General News - June 28; 2004; United Loses Bid for Loan Guarantee; June 28;

 2004 08:52 AM EDT; WASHINGTON - United Airlines on Monday lost a bid to
 secure a federal loan guarantee; a fresh setback to the carrier's efforts to
 emerge from bankruptcy. The decision by a federal panel appeared to bar the
 airline from making any other attempts to secure federal backing.;

The Air  Transportation Stabilization Board said that after studying the airline's
 latest application; submitted last week; it would not change the panel's
 June 17 decision to reject United's request for a $1.6 billion federal loan
 guarantee.; "All members of the board join in the decision to deny United's
 request for reconsideration; and the board's June 17 decision stands; "the
 board said in a letter Monday to United Airlines' chief financial officer;
 Frederic Brace.

United - the nation's second largest carrier - was making
 its third attempt to secure federal backing as it tries to emerge from
 bankruptcy.; The airline had filed a request for $1.1 billion in federal
 backing; down from the request for $1.6 billion; which was rejected by the
 board in a 2-1 decision.

In Monday's letter; the board said it "carefully
 considered the additional financial information provided by United." But in
 the end; the board concluded - as it did in its June 17th rejection - that
 granting the loan guarantee was not a necessary part of maintaining a safe;
 efficient and viable commercial aviation system in the United States; a
 requirement for receiving a federal loan guarantee.

The board again noted  that the airline had taken positive steps to pare costs and strengthen its
 competitive standing. But the panel once again said that credit markets have
 improved since the Sept. 11; 2001; terror attacks; meaning the company has a
 chance of getting the financing it needs without federal assistance.

The  decision appeared to close the door on allowing United to make a fourth
 request for federal backing. "The board will not accept any further
 submissions from United with respect to the application; " the letter said.;
 The board was established by Congress to oversee a $10 billion loan program;
 part of an airline industry bailout after the Sept. 11 terrorist attacks.;
 

The board has issued six loan guarantees totaling $1.56 billion. Carriers
 that have gotten help from the board include US Airways; which received a
 $900 million loan guarantee; and America West; which got a $380 million loan
 guarantee.

 The decision comes as Treasury Department investigators are
 looking into whether any inappropriate political pressure was applied to a
 board as it considered United's request.; Sen. Peter Fitzgerald; R-Ill.; has
 asked the department's inspector general to investigate whether board member
 Brian Roseboro; who voted against United's request on June 17; was pressured
 to change his vote. Roseboro is an undersecretary at Treasury and the
 department's representative on the board.

 Fitzgerald; in his request; said
 media reports suggested that Treasury Secretary John Snow was being
 pressured to remove Roseboro from the board and replace him with someone who
 would vote in favor of the application by the Elk Grove Village; Ill.-based
 airline. Snow has rejected those allegations.

United's requests for federal
 backing have been the subject of intense lobbying by both sides. The
 airline's supporters; including House Speaker Dennis Hastert; R-Ill.;
 pressing for the federal loan guarantees; while the airline's rivals are
 against them.; Hastert talked with Snow on June 17; the day the board
 rejected United's request. That same day; the Treasury Department issued a
 statement saying if United Airlines filed a revised request it would be open
 to considering it. The Transportation Department - whose representative of
 the board had voted to defer a decision for one week - issued a similar
 statement.

 Five days after the being turned down by the board the first
 time; on Dec. 4; 2002; for $1.8 billion in federal loan guarantees; the
 airline filed for Chapter 11 bankruptcy protection.; The company's
 restructuring steps have included $2.5 billion in annual labor cost
 reductions and aircraft refinancing.;

The airline which hasn't turned a
 profit in four years; has been operating under bankruptcy protection for 18
 months. Soaring jet fuel costs have kept it unprofitable longer than
 expected. Rising fuel costs will cost the company $750 million than it
 expected.

End of Article

Comment---The deck is stacked against us.  The Bush Family is not pro airline.  They are pro Texas Airline.  Bush senior went against his own Labor Board's recommendation who said that Lorenzo was raiding Eastern and should be stopped.   Bush Senior did not stop Lorenzo.  Afterward the Congress on both sides of the isle enacted legislation making it illegal for anyone to ever again do what Lorenzo did to Eastern.  That same legislation made it illegal for Lorenzo to ever again own an airline.

Bush Jr. is doing the same thing. He is bowing to the pressure from Continental and American to let United go under.   If anybody who works for United votes for Bush this November ?????------ This is "good old boy"  played to the nth degree-----oh well.  Ed DeChant