|
Just a place for me to keep some of the news of the past.
Furloughs End in January (2004)
November 24, 2003 - United has announced that the pilots to be furloughed in January will be the last. There are no plans at this time to recall any pilots in 2004. "This by no means lessens the effects the furloughs have had on the lives of our 2,172 pilots who are already furloughed or will be furloughed as of January 8, 2004. This does perhaps signal an end to the most painful result of United’s restructuring: the furloughing of our brother and sister pilots" said MEC Chairman Captain Paul Whiteford.
IMPORTANT FLIGHT OPS INFO FROM CAPT. STEVE FORTE
We have a very important, very positive development that I want you all to know about. As you may remember, based on our preliminary plan for 2004, we had anticipated having to furlough to between 6,900 and 7,100 on the seniority list. At the general rate of about 80 active pilots each month, this would have extended the furloughs to approximately March or April of next year.
We just received the new block hour estimates for 2004, which came in higher than the original plan. As a result, we do not anticipate any additional furloughs beyond those already announced for January 8.
After January 8, the most junior pilot number will be 7,256, bringing the total number of pilot furloughs to 2,172. Based on the latest estimates, we do not expect to begin recalling any pilots in 2004.
I know this hasn't been easy on anyone - particularly those on furlough but also those who continue as active employees at United. But because of your hard work and dedication, this company is getting stronger every day and reestablishing itself as a truly competitive enterprise.
Best regards, Captain Steve Forte
UAL's Low Cost Carrier
to Launch Feb 04 in DEN
United today announced that Denver International Airport will serve as the launch hub for its new low-cost operation (LCO), an essential element within United's portfolio of products. The LCO will serve predominantly leisure markets and feature a simplified fare structure with low-cost business and leisure fare options. The LCO will launch in February 2004.
"The United low-cost operation and its attractiveness to leisure and business travelers perfectly complement our mainline and United Express operations, and those of our Star Alliance partners," says Sean Donohue, vice president-Low Cost Operation. "We've made significant reductions in our cost structure this year, allowing our low-cost operation to be competitive, profitable and sustainable. The LCO will be operated entirely by United employees and part of the strong brand and portfolio of products that our customers expect us to provide."
Tickets will go on sale in November through all existing sales channels, including united.com, United Reservations, travel agents and on-line reservation systems, and later via sales channels unique to the LCO. The LCO branding, such as name and livery, will be unveiled later this year; the LCO will be a United-branded product.
The LCO fleet will launch with four Airbus A320 aircraft in Denver, expanding to approximately 40 A320s by the end of 2004, 19 of which will be based in Denver. Each plane will be configured with 156 seats, including Economy Plus(R) seats with extra legroom. From Denver, the LCO will fly to Reno, Las Vegas, Phoenix, New Orleans, Tampa, Los Angeles (Ontario), and Orlando. Additional destinations will be announced at a later date.
All seats will be pre-assigned, and food and beverage service will be available on board. United customers will earn Mileage Plus(R) miles on the LCO, and United's suite of Easy products, including EasyCheck-in(sm) and EasyUpdate(sm), will be available to LCO customers.
The LCO will complement United's mainline and United Express service from Denver, the company's second-largest hub, and will be fully integrated into the United and United Express network. LCO customers will enjoy seamless connections to United, United Express and Star Alliance flights, including baggage check-through.
"The LCO really underscores our long-term commitment to Denver, to Denver International Airport, and to our United and United Express employees in this community," says Pete McDonald, executive vice president-Operations. "It also signals our intent to offer consumers more choice, more flights, more destinations, and simplified, lower fares on the LCO routes."
Q. How will United's LCO be different from other low-cost carriers?
A. United's LCO will be the only low-cost carrier that benefits from mainline connectivity -- not just cheaper point-to-point flights. Passengers will have seamless access to United's unparalleled global route network, United's suite of high-tech check-in and customer information offerings, including EasyCheck-in and EasyUpdate, as well as membership in United's Mileage Plus program, one of the highest-rated frequent flyer programs worldwide. United's LCO also will offer assigned seating and the Economy Plus section.
Q. Are LCO employees also United employees? Do they have different contracts from mainline employees? What are the terms?
A. Absolutely. Represented LCO employees are United employees, and they have the same contracts as United employees.
Q. How will this operation be different from United Shuttle?
A. We now have significant, long-term cost reductions that allow our LCO to be competitive, profitable and sustainable over the long term.
Q. Will the LCO drain customers from existing mainline flying?
A. The LCO will allow the company to provide distinct service in select leisure markets, supplementing our mainline flying. The LCO will add seats and frequencies in these markets, providing maximum value for its existing customer base and attracting new customers who might not have considered flying mainline United. The LCO will have its own route network, but there will be some routes served by both mainline and United's low-cost carrier.
Q. Do you plan on adding other destinations in the future?
A. Absolutely.
Q. Will Denver be the LCO's only hub?
A. No, the company will announce other hubs at a later date.
Q. Why is this plan different from the plan you originally announced for the LCO earlier in the year?
A. We were able to obtain significant cost reductions during our collective bargaining negotiations that precluded the need for separate agreements for the LCO. Coupled with other cost reductions, we now have a cost structure that makes us competitive with low-cost carriers across the board. The LCO offers a more competitive economic model in specific leisure markets, and we'll offer LCO flying in those markets. United's goal in the restructuring of our business model was to create an airline that is competitive across all market segments, and we believe we are succeeding.
Q. Have you determined a marketing budget for the LCO? How can you afford to launch a new product when you're still in Chapter 11 bankruptcy?
A. United will make appropriate investments in advertising and other marketing efforts to ensure the success of United's LCO. The exact timing and financial details of the campaign are proprietary information that would be inappropriate to disclose at this time. The low-cost airfare market cannot be ignored in today's highly competitive airline industry, and an entry into this arena has always been part of United's plans for restructuring our business. We have a formula for a successful entry into this market, and we believe our incremental ramp-up of the LCO is a logical and responsible approach to entering the LCO market successfully.
Off-line Jumpseat Update
Jumpseat Test Officially Approved
The TSA has officially approved a six month "pilot program" that will re-institute offline jumpseat access for pilots. This test program will be known as the Cockpit Security Access System, or CASS. The formal approval of CASS by TSA removes all of the regulatory restrictions that had been placed on offline jumpseat after the September 11, 2001 tragedy.
Before the program is again up and running there are some other steps that must be accomplished. For example, a contract with ARINC to run the proxy server for the CASS must be finalized. This should take no more than two weeks. Once this is accomplished each airline will be required to make some in-house adjustments to their computer reservations system in order to make it compatible with the requirements of the CASS. The length of time to accomplish these changes will vary from airline to airline.
Once each airline has met these requirements and made their system CASS compliant they will then have to "end to end" test their system with the other airlines participating in the CASS. This should be a relatively straightforward hardware/software issue. Once these tests are completed each airline entering the CASS will be required to adopt their respective Ops Specs to accommodate the requirements of the CASS. This should only require a written change to the Ops Specs documentation. The final approval for the system will be through each respective carrier's PSI, which the TSA has stated will occur provided all of the above requirements are met.
Once the system is up and running (probably mid-September for the carriers whose systems are ready) the following procedure will apply to pilots desiring to utilize an offline jumpseat. The pilot will present him or herself at the offline carrier's gate, provide the agent with his or her valid airline ID, a valid US passport and a PIN number issued by his or her respective airline. The gate agent will enter this information into the computer and send a verification of identification query to the pilot's airline through the ARINC proxy server. Once the response is received, the gate agent will verify that all of the identification credentials presented by the pilot matches the information returned by the airline, and the pilot will be allowed access to the cockpit jumpseat.
More information about this program will be provided as it is received, and pilots should contact their respective MEC Jumpseat Coordinators for information specific to their individual airlines.
UAL Back in the Pac
United Airlines said it will restore all trans-Pacific flights next month, including those from Hong Kong, as it attempts to recover from the sharp downturn in air travel caused by SARS. Meanwhile, United's chief executive, Glenn Tilton, who begins a two-day visit to Beijing on Wednesday, said he will discuss cooperation plans with mainland Chinese airlines to help United expand into the booming mainland Chinese aviation market. United, the world's No. 2 carrier after American Airlines, slashed 75% of its flights in and out of Hong Kong at the peak of the severe acute respiratory syndrome outbreak, said Mark Schwab, a United vice president.
The Chicago-based airline, which earns 17% of its revenue from trans-Pacific routes, has been gradually restoring its services since SARS fears eased in June, Mr. Schwab said Tuesday.
The airline will also resume daily flights between Hong Kong and Singapore on Oct. 26, he said. SARS first surfaced in mainland China late last year and killed 299 people in Hong Kong. The virus prompted travel warnings across Asia and devastated Hong Kong's tourism industry.
United Senior Vice President Graham Atkinson said the airline is "seeing a significant upturn in terms of business travelers' pent-up demand," but a full recovery is only expected by the end of this year or early next year.
Mr. Tilton said he will discuss with mainland Chinese carriers possible cooperation such as code-sharing, frequent-flyer programs and facility sharing. The code-sharing agreement would allow United to put its UA flight numbers on its mainland partner's services and sell seats as if they were on United flights. Mr. Tilton declined to name a partner, but hinted that it might be Air China. "In the event that a code-share with Air China would happen, that would be a good thing, and would benefit passenger connectivity," Mr. Tilton said. He said the possible tie-up was one of the "worst-kept secrets" in the airline industry.
Mr. Tilton said the Asia-Pacific market, with its potentially huge economic growth, presents the "most significant" international opportunity for United. "We are more committed than ever to the region, to China, to Hong Kong," he said. Mr. Tilton said he hopes the Chinese partners will eventually become a member of Star Alliance, a network comprising 16 carriers, which includes United, Air Canada, Deutsche Lufthansa AG and Singapore Airlines.
Selina Chow, chairman of the Hong Kong Tourism Board, said despite a strong rebound in the short-haul market, the number of visitors from the U.S. in July was still down 42% compared with the same month last year. "This is understandable because it always takes a bit more time to rebuild confidence in the long-haul market and convert interest into actual travel," Ms. Chow said. American travelers are the fourth largest-group of visitors to Hong Kong, with more than one million arriving here last year, according to Ms. Chow. original story
United studying all-cargo service
Airline would lease jets for international routes
By David Kesmodel
Rocky Mountain News
August 22, 2003
Bankrupt United Airlines is exploring launching an all-cargo service
on international routes by leasing wide-body jets from ailing Atlas
Air, sources said.
