NEWS: United Airlines Asks For Re-Org Deadline Extension

United is requesting an additional two months to complete and gain approval of its reorganization plan. And why shouldn't the bankruptcy court grant the extension because trying to get all of this worked out over the last two and a half years is really too much to ask isn't it? Anyway, this is another one of those extensions to the exclusivity period for United to present it re-org plan. During this period no other competing re-org plans can be presented.

You should really click on over to this article in the Rocky Mountain News because it has an good laundry list of all the reasons that the deck is stacked against United's successful exit from bankruptcy.

Here's the Cliff Notes version:

Leases: Still wants to renegotiate lease rates on about 100 aircraft
Pensions: United say cutting them saves $640 million/year. Unions are greatly opposed to the move to the point that they may strike if it happens
Concession: Mechanic (AMFA) and Machinists (IAM) still have not come to agreement on cost cutting deals with the unions. Just because the airline can terminate their contract via the bankruptcy court doesn't mean that its the best move.
Exit Financing: Estimates are $2-$2.5 billion to support their bankruptcy exit. The fact that anyone, no...strike that..., at least four investors are considering putting this kind of money into United leaves me speechless.
Business Plan: Airline consultant Michael Boyd says it best

"What United doesn't have is a morale problem or a service problem," said Mike Boyd, an Evergreen-based aviation consultant. "They excel in those areas, and even people at other airlines would probably tell you that. But their strategic direction is as weak as can be."

Thanks Michael...well said.