United posts $779 million loss

[redflyer65]

Strong leadership?

Tilton's goal for a very long time has been to shrink his airline until someone wants to merge, or buy them. He really doesn't care which.

Very sad....

 

[contrail67]

Strong leadership?

Tilton's goal for a very long time has been to shrink his airline until someone wants to merge, or buy them. He really doesn't care which.

Very sad....

The point he was making was that a change in leadership...ie: a merger, will bring a new group that will do a better job....the shrinking of the airline is because in the end, they know King Kong can only be so big to get Govt. approval....and they are right. Right now we are all watching Nwa and Delta...very risky bringing a new merger in that will be larger than that one.

 

[Shrek]

United Pilots: Fuel Hedge Losses Further Proof
of Misdirection of Airline

Chicago, Ill., October 21, 2008-- United Airlines’ announced $779 million loss for the third quarter, $519 million attributable to poor fuel hedges, is yet another example of incompetence and lack of fiscal responsibility by its CEO and his executives, according to the pilots of United Airlines.

United CEO Glenn Tilton, who, ironically, came to United from ChevronTexaco, one of the nation’s largest oil companies, ought to perform better.

“How is it that an oil man such as Glenn Tilton can’t figure out how to stem losses from hedging jet fuel?” asked Captain Steve Wallach, chairman of the United Chapter of the Air Line Pilots Association. “United’s shortcomings under Mr. Tilton’s direction are well chronicled, but this latest reported loss is a real head-scratcher. It took him too long to realize the value of hedging, and then he entered the market too late.

“It is the hope of the pilots I represent that this oil man’s inability to properly hedge fuel at an airline doesn’t translate into additional charges being passed along to our passengers as a way to compensate for his failings.”

United recently announced it was doubling the fee it charges passengers for checking a second bag. The pilots say this increase essentially raises taxes on passengers at a time when a stimulus is needed. In the meantime, incoming CFO Kathryn Mikells will be paid $525,000 per year plus bonuses and stock options. United’s executive compensation far exceeds their performance, and it starts at the top with CEO Tilton.

“It’s time this airline’s Board of Directors takes a real hard, close look as to why United Airlines continues to bleed money and overpay incompetent executives,” added Captain Wallach. “We are at the point where the tired, old excuses from Mr. Tilton and his executives no longer resonate with the pilots, employees and passengers of this airline. It’s time for real leadership; leadership from someone with the vision, experience and know-how necessary to run a world class airline.”

The United pilots have set up a petition on its website www.GlennTilton.com for United passengers to demand the removal of the added fees to the second bag, to restore the service passengers once expected from United Airlines, and to contact United’s Board of Directors.

 

[Flopgut]

Read into however you want.

Here's what I read into it: Midway should be closed to transport category and SWA ought to be banned from O'Hare AND any new Chicago airport for 25 years. That ought to make up for the WA..in Chicago!...then let's do the same in Dallas and Houston. Then let's see a chart and check in with the airline analysts on both SWA and UAL. How would that look?

How do you think your airline got so good? Great mgt alone didn't do it.

 

[UAL-GSO]

Like everyone said before...If someone like United fails..everyone else will pick up the people. Every airline would be full and back to making money...I don't wish ill fate on anyone but I want my company to make money and secure ME a future in this business. Read into however you want.

Sad and ignorant.

 

[vixin]

Here's what I read into it: Midway should be closed to transport category and SWA ought to be banned from O'Hare AND any new Chicago airport for 25 years. That ought to make up for the WA..in Chicago!...then let's do the same in Dallas and Houston. Then let's see a chart and check in with the airline analysts on both SWA and UAL. How would that look?

How do you think your airline got so good? Great mgt alone didn't do it.

Moron, who do you think decided to serve those other airports. Maybe that was management!! Its called business get a little clue. With your same ignorant logic...lets let United go bye bye! How old are you 13 or something?

To the smart folks that work at United that was not directed towards you. Nor do I agree with Reddog. That is a pretty stupid statement.

