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FRONT PAGE  |  10/28/2016
MONDAY, DEC 9, 2002  |  1 comments
United Airlines files for bankruptcy

United's bankruptcy filing is the largest such case ever in the global airline industry.

CHICAGO, Dec. 9 — United Airlines made the largest bankruptcy filing in aviation history Monday, saying it was the only way to keep the world’s No. 2 airline flying after two years of heavy losses. The Chapter 11 filing also was one of the top 10 ever as measured by assets. The suburban Chicago-based company has lost $4 billion in the last two years due to a slumping economy, flawed business strategies and the Sept. 11 terrorist attacks. It faced debt payments of $875 million later this week.

“REORGANIZATION UNDER CHAPTER 11 is the only way at this point to build on what we’ve accomplished, to secure United’s long-term future and to ensure that United can continue to meet the needs of our customers while remaining a major player in the global airline industry,” United CEO Glenn Tilton told employees on a company hotline.

“Our flight operations will continue as usual in the United States ...

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News Item12/10/02 3:15 AM
peter | AUSTRALIA  Contact via email
When you're making those sort of losses continually there are always areas that are losing more than others. A CEO's job is to try to limit these losses by eliminating loss causing services (contracting to others, etc.) and stop the bleeding. Any accountant could do that! To carry on as they have in the past is just looking for more bad debts. The people they owe have jobs and families that need to be paid or they will fail, due to no fault of their own.
Has Glenn Tilton taken a pay cut or is he being replaced with a cheaper version?
Romans 13: 8 says "owe no man anything"
Jeremiah 22: 13 says "Woe unto him that buildeth his house by unrighteousness, and his chambers by wrong; that useth his neighbour’s service without wages, and giveth him not for his work;"
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