United Sells Planes to Raise Cash

Airlines, among many industries, have struggled with cash flow problems since the economy began roiling early in the year. While many companies have turned to downsizing, cancelling programs or reducing inflated corporate salaries, United Airlines has taken a different approach.

In a move to increase the airline's cash flow, United has sold 15 Boeing 757s to East Shore Aircraft for $150 million.

United will lease the planes back from East Shore, continuing to operate and maintain them.

Although other airlines have not yet gone as far as United (i.e. selling planes), they've all made strides in 2008 to increase their liquidity in anticipation of reduced air travel. So far, they're predictions have been accurate and their preparations have paid off with airlines across the board reporting significant slows in traffic throughout October and November.

While no one wants to think about splurging at a time like this, the fact is, there's no better time to travel. Airfare, which is usually one of the most expensive parts of any vacation, should slowly fall with decreased demand. Last-minute deals to major cities in the U.S. and overseas should get even cheaper and more frequent. Additionally, the economic trouble in Europe has allowed the dollar to regain some of it's lost value. So before you write off a 2009 vacation, consider that it may be the most affordable time to travel in the past several years.