UAL to eliminate 1,000 jobs
#1
UAL to eliminate 1,000 jobs
United Airlines Eliminating 1,000 Jobs
Wednesday June 14, 1:21 pm ET
By Dave Carpenter, AP Business Writer
United Airlines Eliminating 1,000 Salaried and Management Jobs
CHICAGO (AP) -- United Airlines will eliminate at least 1,000 salaried and management jobs by the end of the year as part of its efforts to reduce costs, CEO Glenn Tilton said Wednesday.
The employees to be laid off from the nation's second-largest airline represent about 11 percent of its 9,400 salaried workers and nearly 2 percent of the company's work force of approximately 57,000.
United, a unit of UAL Corp., acknowledged last month that its costs were too high, even after the completion early this year of its three-year bankruptcy restructuring. It set a target of $400 million in additional cost reductions but had not cited the number of salaried and management jobs it plans to cut.
Tilton told analysts in New York that the job cuts are part of a $100 million reduction of general and administrative overhead expenses. In addition, he said, the Elk Grove Village, Ill.-based company is reducing purchase services by $200 million and cutting advertising and marketing costs by $60 million, among other moves.
"We're going to reduce our costs further, we're going to take full advantage of the network that we have preserved to optimize our revenue, and we are going to deliver to our customers a consistently superior and consistently improving customer experience," Tilton said at the Merrill Lynch Global Transportation Conference.
Soaring oil costs have continued to hurt the bottom line for United and other carriers, and Tilton said the airline is refining its route schedule accordingly, although he did not specify flights to be dropped.
"Said simply, some long-haul routes that worked at $50 a barrel don't fly at $65 a barrel," he said. "We'll continue to redeploy assets to other opportunities, such as the recently announced Washington-Kuwait route, which we'll initiate in the fall."
Tilton also said United's second-quarter cost numbers are somewhat better than the guidance it gave during a May 8 conference call. Costs per available seat mile, excluding fuel and special charges, are 7.52 cents, which he called competitive. Cash flow is "very strong" and revenue performance is competitive, he said, without giving specifics.
United shares, which had lost a third of their value since they began trading in February, rose 62 cents, or 2.3 percent, to $27.65 in afternoon trading on the New York Stock Exchange.
http://biz.yahoo.com/ap/060614/unite...cuts.html?.v=2
Wednesday June 14, 1:21 pm ET
By Dave Carpenter, AP Business Writer
United Airlines Eliminating 1,000 Salaried and Management Jobs
CHICAGO (AP) -- United Airlines will eliminate at least 1,000 salaried and management jobs by the end of the year as part of its efforts to reduce costs, CEO Glenn Tilton said Wednesday.
The employees to be laid off from the nation's second-largest airline represent about 11 percent of its 9,400 salaried workers and nearly 2 percent of the company's work force of approximately 57,000.
United, a unit of UAL Corp., acknowledged last month that its costs were too high, even after the completion early this year of its three-year bankruptcy restructuring. It set a target of $400 million in additional cost reductions but had not cited the number of salaried and management jobs it plans to cut.
Tilton told analysts in New York that the job cuts are part of a $100 million reduction of general and administrative overhead expenses. In addition, he said, the Elk Grove Village, Ill.-based company is reducing purchase services by $200 million and cutting advertising and marketing costs by $60 million, among other moves.
"We're going to reduce our costs further, we're going to take full advantage of the network that we have preserved to optimize our revenue, and we are going to deliver to our customers a consistently superior and consistently improving customer experience," Tilton said at the Merrill Lynch Global Transportation Conference.
Soaring oil costs have continued to hurt the bottom line for United and other carriers, and Tilton said the airline is refining its route schedule accordingly, although he did not specify flights to be dropped.
"Said simply, some long-haul routes that worked at $50 a barrel don't fly at $65 a barrel," he said. "We'll continue to redeploy assets to other opportunities, such as the recently announced Washington-Kuwait route, which we'll initiate in the fall."
Tilton also said United's second-quarter cost numbers are somewhat better than the guidance it gave during a May 8 conference call. Costs per available seat mile, excluding fuel and special charges, are 7.52 cents, which he called competitive. Cash flow is "very strong" and revenue performance is competitive, he said, without giving specifics.
United shares, which had lost a third of their value since they began trading in February, rose 62 cents, or 2.3 percent, to $27.65 in afternoon trading on the New York Stock Exchange.
http://biz.yahoo.com/ap/060614/unite...cuts.html?.v=2
#4
Okay, once again. . .
I have a serious issue with companys firing / laying off people to reduce costs. Labor costs are not the issue.
Flying people for dirty cheap is the issue. Raise the prices, and make people pay the correct wage to fly. Rediculous.
