United Faces Restructuring
 

United Faces Restructuring

United Airlines is headed for a turbulent restructuring that will fundamentally alter its flight operations, labor relations and, possibly, top management according according to Crain's Business News.

At best, the nation's second-largest carrier will emerge a much smaller, weaker competitor, probably falling to third place behind Atlanta's Delta Air Lines. At worst, United will join a long line of second-tier airlines that have gone through bankruptcy.

A larger-than-expected loss of USD$525 million reported last week by American Airlines was a bad omen for United, which already was losing much more than its archrival before the September 11 terrorist attacks.

Crain's reported that United parent UAL Corp. will report a third-quarter loss on November 1, probably far higher than the roughly USD$500 million loss Wall Street is expecting. Analysts expect losses for the year to be about USD$2 billion.

http://news.airwise.com/display/stor...004275144.html

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Operations wll reportedly be cut another 10% down to 70%, rather than the previously announced 80%.



[This message has been edited by doc (edited 10-29-2001).]

UAL boss seeks sacrifices
October 29, 2001: 7:36 a.m. ET

New union-backed airline CEO Creighton says labor pacts are on table

NEW YORK (CNNmoney) - United Airlines' two most powerful unions praised the appointment of a new chief executive at parent company UAL Corp., even as the new boss was saying that sacrifices by the unions will be necessary.....

http://money.cnn.com/2001/10/29/ceos/united/

Calling for a United facelift
Investors: "We want friendlier skies!"

What's United Airlines so worried about anyway? Solutions to the beleaguered carrier's problems are right there for the taking ... just ask the message boards.

http://www.marketwatch.com/news/yh oo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&guid=%7B86340C68%2DA40D %2D4325%2D8DC7%2D5EAE7E9A9B0A%7D

Major changes on the wing at United Airlines

As United Airlines embarks on a tough journey with a new leader, airline industry experts said on Monday the No. 2 U.S. carrier must make major changes to reassure passengers, employees and investors about its future.

http://biz.yahoo.com/rf/011029/n29336799_1.html

[This message has been edited by doc (edited 10-29-2001).]

More UAL management changes loom

http://www.usatoday.com/money/biztra...al-changes.htm


New Chairman to Make Case for Further Cost Cutting as Losses Accelerate

http://www.washingtonpost.com/wp-dyn...2001Oct29.html

An internal United Airlines e-mail describes how the company's public relations team had advised against ousted CEO James Goodwin's disastrous warning that the company might "perish."

http://www.suntimes.com/output/news/...-united01.html

...Even No. 2 carrier United Airlines, owned by UAL Corp. (UAL: news, chart, profile), may find it tough to survive, the report said, noting that the firm has made the deepest capacity cuts in the industry, faces high costs and is hemorrhaging cash...

http://www.marketwatch.com/news/yhoo...B617B9CB3F8%7D