United, which today carries freight only in the bowels of its passenger planes, is studying the move as a way to boost revenues onits robust route network.
The airline has talked with Purchase, N.Y.-based Atlas about "wet
leasing" Boeing 747 jets for a service that initially would focus on
U.S.-Asia routes, sources said.
Under a wet lease, Atlas, the largest shipper of freight for other
carriers, would provide planes, crews, insurance and maintenance.
United would market the service and load and unload freight.
United spokeswoman Chris Nardella said the airline is exploring re- entering the all- freighter market, which it abandoned in 2000. But
she would not say whether United has talked with Atlas Air.
Chicago-based United had plans to enter the market before September, when the cargo season swings into high gear, she said, but "we haven't found a viable option." Atlas Air spokesman Thomas Becher declined to comment.
Atlas Air, whose clients include British Airways, was based in
Golden until 1999. The company said last month that it might file
for bankruptcy to complete a debt restructuring.
Leaders of United's pilots union are opposed to a cargo operation in
which United wet-leases planes, Scottie Clark, a union spokeswoman, said. "We'd like it to be flown with United pilots," which would be a dry lease, Clark said. United and the union continue to discuss the issue, Clark and Nardella said.
Cargo today accounts for 5 percent of revenues at United, the second- biggest U.S. carrier and Denver's dominant airline. United's powerful route network in Asia provides a good opportunity to haul more freight and boost sales, analysts said.
"It's a revenue stream they should be looking at," said Joshua Marks
of the George Washington University Aviation Institute.
The landing slots that United controls at Tokyo Narita International
Airport "are the critical element," said John Pincavage, a financial
adviser to airlines in Westport, Conn. United also could benefit from a tie-in with its partners in the Star Alliance network of international carriers, he said.
Latin America is another potential growth area, analysts said.
Today, Northwest, the No. 4 U.S. carrier, is the only major U.S.
airline with its own all-cargo fleet. United and Northwest are the
main U.S. operators in Asia.
Northwest's freighter fleet consists of 12 Boeing 747 jets.
The cargo business has suffered since the 2001 terrorist attacks.
But Northwest's cargo revenues, which account for about 8 percent of
its business, rose 7.4 percent in the first six months of 2003 to
$348 million. United's cargo revenues rose 3 percent to $318 million in the first half of 2003.
UAL Responds To Speculation
Regarding Its Dulles Hub
Under pressure from United Airlines and the court overseeing United's bankruptcy to significantly lower the departure fees United would pay Atlantic Coast in a renewed code-sharing contract, Atlantic Coast management this week unveiled plans to abandon its 14-year relationship with United and instead venture out as a stand-alone, low-fare competitor in the Washington, D.C. market using Dulles Airport as its hub. Under the announced plan, Atlantic Coast would launch its independent services, perhaps under a new marketing name and image, in April 2004.
United today, in response to speculation that it may close its hub
at Washington Dulles, said the airport will remain an important part
of the company's unsurpassed global route network.
"We are committed to keeping Washington Dulles as one of our hub
airports and to providing all of our customers and constituents in
the Washington, D.C., area with the highest levels of service on a
flight schedule that fits their needs," says Doug Hacker, United's
executive vice president-Strategy. "No matter who we choose to
operate as a United Express partner at Dulles, we will continue to
offer our customers non-stop service to all destinations that are
currently serviced by Atlantic Coast Airlines under the United
Express brand."
United has been the largest carrier at Washington Dulles since it
named the airport as a hub in 1985 and will continue to be the No. 1
airline in Washington. The company's ability to connect traffic to
Europe, Latin America, Asia and the West Coast, as well as provide
service to key East Coast destinations, makes Dulles a strong part
of United's hub-and-spoke network.
Key Facts About United's Service in Washington:
* United is the only carrier serving Europe, Latin America and the
U.S. West Coast non-stop from Dulles;
* United is the only carrier that offers service from Washington to
all three New York airports;
* United and United Express will continue to offer more than 240
daily flights to 69 non-stop destinations from Dulles;
* From all three Washington-area airports, United and United
Express will continue to offer our customers 270 daily flights,
including non-stop service to the U.S. West Coast from both Dulles
and Baltimore;
As United stated earlier this week, customers are not affected by
ACA's recent announcement and can continue to book confidently with
United and United Express for any of their travel needs. The
current contract with ACA to provide United Express service remains
in full force and effect. While the company believes that it is
still possible a deal can be reached, United has an alternative plan
that will provide continuity of United Express service to our
customers should a deal not be negotiable.
Retaining Gall
Why are airlines paying "retention" bonuses to executives no one else would hire?
By Daniel Gross, April 29, 2003
Every so often, corporate America gives us reason to think that, hey, maybe the Marxists were right about the villainy of capitalists after all. American Airlines has been treating us to a spectacular example in recent weeks. Even as it was using the threat of Chapter 11 to push employees into massive wage cuts, the airline was funneling $41 million into a special bankruptcy-resistant pension trust for 45 executives. And early in 2002, the struggling airline's top six executives were offered "cash retention" bonuses amounting to twice their base salary—just for staying on the job until January 2005. American then hid these sweet payouts until after the unions had voted to cut their own pay. When the news finally broke, it cost American CEO Donald Carty his job—but the executives still get to keep the juiced pension benefits.
The only satisfying part of this turmoil—besides, of course, the cashiering of Carty—is that it shined a high-wattage bulb on the infectious practice of "retention" bonuses—the most recent in a long line of sleazy, undeserved compensation tricks at publicly held companies. Airlines seem particularly fond of the unnecessary executive bonus. Delta Airlines last year also set up special pension trusts for 33 senior executives (neglecting to disclose their existence until this spring) and offered cash retention bonuses to several executives just for showing up to work. Delta noted in its proxy filing that "the business environment presents ongoing risks and creates a significant concern for retention of management personnel."
This would be hilarious if it weren't costing Delta shareholders millions. Who exactly is clamoring to hire Delta or American's top managers? They're lucky to have kept their jobs at all.
A few years ago, boosting bonuses, wages, and benefits to retain managers made sense. In the hothouse economy of the late '90s, large, stodgy companies like airlines routinely lost executives at all ranks to Internet startups and technology companies. But it is ridiculous to use retention to justify massive payouts to unaccomplished executives who are working in a wilting industry, which is in turn bound up in a slack economy. (Especially since these are the very stolid company men who didn't even have the moxie to try something new during the boom.)
Since March 2001, many of the estimated 2.5 million jobs lost have been managerial ones. The most recent Bureau of Labor Statistics data shows the unemployment rate for management and professional occupations is at to 2.9 percent, compared with just 1.7 percent in 2000.
Indeed, it turns out that high-paid workers are no more immune to the labor market than lower-paid workers. When economic times are tough, their wages tend to stagnate or even fall. Look what's happening to the salaries for software programmers, or Internet business development executives, or professional baseball players. Jonathan Mahler's April 13 piece in the New York Times Magazine nicely detailed the travails of six-figure managerial types who were unable to find any job at all. Rather than paying special bonuses to retain executives, American and Delta could have hired back some of the executives who left three years ago at half what they're paying their current clowns.
An executive vice president at American should be feeling the same pressure and fear that American pilots and machinists do. Sure, the occasional senior manager with transferable skills can go elsewhere. Last June, Tom Horton, chief financial officer at AMR (American's parent company), left for AT&T. But generally speaking, there isn't much of a market for these executives' talent. With the bankruptcy of major airlines and the effects of war and SARS on global travel, the airline industry is in the process of shrinking 20 percent to 30 percent. Executives should be taking the same 25 percent pay cuts that they are forcing down the throats of their employees.
The most troubling aspect of the retention bonuses is psychological rather than financial. American's executives presume that unionized pilots, flight attendants, and baggage handlers will work with the same attention to detail and concern for security as they did when their wages and benefits were 25 percent higher. But the unspoken assumption of retention bonuses and benefits for top bosses is that senior managers simply can't be relied upon to work as hard if their salaries are cut, or if their options are underwater. Isn't it time we stopped applying the soft bigotry of low expectations to senior executives?
Cast yours now at Forbes!
HEY! What's that code from Microsoft that want's to download onto my machine? MSN Money has updated the ticker. The two biggest features are that the quotes are now color coded (green for going up, red for going down) and now when you click on the quote, it actually goes to the quote page instead of an error page. (If you said NO to downloading the code, it will prompt you the next time you come to PilotsUnited ULTRA, and you can accept it then. If you don't want to accept it, just use the PilotsUnited Standard at www.PilotsUnited.com.)
Also added to the PilotsUnited ULTRA site are the Stock Quotes and Charts, where you type in the stock symbol and it goes right to the MSN Money Quote or Chart page. (Look to the right, down below the UAL Stock Chart) The default is to go to UAL, but you can type any symbol over it. Maybe NOW my best friend, Steve Smolek, will actually use this site as his home page instead of MSN! Thanks to Brett Nolastname for sending in the link to the new code! Cheers!
Down to 8481 on July 1st, 2003. That'll make 1,555 on the street.
Er, scratch that, it's now down to 8393 on July 31st, which is 1,643 on the street.
