Excerpts from
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UAL bankrupt
"While the bankruptcy filing likely will have no immediate effect on passengers, it will come at a steep price for the 83,000 employees who own 55 percent of the company. A bankruptcy court judge is almost certain to order wage and job cuts and could dissolve the employee stock ownership plan."
"The carrier’s stock, which reached $100 a share in 1997, closed at 93 cents Friday on the New York Stock Exchange."
"On pace to lose an industry-record $2.5 billion this year, United had pinned its last hopes of avoiding bankruptcy on getting federal backing for $1.8 billion of a $2 billion loan that banks wouldn’t otherwise provide. But the Air Transportation Stabilization Board, created last year to help the airline industry recover after Sept. 11, rejected United’s request on Wednesday.
The linchpin to United’s proposal was $5.2 billion in labor cutbacks by 2008, but the three-member federal panel said the airline’s business plan was financially unsound and a loan guarantee would have risked U.S. taxpayers picking up the tab."
"United has struggled even more than other airlines during the industry’s worst-ever slump. The carrier already had lost about $1 billion since mid-2000 by the time of the attacks because of labor turmoil, the industry’s highest costs and several failed strategies, including a costly and time-consuming bid to acquire US Airways—itself now in Chapter 11 bankruptcy."
"United cut service and laid off nearly 20,000 workers after the terrorist attacks, but it hasn’t come close to making up for revenue lost from the drop-off in business travel."
"United’s filing dwarfs all other airline bankruptcies. The previous largest was by Continental Airlines in 1990. United listed almost $25.4 billion in assets as of Sept. 30 -- more than twice Continental’s when it filed.
It also is one of the 10 largest bankruptcies in U.S. history—a list topped by the recent failures WorldCom and Enron. It is the 11th time a major U.S. airline has filed for bankruptcy since deregulation in 1978, including TWA three times."
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This is what ALPA and the International Machinists Union and the AFL/CIO has done for the UAL pilots/mechanics/FAs?????????
Results matter folks...not a bunch of union propaganda about "brotherhood...solidarity...you deserve more...and more...and more...managment is screwing you, and we're here to save you."
After seeing what is transpiring at UAL, I don't see how any of you can dispute what I say anymore that
"ALPA's and the other unions' financial strategies have significantly contributed to the demise of UAL and US Air...and possibly more to come."
Something's got to give...and instead of us controlling, at least in part, our destinies, our greed has put our fate in the hands of the federal judiciary system.
BOHICA! (Bend Over, Here It Comes Again)
The question is just...who's next?