Who’s Going to Give United More Money?

The Chicago Tribune carried a piece today speculating about equity investors for United’s exit from bankruptcy. Will they go for just a government loan? Will they get outside financing? Will it come from Lufthansa? Will any new investors demand a new management team? The piece is long on speculation but offers little prediction.

One curious thing is the last line of the article, considering a Lufthansa equity stake in United:

    having another airline as a shareholder would be a first for United, although one that might be a lot less wrenching than other alternatives.
Surely that can’t be true. I seem to recall National Air Transport owning part of United’s corporate predecessor in the early 1930s. And I also recall some equity ownership on the part of Western Air Lines when United and Western introduced the very first codeshare (Los Angeles-Salt Lake City-Chicago). I’ll have to go digging on this one, because my mind has really been spurred over this.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community Milepoint.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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