United may ground 757-300 and 767-200 to curb fuel cost

[Stifler's Mom]

Fear and speculation by Wall Street is driving the price of oil up, not supply and demand.

Oil went up close to 20% in a 2-3 week period. $88 to $105. The world demand had not changed that much. This was happening before the middle east unrest. Wall Street took advantage of the news hype and lots of fast money was made, and now we are paying for it at the pump, and our companies are paying for it as well.

So yes, when a prince of Saudi Arabia says the price does not match the supply, I believe him.

 

[Dolce]

SM,
Good job with the Oliver Stone conspiracy theory! Blame it all on the "Street" and the rich oil speculators. Haven't you seen the lines 1/2 mile long waiting at the pumps? I've been limited to 10 gallons during each purchase...just like the early 70s oil embargo. The Arabs have us by the balls again! The prince is just laughing all the way to the bank! Hope sarcasm was noted?

Only lines I've seen were for the cheap gas. Funny how we, as in the government, can't put regulations in place for strategic assets...such as people who purposely drive the price of fuel to their advantage. But that would go against every capitalistic/democratic belief which founded this country. I'm thinking the people who cause the price increases have no worries as to how it will affect them! But you know releasing some of our strategic reserve will fix everything...right?

D

 

[n757st]

SM,
Good job with the Oliver Stone conspiracy theory! Blame it all on the "Street" and the rich oil speculators. Haven't you seen the lines 1/2 mile long waiting at the pumps? I've been limited to 10 gallons during each purchase...just like the early 70s oil embargo. The Arabs have us by the balls again! The prince is just laughing all the way to the bank! Hope sarcasm was noted?

Only lines I've seen were for the cheap gas. Funny how we, as in the government, can't put regulations in place for strategic assets...such as people who purposely drive the price of fuel to their advantage. But that would go against every capitalistic/democratic belief which founded this country. I'm thinking the people who cause the price increases have no worries as to how it will affect them! But you know releasing some of our strategic reserve will fix everything...right?

D

I certainly agree that we need to limit speculation, but the problem lies in that oil is traded on a global, not a local, market. We can limit speculation to the hilt here in the USA but the Brits, French, Germans, Ad nausium will continue to cause price shifts in a speculative ferver. Whats needed is for OPEC to be dissolved and price competition to brought to the market.

 

[Mike man]

As soon as they park em, oil will drop back to 70 bucks a barrel and they will be caught, yet again, with their pants down.

Don't worry all the "C" level and Director level guys will all share 40 or 50 million dollar bonuses!

 

[COpilot]

Doesn't matter what price oil is; I believe Jeff's idea is to merge these large corporations, make a tone of money for himself, widdle down their size to ultra "efficiency", use this spike in oil as leverage with unions, get the stock price up as, and bail the feak out. Move on to corporate board seats, open his own firm, show up to first of the week meetings for coffee & donuts, and count the money his family will live on for generations. We'll be smaller than AA in 3 years.

Any chance I'm kind of close on this scenario?

 

[jonjuan]

Doesn't matter what price oil is; I believe Jeff's idea is to merge these large corporations, make a tone of money for himself, widdle down their size to ultra "efficiency", use this spike in oil as leverage with unions, get the stock price up as, and bail the feak out. Move on to corporate board seats, open his own firm, show up to first of the week meetings for coffee & donuts, and count the money his family will live on for generations. We'll be smaller than AA in 3 years.

Any chance I'm kind of close on this scenario?

Scary prognosis, but i wouldn't put it past him. "Shrink to profitability" or put another way, "shrink to retirement"

 

[JI Gone OH]

We'll be smaller than AA in 3 years.

Any chance I'm kind of close on this scenario?

Have you ever heard Jeff describe the new United as the world's "LARGEST" airline? I haven't, and I'll bet you haven't either... He always uses the word "leading." Leading?! Really?! What in the h*ll does that mean? My theory is that he avoids using it because although we might be the world's largest airline today, that's not his plan for us long term. He's so arrogant that he thinks he's going to be able to outsource more mainline flying, allowing him to shrink the number of airplanes/pilots at the mainline level and have the 70's flown by the regionals. Keep dreaming Buddy. One thing I can assure you Jeff is that when the negotiations for a JCBA are complete, your pilots will have an industry "LEADING" contract with an industry "LEADING" Scope clause. How's that for your little play on words...

