United urged to file for Chapter 11
Sunday 25 August 2002
Rosenbluth International, United Airlines' biggest corporate customer, is strongly urging the embattled US carrier to file for immediate Chapter 11 bankruptcy protection, which it may do within the next few days.
The advice comes amid a deepening crisis in the US airline market that threatens to cripple domestic travel within North America.
Speaking exclusively to The Independent on Sunday, Hal Rosenbluth, the chief executive of one of the world's biggest corporate travel agencies, revealed he had approached the chief executive and board of United Airlines to tell them that their business survival depended on seeking bankruptcy protection.
"I told them very clearly that they should file Chapter 11 within the next few days," said Mr Rosenbluth. "They did not disagree with me."
Mr Rosenbluth, a travel industry veteran of nearly 30 years, believes that only by declaring bankruptcy can United recover its customer base. "A pending bankruptcy is so much worse for customers," he said. "Once it's out in the open, the bookings start coming back."
United may be forced to follow US Airways' lead in filing for Chapter 11 earlier this month, if it wants to strike the sort of deal now being proposed by the industry.
In a desperate effort to control costs and guarantee continued domestic US services, Delta, Northwest and Continental last week agreed on a scheme that would let them sell tickets on each other's flights, giving the industry better pricing power.
- 1 Finland schools: Subjects scrapped and replaced with 'topics' as country reforms its education system
- 2 The West has it totally wrong on Lee Kuan Yew
- 3 #FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
- 4 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
- 5 Zayn Malik quits One Direction: Hundreds of workers request compassionate leave following band member's exit
Germanwings captain Patrick Sondenheimer tried to break into locked cockpit door 'with an axe' as plane was descending
Amanda Knox murder conviction: Italian court overturns verdict for US student and Raffaele Sollecito in the killing of Meredith Kercher
Saudi Arabia says it won't rule out building nuclear weapons
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
#FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
Nigel Farage brands LGBT activists 'filth' and 'scum' and accuses them of scaring away his children after they invade his local pub
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Russia threatens Denmark with nuclear weapons if it tries to join Nato defence shield
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Germanwings plane crash live: Co-pilot Andreas Lubitz wanted to 'do something people would remember him for'
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...