Thanks for your thoughts. What you say sounds reasonable. I post for you and others what UA responded with.
United Airlines has been in the news lately as we, and
the rest of the airline industry, grapple with how to
respond to the dramatic changes in our business environment
as a result of the economic slowdown. Because of your
continued loyalty, I wanted to share important steps
our company is taking to ensure that United continues
to meet your needs in the years to come.
Our efforts in the past 11 months have been focused on
bringing our costs in line with reduced revenues. While
we have made considerable progress, we recently announced
we are changing the company's business plan to build a
stronger and more competitive company. With the improvements,
our goal is to ensure we get the significantly broader,
deeper and longer-term cost savings we need to compete
given the new realities of the aviation industry.
Over the next 30 days we are intensifying our cost-cutting
efforts and presenting new proposals to our suppliers,
union leadership and employees. In the event we are
unable to reach agreement with our stakeholders on necessary
cost reductions, we are simultaneously preparing for the
potential of a Chapter 11 bankruptcy filing this fall.
In the context of a U.S. bankruptcy, a Chapter 11 proceeding
means the court-supervised restructuring of companies
experiencing financial challenges, as they continue their
normal operations. The objective, focus and process of a
Chapter 11 case is the restructuring and reorganization of
the company to allow it to stabilize its financial situation,
all the while continuing to operate normally as an active
business enterprise.
Regardless of how we implement our cost reductions, you should
be confident that we will CONTINUE TO FLY A SAFE AND RELIABLE
AIRLINE, and you will continue to reap the benefits of Mileage Plus(R)
membership. WE WILL HONOR MILES PREVIOUSLY EARNED IN MILEAGE PLUS,
AND YOU WILL CONTINUE TO ACCRUE MILES FOR TRAVEL ON UNITED AND OUR
MILEAGE PLUS PARTNERS.
We are committed to building a stronger and more competitive
company that meets your needs today and for years to come.
We will keep you informed of our progress going forward. In the
meantime, on behalf of the 84,000 employees of United, thank you
for your continued loyalty and support.
Sincerely,
Chris Bowers
Senior Vice President
Marketing and Sales
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