NEWS: United Airlines Lining up Possible Financing

Despite all of its efforts at cost cutting United Airlines still needs a shot of cold hard cash to help it realize its dream of exiting bankruptcy for the first time since December 2002. The airline is reporting that it has four offers for up to $2.5 billion dollars worth of debt financing. That's billion folks, you know, the "illion" with a "b". However, before United can lay their hand on that kind of cash they need to complete all of their labor deals including further work on restructuring their pension plans as well. Estimates are that all of this will start coalescing in around 90 days.

They will likely take the easy way out on the pension plans by trying to dump them much like US Airways did. Despite all of these efforts I just don't understand how a financial institution can look at United Airlines and think "hey, lets loan them $2.5 billion dollars". They must be the same folks who keep sending me credit card offers. I just don't see anything coming out of United right now that indicates they are viable in the long term.