Bank One may lose millions on United Airlines card

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Bank One may lose millions on United Airlines card
Fri March 7, 2003 05:34 AM ET
NEW YORK, March 7 (Reuters) - Bank One Corp ONE.N
<http://www.reuters.com/financeQuoteLookup.jhtml?ticker=ONE.N&qtype=sym&;
infotype=info&qcat=news>  , the No. 6 U.S. banking company, said it
could lose several hundred million dollars on a United Airlines credit
card if the airline is liquidated.

If UAL Corp.'s UAL.N
<http://www.reuters.com/financeQuoteLookup.jhtml?ticker=UAL.N&qtype=sym&;
infotype=info&qcat=news>  United Airlines does not successfully
reorganize under Chapter 11 of the U.S. bankruptcy code and is
liquidated, net income in Bank One's card services unit would be hurt by
the dissolution of the marketing agreement between the companies, loss
of fee and interest income and increased marketing expense to encourage
customers to continue using the card, Bank One said in a filing with the
Securities and Exchange Commission on Wednesday.


In its 10-K annual report filed with the SEC, Bank One said the outcome
of United's reorganization is uncertain at this time. United filed for
Chapter 11 protection in December, after protracted talks over union
concessions and the government's refusal to approve a large
private-sector loan.

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