United - Furlough recall spring 2003

[Gordo]

From VP Operations, Steve Forte

"While we're adding flights this summer to remain competitive and increase revenue, our system capacity will still be down 16%-17% from last summer, so we're still evaluating the need for additional pilot furloughs. We won't be furloughing any pilots in May, and we're currently looking at June. When will I be recalled? I know this isn't definitive enough, but I can tell you that we don't plan to recall any pilots before Spring of 2003."

Keep your day job, whatever it may be.

 

[F/O]

No surprise here.

Judging from your message title it seems you believe the date will actually be next spring? You have a great deal more confidence in these recalls than I. It will be AT LEAST this time next year before the most senior guy currently on furlough is back in training, in preparation for a possible increase in flying for summer 03. That's of course assuming there are no further furloughs.

Personally, I believe the company has every intention to let more people go. They will cut as many people as possible (fewer than were involved in the March furlough) and they will keep these people out until the crew desk is literally screaming for more people to fill seats.

If I'm wrong I'll buy everyone here a beer...

 

[Gordo]

For the sake of many, I hope they do start to recall next spring. I think with the new aircraft deliveries this year and upcoming retirements, UAL will be needing to add pilots to the schedule by then. I think that Steve Forte's message indicates they will begin by then not be complete by then.
The Apr 11 Crystal Ball indicated they may be looking at more furloughs but can only make the call after the fall flying schedule is worked out. It also indicated we are at a 19% reduction inflying with a 16 - 17% reduction in the pilot force. The 2% of 8600 pilots (remaining) is 172 pilots. So if further reduction are necessary <200 would make sense.

 

[RJPilott]

This summer will be a mess. Its already close to impossible to commute on UAL due to overbooked flights. Many majors are already paying their pax to give up their seats instead of increasing flights on selected routes. I certainly hope pilots arent going out of their way to pick up open time. Management is going to get caught with their pants down this summer and piss off pax once again.

 

[StarrBuck]

Hey Gordo, Nice Avatar!

S.B.

 

[beytzim]

It's amazing how the airlines never learn. They're either laying off or hiring like crazy. Nothing in the middle. Customer Service is the lowest priority no matter what.

Whenever the airlines start hiring again, which will proabably be around next Spring, they will be hiring like mad.

So yeh, keep your day jobs and get ready.

 

[Diver]

I would say:" Some Airlines never learn", and exclude SWA from that group.

They know better.

 

[Huck]

In the Fortune cover article on Herb last spring, he stated that he never laid off anyone at SWA, even when it would have been fiscally prudent. His reasoning - stick with your people during tough times, and they will stick with you during the good times.

That's the difference btween a leader and a manager, and might be the reason that when he retired, his stock alone was around 200 mill. On the other hand, Goodwin got "only" 4.5 and the thump of the door hitting his butt....

 

[Squanto]

Huck hit the nail on the head.