There has to be a drastic scaling back of the airline to create a cash base to survive. The way to do this is to sell off many routes, gates and planes.

I would focus the airline around the model of being a trunking airline with longer routes with Hawaii and International access. This would allow UAL to partner with one or more smaller domestic carrier as a feeder airline. It may be required to take some of its United Express Partner Airlines into this game and help them take over some of these routes. The goal here is to get some cash back while lowering Operating Expenses. It is clear that one can not get full value for these assets, but at the moment one needs to stop the bleeding. These secondary and tertiary airports should probably see ticket price increases. There is much less choice and much less traffic, so take advantage where you can.

This plan would allow UAL to restructure itself onto its most profitable routes and eliminate its debt. It also eliminates the need to cut salaries for the unions as many of the jobs will be given along with the routes and planes that are sold off.

At the same time, it is worth considering the spin-off of Apollo Travel Services (UAL's reservation system) into a separate company. Again this is a re-capitalization program, that should create cash for UAL and value for its shareholders.

Jim