Transportation
US Air (LLC), United (UAUA) On Again, Off Again Talks Are Off Again
Published:
The press alternates between reporting that United (UAUA) and US Air (LCC) are in merger talks one day, and not in merger talks the next. According to Reuters "United Airlines and US Airways have suspended merger talks due to concerns about labor opposition and integration costs." Of course, that could change tomorrow.
With the Delta (DAL) tie-up with Northwest (NWA) moving forward, it looks like other airlines believe that they are running out of time. High oil prices and a recession-driven loss of passengers means that operating income and cash flow in the industry could near $10 billion this year. Some of the carriers may not be able to weather that with with their current financial structures.
Airlines have quickly moved to two new strategies. One is very public and involves the cutting of routes and laying off of tens of thousand of employees.
The other planning goes on behind closed doors. This work is based on the idea that several carriers will have to go into Chapter 11. Each needs liabilities to greatly outweigh assets to make the move, but requires enough cash on the balance sheet to get through a restructuring.
Accountants with abacuses are sitting in windowless offices picking the best date for going into court and asking for protection. Based on current debt service and negative cash flow, some of them could be moving to bankruptcy in the third quarter.
Douglas A. McIntyre
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.