Air Transport World

UAL faces long road out of bankruptcy. (News Briefs).(United Airlines)

United Airlines made history Dec. 9 when it became the largest airline ever to go bankrupt. It will make history of a more positive kind if it is able to reorganize under US Chapter 11 protection, but it will face substantial challenges, foremost among them considerably less cash on hand than it previously had targeted as necessary to avoid a bankruptcy filing. Rather than the $2 billion it was trying to arrange in conjunction with a $1.8 billion loan guarantee from the Air Transportation Stabilization Board, UAL entered bankruptcy with debtor-in-possession financing totaling $1.5 billion, of which only $800 million was immediately available. The remaining $700 million will be released when the company demonstrates positive EBITDAR and unspecified cost reductions. …

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