The No. 2 U.S. airline, which used its time in protection from creditors to slash costs by $7 billion a year, must now sink or swim in a fiercely competitive industry that is plagued by soaring fuel costs and overcapacity.
Experts are divided over UAL's prospects for profitability, and even for survival. If UAL succeeds, its story would resemble that of Continental Airlines, which went bankrupt twice before regaining traction.
If it fails, UAL would join a long list of U.S. airlines that died in or after bankruptcy -- including TWA and Pan American.
"I think they have substantial challenges -- energy costs, pricing power," said airline consultant Robert Mann. "And I think there are some questions as to whether they can be the instigator or the target of consolidation."
UAL filed for bankruptcy in December 2002, weakened by low-fare competition and a drop-off in air travel following the Sept. 11, 2001, terror attacks on the United States. The airline's woes intensified as energy prices crept higher. Oil prices notched a record high above $70 a barrel in August and were trading above $67 a barrel on Wednesday.
Yahoo! News
There is plenty of critics out there. Joe Brancatelli over at USAtoday wrote a highly critical article on why he thinks United will fail. United Airlines Loyalty Services were all over it just minutes after it was posted.
Sign on San Diego has a nice article with an interview with CEO of United Airlines.
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