DALLAS — On December 9, 2002, UAL Corp., the parent company of United Airlines (UA), filed for Chapter 11 bankruptcy, marking the largest airline bankruptcy ever and one of the largest bankruptcies in US history.
At the time of filing, UA had US$22.8 billion in assets and US$21.2 billion in liabilities. As the world’s second-largest airline, this bankruptcy had significant implications for the company, leading to various cuts in assets and employee numbers but ultimately to one of the greatest comeback stories in commercial aviation.
Unforeseeable Circumstances
United’s bankruptcy was primarily attributed to a series of events, including the challenging “Summer of Hell” in 2000. During this period, then-CEO James Goodwin faced labor disputes from pilots and mechanics, resulting in shortages, delays, and grounded aircraft. To resolve these disputes,…