As of 7/30/03
Furloughed: 1,402 Eight Ball: 10,036 Jr Man: 8634
Announced Furloughs: 1,643 Calculated Jr Man: 8393
For most recent information, see DIS*31173
As of 8/01/03
Furloughed: 1,643 Eight Ball: 9426 Jr Man: 7672
Announced Furloughs: 1,863 Calculated Jr Man: 7452
For most recent information, see DIS*31173
Closes May 22, 2003, Effective July 3, 2003
Yep, another 234 bumps. When will it stop??? Go to SkyNet >> Flight Ops Homepage >> Surplus Information for detailed info, including names in each fleet/seat/domicile. (Kudos to the guy who posts the info on the SkyNet Surplus page. It is VERY informative and very well put together!)
|
EQP/POS
|
JFK
|
DCA
|
MIA
|
ORD
|
DEN
|
LAX
|
SFO
|
SEA
|
HNL
|
TOTAL
|
|
400 CAP
|
|
|
|
|
|
|
|
|
|
0
|
|
400 F/O
|
|
|
|
|
|
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
777 CAP
|
|
|
|
|
|
|
|
|
|
0
|
|
777 F/O
|
10
|
|
|
15
|
|
7
|
|
5
|
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
767 CAP
|
12
|
6
|
4
|
8
|
6
|
4
|
|
|
|
40
|
|
767 F/O
|
20
|
7
|
5
|
20
|
10
|
15
|
4
|
|
|
81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
320 CAP
|
|
|
|
|
|
|
|
|
|
0
|
|
320 F/O
|
|
|
|
|
|
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
300 CAP
|
|
|
|
20
|
25
|
8
|
8
|
|
|
61
|
|
300 F/O
|
|
15
|
|
|
|
|
|
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTALS
|
42
|
28
|
9
|
63
|
41
|
34
|
12
|
5
|
0
|
234
|
JUNIOR MAN IN OPERATION
Reflects the vacancy bid thru 03-006 closed
04/06/03,
the surplus closed 04/23/03 and the furlough effective 06/01/03. Check Display 31173 for updates.
|
|
|
JFK
|
DCA
|
MIA
|
ORD
|
DEN
|
LAX
|
SFO
|
SEA
|
HNL
|
|
B400
|
CAP
|
|
|
|
941
|
|
1115
|
1080
|
|
|
|
|
F/O
|
|
|
|
4743
|
|
3676
|
5021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B777
|
CAP
|
1304
|
1235
|
|
1159
|
|
1167
|
1211
|
1075
|
|
|
|
F/O
|
5646
|
5176
|
|
5477
|
|
5298
|
5796
|
5555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B767
|
CAP
|
3535
|
3339
|
1851
|
2619
|
2489
|
3125
|
2910
|
1986
|
1969
|
|
|
F/O
|
7557
|
6887
|
5965
|
6635
|
6510
|
6819
|
7092
|
6002
|
5509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A320
|
CAP
|
4490
|
4308
|
|
4410
|
4026
|
4685
|
4860
|
|
|
|
|
F/O
|
7847
|
7782
|
|
7989
|
7870
|
8288
|
8351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B300
|
CAP
|
|
4601
|
|
5295
|
4831
|
5214
|
5384
|
4597
|
|
|
|
F/O
|
|
8081
|
|
8558
|
8466
|
8545
|
8560
|
7754
|
|
Well, I see it's been 10 days since I posted anything, and nothing newsworthy has come my way, so I figured I'd just throw out some personal stuff. Facing imminent surplus off the LAX 777, I took a bid to the LAX 747-400, and I'll surprisingly have about a dozen guys junior to me over there. Amazing, bumped off the -400 to the 777, and exactly a year later, back to the -400 where I'll be more senior than I have been for two years. It's a mad, mad world.
On a different note, I'm looking at a leave of absence. My business in real estate in Las Vegas has gone through the roof, no small part due to PilotsUnited.com patrons. I'm investigating the process of taking an LOA, including alternatives for medical insurance, and will soon post a page about it on PilotsUnited. If anyone has any good "insider info" on taking a LOA from UAL, please let me know.
Check SkyNet... looks like 74 more furloughs June 1, making the new calculated Eight Ball 8560.
UAL ALPA Ratifies T/A
82.3 in favor to 17.7% opposed.
82% voted.
LATEST SURPLUS
489 Total; Effective 7-1-03, Closes 4-23-03
|
|
Captain
|
First Officer
|
|
|
0
|
0
|
|
|
0
|
JFK 13; DCA 7; ORD 15;
LAX 8; SFO 16
|
|
|
JFK 6; ORD 15
|
JFK 19; DCA 13; MIA 5;
ORD 40; DEN 8; LAX 30;
SFO 10; HNL 1
|
|
|
JFK 6; DCA 6; ORD 10
LAX 5; SFO 11
|
JFK 25; DCA 20; ORD 48;
DEN 7; LAX 12; SFO 35
|
|
|
DCA 2; ORD 25;
DEN 11; LAX 6; SFO 4;
SEA 3
|
DCA 17; DEN 30
|
I've gotten a TON of emails about where to find the above info. I got an email from Joe Machette telling me about the Surplus and where to find it. It's on the very last page of the latest SSC meeting notes. Go to ALPA.org, sign in, then click on MEC -> UAL. Now click on MEC Committees, then System Schedule. Under the March 2003 header, click on the Attchment 8-15 link, then go to the very last page. Cheers, and hats off to Joe for the heads up! (Oh, if you want to, you can look in the ALPA Forum in the section Boyle's Files [NOT the MEC Files] and it's there as well, I believe.)
Take the time to get the info about where your company is going. Then go drink vast quantities of fermented hopps and barley soup, preferrably chilled.
FINALLY: GOOD NEWS
Looks like the Golden Parachute might just be a streamer!
SYSTEM WIDE REBID
for APRIL FLYING!!!
Get a sweet line for April? Psych! Due to the spat in the sandbox, United is drawing down flying for the month of April, so they are cancelling the monthly bid awards for April and are redoing them. (EVEN IF YOU HAD A SURPLUS LINE. If you were TDY, you are still TDY for April.). The new lines will be available online late Friday, March 21st, and close Wednesday the 26th at 0600 CST. The new awards will be out at 1500 CST on the 26th. There won't be any Secondary or Floater Reserve lines, and the Big Pick will not occur (a good reason to check out eTripTrader!) TTWOF (trip trading for the acronymly challenged, or more accurately the initialismly challenged) will open March 28th at 2000 local domicile time. Thank goodness for WinBid, VB2000, BidPro, and eTripTrader!
Where'd that Go???
I frequently get asked about old articles, posts, and files that were posted on PilotsUnited.com and then are removed to make way for new stuff. There are two archives you can check for old stuff. "That Was Then" contains mostly articles and news that appeared on this front page. The order is not perfect, but basically the most recent stuff is at the top of the page, cramming the older stuff toward the bottom. The other archive is the "PilotsUnited Top Ten." This is where I typically archive the more fun articles and files. There are definitely more than ten items here, but I have more than ten fingers and ten toes, so I guess it all works out in the end. If you still can't find what you're looking for, feel free to email me. I'm an insomniac and love to sift through a thousand junk mails to get the three or four that are real emails intended for me. I can't wait for an effective spam control to be designed! Cheers!
UAL Corp. Says
'Sunset' Provisions
of ESOP Are Triggered
Friday March 7, 6:50 pm ET
CHICAGO, March 7 /PRNewswire-FirstCall/ -- UAL Corp. (NYSE: UAL - News), the parent company of United Airlines, today announced that sales of company stock by the company's employee benefit plans have lowered employee ownership in those plans below 20 percent, thereby triggering the "Sunset" provisions contained in the company's certificate of incorporation (as described in the company's most recent quarterly report on Form 10-Q) that affect UAL's corporate governance structure. The changes that have occurred due to "Sunset" include:
-- Elimination of special Board, Board committee and shareholder votes, such as for acquisitions, divestitures and CEO appointments, among others;
-- Elimination of the 55% shareholder voting power of the Employee Stock Ownership Plan (ESOP);
-- Board discretion to change its committee structure and membership; and
-- Possible changes in Board members, other than those representing the Air Line Pilots' Association (ALPA), International Association of Machinists and Aerospace Workers (IAM) and salaried and management employees. Decisions regarding potential Board nominees would be made by the Board's outside public director nomination committee.
UAL Corp. reaffirmed that the triggering of "Sunset" does not jeopardize tax benefits related to UAL's net operating losses (NOL). Preserving the NOL should generate substantial tax benefits following UAL's emergence from Chapter 11 protection.
News releases and other information about United Airlines can be found at the company's website, www.united.com .
66 Pilots Furloughed April 1
30 Pilots Furloughed May 1
United currently has 1,306 pilots on furlough. After April 1, 66 more join them and we'll have 1,372 furloughed, with a junor man of 8664. On May 1 we furlough 30 more, for a total of 1,402, and the junior man should be 8634.
These numbers aren't guaranteed. If you have a source that conflicts with these numbers, please pass them on!
Early Retirements
190 pilots have elected to take early retirement. The number Chuck Roichek posted in the Crystal Ball on Feb. 7 was 111, so it is increasing. Here are the numbers by fleet and seat:
B747-400 Captain 86
B747-400 First Officer 8
B777 Captain 46
B777 First Officer 4
B767 Captain 20
A320 Captain 16
B737-300 Captain 10
Thai Airways Bd OKs Purchase
Of 7 United Airlines Planes
Wednesday February 26, 7:39 am ET BANGKOK (Dow Jones)--Thailand's flag carrier Thai Airways International PCL's (H.TAI) board Wednesday approved a plan to purchase seven Boeing 747-400s from United Airlines.The purchase of these recently built planes, instead of buying new ones, will help Thai Airways save about 30 billion baht ($1=THB42.75), the airline's Chairman Thanong Bidaya said after a board meeting.
The United Airlines planes will cost less than US$50 million a unit, compared with a normal price at around $150 million, he added.The seven Boeing 747-400 planes, with 347 seats each, have been in operation for less than five years.Thai Airways plans to spend about THB500,000 to upgrade each of the seven planes. The upgrade will take around 30 days for completion, Thanong said.A five-year development plan recently adopted by Thai Airways, that requires the acquisition of nine new aircraft, will be amended as the company has decided to purchase the United Airline planes, Thanong said.The carrier's board also approved a plan to seek short-term financing of around US$142.2 million until the company finds other long-term sourced of funds.The funds will be used to refinance a Samurai Bond, which will come due March 27.Under the plan, the Finance Ministry, its major shareholder, will issue Euro Commercial Paper to raise funds for Thai Airways.
LATEST SURPLUS
Click here to see the latest Surplus. It's too many to type, but it's 413 total, the most in the 777, 767 and A320 F/O ranks.
LATEST VACANCY BID
25 Total; Effective 8-30-03, Closes 3-08-03
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Captain
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First Officer
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Training
|
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747
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ORD 10, SFO 15
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N/A
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APR, MAY, JUN
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Thanks to all that caught the "surplus v. vancancy error."
