The board of United Airlines parent UAL Corp. is mulling spinning off several key assets, including the airline's popular frequent-flier program, as directors contemplate shrinking the carrier while substantially increasing its cash stash, United sources said Tuesday.Among the options that United may consider, according to analysts, are shrinking its real estate portfolio, which includes the 66 acres that its former headquarters in Elk Grove Township sits on, and selling or leasing overseas routes, landing slots and airport gates. The Chicago-based airline also is exploring divesting much of its maintenance unit, known as United Services, as part of an effort to convert assets into cash, the Tribune previously reported.
Whether or not firm decisions will be made when the directors meet this week in San Francisco is not clear. United's directors meet each September to survey the airline's business environment, study its operations and discuss strategy. The three-day session this year, however, also is expected to include debate on large-scale spinoffs that would pare down the airline and at the same time build up its cash reserves.
Read More
