How the world works

I subscribe to several travel e-newsletters, and while sometimes useful it’s also surprising how little many of these writers know about matters beyond their immediate purview — and how often this fact fails to stop them from commenting. David Rowell, a.k.a. “the Travel Insider,” complains about United’s $2.8 million payment to McKinsey & Co. for consulting services. I agree that United isn’t getting their money’s worth! But this statement bothers me:

    One assumes that the $2.8 million which McKinsey billed UA for their mystery work in December, January and February is not also being treated as an unsecured creditor outstanding, but rather has already been paid in full!

I’m shocked. Shocked, I tell you!

Or at least I would be if I didn’t know that expenses incurred by a company after entering bankruptcy take priority, otherwise no supplier or vendor would do business with that company and they’d never be able to emerge from bankruptcy successfully and pay off as many creditors as possible

So now that I know that United is simply paying it’s bills in accordance with rules and procedures enforced by the bankruptcy court, maybe I’m not as shocked after all.

With apologies to Instapundit, Advantage: View from the Wing!.

But the stuff coming out of McKinsey is still junk

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, 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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