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Airline Consultant says "United to announce massive flight cuts and layoffs"

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Airline Consultant says "United to announce massive flight cuts and layoffs"

 
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Old May 30, 2008 | 6:49 am
  #46  
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Originally Posted by anc-ord772
I feel for front line staff. Management will take no hit of course.
I wouldn't be so sure of that.
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Old May 30, 2008 | 6:51 am
  #47  
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Originally Posted by UnitedSkies
I wouldn't be so sure of that.
I'm not.

I would be shocked if a hit equal in severity was measured out to senior management.
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Old May 30, 2008 | 7:12 am
  #48  
 
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Originally Posted by Javan69
Couldn't UA cut down on hub-hub frequency and substitute bigger planes - i.e., 1 747 for 2 320s SFO-IAD? Granted the 320 has a bit less than 1/2 the capacity of a 747, so 2 don't = 1, but it's close and you cut down on a bunch of crew since you don't have 2 full iterations. I'm at 60k with DEQM and with no flights booked the rest of the year, 1K's going to be tough.
I'm not going to pretend to have any idea of the actual numbers involved, but my understanding is that the 747s are so much less fuel efficient than the 320s, that the increase in fuel costs would more than cancel out the savings involved on crew/gate/ramp/etc. expenses.
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Old May 30, 2008 | 7:23 am
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Originally Posted by Javan69
Couldn't UA cut down on hub-hub frequency and substitute bigger planes - i.e., 1 747 for 2 320s SFO-IAD?...
As soon as I read your post, I couldn't help but envision the site of the Red Carpet lane and Group 1 boarding. It would be downright comical.
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Old May 30, 2008 | 7:34 am
  #50  
 
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I read a FULL 747 was the most fuel efficient way to fly. However Boeing was saying that perhaps trying to get someone to buy 747 rather than the 380's
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Old May 30, 2008 | 7:37 am
  #51  
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http://biz.yahoo.com/rb/080530/ual_merger.html?.v=1

"size the business appropriately"

Tilton is giving us the heads up
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Old May 30, 2008 | 7:44 am
  #52  
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Me thinks 1k is the best seat in the house when the chips start to fall. Working my tail of to secure it thru 01/10
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Old May 30, 2008 | 7:51 am
  #53  
 
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Originally Posted by LASUA1K
I'm a vendor for United and i've been told to stay away June 6th. Layoffs will be announced that day...
Yikes - I have BUF-ORD-SFO on the 6th.
Well, hopefully the ones who are at work that day are happy they still have jobs, and not bitter about the economy of the airline industry.
NAAaahhhhh, the bitterness shall prevail...
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Old May 30, 2008 | 7:59 am
  #54  
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Originally Posted by anc-ord772
Me thinks 1k is the best seat in the house when the chips start to fall. Working my tail of to secure it thru 01/10
I see what you mean, but if the alleged cuts take place, prices are going to be a lot higher as well (i.e., no more $350 ANC runs ). We all may be doing a lot less traveling in 2008, 2009...
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Old May 30, 2008 | 8:01 am
  #55  
 
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cuts could be 100%

United is losing so much money that there is a distinct possibility that it could eventually just go away. So there is always the risk that the cuts could be 100%. It is hard to imagine how United is going to be able to survive without another trip to the bankruptcy court, and perhaps they could use that to reorganize into something that is not a red ink machine. But there is always the probability this wont be successful and United will cease to be.
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Old May 30, 2008 | 8:04 am
  #56  
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Originally Posted by oswaldjacoby
United is losing so much money that there is a distinct possibility that it could eventually just go away. So there is always the risk that the cuts could be 100%. It is hard to imagine how United is going to be able to survive without another trip to the bankruptcy court, and perhaps they could use that to reorganize into something that is not a red ink machine. But there is always the probability this wont be successful and United will cease to be.
The next round of bankruptcies for the airlines will not result in restructuring. Chapter 7 will be the only viable option as nobody in their right mind would offer financing.
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Old May 30, 2008 | 8:08 am
  #57  
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Originally Posted by oswaldjacoby
United is losing so much money that there is a distinct possibility that it could eventually just go away. So there is always the risk that the cuts could be 100%. It is hard to imagine how United is going to be able to survive without another trip to the bankruptcy court, and perhaps they could use that to reorganize into something that is not a red ink machine. But there is always the probability this wont be successful and United will cease to be.
My very non-expert thought about this is that basically all US airlines are in the same boat. Today's WSJ even discusses the problems Asian carriers are having and the possibility that they will cut routes, especially long-haul, and particularly to the US. Increasing oil prices will force a nasty game of King-of-the-Hill -- who will be left standing when the dust settles. While clearly there is a risk UA could "go away," I think there are too many variables out there to know for sure...any of the majors could go, and with them a framatic -- and sudden -- decrease in capacity. Brutal.
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Old May 30, 2008 | 8:51 am
  #58  
 
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Originally Posted by MileageAddict
The next round of bankruptcies for the airlines will not result in restructuring. Chapter 7 will be the only viable option as nobody in their right mind would offer financing.
Perhaps we can get the same banks that did the lending to the US housing market. These bankers were very smart, so perhaps a few might offer financing to UA. They could always package the loan send it around the world to other very smart bankers.
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Old May 30, 2008 | 8:53 am
  #59  
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Originally Posted by MileageAddict
The next round of bankruptcies for the airlines will not result in restructuring. Chapter 7 will be the only viable option as nobody in their right mind would offer financing.
Then why is Frontier still flying?
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Old May 30, 2008 | 8:57 am
  #60  
 
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Maybe UA will sell some A320s to JetBlue. They scaled back orders of new 320s this year...'lightly used' ones might be up their alley.
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