Interesting article
Feb 12, 2002 | 3:57 pm
#1
Guest
Posts: n/a
Interesting article
Interesting article on UA. Course it all hinges on the strike vote, but I'm glad to see some of Creightons message is getting out.
Doc could no doubt put the link in here correctly, but I can't seem to get it to lead to the article so...
Article from www.aviationplanning.com
Monday Morning Hot Flash February 11, 2002
United Airlines Not Down For The Count
"It was a mistake to go after US Airways"
- John Creighton, CEO, United Airlines, Washington Post, 2/7/02
In the interests of full disclosure, we said it was a mistake, too but we said it right from the day that silly merger was announced.
We said it up front, including at a public meeting in Pittsburgh right in front of US Airways and United senior management. The powerpoint presentation was direct and to the point the planned merger was a really bad thing for the consumer and small communities. Naturally, that didnt make us any friends at the two airlines, nor with some of the politicians in attendance. But we told it like we saw it. Apparently, UALs new CEO now sees it in a similar light.
But back then, the PR departments at US Airways and at United went into full-metal jacket attack mode, hiring and/or schmoozing with any number of aviation analysts in an attempt to put perfume on this merger pig. Nevertheless, like we predicted, and like what UALs CEO now admits, the deal was a dog. While UAL messed around with trying to acquire a non-compatible airline and its route system, its arch-rival American focused on its strengths, and then acquired (not merged, acquired) the assets of TWA, giving them at least a three-year strategic leap over United.
All that said, there may be a much more important message here. Remember, Mr. Creighton was one of the UAL board members who voted and supported the US Airways deal. To come out now and candidly admit it was a mistake takes big-time Moxie. Mr. Creighton has also candidly stated that the Avolar business jet venture will be sold off, and if not, itll be shut down. More Moxie.
The media may want to call back those reporters stationed on the steps of the bankruptcy court. Barring some catastrophic events, United will be a no-show. Reading between the lines, Mr. Creightons comments indicate that United could well have the strong leadership it needs to get through the next 12 to 18 months.
United does have problems. The strategic gap with American is one. Its relationship with labor is another. (Fact is that UA employees took a real financial hickey with the mid-1990s ESOP.) Some of its key labor groups have not had any meaningful compensation increases for years. United also faces some consumer backlash from the operational/labor problems of summer before last, not to mention some heavy-handed passenger service gaffes. At Denver, United has in a sense become Frontiers biggest booster. And the airline is losing money by the planeload every day.
Not to diminish the gravity of these issues, but these are just some trees, not the whole forest. United Airlines is essentially a strong, well-oiled juggernaut that can and usually does deliver quality service. If it can get through the immediate labor issues (like, avoid a strike for starters) and get its unit revenues up, it can catch up to American. Mr. Creightons comments over the past few weeks would indicate that United has a much brighter and more competitive future that some media stories seem to imply.
But getting back to the merger mistake, wonder where all those other analysts are now the ones who just drooled all over themselves about what a wonderful transaction this was, including the pandering cyber-analysts who declared it "a good deal" right out of the box.
The silence is deafening.
2002 The Boyd Group/ASRC, Inc.
Doc could no doubt put the link in here correctly, but I can't seem to get it to lead to the article so...
Article from www.aviationplanning.com
Monday Morning Hot Flash February 11, 2002
United Airlines Not Down For The Count
"It was a mistake to go after US Airways"
- John Creighton, CEO, United Airlines, Washington Post, 2/7/02
In the interests of full disclosure, we said it was a mistake, too but we said it right from the day that silly merger was announced.
We said it up front, including at a public meeting in Pittsburgh right in front of US Airways and United senior management. The powerpoint presentation was direct and to the point the planned merger was a really bad thing for the consumer and small communities. Naturally, that didnt make us any friends at the two airlines, nor with some of the politicians in attendance. But we told it like we saw it. Apparently, UALs new CEO now sees it in a similar light.
But back then, the PR departments at US Airways and at United went into full-metal jacket attack mode, hiring and/or schmoozing with any number of aviation analysts in an attempt to put perfume on this merger pig. Nevertheless, like we predicted, and like what UALs CEO now admits, the deal was a dog. While UAL messed around with trying to acquire a non-compatible airline and its route system, its arch-rival American focused on its strengths, and then acquired (not merged, acquired) the assets of TWA, giving them at least a three-year strategic leap over United.
All that said, there may be a much more important message here. Remember, Mr. Creighton was one of the UAL board members who voted and supported the US Airways deal. To come out now and candidly admit it was a mistake takes big-time Moxie. Mr. Creighton has also candidly stated that the Avolar business jet venture will be sold off, and if not, itll be shut down. More Moxie.
The media may want to call back those reporters stationed on the steps of the bankruptcy court. Barring some catastrophic events, United will be a no-show. Reading between the lines, Mr. Creightons comments indicate that United could well have the strong leadership it needs to get through the next 12 to 18 months.
United does have problems. The strategic gap with American is one. Its relationship with labor is another. (Fact is that UA employees took a real financial hickey with the mid-1990s ESOP.) Some of its key labor groups have not had any meaningful compensation increases for years. United also faces some consumer backlash from the operational/labor problems of summer before last, not to mention some heavy-handed passenger service gaffes. At Denver, United has in a sense become Frontiers biggest booster. And the airline is losing money by the planeload every day.
Not to diminish the gravity of these issues, but these are just some trees, not the whole forest. United Airlines is essentially a strong, well-oiled juggernaut that can and usually does deliver quality service. If it can get through the immediate labor issues (like, avoid a strike for starters) and get its unit revenues up, it can catch up to American. Mr. Creightons comments over the past few weeks would indicate that United has a much brighter and more competitive future that some media stories seem to imply.
But getting back to the merger mistake, wonder where all those other analysts are now the ones who just drooled all over themselves about what a wonderful transaction this was, including the pandering cyber-analysts who declared it "a good deal" right out of the box.
The silence is deafening.
2002 The Boyd Group/ASRC, Inc.
Feb 12, 2002 | 4:11 pm
#2
Join Date: Sep 2001
Posts: 3,958
the day his company says anything good about United is the day hell freezes over.
Holly Hegeman is better in my mind (www.planebusiness.com)
-nate
Holly Hegeman is better in my mind (www.planebusiness.com)
-nate
Feb 12, 2002 | 8:10 pm
#3
Guest
Posts: n/a
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by UAPremierExec:
the day his company says anything good about United is the day hell freezes over.
Holly Hegeman is better in my mind (www.planebusiness.com)
-nate</font>
the day his company says anything good about United is the day hell freezes over.
Holly Hegeman is better in my mind (www.planebusiness.com)
-nate</font>
Feb 12, 2002 | 10:11 pm
#4
Join Date: Aug 2001
Location: San Jose, CA USA
Posts: 1,927
As much as I reserve the right to rail against UA, I still like 'em and always want them to do better. Not sure that Holly does, and, when she does her cold-blooded thing, I often wonder if there shouldn't be a special place in hell reserved for her. Can't help my feelings. G'day.
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AAExecPlat; Lifetime AAirpass; 3MillMiles; UApremier-PassPlus