Jack Creighton is fare from being a lame duck CEO. Jack has worked to lower the cash burn from over ten million per day. He has worked to restore employee morale, and has done what he can to insure that the company will stay around. He kept his promise about not taking United to the bankruptcy court. Sadly, as one of the best CEO's of United, he is leaving. He did only take this "unpaid" job as a temporary measure.
United's cost structure is very high. When operating close to 600 planes a day, and having over 100,000 employees it is expencive. United was hit very hard after 9/11 as well as before that and we are making a recovery.
While I think that concessions are going to have to happen, I do not think that Bankruptcy is an option. I do not think that furloughs are an option any more with the exception to maintence. There is a lot of work that is farmed out to other companies. I see that continuing to happen, and if IAM doesnt agree to concessions, we might see a maintence facility close.
United has gone along way in cost cutting. Most of the cuts are not that noticable, but are there. Passengers still recieve the can, and the movies are free. Food has been reduced on midcons, and most things that could have been cut have been cut.
The big thing that is hurting United is low ticket prices. There is only so much that you can cut to lower costs. The rest has to be made up in ticket prices. The industries yields are quite low at the moment. As a result all airlines are hurting. When ticket prices go up, the airline will start to become more profitable. In the meantime, dont count on many of the cut items comming back. This is true on any carrier.
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