United’s financial troubles could hurt Kaua’i

On Wednesday the federal government denied the request for a $1.8 billion loan guarantee from United Airlines Inc. (UAL).

As early as today the airline may file bankruptcy.

However, UAL officials are saying the airline will have normal operations, even if bankruptcy is filed.

In a report in the current issue of Pacific Business News, Kaua’i Visitor Bureau executive director Sue Kanoho says their is concern in the visitor industry over the future of United Airlines.

On Kaua’i, members of United’s frequent flyer program are receiving e-mails stating that no mileage awards will be lost due to the airline’s financial woes.

The airline flies about 20 percent of passengers to Hawai’i, and has direct service daily to Lihu’e Airport, as well as airports on Maui and the Big Island, and it’s main destination, Honolulu International Airport.

The airline has discussed cutting flights on its global flight system.

Though no decisions have been made on cutting flights to Kaua’i, and other destinations in Hawai’i, local tourism authorities are…

The federal Air Transportation Stabilization Board rejected the loan request on Wednesday. The board said the business plan submitted with the request was unsound, and that it had doubts the airline would be able to repay the loan.

The airline has announced pay cuts and cut backs of flights.

According to mainland news reports, United executives are in negotiations for bankruptcy financing. Lenders might include a bank linked to credit cards used by United passengers.


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