LATEST SURPLUS
376 Total; Effective 5-1-03, Closes 2-20-03
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Captain
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First Officer
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LAX 6
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ORD 6; SFO 25
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JFK 20; DCA 8
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JFK 5; ORD 40; LAX 20
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|
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N/A
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JFK 22; DCA 26; MIA 13;
ORD 10; DEN 10; LAX 14;
SFO 8; SEA 8
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|
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ORD 11; DEN 10; SFO 16
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DCA 8; ORD 23; DEN 15;
LAX 10; SFO 16
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SFO 28
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N/A
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By the way, there is a new VACANCY BID (and NEW DOMICILE) of
HNL 767 CAP 8, HNL 767 F/O 8, and SFO 777 CAP 8.
UNITED TO CUT WORKFORCE
120 PERCENT
NEW YORK, N.Y. (SatireWire.com) - United Airlines will reduce its workforce by an unprecedented 120 percent by the end of 2003, believed to be the first time a major corporation has laid off more employees than it actually has. United stock soared more than 12 points on the news.
The reduction decision, announced Wednesday, came after a year-long internal review of cost-cutting procedures, said United Chairman Glenn Tilton. The initial report concluded the company would save $1.2 billion by eliminating 20 percent of its 108,000 employees.
From there, said Tilton, "it didn't take a genius to figure out that if we cut 40 percent of our workforce, we'd save $2.4 billion, and if we cut 100 percent of our workforce, we'd save $6 billion. But then we thought, why stop there? Let's cut another 20 percent and save $7 billion.
"We believe in increasing shareholder value, and we believe that by decreasing expenditures, we enhance our competitive cost position and our bottom line," he added.
United plans to achieve the 100 percent internal reduction through layoffs, attrition and early retirement packages. To achieve the 20 percent in external reductions, the company plans to involuntarily downsize 22,000 non-United employees who presently work for other companies.
"We pretty much picked them out of a hat," said Tilton.
Among firms United has picked as "External Reduction Targets," or ERTs, are Quaker Oats, AMR Corporation, parent of American Airlines, Callaway Golf, and Charles Schwab & Co. Tilton's plan presents a "win-win" for the company and ERTs, said Tilton, as any savings by ERTs would be passed on to United, while the ERTs themselves would benefit by the increase in stock price that usually accompanies personnel cutback announcements.
"We're also hoping that since, over the years, we've been really helpful to a lot of companies, they'll do this for us kind of as a favor," said Tilton.
Legally, pink slips sent out by United would have no standing at ERTs unless those companies agreed. While executives at ERTs declined to comment, employees at those companies said they were not inclined to cooperate.
"This is ridiculous. I don't work for United. They can't fire me," said Kaili Blackburn, a flight attendant with American Airlines. Reactions like that, replied Tilton, "are not very sporting."
Inspiration for United's plan came from previous cutback initiatives, said company officials. In January of 1998, for instance, the company announced it would trim 18,000 jobs over two years. However, just a year later, United said it had already reached its quota. "We were quite surprised at the number of employees willing to leave United in such a hurry, and we decided to build on that," Tilton said.
Analysts credited Tilton's short-term vision, noting that the announcement had the desired effect of immediately increasing United share value. However, the long-term ramifications could be detrimental, said Bear Stearns analyst Beldon McInty.
"It's a little early to tell, but by eliminating all its employees, United may jeopardize its market position and could, at least theoretically, cease to exist," said McInty.
Tilton, however, urged patience: "To my knowledge, this has never been done before, so let's just wait and see what happens."
{Ed. Note: This wonderful satire was posted by a member on the ALPA Forum, and that member got it from a JFK F/O. I only wish that I had written it myself.}
The Associated Press 1/17/03 8:34 PM ALEXANDRIA, Va. (AP) -- A federal bankruptcy judge on Friday accepted US Airways' plan to emerge from bankruptcy by March 31 and gave the airline the go-ahead to ask its creditors to approve the proposal.
U.S. Bankruptcy Judge Stephen Mitchell's decision clears another hurdle for the carrier, which was the first to declare Chapter 11 after the Sept. 11 terrorist attacks. The company lost $2.1 billion in 2001 and $852 million in the first three quarters of 2002; it has laid off about 30 percent of its pre-attack work force of 46,000.
The nation's seventh largest airline has said it needs to cut costs by $1.6 billion to remain viable. The reorganization plan, filed in federal bankruptcy court in December, hinges on US Airways securing a $1 billion federal loan guarantee, a $240 million investment from the Alabama state pension fund and concessions by airline employees.
The airline's approximately 32,000 employees have agreed to annual wage and benefit concessions of at least $926 million.
The restructuring plan does not address an unfunded pension liability of about $3 billion. The company is hoping congressional legislation will give it some leeway. If not, the company will terminate the pension plan and it would be taken over by the federal Pension Benefit Guaranty Corp.
The PBGC would pay a maximum benefit of $28,000 a year, just a fraction of what some pilots would receive under their existing plan. The other unions' pension plans are not affected.
On Thursday, Mitchell heard objections to the restructuring plan, ranging from a mechanic who had his retirement fund wiped out to a group of 12 former executives, including former CEO Seth Schofield, who had their supplemental pension plan terminated.
But Mitchell said shareholders cannot be paid unless unsecured creditors collect their claims in full.
The airline estimates in its reorganization plan that it will turn a profit of $127 million by fiscal 2004 and increase profits to $405 million by 2007. That is based on projections that revenue will increase from $7.2 billion in 2003 to $7.7 billion by 2007.
According to the timeline spelled out Friday, the airline has until Jan. 31 to mail its creditors the disclosure statement and restructuring plan. The creditors have until March 10 to notify the airline of their approval or rejection of the plan.
The company is scheduled to return to court in Alexandria on March 18 for a three-day hearing, at which a bankruptcy court judge will decide if the airline may emerge from bankruptcy on its target date of March 31.
Amazingly, I was unaware that Bill Umbach, one of the two pilots being procecuted by the military for a friendly fire accident, is a United Airlines Pilot. He is an ORD 777 F/O. There is a website for information about Bill and the incident at BillUmbach.com.
<from the website> This website is to inform and update Americans that a grave injustice is threatening the liberties and livelihoods of two American fighter pilots, Major William Umbach and Major Harry Schmidt. On the night of April 17, William (Bill)Umbach and Harry Schmidt unknowingly flew over Canadian live fire exercise. They perceived the fire to be an imminent threat to their aircraft and to their lives. They dropped a bomb in self-defense which stopped the machine from firing but killed four Canadian soldiers and wounded eight others. On September 11, 2002, William and Harry were officially charged with 4 counts of negligent manslaughter, 8 counts of aggravated assault, and 1 count of dereliction of duty. If convicted, William and Harry could face 64 years in prison, loss of all pay and allowances and receive dishonorable discharges. <please vist the site>
For the absolute final word (well, as absolute and final as it gets around here) on the new Reserve Rules, check out the Reserve System Changes file released by ALPA. The new rules took effect on September 30th. But wait! ERP II changes the rules again! Of course, ERP II only takes effect if and when...
Citizens for Aviation Security:
Ed Folsom, UAL Council 34's security committee guy, and one of the UAL Security/Taser instructors, brings you Citizens for Aviation Security (CAS) at AviationSecurityNow.com. The CAS Citizen Action Plan is simple and direct: Call, Fax, Letter, email, in that order. In this way, your voice has maximum exposure with your elected Representatives. Check out this very nice site. Don't forget about the Airline Pilots Security alliance at Secure-Skies.org, and the Allied Pilots Associations petition to arm pilots.
The Schedule
Planning group is posting the monthly line awards on Skynet. You can
view them by going to Skynet >> Flight Ops Division >> Schedule Group >> Line Awards. A day or so after the awards, there will be a link right in the middle of the page to Line Awards. The pages are formatted
in .pdf format, which of course requires the Adobe Acrobat reader. This has all been made possible by some
software upgrades recently made in ISD that show considerable
promise in attempts to automate and publish this type of
material. Kudos for this effort Dave Kleckner WQHVF and Kathy Piper in ISD. It was Kathy who researched the process, developed the web
output and deserves the credit for it.
FOQA in my car? You mean, they can tell how fast I was going at point of impact? They can tell if I had my lights on, or if my seatbelt was buckled? Yep. Here's the system details, the FAQ (the good stuff), and the list of cars that have it. Now, about that man on the grassy knoll...
United plans to revive West Coast shuttle
WASHINGTON, Dec 12 (Reuters) - United Airlines plans to revive its failed West Coast shuttle service next year as part of its post-bankruptcy business plan, the airline's chairman said on Thursday.
Glenn Tilton also told reporters at Dulles Airport outside Washington that the airline was reworking its federal loan guarantee application but was not ready to submit a new plan to the government.
"I fully expect to talk with the ATSB (Air Transportation Stabilization Board) about the prospect of their participation in our exit from bankruptcy," Tilton said. United hopes to emerge from Chapter 11 within 18 months.
United, a unit of UAL Corp. <UAL.N>, filed the biggest bankruptcy petition in aviation history on Monday after that government board rejected its application for a $1.8 billion loan guarantee. The loan board seriously questioned United's cost cuts and its projected revenue growth.
As part of a new business plan for the No. 2 airline, Tilton said United wants to restart the West Coast shuttle operation to take aim at low-cost carriers, like Southwest Airlines <LUV.N>.
Tilton said the subsidiary would initiate point-to-point service with Boeing 737s <BA.N> Airbus A320s <EAD.DE> <EAD.PA> <EAD.MC>.
Delta Air Lines, struggling to offset its own huge losses with new business, announced a similar low-cost service for the East Coast last month to begin in 2003.
Amid the industry's worst-ever downturn only lower cost airlines have made any money.
"The low-cost carrier phenomenon is drawing customers away from the main lines. We need to take advantage of that," Tilton said.
He hopes to have cooperation from the airline's labor groups in starting up the new service.
The pilots' union supports the concept, at least initially. "We have to think out of the box here," said Herb Hunter, a United captain and spokesman for Air Line Pilots Association.
Tilton did not have a cost-figure for the shuttle service, formally called Shuttle By United, nor an exact time-frame beyond sometime next year.
Shuttle By United closed last year after a brief run because its costs began to mirror those at the main-line carrier, which are some of the highest in the industry.
Tilton said that would not happen again, if the shuttle comes back.
Please follow this link to a survey:
Will you still fly UAL? and answer YES!
