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United’s Continued Woes

Speaking of lawsuits, the Justice Department is looking into United’s role in Mesa’s attempted hostile takeover of Atlantic Coast Airlines. This is bad news for United, who is in the process of filing an application for more corporate welfare, oops, sorry, government loans to keep the carrier afloat. The details are all a bit sketchy, but the government apparently thinks that United, who was in a major spat about fees with ACA, made a deal with Mesa to serve as a United Express partner as long as Mesa’s takeover of ACA was successful. (Say THAT three times fast!).

In any case, this is a major issue for United, who believes that they need a loan guarantee from the government to emerge from bankruptcy.

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