Without the prospect of being able to operate United Airlines profitably, to put further cash into this airline is really contrary to the interests of creditors.

For UA to operate profitably, I believe that they need some sort of a labor-management consensus. I don't think that's forthcoming.

I also think UA needs to shrink its network. Profitable carriers like Southwest and Alaska operate routes that make money. UA and other majors operate routes because they can. If JFK-LAX is profitable for 1 airline, 3 others try to jump in. The route isn't profitable for 4 airlines at once, but none of the 4 will bow out.

There's a sense of the pursuit of revenue instead of profits, which was the same attitude that drove lots of dot-com's and telecoms out of business. I've never worked at an airline, but I saw enough of that kind of "revenue at all costs" attitude first-hand at the other 2 categories described above.

With these 2 premises as the basis of my thinking, I don't see a way for UA to be restructured into a profitable enterprise. It'll continue to be a money-burning machine and pouring more cash into it isn't really the most rational thing.

If I were a tin-hearted bean-counter, cold calculation would lead me to liquidate UAL. Unsecured creditors, including shareholders, as well as UA employees would be screwed, but there's enough value in UA's corpse to pay off its secured creditors.