-----BEGIN PGP SIGNED MESSAGE----- Hash: SHA1 Sounds like most of the partners are being appropriately wary of sinking any money into the bottomless pit that is United. David On Sunday 27 Oct 2002 5:51 pm, Rob Roman wrote: > Reuters > Singapore Air CEO says United seeking cooperation > Friday October 25, 2:32 pm ET > By Julie MacIntosh > > > (Adds comment from Lufthansa spokeswoman, Air Canada CEO) > > NEW YORK, Oct 25 (Reuters) - United Airlines, which is teetering near the > edge of bankruptcy, has approached its air alliance partners, including > Singapore Airlines Ltd. (SES:SIAL.SI - News), about strengthening ties > between the carriers, Singapore Airlines' chief executive said on Friday. > > > "United Airlines has been talking to us as well as to other Star Alliance > partners about increased cooperation," Dr. Cheong Choon Kong, Singapore > Airlines' chief executive, said in a telephone interview with reporters on > Friday. > > "We haven't gone into specifics and, even if we had, I don't think it would > be very good manners of me to speak out of turn," Cheong said. > > United, the main operating unit of UAL Corp. (NYSE:UAL - News), has worked > feverishly in recent months to avert bankruptcy by cutting billions of > dollars in expenses through new contracts with its labor groups and > lenders. > > United, the second-largest U.S. airline, filed an updated application for > $1.8 billion in federal backing for loans from the private sector > Wednesday. The airline has still not agreed with its individual labor > unions on how much each will give up, although it has set a lowered target > of $5.8 billion over 5-1/2 years. > > Talks between United and its Star Alliance partners, including Deutsche > Lufthansa AG (Frankfurt:LHAG.F - News), All Nippon Airways (Tokyo:9202.T - > News) and Air Canada (Toronto:AC.TO - News), could include discussions over > one or more of those carriers taking an equity stake in United to help > prevent a bankruptcy, industry sources say. > > A United spokeswoman would not comment on whether the airline has talked > with its partners about any stake in the company. > > "As always, we continue to keep all of our Star Alliance partners abreast > of our financial situation," she said. > > ALLIES IN TALKS > > A spokeswoman for Lufthansa said the airline was adhering to a strategy > within the Star Alliance that cautions against the carriers holding each > other's equity. > > "The strategy of the alliance is that the airlines don't take stakes in > each other -- that's why it has been so successful," she said. > > Air Canada President and Chief Executive Robert Milton told analysts in a > conference call on Friday that he had talked about the issue with Glenn > Tilton, United's chief executive. > > "We had a good chat and, you know, we're going to look to be supportive to > the extent that we can. They are a great partner and provide us tremendous > benefit, as we do them," Milton said. > > Singapore Airlines has not taken a serious look at buying equity in > airlines within the struggling U.S. commercial airline sector, Cheong said, > although he did not comment on United in particular. > > "Our focus is still near home," he said. "And don't forget that in the U.S. > you still have your limitations on foreign ownership." > > U.S. regulations limit the voting stake any foreign entity can hold in a > U.S. airline to 25 percent, although foreign companies have owned larger > percentages of shares in U.S. air carriers and sacrificed the extra voting > rights. > > Some airline industry executives have urged legislators to ease the > restriction, but Congress has shown little interest in rolling back the > rules. (Additional reporting by Jeff Mason in Frankfurt and Robert > Melnbardis in Montreal) > > _________________________________________________________________ > Broadband? Dial-up? Get reliable MSN Internet Access. > http://resourcecenter.msn.com/access/plans/default.asp -----BEGIN PGP SIGNATURE----- Version: GnuPG v1.0.7 (GNU/Linux) iD8DBQE9vEQuKsvwCXwmAPgRAuzVAJ9aRAyZQTsGSVC/kj19thG9d1sfnACeIcQW CkrVb1GLBXNc4ceU1u/ms+g= =OlgH -----END PGP SIGNATURE-----