UAL is a large airline company with roots that go back to 1920. The legacy media, returning to the earlier 1978 deregulation of air transport, United Airlines burdened cost structures that make it difficult to compete with new rivals. In addition, UAL has the burden of $ 7.6 billion in unfunded pension liabilities and $ 2 billion unfunded retiree health obligations. In June 2004, UAL is still working under Chapter 11 bankruptcy, which began in December 2002. He need to enhance the exclusivity period from arbitration. UAL plan of reorganization based on the receipt of $ 1.8 billion loan guarantee from the Air Transportation Stabilization Board (ATSB). But his request for a loan guarantee from the ATSB, which was rejected. The company must decide what to do next and how to get out of bankruptcy. "Hide
by Daniel B. Bergstresser, Kenneth A. Froot, Darren R. Smart Source: Harvard Business School 24 pages. Publication Date: February 22, 2005. Prod. #: 205090-PDF-ENG
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