Loan Refusal Puts UA in Jeopardy

Although United Airlines is expected to be in bankruptcy court this week, industry observers say the struggling carrier will keep flying at least for now. But Business Travel Coalition president Kevin Mitchell expects serious problems, short- and long-term. Initially, Mitchell said, customers can expe


Although United Airlines is expected to be in bankruptcy court this week, industry observers say the struggling carrier will keep flying at least for now.

But Business Travel Coalition president Kevin Mitchell expects serious problems, short- and long-term. Initially, Mitchell said, customers can expect “a highly distracted work force,” followed by fewer flights and higher fares. Should United eventually be forced into liquidation, he said, a full 19 percent of the nation’s airline capacity would be eliminated.

The Air Transportation Stabilization Board, voted 2-to-1 Dec. 4, to deny a $1.8 billion loan guarantee, saying UA’s business plan was “not financially sound.” n

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