What comes after three strikes?
What does United Airlines do now that the US Air Transportation Stabilization Board (ATSB) has shut the door on any loan guarantee?
The ATSB not only rejected the airlines’ latest $1.1 billion federal loan guarantee, but also said it would not accept any further submissions.
United isn’t discussing specifics of its options publicly. But even before the Air Transportation Stabilization Board dismissed its latest loan-guarantee effort, CEO Glenn Tilton cautioned employees last week that more cuts would be needed to cope with increased competitive pressures and high fuel costs, according to the Associated Press (AP).
One area likely to be targeted for cuts by management is employee pensions, particularly since United must make at least $4 billion in pension payments through 2008.
The AP also said speculation on cuts also extends to United’s Asia routes and the size of its work force, which already is down to 62,500 from 100,000 before the 2001 terror attacks.
The ATSB has now rejected United’s request for a loan three times.
But the airline’s progress in overhauling its costs and operations since 2002 has won praise from the board and others. That raises the possibility of investment groups coming forward to invest the hundreds of billions necessary for the airline’s future survival.
United in a statement said the message from the ATSB was that “we can get the exit financing we need on our own.”
Lenders have continued to be “tremendously supportive” the airline said in the statement.
Report by David Wilkening
David
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
CCS Insight: eSIMs ready to take the travel world by storm
Germany new European Entry/Exit System limited to a single airport on October 12, 2025
Airlines suspend Madagascar services following unrest and army revolt
Qatar Airways offers flexible payment options for European travellers
Air Mauritius reduces frequencies to Europe and Asia for the holiday season