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More Bad News For UA

Thu Jun 21, 2001 2:39 am

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.
Tan Flyr
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RE: More Bad News For UA

Thu Jun 21, 2001 2:42 am

Bet they can't wait to get out of the US deal..They will run as fast as they can on the day they can walk away!
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RE: More Bad News For UA

Thu Jun 21, 2001 2:44 am

Too little space, too much compeition? Seems so.
Anyone can fly, only the best Soar.
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RE: More Bad News For UA

Thu Jun 21, 2001 3:46 am

Too much competition? I doubt it. What kind of competition do we have here in the USA? American is based at Dallas. United at Denver (or chicago??). Delta at Atlanta. US at Charlotte/Philly/Pittsburg.

Very rarely do we have to majors operating out of the same airport. One exception is UA/AA at O'hare. And with TWA gone, look at all the competition we have lost in the last ten years.

Very little competition, very wide space is what I would argue.


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RE: More Bad News For UA

Thu Jun 21, 2001 3:54 am

One more exception is DFW, where Delta and AA both have hubs.

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RE: More Bad News For UA

Thu Jun 21, 2001 4:11 am

UAL is from Chicago not Denver!

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RE: More Bad News For UA

Thu Jun 21, 2001 5:05 am

...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.