I have a serious issue with companys firing / laying off people to reduce costs. Labor costs are not the issue.
Flying people for dirty cheap is the issue. Raise the prices, and make people pay the correct wage to fly. Rediculous.
#6
Gets Weekends Off
Joined APC: Jun 2006
Position: EMB170 FO
Posts: 168
Originally Posted by surreal1221
Okay, once again. . .
I have a serious issue with companys firing / laying off people to reduce costs. Labor costs are not the issue.
Flying people for dirty cheap is the issue. Raise the prices, and make people pay the correct wage to fly. Rediculous.
I have a serious issue with companys firing / laying off people to reduce costs. Labor costs are not the issue.
Flying people for dirty cheap is the issue. Raise the prices, and make people pay the correct wage to fly. Rediculous.
Now that you can get a plane ticket for cheaper than a bus pass, more people fly. More people flying means more pilot positions. Without cheap tickets, not as many people fly......catch my drift?
#7
Originally Posted by hatetobreakit2u
all this after there expecting a pilot shortage during the busy summer months? idiots
Originally Posted by C175
That is a ridiculous statement. I don't know how old you are, but I can remember when I was a kid in the seventies and flying was a big fu$%ing deal. People dressed up nice and planned trips months in advance. It was the tail end of a great era. That era, however, meant that flying was a luxury and one that didn't happen often. Because people didn't fly as often, there wasn't a demand for as many pilots.
Now that you can get a plane ticket for cheaper than a bus pass, more people fly. More people flying means more pilot positions. Without cheap tickets, not as many people fly......catch my drift?
Now that you can get a plane ticket for cheaper than a bus pass, more people fly. More people flying means more pilot positions. Without cheap tickets, not as many people fly......catch my drift?
You never said why you think my post was ridiculous, but that's fine.
You stated the simple fact that plane tickets are cheaper than bus passes. Here lies the problem. This is an airplane, not a damn greyhound bus. Agree?
Yes, cheaper tickets, more planes, more pilots, working at a MUCH lower wage than what they should be making. Agreed?
No FO should be making less than the poverty level, I don't give a rats ass if it's because they are a first year FO or not. Unfortunately that is the environment we find ourselves in. I'm not asking to make 150k a year, but it would be nice to be able to support a family (my wife) when you move from CFIing to FO on a RJ, 40k a year for the first year is reasonable to me, so much more than 20k at some regionals.
Last edited by surreal1221; 06-14-2006 at 04:35 PM.
#8
Originally Posted by C175
That is a ridiculous statement. I don't know how old you are, but I can remember when I was a kid in the seventies and flying was a big fu$%ing deal. People dressed up nice and planned trips months in advance. It was the tail end of a great era. That era, however, meant that flying was a luxury and one that didn't happen often. Because people didn't fly as often, there wasn't a demand for as many pilots.
Now that you can get a plane ticket for cheaper than a bus pass, more people fly. More people flying means more pilot positions. Without cheap tickets, not as many people fly......catch my drift?
Now that you can get a plane ticket for cheaper than a bus pass, more people fly. More people flying means more pilot positions. Without cheap tickets, not as many people fly......catch my drift?
yea more pilot positions with payscales like yours. could you even support a family with your pay.
if oil continues to rise will you take a pay cut so that the customer doesn't have to pay more.
more people are flying now then before 9-11, but I'm sure your happy with $35 hour payscales.
#9
Originally Posted by Eric Stratton
yours is a ridiculous statement.
yea more pilot positions with payscales like yours. could you even support a family with your pay.
if oil continues to rise will you take a pay cut so that the customer doesn't have to pay more.
more people are flying now then before 9-11, but I'm sure your happy with $35 hour payscales.
yea more pilot positions with payscales like yours. could you even support a family with your pay.
if oil continues to rise will you take a pay cut so that the customer doesn't have to pay more.
more people are flying now then before 9-11, but I'm sure your happy with $35 hour payscales.
If the customer can not afford the fare, then that is their problem, not the employees. People are going to fly no matter what we charge them, there is no sense in reducing the fare to the point where it is cheaper than taking a greyhound bus across country. That is ridiculous.
#10
Gets Weekends Off
Joined APC: Jun 2006
Position: EMB170 FO
Posts: 168
Originally Posted by Eric Stratton
yours is a ridiculous statement.
yea more pilot positions with payscales like yours. could you even support a family with your pay.
if oil continues to rise will you take a pay cut so that the customer doesn't have to pay more.
more people are flying now then before 9-11, but I'm sure your happy with $35 hour payscales.
yea more pilot positions with payscales like yours. could you even support a family with your pay.
if oil continues to rise will you take a pay cut so that the customer doesn't have to pay more.
more people are flying now then before 9-11, but I'm sure your happy with $35 hour payscales.
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