removing rows of seats and you really notice the difference. Southwest is cramped by comparison. I agree with you that United missed the mark, big time. For example, they only have a few rows in coach class that have extra legroom which are reserved for passengers who are &quot;Elite&quot; members of the Mileage Plus program.

gocats2002 Mar 23rd, 2003 09:18 PM

We're not talking bankrupcy here, Hiroshi. Rumor has it that United may actually liquide by the end of June. This may mean closing down completely and selling all assets. I think people holding United tickets will have to get in line behind other creditors, and that people with frequent flier miles may lose them.

Livesincali Mar 23rd, 2003 09:29 PM

gocats,<BR><BR>You may want to check into seeing if US Airways will honor United frequent flier miles since they are partners.

andy Mar 23rd, 2003 10:07 PM

to livesinCali- USAIR is getting ready to emerge from Chapter 11-- so all looks good for USAIR===<BR><BR>

Nina66 Mar 23rd, 2003 11:19 PM

Grasshopper, I now understand what you meant. In all fairness, I really can't blame the others for considering other airlines. It's a tough decision to make, both financally and for peace of mind. They didn't put United in this position to begin with, and as I said, I can't blame them for being scared.<BR><BR>I'd hate to lose those hard earned frequent flyer miles. This is being really really selfish on my part, but to add insult to injury, I'd have to look for another credit card company and long distance company. I joke about getting United miles any way that I can,including picking them up off of the ground if I see one :-) United has been good to me and I hope that they win this one. <BR><BR>We _had_ to fly American last year to Costa Rica. I am not even 5' tall, and I can't ever remember a flight with LESS leg room, plus the service was surly.

Livesincali Mar 24th, 2003 06:43 AM

Nina,<BR><BR>Sounds like when you flew American last year you happened to be in a plane which had not yet had rows of seats removed. The &quot;More Room Throughout Coach&quot; reconfiguration has been completed, so if you do fly American again you should notice a significant increase in legroom.

GoTravel Mar 24th, 2003 06:55 AM

From my understanding with the majors, if you are holding a paid for ticket and the airline ceases operations, another domestic airline must honor the ticket.<BR><BR>If UAL goes under, the other majors will snap up their routes and gates at airports.<BR><BR>I could be wrong, but as major a player as UAL is, I don't think the gov't will let them go under. Not to mention the hundred thousand people that will be out of work, but the hole in air travel that would create.


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