Monday December 9, 1:31 pm ET
By Dave Carpenter, AP Business Writer
CHICAGO (AP) -- United Airlines made the largest bankruptcy filing in aviation history Monday, saying it was the only way to keep the world's No. 2 airline flying after two years of heavy losses.
The Chapter 11 filing was the fifth-largest ever as measured by assets. The suburban Chicago-based company has lost $4 billion in the last two years due to a slumping economy, flawed business strategies and the Sept. 11 terrorist attacks. It faced debt payments of $875 million later this week.
"We're in control of United's destiny," United CEO Glenn Tilton said in a telephone interview. "We've made a good decision for United. It is in fact Chapter 1. ... This is a tremendous opportunity for United to transform this company and to emerge stronger than ever."
Tilton told customers and employees at O'Hare International Airport that the carrier would keep flying. "We are now going to take this occasion to create a new beginning for United," he said.
Tilton said he expects the bankruptcy process to be completed within 18 months.
At a bankruptcy hearing at 7 a.m., Chief Judge Eugene R. Wedoff issued orders allowing United to keep operating until another hearing Monday when he is to issue further orders allowing the airline to continue its operations.
United said it obtained $1.5 billion in financing from several banks to continue operating. The airline said it has $800 million cash on hand.
James Sprayregen, an attorney for United, told Wedoff that the company was losing between $20 million and $22 million a day this month and desperately needed to cut costs. The company and a coalition of union leaders were scheduled to meet Tuesday to begin talks about reducing costs.
The airline has promised to keep flying while it sheds costs under the auspices of a bankruptcy judge and overhauls its business plan to try to become profitable again. As of Monday's filing, United had assets of $22.8 billion and liabilities of $21.2 billion, the company said.
United operates about 1,700 flights a day, or about 20 percent of all U.S. flights. It has the most extensive worldwide route structure of any airline.
The bankruptcy filing 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.
Two of United's unions, the Air Line Pilots Association and the Association of Flight Attendants, said both sides must work together during restructuring.
"Any successful restructuring of United in bankruptcy must involve continued cooperation and collaboration among ALPA, United management and all of the company's labor unions," the pilots' union said. We look forward to those discussions."
The carrier's stock, which reached $100 a share in 1997, rose 10 cents to $1.03 a share in afternoon trading on the New York Stock Exchange Monday.
The bankruptcy restructuring also is likely to result in fewer flights. Experts say frequent-flier miles and basic fare levels are likely to be retained for the short term, although fare hikes are likely over the longer haul.
A spokesman for United's pilots union urged passengers Sunday not to abandon the airline during a bankruptcy filing.
"This is going to be painful for the stockholders and the employees, but the airline's going to keep flying and we're going to come out of this stronger," pilot Herb Hunter said. "The passengers shouldn't notice any difference."
Airline consultant Robert Mann said the company will have to keep the morale of United's workers from falling too low.
"It's certainly demoralizing to employees, and the risk is that it will somehow translate into less friendly service -- in effect getting customers in the middle of an emotional problem," said Mann, of R.W. Mann & Co. in Port Washington, N.Y.
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.
White House spokesman Ari Fleischer declined to comment on the bankruptcy filing. Fleischer said the Bush administration would not second-guess the stabilization board's decision.
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. It is the 11th time a major U.S. airline has filed for bankruptcy since deregulation in 1978, including TWA three times.
Thursday December 5, 6:58 pm ET
Reuters: By John Crawley
WASHINGTON, Dec 5 (Reuters) - Key lawmakers and some industry insiders complained on Thursday that the federal board created to help airlines struggling financially after the 2001 attacks was too stingy with aid, raising questions about whether it performed as Congress had planned.
The decision on Wednesday by the Air Transportation Stabilization Board to reject a $1.8 billion loan guarantee bid by United Airlines, making bankruptcy more likely, prompted assertions that the government did not fully deliver on a promise to help the industry during its worst-ever downturn.
Democratic Sens. Patty Murray of Washington state and John Rockefeller of West Virginia were harshly critical of the board's decision on United, the No. 2 airline, and the Bush administration's handling of the loan guarantee program.
"I am deeply troubled by the actions of the ATSB," said Rockefeller, the outgoing chairman of the Senate subcommittee on aviation. "The board was created to get the industry back on its feet, and they have failed to meet their responsibility."
An aide to House Speaker Dennis Hastert, who personally lobbied President George W. Bush on United's behalf, said the Illinois Republican was deeply disappointed by its decision.
"The speaker thought that the airline had put forth a very strong, fair and balanced proposal, and that the loan guarantee should have been approved," said spokesman Pete Jeffries.
Jeffries did not criticize the board's performance overall, while the White House said it supported the decision on United.
But organized labor, which represents almost 70,000 workers at United said the stabilization board violated congressional intent by rejecting United's application. "The board's decision to deny United Airlines' loan guarantee application is irresponsible," said Sonny Hall, president of the AFL-CIO's transportation trades department.
Kevin Mitchell, who represents corporate travel managers as president of the Business Travel Coalition, also questioned whether the board exceeded its mandate.
"No one could ever answer that million dollar question about whether they were evaluating applications on the merits or was their mission broader," Mitchell said.
The board was lobbied fiercely by United's competitors on grounds that the Chicago-based carrier's revenue projections were inadequate and would eventually wind up losing money again even with government-backed financing. The board cited this as a reason for rejecting the application.
The three-member stabilization board approved six of the 11 loan guarantee applications it received over the past year, committing only a fraction of the $10 billion that Congress made available under that program.
Other than United, the only other major carriers to apply for loan guarantees were America West Airlines (NYSE:AWA - News), which obtained a $380 million loan guarantee, and US Airways (OTC BB:UAWGQ.OB - News), which won conditional approval of a $900 million package before filing for bankruptcy protection in August.
Demands for stock warrants from applicants and deep cuts in operating and other costs likely scared off most big applicants, industry experts said.
Based on guidelines set by the White House budget office, the stabilization board was to base its decisions on airline financial health and the ability to repay loans. Under the guarantee program, the government agrees to stand behind a percentage of private financing sought by an airline.
The board's three members included Federal Reserve Gov. Edward Gramlich, Peter Fisher, treasury undersecretary for domestic finances, and Kirk Van Tine, an assistant transportation secretary. Gramlich and Fisher voted to reject United, while Van Tine opted to give the airline more time.
Their deliberations were never public and their views on assistance varied. The board's near secrecy troubled some, especially during the United case, but others believed they had to establish independence from business as usual in Washington.
"I thought they would be a rubber stamp. But they're trying to make good use of the taxpayer's money and not loan it if they didn't think they would be repaid," said Steve Morrison, a Northeastern University economics professor who tracks the airline industry.
But even Morrison thought United's application, because of the airline's sheer size and the carrier's political muscle in Washington, would be approved.
One former government official with knowledge of the United case said that decision was a bellwether that clearly reflected the Bush administration's views about the need for markets to determine the fate of industry.
"The board performed in a reasonable, stern way," he said. "Congress had in mind more industry relief."
In a conference call with reporters, Daniel Montgomery, the stabilization board's executive director, defended the ATSB's decisions. "We understand the importance of protecting the taxpayer in serving our congressional mandate, and that's what we're following," he said.
Aviation consultant Jon Ash said the White House guidelines for the board were clear and that it performed precisely as Congress intended, particularly in United's case.
"They had dual objectives -- the stability of the industry and protecting the taxpayer. United submitted a plan that was not viable and made no sense. Carrying out their fiduciary responsibilities, I think they had to reject it."
ATSB REJECTS UAL APPLICATION
I'm too bummed to spend the time to post the stuff. Go to the following links:
CBS Marketwatch about the Rejection
More CBS Marketwatch about the looming BK
Financial Times
Yahoo! News Collection
352 PILOTS FURLOUGHED
220 on January 5th, 132 February 5th
Just in hot off the ALPA Forum. Go to any of the sources posted on this site to get the details. Sorry, guys!
Monday December 2, 8:20 pm ET
By Kathy Fieweger and David Bailey
CHICAGO (Reuters) - United Airlines and leaders of its mechanics union on Monday agreed to small changes in a previously rejected wage cut plan, but sources familiar with the airline's bid to avoid bankruptcy said the future still hinges on a loan guarantee from the government.
Time is of the essence for the No. 2 U.S. airline, which as expected late Monday announced it was delaying some big debt payments by taking advantage of grace periods until it gets a decision on its application from federal officials. United delayed a $375 million payment due on Monday to holders of bonds backed by aircraft lease payments, or enhanced equipment trust certificates, invoking a 10-day grace period allowed under the terms of that deal. The delay triggered a Monday due date for $500 million owed to German development bank Kreditanstalt fur Wiederaufbau, on which United also invoked a grace period. That deal had been restructured contingent on United repaying the $375 million on time. Of that $500 million, $300 million is in the form of a bank revolver with a seven-day grace period and $200 million on EETCs with a 10-day grace period.
MECHANICS VOTE THURSDAY
Without ratification of a new labor agreement by the roughly 13,000 mechanics represented by the machinists union at United later this week, analysts say approval from the federal Air Transportation Stabilization Board on backing for $1.8 billion of a much-needed $2.0 billion loan is highly unlikely. Even with a deal, debt-laden United is still fighting an uphill battle to avoid a court-mediated restructuring. It has some of the highest labor costs in the airline industry and has been told several times by the ATSB that it needs to get its costs more in line with shrinking revenues.
United, having lost billions since the Sept. 11, 2001, attacks, is burning about $8 million in cash daily and has repeatedly warned it would be forced into bankruptcy if it cannot get $5.2 billion in union wage concessions over 5-1/2 years. Shares of parent company UAL Corp., volatile since the airline warned in August it might file for bankruptcy, rose more than 30 percent on Monday afternoon to close at $3.28 on the New York Stock Exchange. That compares with a high of more than $100 on a post-split basis during the late 1990s. Bond prices also rose, but yields were still at junk levels.
United, based in Elk Grove Village, Illinois, is the world's second-largest airline, with a vast domestic network and a huge international presence. A bankruptcy would have repercussions throughout the industry.