 

[Guppy Guy]

So the question is, How much cash does United have in reserve and how long can they stretch it out? I watched TWA hold on for upwards of 15 yrs before they folded. The city of STL bought their assets and convinced local businesses to pre-purchase tickets to help keep them alive. United has business interests in SFO, DEN, IAD and those cities would also fight to help keep them alive. The jobs and taxes that United generates are worth fighting for to those politicians, especially in the current economic environment. I think the prediction of United's imminent demise is a bit premature.

Good luck guys. Hang in there.

Cheers

 

[Flopgut]

Moron, who do you think decided to serve those other airports. Maybe that was management!! Its called business get a little clue. With your same ignorant logic...lets let United go bye bye! How old are you 13 or something?

To the smart folks that work at United that was not directed towards you. Nor do I agree with Reddog. That is a pretty stupid statement.

Maybe we should have let SWA go all those years ago?! Is that any different than you wishing to scuttle UAL now? SWA sold planes to make payroll; If Braniff hadn't been kicked out SWA would have been gone.

Here's the deal: UAL (and other legacies) can not get good managers because no one worthwhile wants to manage against the disparity YOUR airline seems to require to operate. (You needed the WA? Got it. Wanted it gone? Gone) Here's an idea: Give UAL an equivilant advantage in either Denver or Chicago to what SWA got in Dallas all those years ago. Make it last a good 20-25 years. You'd see GT gone in an instant and some decent management want to jump on board. And I bet good money you'd see a bunch of mgrs leave SWA. They'd know how to exploit that sort of deal for certain.

 

[Captain X]

Even if the rudder wasn't broke, the BOD and shareholders are asleep at the helm.

 

[N1kawotg]

I sick of having the argument if SWA didn't have love field and had to compete on level playing fields. Other companies can,could, did and do serve Love field. They would be limited to the same restrictions. Only connecting service. Prior to that only the surrounding states. It is the SWA model that works not the fact no competition at Love. USair owns CLT there not making money. NWA in MSP and DTW. The point is you develop a model that works pretty good in the good times to survive the bad. SWA has proved that time and time again.

 

[Flopgut]

I sick of having the argument if SWA didn't have love field and had to compete on level playing fields. Other companies can,could, did and do serve Love field. They would be limited to the same restrictions.

SWA has had some tough times not unlike UAL is in now. If UAL got the same boost SWA did back in Dallas, SWA would be squealing like a stuck pig.

 

[RedDogC130]

Sad and ignorant.

Well you may not agree with me and some do and don't. This is a cut throat industry. If every airline does great and everyone made money, life would be great. Well the simple fact is that this is not the case. Some companies are going to beat others for one of them to succeed. There is no other way about it. I just want my team to win. Plain and simple. Call it callous, call it ignorant.... call it honest. If the shoes were changed I would be pissed just like you and you would ringing the bell like me. I just hope that never happens. The fact that this is not a personal thing...it is a business thing. We keep forgetting that.

 

[RedDogC130]

SWA has had some tough times not unlike UAL is in now. If UAL got the same boost SWA did back in Dallas, SWA would be squealing like a stuck pig.

what about the post 9-11 bailouts....I think that is a big boost UAL got.....your argument is worthless.

 

[N1kawotg]

Would that boost to UAL be in the form of bailout money the gov. gave the carriers that were going or had gone bankrupt a few years ago? Billions of tax payers dollars to companies that don't have to pay bills cause of mismanagement yet compete with healthy companies. That boost doesn't seem to level the playing field as well. Just a thought. The fact is SWA model and cost structure allowed them to keep the tickets prices as low as those carriers trying to win back market share who didn't pay bills. the ones that couldn't declared bankruptcy as well-DAL and NWA. No Doubt having no direct competition at Love sure didn't hurt them years ago when a struggling airline was trying to survive, but that 3 city only TX flying airline is long gone. Too bad though, I would love to see the hot pants and go-go boots back.

 

[N1kawotg]

Red dog beat me to it about bailouts