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CNN:Possible 20,000 Layoffs At United

Wed Sep 19, 2001 4:39 am

CNN is reporting that UAL may layoff 20,000 employees.

20,000 wow, that would be unbelievable. Maybe this is just a false story being told to CNN
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RE: CNN:Possible 20,000 Layoffs At United

Wed Sep 19, 2001 4:57 am

If this is true what CNN is reporting, it was inevitable after the slowing economy but brought on more rapidly from the events from 09-11-01. UAL must be scrambling at it's HQ on how to recover lost confidence as well how to fill their empty seats. All airlines are fighting for passengers which has instantly became smaller after 09-11-01. All these carriers cannot survive, I honestly believe that one or two major carriers will be out of business within a year. I hate to see it happen but it shall happen. With the economy, low fare carriers, trains (playing a bigger role than ever), fuel prices and raises given to all employees in a time when the industry knew that it was slowing down, layoff were/are bound to happen. I know this will affect the industry that I am in, air freight. I have noticed a dramatic slow down and with the airlines experiencing this situation, the ripple effect will almost affect everyone.

There are 7-9 major carriers can they all survive?

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RE: CNN:Possible 20,000 Layoffs At United

Wed Sep 19, 2001 5:18 am

Not to discredit United, USAir, AA, CO, etc...

But I would not be surprised that the numbers they are announcing are puffed up a bit to project the sense of urgency the $15b airline aid package warrants.

"We're all going to whither up and die if we don't get funding from the government, look at us already!"

If I were CEO of an airline, I'd be doing the same thing!
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RE: CNN:Possible 20,000 Layoffs At United

Wed Sep 19, 2001 5:28 am

I suspect that you're right, Milemaster. Plus, remember, as I've now said three times:

The demand for air travel that existed on 9/10 didn't just shrivel up and disappear on 9/11. It's hiding.

When people feel more confident, they'll return to the skies. This is not a permanent situation. Within a year or so, things may be back to where they were.
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RE: CNN:Possible 20,000 Layoffs At United

Wed Sep 19, 2001 5:35 am

I certainly hope that the government does not intervene. I think that Market forces should prevail. If some of them go out of business, so be it. Recent events just accelerated the process which was already begun by airline employees demanding and receiving wages that the industry cannot support.

As a tax payor, I do not want to pay for this industries blunders.
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RE: CNN:Possible 20,000 Layoffs At United

Wed Sep 19, 2001 5:43 am

I am an airline employee and as a tax payer I want my money to help the airline industry which is the backbone of transportation in the U.S. and not to mention my livelyhood.
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RE: CNN:Possible 20,000 Layoffs At United

Wed Sep 19, 2001 5:51 am

I see the point of having the government bail out the airline industry, but what about the rest of the economy? The stores, air freight forwarders (my livelyhood), taxi cab companies, bus companies, contract workers and etc. Should they all receive a bail out as well? Not trying to make "waves" but asking a question.
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RE: CNN:Possible 20,000 Layoffs At United

Wed Sep 19, 2001 5:59 am

There is something to be said about that..

It certainly was no secret that a terrorist attack of this magnitude was a risk to all airlines of the world. Every day they operate, they accept the assumed risk. When a new startup like Airtran, Legend, Jetblue, etc takes to the skies for the 1st time they are accepting this as a risk for the business model they have chosen.

For the sake of arguement, why should the taxpayer pay up essentially to corporations that didn't prepare themselves for crisis scenarios? It's alarming that an industry that personally handles millions of lives a year is spread so thin that if they can't operate for a few days, they're laying off tens of thousands of people and threatening bankruptcy. I do understand the anticipation of a severe drop in passenger loads as a major factor in requesting governmental aid.

Who knows...
Maybe airlines should've focused less on purchasing new RJ's and flooding U.S. business center airports and created more of a cushon for themselves. Then perhaps spent the money on security to lessen the risk of a business destroying tragedy like the WTC. I'm not suggesting airlines not be competetive by denying frequencies to major business hubs. I'm saying that they should be denied the opportunity to compete until they have established a credible security base to build & grow on.

So... because we americans have become so dependent on air travel that the economy craters without deregulated airlines, We(the taxpayers) have to bail them out for their lack of preparation.

Let me make sure I'm clear, WE NEED THE AID PACKAGE. But it's truly sad that we NEED the aid package to begin with.

If we weren't so dependent on air travel, would this even be an issue?
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RE: CNN:Possible 20,000 Layoffs At United

Wed Sep 19, 2001 9:47 am

No big surprise here. Those who said it before may be right, these may be inflated numbers. However, United was going to lose a BILLION dollars this year before the attacks. Layoffs were probably in the works anyway.
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RE: Bailout?

Wed Sep 19, 2001 10:33 am

Bailout is the wrong word here, and for those who dont know how an airline operates and makes money please stay off the subject. someone suggested that a couple of days on the ground is no big deal, well they still have to pay the employees not to mention airport fees. No doubt the goverment is gonna help whether u like it or not.
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RE: CNN:Possible 20,000 Layoffs At United

Wed Sep 19, 2001 1:17 pm

they walked oout all of the probationary CSR's tonite....guess that's a start....
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RE: CNN:Possible 20,000 Layoffs At United

Wed Sep 19, 2001 1:37 pm

This is all indicative of the effects of de-regulation in the airline industry.

Fares are too low. Profit margins are slim. Any blip on the economy can drive an airline into the red.

Wages are too low as well. The public seems to only think about the 747 captain when they speak of wages. Many car mechanics make more money than an AMT.

Maybe it's time to reduce service, increase fares and restrict flying to the rich elite. Either that, or be willing to shore up the airlines to stabilize the economy.

RE: CNN:Possible 20,000 Layoffs At United

Wed Sep 19, 2001 2:52 pm

I have read several articles, and the government DOES recognize that some airlines may have to shut down. And the gov't also recognizes that most of the airlines WILL INEVITABLY CUT BACK AND FURLOUGH EMPLOYEES EVEN IF GOV'T AID IS PROVIDED. As mentioned several times, and fact, the industry was suffering before this happend and is dying now.
But if the Gov't aids this industry, then what about the travel support companies? What about affected hotels? What about affected convention providers, such as Disney= who has already had 16 conventions CANCELED!?
Where does it stop?
The government is in NO way going to PREVENT any airline from cutting back, furloughing nor going out of business, they are attempting to TRY to balance things out. No guarantees here.

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