Wed, Jul 14, 2004
Pete McDonald: "We Need To Dig Deeper"
At least two United Airlines
executives say, if their company is ever going to get out of
bankruptcy, it's going to have to make deeper cuts.
"We need to dig deeper on costs and get much more efficient, and
that's become even more important with competitive pressures
increasing and fuel prices as high as they are," Pete McDonald,
United's chief operating officer, said in a recorded telephone
message to employees. The message was quoted in the Chicago
The nation's second-largest airline
is still in shock over the government's third refusal to offer loan
guarantees. Already, United has announced $5 billion in annual
cuts. Now, 19 months into bankruptcy, CEO Glenn Tilton says the
company is going to take a "very hard look at headquarters" to find
Although United hasn't gone back to its unions for more
concessions, some analysts think the company will have to cut down
its pension fund if it's going to survive Chapter 11.
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