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The $50 Million Fee

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Source: Archived Content

Date: Mar 16, 2001

According to our company's recently published Annual Report (SEC Form 10-K), United Airlines has agreed to pay US Airways a $50 million 'termination fee' in the event the merger does not take place.

That is not a misprint: $50 million dollars.  For what?  For nothing more than a fee in the event of non-use?

Kinda like canceling your hotel room booking in Aruba at the last minute?  Or not showing up to use your ticket for Phantom of the Opera?  Or forgetting to collect $200.00 when passing 'GO' on Monopoly?

Except this isn't Monopoly money we're talking about here.  It's $50 million dollars that could otherwise be secured for other uses within the airline.  In contrast, the "recognition fund" that was established last November to "thank" employees for the problems they endured during this past summer was $20 million, less than half this cancellation fee.

You can read this unbelievable agreement yourself in the Annual Report SEC Form.  The fee that I'm talking about is located at the bottom of the 3rd paragraph in the report.  Also, if your are curious as to the current financial holdings of Jumpseatnews.com, please see our latest Consolidated Balance Sheet.

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