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Non-Tech : United Airlines

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To: SLSUSMA who started this subject	7/31/2002 11:38:25 AM
From: Original Mad Dog	Read Replies (1) of 94

I think they are priced at that level because the market believes there is a strong chance of a Chapter 11 filing in the next 12 months. Without a massive government bailout, it's hard to see how they avoid having to reorganize. Their cost structure was put into place at a time when different economic assumptions were justified. A bankruptcy will allow them to flush major parts of that cost structure and start over. The last 15 roundtrip tickets I have bought between Chicago and the West Coast on United have cost less than $200 round trip. Each time I had my choice of a dozen flights at that price. There is no way they can survive with their current cost structure and a marketplace forcing them to charge those prices.

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