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