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?

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>

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

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.

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

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 :-)

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

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?

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.

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.

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.

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....

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.

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.

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.

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

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

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.

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.

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.

Lives, Only time will tell. For my primary purposes American does not suit my needs. I fly regularly SFO to DEN and SFO to LHR. Again, I think the bigger problem is that the US Airlines business model is not feasable. Something will have to change that.

Sounds like lots of us may be in the same boat with UAL. Although we've always preferred AA with the extra legroom, we still have flown UA quite a bit as well and have over 350,000 FF miles on UA. We're going to use some of these for 2 business class tickets on Luthansa (UA partner) for Oct.1st but am concerned knowing that if UA does go under before we complete our trip, Luthansa has no obligation to honor our paper tickets since the miles came out of a UA account and Luthansa doesn't get paid until after the trip is complete! We could really be SOL. <BR><BR>You can no longer deposit your UA ff miles into Hilton Honors. Diners credit card is still an option, for now at least. <BR>I'm looking into:<BR>http://www.privilegeflyer.com/<BR><BR>to protect our UA miles (as well as other airline miles as well). Anyone signed up or familiar with this company?<BR>

GoTravel,<BR>From what I understand, the provision that requires another U.S. carrier to honor tickets issued by a carrier which ceased operation expires sometime in May 2003. It's also on a 'space available' basis and the carrier honoring the ticket can charge a maximum of $25 each way. <BR><BR>Does anyone know if this has been extended or any plans for an extension beyond the current expiration?

Petlover, <BR><BR>We also used United miles for tickets on Lufthansa. We are flying to Milan via Frankfurt in September. I was under the impression that once we had a paper ticket from Lufthansa that we were home free and didn't have to concern ourselves with United's fate. If what you say is true, Lufthansa may not honor the ticket if United goes out of business? I wasn't concerned about this trip before but I am now.

<BR><BR>Just read an article (Monday, March 24) that said that despite the surge in the stock market last week, the airlines are still very much in trouble. Largely because no one's going anywhere (hotels are also in trouble).<BR><BR>Delta is going to be making some cuts. I think United's days are, indeed, limited.

Because we used a United credit to pay for part of our tickets for May-June flights, we had to go to the airport to get them, couldn't do it over the phone. I _thought_ that we were issued paper tickets. When I called United a few days ago for something else, I found out that they were not paper tickets, but were E-tickets and that if I had wanted paper tickets, I would have had to pay $20 more for each one. I was never given that option. <BR><BR>When I asked the reservationist on the phone if anything happened would I be stuck because I didn't have paper tickets - something I have heard many times over the years, and she said &quot;you've been watching Oprah, that is what she is telling everyone. and it is simply not true&quot;. Numerous travel sources, magazines, etc.. have warned against E tickets. The reservationist said that the E tickets wer actually better if we did need to use another airline.<BR><BR>If you don't ask, you are not told, but who can think to ask every question ... and believe me I do ask LOTS of them.<BR><BR>What is the real scoop on paper tickets vs E tickets?

We are confirmed on a Business Upgrade on our return flight, and wait listed on the outbound flight. United took out the miles for both flights at the same time. When I discovered this, I called and they said that it would be easier to take the miles out before we were confirmed, but said that I could have them returned to account now, or if we do not get the upgrade. This made absolutely no sense to me as it has never happened before.<BR><BR>All of my talk about how much I love United .... I think this is the first time that there has been any sort of problem.<BR><BR>I'm thinking now that I should have those miles returned to my account just in case something happens and another airline will let me transfer my miles. I can have them taken from my account if and when we get the upgrade.<BR><BR>I feel as if they asked me to pay in advance for merchandise that they will or will not get for me. Just venting......

Nina,<BR><BR>Basically the only time a having a paper ticket is an advantage over an E-ticket is if you are purchasing an unrestricted full fare ticket. In that case the paper ticket is as good as cash and will be honored by another carrier. If you have a paper ticket for discounted economy/restricted fare, chances are it will NOT be honored by another carrier. However, to be on the safe side, even if I am buying an economy ticket, I'd go with paper over electronic.

Basically, paper tickets and e-tickets are about the same. The economy restricted fare ticket (whether it be e or paper) is only good for the flight it is listed for unless the airline bumps you. If the airline overbooks or bumps you, they must put you on the next flight no matter what airline it is at their cost.<BR><BR>As far as the airline going out of business and having to honor the flight, to be on the safe side, I'd go to FAA.gov to find out.

Alot is being said here about UAL, because it MAY be the airline that is the closest to going out of business, but a number of the larger airlines may be close behind. The whole industry is having problems, as is the hotel &amp; other travel related industries. Just because AA has more legroom, is not going to keep it from going into bankruptcy. It still has to cut their union &amp; non-union costs, &amp; maybe come up with a business plan. (UAL is made up of non-union office workers as well as the union workers in the field. Non-union employees have had their cuts made with no input like the unions have.) For those that thing UAL &amp; other airlines should be run more like Southwest, you can't do that unless union contracts are renegotiated.

BoulderCO,<BR>There's no guarantee that Lufthansa will honor your award ticket if UA liquidates even if you're holding paper tickets with Lufthansa flights. Did you contact Lufthansa to see if they have an official policy on this?