United Airlins

he problem you will have is separating fact from fiction and bias.

Many hate United because we represent the antithesis of Southwest. Others hate United because they want us to die, in order to solve the problem of overcapacity in the industry, and we are unwilling to accommodate them. Still others hate United for the precedent we set by rewarding our pilots after they held the flying public hostage in order to "choke the golden goose until it gave every last egg."

On top of all that is the hatred which still remains, in certain quarters, between labor and management.

Yet, through it all, United has been able to restore her hydraulics to the point of gaining some control over her flight, and may even be able to employ flaps to bring her in for a soft landing.

United has agreements with all of its various union groups except the mechanics. All of these agreements are widely expected to be ratified by their respective members making it unnecessary for the bankruptcy judge to void any contracts. That is except for the mechanics, who will not reach agreement in time thereby forcing the judge to take action. These are substantial cost saving agreements which will take effect by May 1. In addition, our DIP financiers have signaled their willingness to discuss relaxing our covenants to get us through this war.

In contrast, things over at AA have reach a fever pitch. The employees there are so furious over the proposed cuts, their union, the TWU, has halted the voting for concessions and even made the outrageous claim that they are doing so because they are unclear as to what they agreed to. These guys sound like a bunch of politicians trying to run for cover. AA is not only facing the war without any labor cost reductions, they will soon face a major competitor with a significantly lower cost advantage at the same time.

While AA is still contending with it's employees over labor costs, we will be implementing ours. That is the story of United.

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