UAL, parent of United Air, stock down 41 percent
Sep 18, 2001, 11:34 pm
#16
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I think Chrysler was also a loan guarantee, on the order of $1 B, maybe $2 B. That's in late 1970s dollars so it would be maybe doubled in today's money. Also as reference, I think the Mexican loan guarantees were around $20 B.
If the money gets paid back, then the taxpayers aren't out any money. Of course, we've taken risks for which the borrower would otherwise have had to compensate a private sector guarantor (if it could find one). I don't know exactly how the Chrysler deal was structured, but I think the gov't ended up getting some payments from Chrysler after it righted itself.
[This message has been edited by MagMile (edited 09-18-2001).]
If the money gets paid back, then the taxpayers aren't out any money. Of course, we've taken risks for which the borrower would otherwise have had to compensate a private sector guarantor (if it could find one). I don't know exactly how the Chrysler deal was structured, but I think the gov't ended up getting some payments from Chrysler after it righted itself.
[This message has been edited by MagMile (edited 09-18-2001).]
Sep 19, 2001, 6:27 am
#17
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Yes, but of course Chrysler came back!
Alternatively, aren't the airlines as essential to society today in 2000 as the rails were in 1900?
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United Airlines says to furlough 20,000 workers
United Airlines, the nation's No. 2 airline, said on Wednesday it plans to furlough about 20,000 workers in the wake of the attacks on New York and Washington.
The airline, a unit of UAL Corp. (NYSE:UAL - news), said that the layoffs affect all employee groups. The Chicago-based airline has about 100,000 employees throughout its system.
United's layoffs follow cutbacks by other major U.S. airlines looking to staunch losses as air traffic demand falls. Over the weekend, United announced a 20 percent pull down in its scheduled service.
http://biz.yahoo.com/rf/010919/n19337736_1.html
[This message has been edited by doc (edited 09-19-2001).]
Alternatively, aren't the airlines as essential to society today in 2000 as the rails were in 1900?
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United Airlines says to furlough 20,000 workers
United Airlines, the nation's No. 2 airline, said on Wednesday it plans to furlough about 20,000 workers in the wake of the attacks on New York and Washington.
The airline, a unit of UAL Corp. (NYSE:UAL - news), said that the layoffs affect all employee groups. The Chicago-based airline has about 100,000 employees throughout its system.
United's layoffs follow cutbacks by other major U.S. airlines looking to staunch losses as air traffic demand falls. Over the weekend, United announced a 20 percent pull down in its scheduled service.
http://biz.yahoo.com/rf/010919/n19337736_1.html
[This message has been edited by doc (edited 09-19-2001).]
Sep 20, 2001, 7:13 am
#18
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Late Wednesday, both United Airlines and AMR said they would cut at least 20,000 jobs in the wake of previously announced schedule reductions.
Oct 16, 2001, 6:18 pm
#19
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After investing heavily over a period of years to become the largest air carrier at Los Angeles International Airport, United Airlines confirmed Monday that it will dramatically reduce its Los Angeles flight schedule at the end of this month.
http://www.latimes.com/business/la-0...nes%2Dbusiness
United Warns Airline May Perish
United CEO James Goodwin Says Airline Will Perish Next Year if Finances Don't Improve
http://biz.yahoo.com/apf/011016/unit..._future_2.html
http://www.latimes.com/business/la-0...nes%2Dbusiness
United Warns Airline May Perish
United CEO James Goodwin Says Airline Will Perish Next Year if Finances Don't Improve
http://biz.yahoo.com/apf/011016/unit..._future_2.html
Oct 16, 2001, 8:51 pm
#20
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Interesting to note the stock price is still in the mid $18s.
Oct 17, 2001, 6:11 am
#21
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United spokesman Chris Brathwaite would not confirm the content of the letter but said it was in the process of being mailed out to United's roughly 100,000 employees early this week. A version of it was sent to United supervisors last Friday, he said.
http://biz.yahoo.com/rf/011016/n16156983_1.html
http://biz.yahoo.com/rf/011016/n16156983_1.html
Oct 17, 2001, 6:25 am
#22
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I am the only FTer that is glad that I'm not working for Goodwin?
Oct 17, 2001, 8:37 am
#23
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Nope! 
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Airlines stocks started Wednesday on a downward slope, pulled lower by the weight of near 5- percent drop in shares of UAL Corp.
http://www.marketwatch.com/news/yhoo...67B153F135C%7D
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Airlines stocks started Wednesday on a downward slope, pulled lower by the weight of near 5- percent drop in shares of UAL Corp.
http://www.marketwatch.com/news/yhoo...67B153F135C%7D
Oct 17, 2001, 8:57 am
#24
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Wow, 17 bucks has really now gotta be a buy? Costs down, routes streamlined, Gov't backing basically assured. WHERE do you get all this stuff doc? Amazing info as always- thanks.
Oct 17, 2001, 9:14 am
#25
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Re-reading it Doc .. heading said UAL was down about NINE PERCENT today based on that panic Goodwin letter. As I type this they are way down to $16.61, or 10.90% down on the day. Here is a chart showing them at $46 in January. Gotta be a buy today - they are dropping rapidly this morning.
Oct 17, 2001, 9:20 am
#26
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Rather than actually buying, I'd personally likely just be selling the puts!
Oct 17, 2001, 9:27 am
#27
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Mr.Goodwin's fan club would like to sell/trade that putz as well.
Oct 17, 2001, 4:16 pm
#28
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Does Mr. G. actually have a fan club?
His wife & kids maybe?
BTW- Selling puts is basically a short term neutral, long term bullish strategy!
[This message has been edited by doc (edited 10-17-2001).]
His wife & kids maybe?
BTW- Selling puts is basically a short term neutral, long term bullish strategy!
[This message has been edited by doc (edited 10-17-2001).]
Oct 17, 2001, 7:31 pm
#29
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And isn't a putz a short thinking, neutral idead, bullsh*t strategist?
Oct 18, 2001, 8:32 am
#30
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I'm not exactly sure! Anyone?
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Investors shied away from airlines stocks for the second consecutive day, still spooked by UAL Corp. Chief Executive's letter warning employees that the carrier may "perish" is it doesn't stop bleeding cash.
In early trading, the nation's second-largest airline was down $1, or nearly 6 percent, to $15.85 - a new low.
http://www.marketwatch.com/news/yhoo...D3068D2DA31%7D
Anyone? ---
Investors shied away from airlines stocks for the second consecutive day, still spooked by UAL Corp. Chief Executive's letter warning employees that the carrier may "perish" is it doesn't stop bleeding cash.
In early trading, the nation's second-largest airline was down $1, or nearly 6 percent, to $15.85 - a new low.
http://www.marketwatch.com/news/yhoo...D3068D2DA31%7D