A decision by the Justice Department is expected by April 2. Goodwin says he'd pursue other acqui-sitions if regulators deny his US Airways bid. A rejection could damage his credibility, says Michael Levine, a former Northwest vice president who's now a law professor at Harvard University. Goodwin has staked his reputation on it. Samuel Buttrick, the UBS Warburg analyst, expects investors to shun UAL shares for at least a year.
Some investors are patient.
Brian Bruce, director of global investments at Boston-based Panagora Asset Management, says the US Airways acquisition will accelerate UAL's growth. Sluggish U.S. growth will likely cause UAL to cut earnings forecasts during 2001, says Brian Harris, a Salomon Smith Barney analyst. Such risks are magnified by high costs. Southwest spent 7.75 cents for every seat-mile offered during the fourth quarter compared with United's 11.32 cents and US Airways' 12.65 cents. We like to compete with those carriers.