The ATSB was created to dole out up to $10 billion in loan guarantees after demand for air travel fell off sharply following the Sept. 11 attacks. Demand remains below normal levels. Some airlines, such as US Airways and America West, have won guarantees from the three-member board. Others, like National Airlines and Vanguard Airlines, failed to win ATSB backing. Both carriers ran out of money and have since stopped flying.
The ATSB is expected to decide soon whether to grant United a loan guarantee, and political pressure, pro and con, is mounting from all sides on government officials all the way up to the White House, sources familiar with the situation said.
Meanwhile, the UAL board of directors is expected to meet early this week to discuss the latest developments on the sticky labor front and possibly consider when and if the carrier should file for bankruptcy. "I think fairly clearly that we're going to have to reconnoiter early (this) week," said John Van de Kamp, a member of the UAL board since the early 1990s. "My own personal view is that bankruptcy is not a desirable thing."
BALLOT BOX REDUX
Members of the International Association of Machinists, District 141M, rejected $700 million in wage concessions last week without giving a reason. Early Monday, the leadership of the powerful mechanics unit agreed to put the same dollar amount of concessions for a revote, after making changes to things like when unpaid vacation could be used. Some 13,000 rank-and-file mechanics will vote again on the issue Thursday, while United's fate hangs in the balance.
The terms of the new mechanics deal are little changed from the $700 million in wage cuts rejected last week, leading some industry analysts to question why the employees would approve it the second time around. But the union said UAL Chief Executive Glenn Tilton pledged to resolve "quality of work life" issues and clarify the airline's unpaid vacation policy, both cited as reasons union members were unhappy.
REARRANGING THE FURNITURE
Analysts remained skeptical. Even if the mechanics deal is ratified, it does not ensure that United will obtain federal loan guarantees, nor would those guarantees remove the bankruptcy threat, analysts said. "If it passes on Thursday, it maybe changes the likelihood of bankruptcy a little bit, but I still think bankruptcy is highly likely," said Ray Neidl, an airline analyst at Blaylock & Partners. "They can't change the dollar amount because they would be rejected by the (U.S. government). They are moving the furniture around a little bit."
United has final pacts with pilots, flight attendants and even some 24,000 other IAM members represented under a separate bargaining unit.
United, Union OK Set Up of 2nd Vote
Monday December 2, 8:08 pm ET
By Dave Carpenter, AP Business Writer
United Airlines Agrees With Union Leaders to
Set Up Second Vote by Mechanics on Wage Cuts
CHICAGO (AP) -- United Airlines agreed with union leaders Monday to set up a second vote by its mechanics on wage cuts and deferred decisions on nearly $1 billion in impending debt payments, buying crucial time in its bid to avoid bankruptcy. Analysts said the actions slightly improved United's chances of avoiding a Chapter 11 filing.
Under an agreement reached early Monday following intensive talks, mechanics will vote Thursday on the same wage cuts of 6 percent to 7 percent they voted down by 57 percent to 43 percent last week. Contract terms on benefits were revised slightly in hopes of a reversed outcome.
United also announced it was deferring a $375 million payment on aircraft-backed loans that formally was due Monday but can be put off as late as Dec. 16, and will use similar grace periods for $500 million owed to German lender Kreditanstalt fur Wiederaufbau -- originally due last month. It said it already is in the grace period for another $45 million in various debt obligations.
Altogether, that means cash-strapped United faces imminent debt payments totaling $920 million as it awaits word on whether the government will provide a loan guarantee the company says will be the deciding factor on whether it files for bankruptcy.
"United believes that taking advantage of these grace periods is a fiscally prudent step in light of its current financial situation," the airline said following a meeting of its board of directors. If a federal loan guarantee is approved, it said in a statement, "the company plans to make the requisite payments on these obligations."
The announcement also gave investors new hope after Wall Street had nearly written off United's chances of avoiding taking its restructuring into bankruptcy court. Shares in United parent company UAL Corp. climbed 77 cents, or 30.7 percent, to close Monday at $3.28 on the New York Stock Exchange. The stock's price was still down from before the mechanics' last vote, which prompted a huge sell-off on Friday. "United still faces a difficult task in avoiding bankruptcy, but the second mechanics' vote provides the airline with a glimmer of hope," Standard & Poor's analyst Philip Baggaley said in a research note.
Even if the mechanics approve the concessions, he noted, United would still need almost-immediate approval of the loan guarantee from the Air Transportation Stabilization Board. It also would have to swiftly process and draw on the $2 billion private loan that the government's backing would enable in time to make its Dec. 16 debt deadline. Without the mechanics' approval of concessions, the airline is considered certain to be rejected in its request for a federal loan guarantee. With cash reserves thought to be around $1 billion and fast dwindling, United has indicated it will file for Chapter 11 bankruptcy protection if it fails to get the government's help.
The mechanics' targeted share of the $5.2 billion in labor cutbacks is $700 million. A second vote rejection of that amount would almost certainly sink the entire package, since cost-cutting agreements accepted by United's pilots, flight attendants and other employee groups expire Dec. 31 unless all groups sign on.
The Machinists' union, which represents the 13,000 mechanics and related employees, said the changes from the previous tentative agreement are a pledge from United CEO Glenn Tilton to resolve "quality of work-life issues" and a clarification that employees would be able to select which four vacation days would be unpaid under the proposed deal. Union president Scotty Ford said those two matters were cited as sticking points by an overwhelming majority of mechanics who rejected ratification last Wednesday. Asked to specify quality of work-life issues, union spokesman Joseph Tiberi said they include various items for different working locations, including scheduling of shifts, employee input and other matters intended to result in "a better work environment for everybody."
After losing an industry-record $2.1 billion in 2001, United is on course to exceed that loss this year as it struggles amid a weak economy and a decline in business travelers. United has pledged to keep flying if it files for bankruptcy, but is trying to avoid a filing because its shares would likely be worthless and it would lose control of its restructuring to a judge. The airline is 55 percent owned by its employees.
Moody's airline analyst Rich Bittenbender said United's all-out effort to stay out of bankruptcy court may mean it's getting positive signals from the ATSB members who will rule on its application for a loan guarantee any day. "They are working very hard at avoiding Chapter 11," he said. "I have to believe United feels they have a reasonable opportunity to meet the ATSB request for the conditions for the guarantee."
The International Association of Machinists, which represents United's mechanics, has scheduled another meeting for Sunday to discuss the rejection. On Friday, a union leader sent a letter to the rank-and-file, warning mechanics that bankruptcy could adversely affect their benefits and would be "undeniably worse" than accepting United's recovery plan.
"Some members have questioned why we should make such an effort to avoid bankruptcy," said Randy Canale, president of IAM District 141. "The answer lies in the difference between agreement modified voluntarily by members themselves or involuntarily by a bankruptcy judge."
"If the misinformed individuals suggesting otherwise were such experts in bankruptcy law, they would be practicing law in a courtroom, not a lunchroom."
Canale said that while many of the mechanics voted against the plan because they would face layoffs, "I can tell you in all candor that achieving additional job security just was not possible."
On Monday, United has $375 million in bond payments due, and the carrier is not expected to make the payment without some positive sign that it will be able to secure the federal loan guarantee. The company's board of directors will meet Monday. Canale, who is a union representative on the board, told his members that directors will either finalize United's loan application or "decide if we must file a petition under Chapter 11 bankruptcy proceedings."
United's Business Plan?
United Plans Strong Financial Turnaround
Sunday November 17, 1:14 pm ET
CHICAGO--(BUSINESS WIRE)--Nov. 17, 2002--UAL Corporation (NYSE:UAL - News), the holding company whose primary subsidiary is United Airlines, today announced that as part of its financial recovery plan submitted to the Air Transportation Stabilization Board (ATSB), the company plans to generate a full-year operating profit in 2004. Additionally, the airline plans to begin repaying any loans guaranteed by the ATSB in 2005 and to completely pay them off by 2007.
“We believe that the plan we submitted to the ATSB makes a compelling case for loan guarantees,” said Glenn Tilton, United's chairman, president and chief executive officer. “Our plan is intended to restore United's financial health, and it gives us the ability to repay ATSB-guaranteed loans. The plan aligns our costs and revenues, while building a platform for future growth.”
The key to the turnaround is $2.5 billion in annual profit improvements, which is composed of $1.1 billion in annual labor cost savings and $1.4 billion in annual non-labor cost savings and revenue enhancements that include:
-
An unprecedented agreement among United's employee groups to contribute $5.8 billion in employee cost savings over a five-and-one-half year period, beginning December 1, 2002;
-
Implementing a new code-sharing agreement with US Airways that is estimated to generate revenues of more than $200 million per year once the benefits of the agreement are fully realized;
-
Implementing a new revenue-sharing agreement with Star Alliance partner Lufthansa that is expected to enhance United's revenues by approximately $90 million per year once the benefits of the agreement are fully realized; and
-
Adding 109 regional jets in conjunction with our United Express partners by April of 2004, resulting in a fleet total of 236 United Express regional jets.
In addition, in order to get costs and revenues in line, United is taking the following actions:
-
Reducing system capacity in 2003 by approximately 6% from 2002 levels. This will decrease the size of the airline by 23% from pre-9/11 levels. This number includes United's previously announced U.S. domestic and international station closings;
-
Retiring an additional 49 aircraft, for a total fleet retirement of 139 airplanes from pre-9/11 levels;
-
Deferring all scheduled aircraft deliveries through 2005. This includes 25 aircraft which will be deferred to 2007-2009. The company expects to receive approximately one aircraft per month between 2006 and 2009;
-
Continuing to reduce the total number of employees at the company –- total employees in 2004 are expected to be 74,000 versus more than 100,000 pre-9/11;
-
Lowering capital spending from an annual average of $2.4 billion over the last seven years to $450 million in 2003 and $400 million in 2004; and
-
Obtaining new capital and deferrals from vendors, lessors and other business partners totaling more than $1.5 billion.
“In addition to successfully implementing our financial recovery plan, we intend to leverage our competitive strengths – our unmatched global route network, our strong alliances, our loyal customer base and our industry-leading frequent-flyer program – in order to reestablish United Airlines as the premier global carrier,” Tilton said. “Moreover, we will be examining new opportunities to deliver a superior product to all of our customers, whether traveling on business or for pleasure.
