N1120a is dead on. The problem is management. I think about a statement I read re a comment made by Gordon Bethune about UA
, a la the fact that they (UA management are in deep denial of their situation): The more I think about it, the more I think he is correct. Why else would UA
continue to chase only the high fare paying passenger and leave the 95% of everybody else out of the equation.
Further, all UA
does is cut. They don't reallocate resources, like any intelligent manager would do. I feel for the employees of United. They are getting a raw deal. Of course, the blame should mostly fall on the old CEO Goodwin, who gave the pilots the highest increases in the history of aviation and then had the market fall out from under them. Tilton isn't much better, he still has the old management in place, albeit in different places. They still don't have a clue about what they are doing. In point of fact, I could run that airline better than Tilton. At least I have a plan and the guts to see it through. It wouldn't be pretty, but it could work, with the right support from the employees.
The banks are not going to permit this to go on much longer. The other carriers, notably American, would kill to get United's Pacific Routes, then it would supplant United with the global route structure that it lacks because of its Pacific presence. Of course, the minute this happens, Star Alliance has major problems, because with no major US player, the alliance could crack overnight.
United will be sold off in pieces and what is left will be liquidated at auction. I wouldn't be surprised to learn that they are already having some kind of discussions with other carriers already. AA
have all spoken recently of merger discussions with United.
They just need to get it done already. Leaving people to suffer as they are now, with a slow painful death is a crime. The best thing for UA
to do now is sell itself off and hope it can save the employees jobs by making that part of the deal. Lets hope it happens soon.
David L. Lamb, fmr Area Mgr Alitalia SFO 1998-2002, fmr Regional Analyst SFO-UAL 1992-1998