• NC Software is having a Black Friday Sale Event thru December 4th on Logbook Pro, APDL - Airline Pilot Logbook, Cirrus Elite Binders, and more. Use coupon code BF2020 at checkout to redeem 15% off your purchase. Click here to shop now.
  • NC Software is proud to announce the release of APDL - Airline Pilot Logbook version 10.0. Click here to view APDL on the Apple App store and install now.

Idea for United Employees to Force more Public Opinion and Remove Glen Tilton:

Sedona16

Well-known member
Joined
Dec 5, 2001
Posts
564
Total Time
10,400
So Dave Carroll, who wrote http://www.youtube.com/watch?v=5YGc4zOqozo and who is getting a ton of circulation and public opinion said he was going to write 3 songs regarding the trouble he had with United. He has written and produced the above video. The second song is written and video will come out in the next few months. The third song is yet to be written.

Here’s the proposal. Circulate a flyer to all united employees around work explaining the plan and request small donations (i.e. $5). Also set up a place for all others (other airline employees and disgruntled consumers) who wants to donate can chip in (i.e. website such as tiltonmustgo.com that can accept credit cards). Try to raise something like a million dollars to pay Dave Carroll (how is he going to turn that down unless United offers him more) to write the third song with input from all the United employees who have been screwed by Tilton. The name of the song: "Tilton Must Go". Take the video viral and have the union leaders ready to do interviews (Carroll come along too and sings the song) anywhere/everywhere (i.e. Oprah, Matt Lauer, etc) and explain why United employees feel so strongly and dislike Tilton so much. Explain that service (and bag handling/breaking) has gotten worse under poor leadership and poor moral). The only way for that to change is to get a new leader. Public sentiment is the only way to get that cockroach out of there and there is now a perfect platform to make that happen with DC.
 
Last edited:

glasspilot

Well-known member
Joined
May 17, 2004
Posts
1,622
Total Time
9K'ish
...or we could let the dinosaurs die so others can evolve as the free markets intended.
 

Sedona16

Well-known member
Joined
Dec 5, 2001
Posts
564
Total Time
10,400
.....
 
Last edited:

Skywest Pylot

Well-known member
Joined
May 18, 2005
Posts
338
Total Time
7000+
...or we could let the dinosaurs die so others can evolve as the free markets intended.

Hmmm...now I understand why this industry is such a joke. Sedona makes a suggestion of how to put pressure on Tilton and he or she gets a response like this. You sir, represent what is wrong with this industry. Go ahead, grab a cold one and sit your fat, lazy @$$ back down on the couch. I am sure things will turn themselves around on their own any minute now.
 
Last edited:

ironspud

Well-known member
Joined
Feb 26, 2005
Posts
431
Total Time
>20000
Hmmm...now I understand why this industry is such a joke. Sedona makes a suggestion of how to put pressure on Tilton and he or she gets a response like this. You sir, represent what is wrong with this industry. Go ahead, grab a cold one and sit your fat, lazy @$$ back down on the couch. I am sure things will turn themselves around on their own any minute now.

Ed Zachary
 

bluefin

Well-known member
Joined
Aug 26, 2004
Posts
384
Total Time
12000+
Uuuuuuugh, what do you think the Association has been trying to do with its informational picketing, people dont give a tihs! As long as it doesn't affect me who cares. If the the public was directly affected then maybe something would be done about it!!!!
 

XJohXJ

Well-known member
Joined
Mar 11, 2006
Posts
972
Total Time
some
Uuuuuuugh, what do you think the Association has been trying to do with its informational picketing, people dont give a tihs! As long as it doesn't affect me who cares. If the the public was directly affected then maybe something would be done about it!!!!

American's don't trust unions and don't want to listen to union leaders talk about anything.

American's do trust entertainers, and will listen, enraptured, to just about anything they have to say.

See what his point is now?
 

Sedona16

Well-known member
Joined
Dec 5, 2001
Posts
564
Total Time
10,400
From this week's In Other News
Tilton's troubles

