United is looking for a way to emerge from Chapter 11 without a
federal loan guarantee. The Air Transportation Stabilization Board
(ATSB) June 28 again rejected United’s request for a guarantee, and
it said the airline won’t get any more chances.
United issued a statement in which it said it is confident it
can emerge from Chapter 11 without the guarantee, and already is
talking to lenders about the terms for additional financing.
“While we disagree with [the board’s] decision, we are gratified
by the ATSB’s public recognition of our progress and are already
moving forward to secure the exit financing we need to take United
out of bankruptcy,” the airline said. “The message from the ATSB is
that we can get the exit financing we need on our own.
“We will continue to take the actions necessary to further
reduce costs and improve revenue while remaining firmly focused on
providing a superior travel experience to all of our
Prior to the ATSB rejection, United had increased its dialogue
with agents. In a June 22 conference call, airline executives
sought to assure them the airline’s future is secure no matter what
happens in its effort to obtain a federal loan guarantee.
“We will emerge as a strong competitor for the long term,” said
Dan Walsh, United’s executive vice president of North America