UAL Mechs Reject Concessions/Auth. Strike

[DIAMONDDD]

What would you all do if you were management, to counter the forces of the marketplace?

Sarcasm:ON

Well, first I would complain that there is a RASM problem and a CASM problem. Then, I would announce furloughs. Then I would announce that we are going to have a grand fare sale. Then I would be surprised when morale of the front line worker, the face that the customer sees and deals with, is in the toilet. I will be surprised when that person calls in sick on the holidays. I may even come out in public and denounce these workers. I will also be surprised when my labor units get all p1zzy when they find out that my retirement stays in tact no matter what. If another airline tries to raise ticket prices to increase RASM, I vow not to match that. I would hire more managers to help motivate my front line workers. I would hire a half dozen consulting firms to help me. I would say "I've tried nothing and I'm all out of ideas". These firms usually work pretty cheap. I would announce furloughs to pay for these firms. I would try to outsource as much work as I can, little by little. I will expect that the workers that I have now will not notice that little by little their jobs are going away to cheaper labor. I will expect that these worker's attitudes will be unchanged. Along with furloughs, I will cut salaries (not mine or the consulting firm's). I expect these workers attitudes will be unchanged. I will use the threat of chapter 11 as a big magic wand to get what I want from workers and creditors and vendors. I will be shocked if it affects stock price and future bookings. If none of this works out, I will take, say $13 million or so, and just ride off into the sunset. That's what I would do.

Sarcasm: OFF

 

[pilotyip]

again no answers. only sarcasm

 

[DIAMONDDD]

But we can agree on what DOESN'T work.

 

[lowecur]

UAL/merge or purge

Is it possible the feds could give a crap about whether UAL survives? Looks like it:

1. ATSB turns them down
2. BK judge will not allow UAL/pilot agreement
3. Federal Judge mandates that UAL must continue $56M Bond payments at LAX

Add that to the possibility that creditors may eventually begin reposessing their a/c, and the immediate future doesn't bode well. If the mechanics do strike, UAL will probably end up in 7 very quickly. International routes will be sold off to the highest bidder, and AMR will consolidate their domestic routes.

Why was the survival of UAIR so much more important to the feds? Personally I believe it's their service to so many more small airports in the East that no one would have picked up.

 

[WhiteCloud]

They would very much like to succeed. For lack of other reason it would make their resume look great, they would be doing something no other CEO had ever done.

That definition of success is often how much they and their buddies can walk away with after liquidation.