PVDFlier From United States of America, joined Jul 2000, 57 posts, RR: 1 Posted (13 years 2 months 1 week 5 days 22 hours ago) and read 1734 times:
More bad news for UA...
(Elk Grove Township, IL) -- The parent company of Elk Grove-based United Airlines says it expects to take a double-digit loss in second quarter revenue. The "Chicago Tribune" says UAL Corporation is attributing the decline to customers cutting back on travel. UAL had issued a profit warning in April, but the size of the loss was greater than expected. UAL says the current economic slowdown, and higher fuel and labor costs combined to take a big bite out of profits. The company says it can't predict any specific financial results for the second quarter yet, given the uncertainty of the economy, and the fate of its proposed merger with USAirways.
SEVEN_FIFTY7 From United States of America, joined Sep 2000, 957 posts, RR: 4
Reply 6, posted (13 years 2 months 1 week 5 days 20 hours ago) and read 1600 times:
...And to top it off, UA agreed to pay US Airways $50 million if the deal *doesn't* go through (which, at this point, it won't). That's right. ****$50,000,000**** to US Airways if the acquisition doesn't happen. Gee. --I wonder who thought of that 'lil mind-blowing, fiscally-responsible game plan?
Now, with all of the red ink and financial bloodshed, they almost overnight, decide to go out and purchase a bunch of business jets. I doubt they researched this as thoroughly as a NORMAL large carrier would. From what I hear, many of the employees of United are thoroughly embarrassed at the atrocious mis-guidance of their company, and rightly so. I know I would be.
I hope Goodwin and Dutta get a nice severence package when they get booted out soon (which, at this point, is basically guaranteed) . The severity of incompetence from the "leaders" of United is shocking. It's even jaw-dropping. You'd expect this type of folly and sheer cluelessness from a lowfare, small upstart carrier. But not from one of the world's largest carriers!
And folks, I don't think blaming the pilots' raise for the current predicament is accurate. Why? Because a *good* management team would have rectified any contract disputes BEFORE the pilot's threats to slowdown became real. I doubt Crandall, Carty, Mullin, Dasburg, or even Wolfe himself woulda ignored the pilot's labor action for three days, much less AN ENTIRE SUMMER!!! With all the flight cancellations in the first week, it shoulda been well apparent to Goodwin that those pilots meant business. This is regardless of whether the pilots were being "greedy," "unrealistic," or plain wrong. They should have gone to the table at least at the eleventh hour, especially since the pilot's union was actively telling management about their contract issues months and months prior to the slowdown. What knuckleheads!!!
I feel sorry for UA's "employee" owners. They shoulda gotten rid of those boys at the top months ago.