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DansDeals Forum => Just Shmooze => Topic started by: yitzyul on July 13, 2016, 10:22:27 PM

Title: United's Monopoly (almost) in Newark to End
Post by: yitzyul on July 13, 2016, 10:22:27 PM
http://www.cbsnews.com/news/united-writes-off-412m-after-losing-newark-bulwark/

Last paragraph is quite interesting
Title: Re: United's Monopoly (almost) in Newark to End
Post by: Dan on July 13, 2016, 10:33:00 PM
Very interesting.
Title: Re: United's Monopoly (almost) in Newark to End
Post by: dovy2 on July 14, 2016, 08:02:44 AM
I don't get it, what would chase do with the slots, open an airline? 😂
Title: Re: United's Monopoly (almost) in Newark to End
Post by: lubaby on July 14, 2016, 08:13:25 AM
I don't get it, what would chase do with the slots, open an airline? 😂
Sell them to the highest bidder?

I'm sure there's gonna be lots of airlines wanting hands to get their hands on them.
Title: Re: United's Monopoly (almost) in Newark to End
Post by: Aerial Dag on July 14, 2016, 09:00:52 AM
I was once talking to a lawyer in one of the large NYC law firms who specializes in airline financing and he told me that its regular practice for airlines to use slots as collateral for financing airplane purchases. I was surprised but slots are a really important (and valuable) asset for airlines.

Honestly though, these days with so few airlines left who is really in a position to buy out all of United's slots if they go bankrupt?
Title: Re: United's Monopoly (almost) in Newark to End
Post by: avrumy22 on July 14, 2016, 09:30:52 AM
Very interesting.

could the relationship sour?
Title: Re: United's Monopoly (almost) in Newark to End
Post by: Dan on July 14, 2016, 09:41:31 AM
could the relationship sour?
No.
Title: Re: United's Monopoly (almost) in Newark to End
Post by: AsherO on July 14, 2016, 02:08:39 PM
No.

Anything can happen, but they are in a mutually-beneficial LTR :)
Title: Re: United's Monopoly (almost) in Newark to End
Post by: coralsnake on July 14, 2016, 03:49:14 PM
I don't get it, what would chase do with the slots, open an airline? 😂
Same thing they do with any other collateral. They dont actually want to own your house when you take out a mortgage; Banks are not in the real estate business.