United Airines spends USD500 million on buybacks
Published: 07/06/08
United airlines have asked its lenders if the can have permission to spend over USD500 million on new initiatives for shareholders. United airlines also want to have stock buybacks after it has re-paid debts of USD350 million.
The Chicago-based airline presented their lenders with this plan on Tuesday and is due to hear back from them on some time next week. On the list for consideration by the lenders, includes normal and special dividends and buybacks too.
United Airlines management have been pursuing the increase of shareholders interest for several months now, even though there is potential expense of some incremental improvement in credit control, it is a step in the right direction. United Airlines operates flights to New York and 119 US and worldwide destinations throughout 26 countries, with major United Airlines hubs in Chicago, Denver, Los Angeles and San Francisco.