“We're involved in an extraordinary process at United, addressing our immediate-term financial issues and fundamentally transforming our business,” Tilton added. “Importantly, at the same time our employees are agreeing to significant wage reductions, they continue to break the company's all-time operational performance records on a regular basis. This remarkable performance demonstrates that employee ownership can be a clear competitive advantage for United.
“We firmly believe that United qualifies for federally backed loans and meets the criteria established by the ATSB last year,” Tilton said.
Specifically, the airline:
-
Was significantly harmed by the Sept. 11 terrorist attacks and is vital to the nation's transportation infrastructure;
-
Has been shut out from the capital markets, and;
-
Has developed a business plan that demonstrates the company's ability to repay the loans.
“We have faith in the board's rigorous process and commitment to stabilize the airline industry, and we remain focused on working with the ATSB to provide them any necessary information regarding our business plan,” Tilton concluded.
United operates nearly 1,800 flights a day on a route network that spans the globe. News releases and other information about United may be found at the company's web site at www.united.com.
Stakes High In ATSB United Airlines Loan Guarantee Decision
Analysts part of the problem
Business Travel Coalition, November 12, 2002
Kevin P. Mitchell, www.btctravelogue.com
<PilotsUnited Ed. comment: This is probably the best essay in favor of ATSB approval that we've read yet, which is why we're presenting it in it's entirety on our front page. It's worth the read.>
United Airlines' (UAL) application to the Air Transportation Stabilization Board (ATSB) for a loan guarantee should be approved with dispatch. Never in the history of commercial aviation has the industry been in such deep financial crisis. Nor has the U.S. ever faced the prospect of its first and second largest airlines in bankruptcy at the same time. These airlines represent powerful economic engines upon which our struggling economy depends now more than ever. We are in uncharted territory and much is at stake.
U.S. air transportation public policy is premised upon maximizing consumer benefits, not protecting the interests of competitors, shareholders, lessors, creditors or employees. All these stakeholders have been heard from. However, we have not heard much from the customer, especially the corporate buyer of air transportation services. The customer has a major stake in an ATSB decision, one that will have a profound impact on airline industry competition over the long term. Some 73% of corporate buyers recently surveyed by the Business Travel Coalition (BTC) support UAL's application to the ATSB.
A rejection of UAL's application would expose the economy, millions of travel and transportation employees, businesses and communities to unacceptable levels of risk. The bigger picture, longer-term view must be understood and taken into account. The ATSB application is less about UAL and more about the economic well being of the country. Considering what is at stake, it is almost unthinkable that we would fret over merely guaranteeing a loan for $1.8B when we are prepared to spend outright, $30B a month in Iraq.
To be clear, UAL and the other major network airlines brought many of their current problems upon themselves. Importantly, several airline executives claimed after the last financially devastating cyclical downturn in the early 1990's that lessons learned would ensure major airlines remain profitable during the next downturn. As it turned out, these airlines over expanded in the late 1990s, priced their products well above value and alienated their very best customers, to mention just a few missteps. Current financial results are an ominous sign given that no mass transportation in the history of mankind has been profitable over time.
To be fair, however, while some industry observers consider the U.S. aviation market mature, public policy that guides the sector is anything but. Airline industry deregulation is still in its adolescence with the industry only now facing its third cyclical downturn after operating for 50 years in a highly regulated environment. In other words, airlines are still struggling with the implications of this new public policy and don't yet know what business models will prove viable over the long term. Indeed, no airline executive, industry expert, government official or airline financial analyst has proposed and gained wide acceptance for a coherent concept for the future of the industry. However, there is an important debate under way.
It is against this backdrop of debate and uncertainty that airline analysts have emerged as key shapers of public policy. Ironically, as a group, these analysts have been part of the problem. For example, many analysts have erroneously argued for the past 18 months that the falloff in business travel is virtually 100% tied to the economy. Airline managements and labor leadership alike naturally wanted to embrace this delusional view. The upshot was precious time wasted in not moving forward with difficult restructuring decisions.
Today, many of these analysts opine in the nation's most influential newspapers that UAL's application is not sufficient to earn the ATSB approval required to keep the airline out of bankruptcy. Most of these analysts' pronouncements and projections over the past 18 months, however, were dead wrong. Moreover, some of these analysts routinely stake out positions with clients and then creatively interpret industry developments to justify their positions. Of concern, some appear heavily conflicted because of their short positions on UAL.
There is another group that is conflicted. They are competitors to UAL who argue the airline's application should be rejected. Bankruptcy they state would be good for UAL allowing the firm to nullify costly union contracts and rid itself of a dysfunctional governance structure. These airlines launched a similar campaign when the ATSB was reviewing US Airways' application. Such tactics, however, do not obfuscate their real motives. These competitors want UAL to enter the risky waters of Chapter 11 only to slide into Chapter 7. Taking UAL's capacity out of the system would, in their view, enable a return to the pricing power of the late 1990s allowing these competitors to avoid painful restructuring decisions of their own.
The customer is not conflicted, however, and the customer's interests are in near perfect alignment with public policy goals, including airline industry deregulation. Customer service in a bankrupt industry would grow more inconsistent, and air transportation services would be withdrawn or sharply reduced at an accelerated rate in many markets. In the longer run, two or three superpower airlines would exercise monopoly pricing power over corporate buyers of air transportation services. BTC believes that UAL's customers would be far better off if a financial restructuring takes place outside of bankruptcy protection.
It is appropriate that the ATSB be reasonably assured that UAL would be able to repay a loan. However, UAL arguably has the best franchise of the U.S. major network airlines. If after significant cost reduction and productivity improvements UAL fails, then it is probable that other major network airlines would likewise fail, in which case, we would need to revisit the usefulness of current public policy in commercial air transportation, i.e. deregulation.
The ATSB should protect against those with hidden interests, or those that would make a religion out of free market principles, from overly influencing airline industry direction through a narrowly interpreted UAL loan guarantee application. The ATSB should adhere to its charter and help stabilize UAL so that the airline can proceed with the difficult task of discovering a business model and supporting strategy that will be viable.
******
Kevin P. Mitchell is chairman of the Business Travel Coalition located in Radnor, PA. BTC's mission is to advocate public policy and supplier issues of concern to customers of the business travel industry. Learn more about BTC at www.btctravelogue.com.
18% paycut on December 1, three 4.5% annual raises with a final raise of 6.9% on May 1, 2007, which snaps us back to current rates May 1, 2007 (yeah, I gotta figure the math on that one, too, but I'm sure it's due to compounding or something.) Book rates will be 9.5% higher on that date. Contract extended to May 1, 2008. Benefits based on book rates. Stock Options and Profit Sharing. 600 maximum more furloughs. Early retirement plan for those 56 and older. Most everything else is similar to ERP 1 (Scope and SJs, Merger Agreement, Reserve Changes, Floater Reserve gone, Pay Calculations). Go to www.ALPA. org or the ALPA Forum for the details.
We all know the original poem, "High Flight," but have you seen the alternative versions? I don't know the origination of this document, but I got it from Dan Eikleberry, the man who promises me a Thanksgiving dinner in HNL if I fly with him. Odd that he has to bribe F/O's to fly with him... I guess it takes all kinds!
220 PILOTS FURLOUGHED JAN 5
135 TO BE FURLOUGHED FEB 5
Just in hot off the ALPA Forum. Go to any of the sources posted on this site to get the details. Sorry, guys!
also
CHICAGO, Illinois (CNN) -- Flight attendants at United Airlines Saturday agreed to a new contract saving the beleaguered carrier $412 million in labor costs over the next 5 1/2 years, bringing the company one step closer to securing $1.8 billion in federal loan guarantees and avoiding possible bankruptcy.
"The flight attendants have made the difficult but necessary decision to contribute our part in the financial restructuring of United Airlines," said Greg Davidowitch, president of the Association of Flight Attendants' executive master council at United.
United has been pressing its unions to accept $5.2 billion in labor cost reductions in an effort to obtain the loan guarantees under a program set up by Congress after the terrorist attacks of September 11, 2001, which financially devastated the airline industry.
Pilots, flight attendants, ramp crews and ground workers have agreed to concessions, but mechanics Wednesday rejected a plan to make $1.5 billion in cuts, imperiling the rescue plan. United's stock price fell nearly 33 percent Friday, amid investor fears that the nation's No. 2 carrier was headed for bankruptcy.
The International Association of Machinists, which represents United's mechanics, has scheduled another meeting for Sunday to discuss the rejection. On Friday, a union leader sent a letter to the rank-and-file, warning mechanics that bankruptcy could adversely affect their benefits and would be "undeniably worse" than accepting United's recovery plan.
"Some members have questioned why we should make such an effort to avoid bankruptcy," said Randy Canale, president of IAM District 141. "The answer lies in the difference between agreement modified voluntarily by members themselves or involuntarily by a bankruptcy judge."
"If the misinformed individuals suggesting otherwise were such experts in bankruptcy law, they would be practicing law in a courtroom, not a lunchroom."
Canale said that while many of the mechanics voted against the plan because they would face layoffs, "I can tell you in all candor that achieving additional job security just was not possible."
On Monday, United has $375 million in bond payments due, and the carrier is not expected to make the payment without some positive sign that it will be able to secure the federal loan guarantee. The company's board of directors will meet Monday. Canale, who is a union representative on the board, told his members that directors will either finalize United's loan application or "decide if we must file a petition under Chapter 11 bankruptcy proceedings."
United's Business Plan?
United Plans Strong Financial Turnaround
Sunday November 17, 1:14 pm ET
CHICAGO--(BUSINESS WIRE)--Nov. 17, 2002--UAL Corporation (NYSE:UAL - News), the holding company whose primary subsidiary is United Airlines, today announced that as part of its financial recovery plan submitted to the Air Transportation Stabilization Board (ATSB), the company plans to generate a full-year operating profit in 2004. Additionally, the airline plans to begin repaying any loans guaranteed by the ATSB in 2005 and to completely pay them off by 2007.
“We believe that the plan we submitted to the ATSB makes a compelling case for loan guarantees,” said Glenn Tilton, United's chairman, president and chief executive officer. “Our plan is intended to restore United's financial health, and it gives us the ability to repay ATSB-guaranteed loans. The plan aligns our costs and revenues, while building a platform for future growth.”
