A300Capt
Freight Dawg
Associated Press
United Plans Fewer Pilots, Report Says
Wednesday January 29, 2:33 pm ET
United Airlines Plans 25 Percent Fewer Pilots, Flight Attendants, Report
Says
CHICAGO (AP) -- United Airlines intends to reduce the number of its pilots
and flight attendants by up to 25 percent and implement a two-tier pay
structure under the new business plan it has devised in bankruptcy, a
published report said Wednesday.
The Chicago Tribune, citing unidentified sources, reported that pilots and
flight attendants working for a planned new discount carrier to be operated
by the airline would be paid significantly less than those on regular United
flights.
United declined comment on the report.
The world's second-largest airline, which has posted heavy losses since
mid-2000, filed for Chapter 11 federal bankruptcy protection on Dec. 9. It
is required to compile a new business plan in the first 120 days of
bankruptcy to show its lenders how it intends to return to profitability.
A key to United's financial strategy is a planned $2.4 billion reduction in
annual labor costs, which the carrier outlined last month in bankruptcy
court. CEO Glenn Tilton also said last month that United plans to launch a
low-cost carrier to compete with Southwest Airlines as part of efforts to
regain its financial footing.
United spokesman Joe Hopkins said Tilton is presenting the plan to the board
of directors of United's parent, UAL Corp., on Thursday. He said specifics
were given Monday to financial advisers of United's creditors committee,
which is monitoring the bankruptcy reorganization and includes its three
major unions, but not detailed in full to employees yet.
"Our plan is to share the information with our employees before we share
them with wider audiences," Hopkins said.
Spokesmen for the pilots, flight attendants and machinists said Wednesday
they had not been briefed on specifics of the plan.
United has laid off 20,000 workers since the Sept. 11, 2001, terrorist
attacks and currently has about 78,000 employees, including nearly 20,000
flight attendants and about 8,500 pilots.
According to the Tribune, it would need only about 6,000 pilots under the
reorganization plan, and they would be required to increase their flight
time to an average of 50 hours a month, up from the current 36 hours.
The report also said United's plan calls for contracting more of its
regional routes to its commuter partners -- Atlantic Coast Airlines, Air
Wisconsin and SkyWest Airlines -- which operate planes bearing the United
Express logo and would be permitted to fly larger, 70-seat jets. And the
report said United likely will close its Indianapolis maintenance center.
United is seeking concessions from its unions after a bankruptcy judge
approved temporary wage reductions of 29 percent for pilots, 9 percent for
flight attendants and 14 percent for machinists, who include mechanics, ramp
workers and customer contact workers.
United Plans Fewer Pilots, Report Says
Wednesday January 29, 2:33 pm ET
United Airlines Plans 25 Percent Fewer Pilots, Flight Attendants, Report
Says
CHICAGO (AP) -- United Airlines intends to reduce the number of its pilots
and flight attendants by up to 25 percent and implement a two-tier pay
structure under the new business plan it has devised in bankruptcy, a
published report said Wednesday.
The Chicago Tribune, citing unidentified sources, reported that pilots and
flight attendants working for a planned new discount carrier to be operated
by the airline would be paid significantly less than those on regular United
flights.
United declined comment on the report.
The world's second-largest airline, which has posted heavy losses since
mid-2000, filed for Chapter 11 federal bankruptcy protection on Dec. 9. It
is required to compile a new business plan in the first 120 days of
bankruptcy to show its lenders how it intends to return to profitability.
A key to United's financial strategy is a planned $2.4 billion reduction in
annual labor costs, which the carrier outlined last month in bankruptcy
court. CEO Glenn Tilton also said last month that United plans to launch a
low-cost carrier to compete with Southwest Airlines as part of efforts to
regain its financial footing.
United spokesman Joe Hopkins said Tilton is presenting the plan to the board
of directors of United's parent, UAL Corp., on Thursday. He said specifics
were given Monday to financial advisers of United's creditors committee,
which is monitoring the bankruptcy reorganization and includes its three
major unions, but not detailed in full to employees yet.
"Our plan is to share the information with our employees before we share
them with wider audiences," Hopkins said.
Spokesmen for the pilots, flight attendants and machinists said Wednesday
they had not been briefed on specifics of the plan.
United has laid off 20,000 workers since the Sept. 11, 2001, terrorist
attacks and currently has about 78,000 employees, including nearly 20,000
flight attendants and about 8,500 pilots.
According to the Tribune, it would need only about 6,000 pilots under the
reorganization plan, and they would be required to increase their flight
time to an average of 50 hours a month, up from the current 36 hours.
The report also said United's plan calls for contracting more of its
regional routes to its commuter partners -- Atlantic Coast Airlines, Air
Wisconsin and SkyWest Airlines -- which operate planes bearing the United
Express logo and would be permitted to fly larger, 70-seat jets. And the
report said United likely will close its Indianapolis maintenance center.
United is seeking concessions from its unions after a bankruptcy judge
approved temporary wage reductions of 29 percent for pilots, 9 percent for
flight attendants and 14 percent for machinists, who include mechanics, ramp
workers and customer contact workers.