•   
  •   
  •   

Travel United Leverages MileagePlus Program for $5 Billion in Liquidity

00:01  16 june  2020
00:01  16 june  2020 Source:   travelpulse.com

Allow These 4 Pro-Approved Nail Color Trends to Become Your Fave Spring Accessory

  Allow These 4 Pro-Approved Nail Color Trends to Become Your Fave Spring Accessory Five years ago, not even the most revered beauty editor could have anticipated the meteoric rise of chipped nail polish or french manicures in 2020, and yet - it's that element of the unexpected that makes a trip to the salon feel more like a Bear Grylls adventure.

Mileage redemption activity (and processing of any mileage redemption requests for any awards, certificates or benefits, including without The Program is maintained for the benefit of United and individual Members. Only individuals are eligible for MileagePlus membership, and each individual

United Airlines is looking for ways to increase its liquidity and available cash in order to sustain operations through the pandemic. Photo: United Airlines. “This [ billion] reflects committed financing of $ 5 billion to be secured by the airline’s loyalty program , MileagePlus , that allows the

a large passenger jet sitting on top of a runway: United Airlines planes parked at gates at Newark Liberty International Airport's Terminal C © Niall_Majury/iStock Unreleased United Airlines planes parked at gates at Newark Liberty International Airport's Terminal C

United Airlines today announced that it plans on using its MileagePlus frequent flyer program as collateral to secure a $5-billion loan, which would enable the company to boast an expected $17 billion in total liquidity by the end of 2020’s third quarter.

This figure also factors in an anticipated $4.5 billion to be made available to the carrier through the U.S. government’s ‘Coronavirus Aid, Relief, and Economic Security Act’ (CARES Act) Loan Program, for which United, “believes it has sufficient slots, gates and routes collateral available to meet the collateral coverage that may be required,” according to today’s statement.

Delta and United Extend Elite Status and Frequent-flier Perks Due to Coronavirus

  Delta and United Extend Elite Status and Frequent-flier Perks Due to Coronavirus Hopefully, other major carriers both in the U.S. and abroad will follow Delta and United’s lead. Airlines and fliers are facing a lot of uncertainty as the coronavirus outbreak continues to spread across the globe. Carriers have slashed flights, furloughed crew, and grounded the vast majority of their fleets due to evolving travel bans and restrictions. Travelers, meanwhile, have seen their plans put on hold for the foreseeable future, come up against quarantine rules, and faced issues claiming refunds for canceled flights.

United Airlines mortgages its MileagePlus loyalty program to borrow $ 5 billion . United Airlines said on Monday it is pledging its MileagePlus frequent flyer program for a new $ 5 billion loan aimed at further buffering its liquidity United Leverages MileagePlus Program for $ 5 Billion in Liquidity .

MileagePlus program members with Premier® Gold or higher status can convert award miles into Marriott Bonvoy™ points one-for-one.1. United Airlines reserves the right to exclude certain flights, fares, tickets, routes, products and/or programs from earning MileagePlus award miles and/or

United said, “This $9.5 billion of additional liquidity will provide even more flexibility as the airline navigates the most disruptive financial crisis in the history of aviation.” Senior executives reportedly voiced that they expect this sum should be enough to see the airline through a potential second or third wave of COVID-19 infection.

Air carriers, including United, have been clambering to cut costs and raise funds wherever possible since the pandemic began.

United has thus far suspended raises, instituted a hiring freeze, established an unpaid time-off program for administrative staff and management, introduced voluntary leave and separation programs, reduced executive pay, and made a 100-percent cut to its CEO and President salaries, in addition to other measures for reducing costs and expenditures.

Air France-KLM is seeking State aid of around 10 billion euros

 Air France-KLM is seeking State aid of around 10 billion euros © Provided by La Tribune Bank loan guaranteed by the State, recapitalization, even nationalization, "everything is possible, everything is possible, everything is ready ", declared last week the Minister of the economy Bruno Le Maire about the" massive "aid which the State would bring to Air France and consequently to its parent company Air France-KLM of which it like the Dutch State, holds 14% of the capital.

United Airlines believes their MileagePlus membership is worth $ 5 billion dollars, and is seeking a loan with their user base as capital. With the need to improve liquidity , the airline will also secure a $ 5 billion loan, secured by the MileagePlus loyalty program and the company’s internal subsidiaries.

United Airlines said on Monday it is pledging its MileagePlus frequent flyer program for a new $ 5 billion loan aimed at further buffering its liquidity , even as its cash burn rate slows thanks to a steady improvement in demand. The company would have billion in total liquidity on Sept.

United currently continues to see more new bookings than cancellations for its second and third quarters but foresees demand diminishing in October when federal payroll aid for airline employees expires.

The Chicago-based carrier said that it expects to fly roughly 25 percent of its normal schedule for the month of July and that ticketed passenger revenues have fallen somewhere between 82 and 88 percent from this time last year, although those figures are an improvement over June.

Even as demand for passenger air travel slowly, steadily grows and airlines (hopefully) start hemorrhaging less money, overall losses are forecast to continue throughout 2020. United said it expects to burn through an average of around $40 million per day during 2020’s second quarter and aims to reduce that amount to $30 million daily during the third quarter.

Related Facebook post

Airline: Lufthansa makes a loss of 1.2 billion euros in the corona crisis

 Airline: Lufthansa makes a loss of 1.2 billion euros in the corona crisis © dpa The group has currently radically cut down its flight schedule. The airline posted a billion dollar loss in the first quarter, mainly due to the corona impact. Lufthansa now needs state aid. Lufthansa is suffering significantly from the consequences of the corona pandemic. The airline posted an operating loss (adjusted EBIT) of EUR 1.2 billion in the first quarter. The company announced on late Thursday afternoon.

The United MileagePlus program offers great rewards for members. Earn miles when you travel and when enjoying everyday activities, and then use your miles for travel, dining, shopping, and more. Our most frequent travelers can also receive special benefits. To enroll in the MileagePlus program

The United MileagePlus program offers great rewards for members. Earn miles when you travel and when enjoying everyday activities, and then use your miles for travel, dining, shopping, and more. Our most frequent travelers can also receive special benefits.

Shared from Facebook

Depending upon how the situation develops, cash-burn could slow by the end of the year to the point that carriers almost break even, according to executives. That prediction would align with those that have already been made by major U.S. competitors, American Airlines and Delta Air Lines, reported Reuters.

United will reportedly retain control over the MileagePlus program, which boasts over 100 million members, more than 100 program partners, and generated $5.3 billion in cash flow from sales in 2019.

The new, $5-billion term loan facility is expected to close by the end of July 2020 and will be structured by Goldman Sachs, Barclays Bank and Morgan Stanley Senior Funding.

United Launches Text Hotline for Passengers With Any COVID-19 Concerns .
Passengers can text “Clean” to FLYUA (35982) to their United Automated Assistant. Questions about what to expect next time you fly? Text "Clean" to FLYUA (35982) to learn how we're making every step of the travel journey safer for you. pic.twitter.com/359VUHQ4c5— United Airlines (@united) July 30, 2020 As flying changes, United is moving more of its routines to contactless and digital methods and heightened its cleaning procedures. Passengers on standby or waiting for an upgrade will also receive a text once they have been cleared and assigned a seat.

usr: 1
This is interesting!