Monthly Archives

Monthly Archives for December 2002.

A new meaning to transubstantiation,

A new meaning to transubstantiation, or the greatest pickup line ever? A priest convinced young girls who were preparing to become nuns that they should engage in sex acts with him — because it would really be having sex with Christ himself. Wish I had thought of that one!

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Last Thursday I said that

Last Thursday I said that United would file by bankrupty by the following Thursday. It took only until Monday. I flew the airline this morning, and the pilot sought to reassure passengers that the crew would not be distracted. Now begins the flurry of activity — also known as business as usual — to restructure the airlines. Most of the news stories report on pro-forma activity, such as this piece from Crain’s Chicago Business which describes United’s request for the bankruptcy court to approve agreements with legal counsel, financial advisors, auditors, and public relations advisors.

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Here are answers

Here are answers to your questions about United’s future. The government rejected United’s application for a government-backed loan. (They were seeking $2 billion with $1.8 billion guaranteed by the government.) The vote was 2-1 against with the Treasury and Fed representatives voting against and the Transportation Department voting for. As a result of the government’s rejection, the IAM (machinists’ union) cancelled their vote on contract concessions. Without those concessions and without the government loan, United has said it would file for bankruptcy. United has about $1.6 billion cash on hand and its net assets are positive, but it is losing about $7 million per day and is on track to lose $2 billion this year. They are in the midst of a ten-day grace period (which runs out December 12th) on a $350 million debt…

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A phone card which offers

A phone card which offers 2,500 Mexicana miles for signup. Mexicana is a member of the Star Alliance, so miles can be redeemed for United flights. Also, while United doesn’t participate with American Express Membership Rewards, Mexicana does — so Mexicana’s program can be a useful way to redeeming your AmEx points on United.

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