Associated Press
United Plans Fewer Pilots, Attendants
Wednesday January 29, 12:18 pm ET
United Airlines Plans 25 Percent Fewer Pilots, Flight Attendants, Report Says
CHICAGO (AP) -- United Airlines intends to reduce the number of its pilots and flight attendants by up to 25 percent and implement a two-tier pay structure under the new business plan it has devised in bankruptcy, a published report said Wednesday.
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The Chicago Tribune, citing unidentified sources, reported that pilots and flight attendants working for a planned new discount carrier to be operated by the airline would be paid significantly less than those on regular United flights.
United declined comment on the report.
The world's second-largest airline, which has posted heavy losses since mid-2000, filed for Chapter 11 federal bankruptcy protection on Dec. 9. It is required to compile a new business plan in the first 120 days of bankruptcy to show its lenders how it intends to return to profitability.
A key to United's financial strategy is a planned $2.4 billion reduction in annual labor costs, which the carrier outlined last month in bankruptcy court. CEO Glenn Tilton also said last month that United plans to launch a low-cost carrier to compete with Southwest Airlines as part of efforts to regain its financial footing.
United spokesman Joe Hopkins said Tilton would present the plan to the board of directors of United's parent, UAL Corp., on Thursday. He said specifics were given Monday to financial advisers of United's creditors committee, which is monitoring the bankruptcy reorganization and includes its three major unions, but not detailed in full to employees yet.
"Our plan is to share the information with our employees before we share them with wider audiences," Hopkins said.
Spokesmen for the flight attendants and machinists said Wednesday they have not been briefed on the plan. Representatives of the pilots' union did not immediately return phone calls.
United has laid off 20,000 workers since the Sept. 11, 2001, terrorist attacks and currently has about 78,000 employees, including nearly 20,000 flight attendants and about 8,500 pilots.
According to the Tribune, it would need only about 6,000 pilots under the reorganization plan, and they would be required to increase their flight time to an average of 50 hours a month, up from the current 36 hours.
The report also said United's plan calls for contracting more of its regional routes to its commuter partners --
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Atlantic Coast Airlines, Air Wisconsin and SkyWest Airlines -- which operate planes bearing the United Express logo and would be permitted to fly larger, 70-seat jets.
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And the report said United likely will close its Indianapolis maintenance center.
United is seeking concessions from its unions after a bankruptcy judge approved temporary wage reductions of 29 percent for pilots, 9 percent for flight attendants and 14 percent for machinists, who include mechanics, ramp workers and customer contact workers.
The company reports fourth-quarter and full-year results on Friday and is expected to exceed the $2.1 billion loss of 2001 -- an industry record that has since been exceeded by American Airlines.
UAL shares fell 6 cents to $1.09 in midday trading on the New York Stock Exchange.
United Plans Fewer Pilots, Attendants
Wednesday January 29, 12:18 pm ET
United Airlines Plans 25 Percent Fewer Pilots, Flight Attendants, Report Says
CHICAGO (AP) -- United Airlines intends to reduce the number of its pilots and flight attendants by up to 25 percent and implement a two-tier pay structure under the new business plan it has devised in bankruptcy, a published report said Wednesday.
ADVERTISEMENT
The Chicago Tribune, citing unidentified sources, reported that pilots and flight attendants working for a planned new discount carrier to be operated by the airline would be paid significantly less than those on regular United flights.
United declined comment on the report.
The world's second-largest airline, which has posted heavy losses since mid-2000, filed for Chapter 11 federal bankruptcy protection on Dec. 9. It is required to compile a new business plan in the first 120 days of bankruptcy to show its lenders how it intends to return to profitability.
A key to United's financial strategy is a planned $2.4 billion reduction in annual labor costs, which the carrier outlined last month in bankruptcy court. CEO Glenn Tilton also said last month that United plans to launch a low-cost carrier to compete with Southwest Airlines as part of efforts to regain its financial footing.
United spokesman Joe Hopkins said Tilton would present the plan to the board of directors of United's parent, UAL Corp., on Thursday. He said specifics were given Monday to financial advisers of United's creditors committee, which is monitoring the bankruptcy reorganization and includes its three major unions, but not detailed in full to employees yet.
"Our plan is to share the information with our employees before we share them with wider audiences," Hopkins said.
Spokesmen for the flight attendants and machinists said Wednesday they have not been briefed on the plan. Representatives of the pilots' union did not immediately return phone calls.
United has laid off 20,000 workers since the Sept. 11, 2001, terrorist attacks and currently has about 78,000 employees, including nearly 20,000 flight attendants and about 8,500 pilots.
According to the Tribune, it would need only about 6,000 pilots under the reorganization plan, and they would be required to increase their flight time to an average of 50 hours a month, up from the current 36 hours.
The report also said United's plan calls for contracting more of its regional routes to its commuter partners --
------------------------------------------------------------------------------------
Atlantic Coast Airlines, Air Wisconsin and SkyWest Airlines -- which operate planes bearing the United Express logo and would be permitted to fly larger, 70-seat jets.
-----------------------------------------------------------------------------------
And the report said United likely will close its Indianapolis maintenance center.
United is seeking concessions from its unions after a bankruptcy judge approved temporary wage reductions of 29 percent for pilots, 9 percent for flight attendants and 14 percent for machinists, who include mechanics, ramp workers and customer contact workers.
The company reports fourth-quarter and full-year results on Friday and is expected to exceed the $2.1 billion loss of 2001 -- an industry record that has since been exceeded by American Airlines.
UAL shares fell 6 cents to $1.09 in midday trading on the New York Stock Exchange.
