What does UAL have to do to Survive?

[Vik]

UAL has already parked 10 744's and replaced those routes w/ 777s or 767s.

Once they get their finances in order, they might consider converting those 744's into "combi" versions where 1/3rd of the rear main cabin is used for cargo. They can make the rest of the aircraft just two classes, one premium and one coach. I think JAL has a few 747s setup like that.

 

[Saabslime]

Lets say UAl gets the wage concessions it needs to secure a federal loan. Then lets say Bush gets the congressional support he's after to attack Iraq. Don't you think the economy will dip even further into recession resulting in continued revenue loss. What then?? Further concessions to help stop more bleeding? Where do you draw the line? Is a federal loan even guaranteed at that point or could the government come back and say you know what, this war against Iraq is going to really strain the budget so that money is no longer available (or at least not the amount UAL is seeking). Any thoughts?

 

[publisher]

combi

The reason that you do not see combi aircraft in the US other than Alaska is the cost and requirements for separation of cabin is very expensive to the point of prohibitive.

What they need to do is figure out what it is that they do well and focus there.

 

[JetPilot500]

Lets say UAl gets the wage concessions it needs to secure a federal loan. Then lets say Bush gets the congressional support he's after to attack Iraq. Don't you think the economy will dip even further into recession resulting in continued revenue loss. What then?? Further concessions to help stop more bleeding? Where do you draw the line?

You draw the line at the point where the company goes bankrupt.

Whether they get the federal money or not, Concessions will keep them going longer before bankruptcy. And yes, if they don't get the money and are still facing bankruptcy, they should give up more of their salary.

If the economy dips into a second recession, employee concessions and federal money will probally not help UAL or a few other airlines anyhow. But it is worth trying to save and employee concessions will help.

As I've said before, making less and keeping your job is better than standing in line for your unemployment check.

JetPilot500

 

[AAflyer]

JetPilot,

Sorry it took so long to get back to you (in Upstate NY visiting the folks).

The term they seem to be using is de-peaking. In a nutshell using less planes to fly the same number of flights. (increase aircraft utilization). Instead of pushing 50-60 jets all at once during a bank of flights, and then competing with other air-carrries for runways they have decided to fly jets in (or roll them)continuosly throughtout the day, also freeing up jetbridges and causing less delays.

AA has figured in ORD alone the de-peaking saves roughly 4 narrowbodies and 2-3 Rjs of flying (better utilized). I think it works too, the less sit time, the more money you make.

AAflyer

 

[Jetsnake]

I'm no expert at airline survival, but I was
just in DEN chatting with one of my High
School classmates that is in MGT. at UAL,
He showed me some figures that were
startling to say the least, I'm not sure if there
true but these figures were said to have come
from the "NEW" mgt. team at UAL.

Average ramper salary 46K
Average F/A salary 51K and some change.
Average IAM(A&P) salary over 100K.
Average pilot salary over 175K.

It's sad if this is true and the employee's
don't see what is in the future for them,
I would love to see UAL turn around, that
would be one of the biggest slaps in the face
say "GOODWIN" who has a reported
salary in excess of 600K until he dies along
with his grand kids getting priorty over paying
passengers the rest of there lives to fly.

I'm still wondering how UAL spent in excess of
250 Million for Avolar and only attained 2 USED
Falcon's at "GOODWINS" reign.

What happened to that money? And why hasn't
he been investigated for such a debacle as the
Enron and World Com CEO's.

If UAL has gone from losing 5 million a day to
around 1 million as has been published, and still
has in excess of 50,000 employee's worldwide.

Anyone that says employee concession's won't
work is full of, well let's just say I would love
to take the drug there on as long as I don't
bust a UA.

It would a sad day to see another carrier that
has been around for 75 years to go Tango Uniform.
But that may be the pecking order unless the
employee group will move together to help figure
out what can be done.

Just my opion based on what I've seen...

Jetsnake