My understanding was that the pilots union demanded a 28% raise or something like that in 2000 that was "a" major factor in the company filing for bankruptcy. There were some other issues as well but if the pilots union hadn't struck and demanded a significant raise United likely wouldn't have had to file bankruptcy.
That is complete and utter fiction and not even close to reality. What strike? There was no strike nor a threat of a strike.
Are you aware of all the pay concessions that the pilots had to endure over the years long before the bk, long before 911, and long before the raise we finally got? Even that raise did not make us whole from what we had lost in pay over the years. DAL pilots got a larger increase in the same time period, btw. Shame on us for expecting our pay to be restored to the levels that existed prior to all the pay cuts and concessions that were taken with much of the pay cuts used to fund the ESOP and that we were promised would happen. Do you know how many pilots were on furlough before the bk and before 2001? If you want to blame an entity for the bk, look for two words. Glenn Tilton. Do you have any idea how many millions he was paid in his salary, stock options and bennies before, during and after the bk? Try 40 plus million in one year alone.
We had the nuts of all the employees ground to sawdust years earlier, (literally threatened the pilots with furloughs and the other workers/employees with lay-offs) cut wages yet again, and made us part owners with stock that became 100% worthless.
Here's a timeline for you:
Dec. 9, 2002 — UAL's United Airlines files for Chapter 11 federal bankruptcy protection in Chicago. It remains the largest bankruptcy filing by an airline and was at the time the sixth-biggest by any U.S. company.
Feb. 13, 2003 — United says it intends to shift 30% of its U.S. capacity to a new low-cost carrier to compete with Southwest Airlines and other discount carriers.
April 21, 2003 — United starts charging for meals on flights.
May 1, 2003 — New labor contracts go into effect
reducing labor costs by $2.56 billion annually for six years.
Feb. 12, 2004 — United launches its new Denver-based discount carrier, Ted. (that was Glenn's little brainchild which failed miserably and cost them millions)
June 28, 2004 — United loses third and final try for a government loan guarantee, forcing it to seek new financing.
Aug. 19, 2004 — United says in a bankruptcy filing that
it likely will terminate and replace its employee pension plans.
Oct. 6, 2004 — United cuts domestic flight capacity by 12% and increases international capacity 14% amid intensifying discount-carrier competition in U.S. and more lucrative routes internationally.
Nov. 4, 2004 — CEO Glenn Tilton says record-high fuel costs mean United has no choice but to
eliminate pensions and cut wages further to gain an additional $2 billion in reductions.
May 10, 2005 — Bankruptcy Judge Eugene Wedoff approves United's plan to terminate employee pensions,
clearing the way for the largest corporate-pension default in American history.
July 21, 2005 — United completes
second round of negotiated labor cuts in bankruptcy, adding another $700 million in annual labor savings.
Sept. 7, 2005 — United files reorganization plan outlining its intentions for repaying its debts and wiping out its stock. Forecasts nearly $1 billion operating profit in 2006 but based on oil prices falling to $50 a barrel.
Oct. 6, 2005 — United signs off on a $3 billion loan from JPMorgan Chase & Co. and Citigroup Inc. enabling it to exit bankruptcy.
Dec. 30, 2005 — United announces majority of creditors have voted for its reorganization plan.
Jan. 20, 2006 — Reorganization plan approved by bankruptcy court.
Feb. 1, 2006 — United emerging from bankruptcy after three years, 51 days.
During the bk ALL the unions conceded salary and benefit cuts of 30 percent to 40 percent. The work force was reduced from around 110,000 to about 60,000, with many pilots and flight attendants still on furlough. Their work loads and hours also increased without extra benefits. Tilton started hiring a massive amount of third party contractors. He started outsourcing heavy aircraft maintenance, workers who cleaned the planes, ramp workers, security, you name it.
And what else did he do during the three years in bk? Did he build the brand? Did he define the product and give the pax actual decent options? Did he come out with a new marketing plan that worked? No he didn't. There was no real brand, singular identity or organization left. And the hearts and souls of the employees were burned and trampled upon. The bastard shed so many employees at all levels that they couldn't even deal with wx, any types of delays or mx issues. He dumped/sold so much of the existing fleet and stalled the new orders for aircraft that it was impossible to even begin to have any true growth. He jacked around the pax frequent flier program until it was a total POS. Later on, he started shoving far more routes and mainline flying over to United Express clear back in 2009 and 2010.
Yeah the BK was ALPA's and the pilot's fault. Bejebus.