United's Tilton Continues To Talk About Change | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

AMA Drone Report

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday

Airborne-Thursday

Airborne-Friday

Airborne-Unmanned w/AUVSI

Airborne On ANN

AMA 10.19.17

Airborne 10.16.17

Airborne 10.17.17

Airborne 10.18.17

Airborne 10.19.17

Airborne 10.13.17

Airborne-Unmanned 10.17.17

Airborne-YouTube

AMA 10.19.17

Airborne 10.16.17

Airborne 10.17.17

Airborne 10.18.17

Airborne 10.19.17

Airborne 10.13.17

Airborne-Unmanned 10.17.17

NEW!!! 2017 AirVenture Innovation Preview -- YouTube Presentation / Vimeo Presentation

Tue, Oct 23, 2007

United's Tilton Continues To Talk About Change

Looking For Merger, Added Charges

Believing United Airlines needs competitive change, Chief Executive Glenn Tilton wants to pursue everything... from a merger, to charging passengers who want their luggage to come first off the plane, according to the Chicago Tribune.

In his first interview since laying out a provocative five-year strategy approved by United's board last month, Tilton (right) maintained that change is difficult, but necessary, if the airline is to remain competitive on the global stage and survive the ups and downs of the airline industry.

Tilton wants to examine new ways to squeeze money out of the carrier. But he's getting nothing but resistance from United's unions and industry observers.

"All those difficult decisions, it's why we're here," Tilton said last week.

United plans to invest $4 billion in complex new information systems and to upgrade its planes, check-in areas and other aspects of the business that affect passengers, Tilton said.

United is also looking at whether to divest its cargo business and frequent flyer program and its San Francisco maintenance base, and charge for new a la carte fees for special service.

United appears to be using an Air Canada strategy, which gained billions of dollars after it emerged from bankruptcy in 2004 by turning its maintenance division and frequent-flier program into separate businesses, analysts say.

"Every management team needs to address it," said Kevin Crissey, senior analyst for US airlines with UBS Investment Research.

But the sale or spin-off of these assets contradicts some of its bankruptcy plans, according to United's flight attendant union.

"It has only now become clear that the sale of these assets is not only a viable option, but that a timely sale would have avoided the need for severe concessions and, perhaps, avoided the bankruptcy altogether," wrote Greg Davidowitch, president of the United master executive council of the Association of Flight Attendants, which represents 17,000 United workers.

Davidowitch called on United's board to direct management to engage in "meaningful negotiations" to restore wages and benefits that workers gave up during bankruptcy and to allocate a proportionate share of the proceeds of any asset sale to the flight attendants.

"We're giving notice that we're laying claim to a portion of that money," he told the Tribune.

United replied it couldn't sell its Mileage Plus, the world's second-largest airline loyalty program, while the carrier's future was in jeopardy.

"Who is going to buy the loyalty program of a company in bankruptcy when the whole value of the program is tied to creating a connection to the company," said spokeswoman Jean Medina. "The increase in value of Mileage Plus is directly related to our exit from bankruptcy and subsequent successful execution of our performance agenda."

United plans to treat the $800 million program as a stand-alone business by year's end.

Among those under consideration United is looking at additional charges for: curbside-to-curbside baggage service, fees to check a second bag and allowing mainstream passengers to "rent" for a day the perks available to elite customers.

"While a la carte pricing is successful for some budget carriers, it could backfire for United if passengers feel like they're being forced to pay for something that was once free," said Michael Boyd, president of the Boyd Group.

Tilton told the Tribune he his looking at mergers with equals, and would like more exposure in New York and a presence in Latin America that could be operated from its hub at Washington-Dulles International Airport.

Workers shudder at the mention of this because of the specter of lost jobs and bitter fights over seniority, which determines job assignments and pay levels.

"Would you rather merge or wind up in bankruptcy, again?" Tilton said he bluntly told United employees when the topic was broached in an open forum. "Can we agree on one thing: We all want to grow."

FMI: www.united.com, http://ir.united.com/phoenix.zhtml?c=83680&p=irol-IRHome

Advertisement

More News

RFP: ANN Seeking New Site/Facility For Major Studio Upgrade

It's Official: Aggressive Upgrades For New Airborne Programs WILL Require New Digs It's been in development for years, but we're getting to a point where we think we can pull off s>[...]

AMA Drone Report 10.12.17: NTSB--Drone v Blackhawk, City Drops Reg, DJI Privacy

Also: PassengerDrone, FAA Reauthorization Extension, UAS Pilot Certification, Workhorse Surefly The NTSB is now offering public details of the alleged collision between a hobby dro>[...]

Airborne-Unmanned 10.17.17: Eagles v Drones, DJI AeroScope, Drone Policy

Also: AeroVironment Award, Washington State Patrol, Altavian Nova UAS, Robotaxis The French Military is training four Golden Eagles to attack drones in flight as a way to defend ag>[...]

Airborne 10.18.17: Airbus C Series Deal, Red Bull!, Drone v Airline

Also: Glasair 2 And 3 Sold, Send Solutions, Blue Angels, SSBJ, D8 Airliner, Stage 5 Aircraft, Global Supertanker Airbus SE and Bombardier are to become partners on the C Series air>[...]

Airborne 10.17.17: Waco YMF-5F Flies!, SpaceX Streak, BBJs Rule

Also: Embraer, Aero-Calendar, AeroVironment, Sikorsky Heli's, EASA Singapore, FireFighting UAV, WestJet The amazing craftsman of the Waco Classic Aircraft operation in Michigan hav>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2017 Web Development & Design by Pauli Systems, LC