United Gets $1 Billion in Loans

United is set to receive $1 billion in loans and may stay in bankruptcy through June 2005.

That pretty much proves the point that United has access to private capital markets, contrary to claims made in furtherance of their failed application for government-backed loans.

The key difference is that had they gotten the government-backed loans, they would have quickly emerged from Chapter 11 without finishing the job of cost cutting.

By going to the private market for funding, they’re being forced to make painful cuts in order to become profitable.

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 InsideFlyer.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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