By: John Pletz July 13, 2009

Glenn Tilton's turnaround at United Airlines is turning into a round trip to financial purgatory.
Chicago-based United's cash is evaporating as the recession chokes off air travel. With more than $1.5 billion in debt coming due by next year, Mr. Tilton can only hope the economy recovers before the cash runs out. Some think United can survive current conditions only until mid-2010.
"They could be in a position where they are in danger of running out of cash," says analyst Bill Warlick of Fitch Ratings Inc. in Chicago.
Financial markets are betting United won't make it. Its stock and credit-default swaps on its debt trade at levels indicating bankruptcy is likely. New York-based debt analyst Roger King of Credit Insights says the sky-high interest rate on a recent United financing suggests the airline is "just a few steps from the grave."
That's far from the flight path Mr. Tilton, 61, envisioned when the longtime oil industry executive took charge of a struggling United in 2002. He expected to purge excess costs in Chapter 11 bankruptcy proceedings, then initiate a badly needed airline industry consolidation with a sale or merger that would send him into retirement with a handsome payday.
"That was Glenn's plan — to consolidate," says Mo Garfinkle, CEO of Virginia-based GCW Consulting LLC, who has advised Mr. Tilton and United. "The game plan now is to survive."
United's stay in bankruptcy lasted three years as Mr. Tilton battled unions for pay cuts and other concessions. Eventually, he slashed overall expenses by 7% and cut payroll by 39%, eliminating 22,000 jobs.
But an expense Mr. Tilton couldn't cut knocked his recovery plan off course. Just as United was returning to profitability in 2007, a surge in oil prices sent jet fuel costs soaring. The former oil man hadn't hedged against the spike as other airline execs had.
Burdened with $3 billion in debt taken on to finance its exit from bankruptcy, United was poorly positioned to absorb the additional expenses. It nose-dived into the red again, posting a loss of $5.3 billion in 2008.
JILTED
A weakened United made an unattractive merger partner, scuttling step two of Mr. Tilton's game plan. His first choice, Atlanta-based Delta Air Lines Inc., chose Northwest Airlines Corp. of Minnesota instead. Mr. Tilton settled for an alliance with Houston's Continental Airlines Inc. that some dubbed "merger lite."
Meanwhile, the deepest recession in 25 years bludgeoned airlines, grounding the business travelers United depends on so heavily. Mr. Tilton responded by aggressively slashing flights, a move that slows the financial bleeding but makes United vulnerable to new competitors, including Dallas-based Southwest Airlines, which is bringing its low-fare strategy to business destinations like New York and Boston.

But United's financial weakness limits Mr. Tilton's options. By choosing to fuel the airline's bankruptcy exit with debt rather than equity, he made it more vulnerable to adverse shifts in expenses and demand.
That vulnerability is now manifesting itself in a liquidity crunch. A cash cushion that had reached $3.7 billion stood at $2.5 billion as of March 31, and with oil prices on the rise again, Fitch's Mr. Warlick predicts, "United could report substantially negative free cash flow for the final three quarters of 2009." He downgraded United debt on June 10 to CCC, deep in junk status.
WHERE NEXT?
With his original strategy in tatters, Mr. Tilton has given little sign of where he plans to take United next. He hasn't invested in the new planes United will need over the long term, an expense he expected to avoid by cutting a merger deal. Recently he announced plans to buy up to 150 new aircraft in the coming years, but it's not clear how United would finance such a purchase.
Of more immediate concern is the debt coming due in the months ahead. The company faces $660 million in debt and lease payments by yearend and more than $1 billion in additional payments next year, followed by $869 million in 2012.
United's lenders and credit card partners have bailed it out before, suspending or relaxing loan covenants a year ago. They also could renegotiate loan terms to give United more breathing room.
But Mr. Tilton is nearly tapped out after selling stock, mortgaging aircraft and selling frequent-flier miles in advance during the past year. United now has about $1.2 billion in unencumbered assets, down from $3 billion a year ago. Credit-card companies could require United to post more cash collateral if its reserves drop further.
Mr. Tilton declined an interview request, but a United spokeswoman says, "We have a proven track record of being able to leverage those assets — modest debt payments over the next three quarters, minimal capital spending and no aircraft deliveries."
But when United mortgaged $500 million in spare parts last month, it was forced to pay 17% interest, instead of the 12.75% it had hoped.
Kathryn Mikells, United's chief financial officer, insists the interest rate reflects that spare parts are harder to finance than aircraft, not the airline's financial prospects. "While we are very sensitive to the cost we are paying for incremental liquidity, we also recognize that not all transactions are created equal and those with a tougher structure are going to demand a higher rate," she told employees July 2.
Nevertheless, Mr. Warlick wrote last month that "Fitch views United's highly leveraged capital structure as unsustainable in the absence of a sharp turnaround in industry operating fundamentals."
It's far from clear that an economic recovery will restore business travel to the levels that once fueled United's profits.
Business travel has been hit hardest in the downturn, falling 20% this year, according to the International Air Travel Assn. Vaughn Cordle, CEO of Virginia-based Airline Forecasts LLC, predicts business travel will remain 10% below pre-recession levels, even as industrywide revenue climbs by 6% to 9% next year.
And with Southwest and other newcomers targeting the sector, fares are falling on key business routes such as Chicago-New York.
A growing consensus among industry observers holds that excess capacity and a weak travel recovery could force a major airline into liquidation, with United, American and U.S. Airways the most likely victims. Insurance against default on United debt — known as credit default swaps — trades at 60 cents on the dollar, while its shares trade below $5, indicating investors consider bankruptcy likely.
With so many of its assets already encumbered, United might not find lenders willing to finance a second bankruptcy reorganization. As Mr. Warlick notes, "The ability to restructure with another trip through bankruptcy is diminished because nobody wants to extend credit." ©2009 by Crain Communications Inc.
 
Top