 

[FlyForFood_NOT]

Ignorance is a bliss Mr Smisek.. all it would take is to share the profit of gas savings with the pilots (who are actually the ones deciding to fire one or two pipes back there while taxing) and right away the results would show. But no, CAL trips over quarters to pick up dimes.. as usual.
I see it on daily basis where two pipes are burning while taxing, just inspite of Smisek's disrespect for employees.. Why should i care? Let it burn. Less bonuses for management. It's not like i see any of it anyways- 2010 profit sharing was a pathetic 10% of companys entire income. What a joke.. FUPM, really FUPM

 

[AA717driver]

We'll be smaller than AA in 3 years.

No you won't. AA will 'shrink to match' its competitors. 250 MD80's and the same number of 50-seat RJ's=plenty of room to shrink.

TC

 

[Uncle Bort]

I certainly agree that we need to limit speculation, but the problem lies in that oil is traded on a global, not a local, market. We can limit speculation to the hilt here in the USA but the Brits, French, Germans, Ad nausium will continue to cause price shifts in a speculative ferver. Whats needed is for OPEC to be dissolved and price competition to brought to the market.

And is traded in dollars, the value of which is declining precipitously.

 

[Jetjockey]

It's the author of the article who is speculating on the types of aircraft will "cull" from the fleet. Out of 1200 aircraft, I think the days are numbered for many 50 seat regional jets. Scope is what they are after.

 

[PeanuckleCRJ]

I seem to recall Delta having a no furlough clause or something like that...
This is coming from the guy I was flying with in a Jetstream 31...AFTER he got furloughed from Delta. Guess that "language" didn't work out so good for that guy. It's been done before...

- Just saying -

That's what you get with a no furlough clause without "teeth." It has to cost them dearly to furlough, which was accomplished with the merger JCBA.

Otherwise, I have no doubt they would have tried it again. Hopefully UA/CA groups are smart enough to put teeth into the no furlough clause...

 

[whatitdoing?]

People, please educate yourselves. They won't and can't furlough. Why not use the Middle East turmoil and oil speculation right before the end game of our negotiations? It's perfectly timed and I'd fault management for not taking advantage of it. United's fuel costs aren't limited to United, but as an industry whole. They're using big numbers like 25 grand a minute, 4 billion annually, and a 748 paid for every month.. It's big numbers from the worlds largest airline. They don't talk about their revenue or how they've raised prices to match the increase. They'll post a lost this quarter and probably all year because they're in a battle to get another concessionary contract. They're up against a pissed off pilot group that won't fold anymore. The company saviors are outnumbered and the company knows this. If you don't think they've done research on who's who and where people live and how long people have till retirement, you're INSANE. In fact, just resign and blow bubbles for the rest of your life. If they park all the 735's, fine!!! I'm tired of loading up everything and smelling decaying Starbuck's breakfast buns on the floor. Maybe it'll right size this pilot group for once. Our CEO is unfortunately another Lorenzo and has come to divide this pilot group while collecting his millions all the while receiving praise for starting the world's leading airline at concessionary rates. But it ain't happening. FUPM..........

 

[Glacialfury1906]

People, please educate yourselves. They won't and can't furlough. Why not use the Middle East turmoil and oil speculation right before the end game of our negotiations? It's perfectly timed and I'd fault management for not taking advantage of it. United's fuel costs aren't limited to United, but as an industry whole. They're using big numbers like 25 grand a minute, 4 billion annually, and a 748 paid for every month.. It's big numbers from the worlds largest airline. They don't talk about their revenue or how they've raised prices to match the increase. They'll post a lost this quarter and probably all year because they're in a battle to get another concessionary contract. They're up against a pissed off pilot group that won't fold anymore. The company saviors are outnumbered and the company knows this. If you don't think they've done research on who's who and where people live and how long people have till retirement, you're INSANE. In fact, just resign and blow bubbles for the rest of your life. If they park all the 735's, fine!!! I'm tired of loading up everything and smelling decaying Starbuck's breakfast buns on the floor. Maybe it'll right size this pilot group for once. Our CEO is unfortunately another Lorenzo and has come to divide this pilot group while collecting his millions all the while receiving praise for starting the world's leading airline at concessionary rates. But it ain't happening. FUPM..........

What he said... Keep your eyes open folks. In the words of the immortal Flava Flav, "Don't believe the hype",......from anybody....

 

[Jetjockey]

Give up more domestic UAL. SWA, Virgin America, and Spirit would welcome the news. If UAL can't compete, maybe they should hire those managers, they seem to know how to make it work.