The key to the turnaround is $2.5 billion in annual profit improvements, which is composed of $1.1 billion in annual labor cost savings and $1.4 billion in annual non-labor cost savings and revenue enhancements that include:
-
An unprecedented agreement among United's employee groups to contribute $5.8 billion in employee cost savings over a five-and-one-half year period, beginning December 1, 2002;
-
Implementing a new code-sharing agreement with US Airways that is estimated to generate revenues of more than $200 million per year once the benefits of the agreement are fully realized;
-
Implementing a new revenue-sharing agreement with Star Alliance partner Lufthansa that is expected to enhance United's revenues by approximately $90 million per year once the benefits of the agreement are fully realized; and
-
Adding 109 regional jets in conjunction with our United Express partners by April of 2004, resulting in a fleet total of 236 United Express regional jets.
In addition, in order to get costs and revenues in line, United is taking the following actions:
-
Reducing system capacity in 2003 by approximately 6% from 2002 levels. This will decrease the size of the airline by 23% from pre-9/11 levels. This number includes United's previously announced U.S. domestic and international station closings;
-
Retiring an additional 49 aircraft, for a total fleet retirement of 139 airplanes from pre-9/11 levels;
-
Deferring all scheduled aircraft deliveries through 2005. This includes 25 aircraft which will be deferred to 2007-2009. The company expects to receive approximately one aircraft per month between 2006 and 2009;
-
Continuing to reduce the total number of employees at the company –- total employees in 2004 are expected to be 74,000 versus more than 100,000 pre-9/11;
-
Lowering capital spending from an annual average of $2.4 billion over the last seven years to $450 million in 2003 and $400 million in 2004; and
-
Obtaining new capital and deferrals from vendors, lessors and other business partners totaling more than $1.5 billion.
“In addition to successfully implementing our financial recovery plan, we intend to leverage our competitive strengths – our unmatched global route network, our strong alliances, our loyal customer base and our industry-leading frequent-flyer program – in order to reestablish United Airlines as the premier global carrier,” Tilton said. “Moreover, we will be examining new opportunities to deliver a superior product to all of our customers, whether traveling on business or for pleasure.
“We're involved in an extraordinary process at United, addressing our immediate-term financial issues and fundamentally transforming our business,” Tilton added. “Importantly, at the same time our employees are agreeing to significant wage reductions, they continue to break the company's all-time operational performance records on a regular basis. This remarkable performance demonstrates that employee ownership can be a clear competitive advantage for United.
“We firmly believe that United qualifies for federally backed loans and meets the criteria established by the ATSB last year,” Tilton said.
Specifically, the airline:
-
Was significantly harmed by the Sept. 11 terrorist attacks and is vital to the nation's transportation infrastructure;
-
Has been shut out from the capital markets, and;
-
Has developed a business plan that demonstrates the company's ability to repay the loans.
“We have faith in the board's rigorous process and commitment to stabilize the airline industry, and we remain focused on working with the ATSB to provide them any necessary information regarding our business plan,” Tilton concluded.
United operates nearly 1,800 flights a day on a route network that spans the globe. News releases and other information about United may be found at the company's web site at www.united.com.
United dispatchers approve tentative agreement
The deal was reached with the Professional Airline Flight Control Association, which represents 198 flight dispatchers in the Chicago operations control center of the No. 2 U.S. airline.
Washington D.C., November 28, 2002, 0100 EST – Members of the International Association of Machinists and Aerospace Workers (IAM), voting on five separate tentative agreements, differed on whether to contribute $1.5 billion in cost reductions to United Airlines’ recovery program to avoid bankruptcy.
Ramp & Stores, Food Service and Security Guards ratified their agreements with 63.4 percent of voters approving the accords. The Public Contact Employee (PCE) group also accepted their agreement, with 79.2 percent endorsing the contract. United’s Mechanic & Related employees, however, rejected their agreement by a 57 percent margin.
"Each employee measured the costs and benefits of participating in United’s recovery plan," said Scotty Ford, District 141-M President. "In the end, some thought the risk was worth taking, and others felt they had sacrificed enough. We respect both decisions and this organization will aggressively represent their common interests as this extraordinary situation unfolds."
IAM District 141 represents 24,500 UAL Ramp & Stores, Public Contact, Food Service and Security employees. United’s 13,000 Mechanic & Related employees are represented by IAM District 141-M. Visit the two District web sites, www.iam141.org and www.iam141m.org for additional details and information.
Thursday November 28, 1:47 am ET
CHICAGO--(BUSINESS WIRE)--Nov. 28, 2002--United Airlines' (NYSE:UAL - News) chairman, president and chief executive officer Glenn Tilton today issued the following statement on news that certain IAM work groups voted in favor of their proposed contract changes and one group voted against them.:
"The participation of our public contact, ramp, food service, security and other employees represented by IAM District 141 represents a significant part of our financial recovery program and they deserve commendation for voting in favor of proposed wage reductions to help transform our airline. Clearly, we're disappointed that our mechanic and related employees, represented by IAM District 141M, did not approve the tentative agreement with United. Nevertheless, we remain fully committed to the goals of the United Airlines Union Coalition in achieving labor cost savings that will enable us to secure federally backed loans. We will immediately begin talks with the IAM 141M leadership to ensure that a contract proposal consistent with the coalition's framework is brought before the membership as soon as possible."
Thursday November 28, 3:28 pm ET
CHICAGO -(Dow Jones)- UAL Corp.'s United Airlines has initiated talks with the union representing one faction of its 37,500 mechanics, baggage handlers and other workers in an attempt to develop contract modifications that will allow the company to reach its goal of $5.2 billion in labor-related cost savings over five and a half years.
As reported, the 13,000 mechanics represented by the International Association of Machinists union rejected a plan to take 6%-7% paycuts and forego four days of vacation pay annually. The 24,500 other United ground workers represented by other factions of the same union approved their portion of the savings package, and union leaders backed the proposal. "Reaching our $5.2 billion target is essential if we are to secure federally backed loans and avoid a Chapter 11 filing," the nation's second-largest airline said in a news release. United said it intends to achieve the full labor cost savings included in its business plan.
-Stephanie Thomas, Dow Jones Newswires; 416-306-2100
UAL Set to Name New CEO at United:
Chevron Texaco Executive to Take Helm of Ailing Airline
by Keith L. Alexander, Washington Post Staff Writer
United narrows CEO choices:
2 industry outsiders favored for position
By Greg Griffin,
Denver Post Business Writer
August, 2002
Associated Press
United Airlines' Parent Company Says Preparing to File for Bankruptcy Unless Costs Decrease
By Dave Carpenter, AP Business Writer
Click here to read the Official US Code on Chapter 11
From the Yahoo! ArticleUnited's biggest union, the International Association of Machinists, said late Wednesday it is ready to listen to new proposals. Flight attendants, who also have declined pay-cut proposals, said they will consider a new United plan. But spokesman Jeff Zack of the Association of Flight Attendants said any new proposal must take into account that their pay is pegged to industry-average wages, unlike the industry-leading pay of other employee groups.
In case you've been living in a cave that doesn't have internet access, you can read about USAir filing bankruptcy, or all the articles at Yahoo!
August, 2002
ERP Section updated 8/22/02 1106 PST
The vote on the ERP has been cancelled. The Unions and the Company are talking about new concessions. Read the article. Keep an eye on UAL in the news at Yahoo!: UAL. Our ERP Section is still there to provide you with as much information about the ERP (or future versions) as possible.
AMAZING TECHNOLOGICAL
BREAKTHROUGH!
"Sean Brown is Pure Genius!"
declares Phil Luts of Luts, Inc.
What is the web address of Skynet? Is it www.Skynet.com? No. Is It www.UALSkynet.com? No. It's https://united.intranet.ual.com/, which is obviously intuitive... to somebody who makes decisions at United. I have asked countless times why couldn't they come up with a url that would be easy to remember, like www.UnitedSkynet.com? Wouldn't THAT be easy to remember?
So there I was, at FL390, sucking back my 8th (truly) cup of coffee at 2 am (it was 2 am somewhere... at least it was really dark) whilst performing my 210 minute ETOPS drill over the Pacific when it hit me... Why not just register www.UnitedSkynet.com MYSELF and then point it to https://united.intranet.ual.com/? Why wouldn't that work? I mean, it only costs me a lousy $15 to register it, and it took all of 30 seconds to do it. So that's what I did. So now YOU can just type in www.UnitedSkynet.com, ANYONE can type www.UnitedSkynet.com, and it will take you to the sign in page.
If the company is cool about it, they would say, "Hey, Sean, great idea. Yeah, we should have done that. Yeah, $15 is nothing compared to the PILE OF FAT CASH WE"RE PAYING TO GOODWIN FOR SCREWING UP OUR COMPANY. And yeah, I guess one of our interns (oh, yeah, we 86'd the intern program) one of our admin staff could have been assigned to take the 30 seconds to register the name. And if they asked nicely without calling me into the flight office first, I would GLADLY hand over the registration to them... for $10,000. Ha, just kidding, as long as they'd let me expense report the $15, they can HAVE the silly url. So, until I'm scolded and tortured with a wet noodle, check out NEW and IMPROVED (and easy to memorize) url for Skynet at www.UnitedSkynet.com!
Speaking of intuitive, at the request of PilotsUnited.com users like Todd Walmsley, my next crusade will be tumbling the Unimatic dynasty. If we're gonna give up 10%+ of our salary, we should at least get a 1980's level technology computer system. I've set up a page in Unmatic... for more details, log on to Unimatic and type DIS*357120589135098235098. If that is too hard to remember, then type PILOT, tab to NEXT, hit Enter, repeat this 12 times, then select the item "Unmemorizable Commands". There you'll find a discussion on things such as "Why some fill-in-format commands require a slash after them (like UNCOV/) and others don't." and "If I am logged in and they system knows it's me, why doesn't just typing MOBIDS use MY FILE NUMBER as a default instead of giving me a fill-in format." and "Why the so-called index found by typing PILOT has been "in the works" for a decade, and it still has about one tenth of the commands that we regularly use." Hmm, come to think of it, just memorizing DIS*357120589135098235098 would be easier.
(Oh, and before you forget to think outside the box and say, "But Sean, I've got the old url bookmarked in my browser! ask yourself if you've already bookmarked it at the hotel in Knoxville, or at the internet cafe in Auckland or London. Yeah, that's what I thought.)
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