Jumpseatnews.com - United Airlines flight attendant resources

Home > News > Discusses business plan and calls for action to contact the ATSB.

Discusses business plan and calls for action to contact the ATSB.

print
Source: Larry De Shon

Date: Oct 25, 2002

Welcome to this week’s FLT-LINE message. This is Larry De Shon and today is Friday, October 25th.

I have an urgent message for you today, which requires your immediate attention. Over the last several months, I’ve had an opportunity to speak with Onboard Service employees around the system. I’ve also talked with retirees and members of Clipped Wings. In all cases, you’ve asked… what can I do to ensure the future success of United? And, how can I make a difference? Today, I have a definitive answer!

By now you’ve heard that United has filed an updated business plan with the Airline Transportation Stabilization Board (ATSB). As you know, we applied to the ATSB for a federal loan guarantee of $1.8 billion to meet our current liquidity needs.

Already, our competitors are trying to influence the ATSB to reject our loan guarantee application. Our competitors – arguing to anyone who will listen – believe that the loan guarantee will somehow give United an unfair advantage in the industry. They argue that we have not made the drastic  cuts that are necessary to survive. They believe that bankruptcy is the best solution for our financial situation. It’s obvious that they don’t want to compete with us, as we become a leaner and stronger airline.

Bankruptcy is absolutely the last course of action for our company! It is extremely unpredictable, and it is impossible to gauge how our service and our employees would be affected. Unfortunately, some people are listening to our competitors’ arguments.

In the October 23rd edition of the Chicago Tribune, an article was published that defies logic and is a personal attack. The attack is not just against our company, but against each and every employee, and their families, whose livelihood depends on the prosperity of this company. United is not some faceless enterprise. United’s all of us. When people attack United – they attack us, the people of this great company.

To paraphrase, the article stated that United did not deserve the federal loan guarantee. The article implied that we haven’t implemented cost-cutting changes and that our employees have not made sacrifices. In response to this attack, Glenn Tilton wrote a letter to the Tribune contradicting their statements. As proud members of the United family, all of us must take exception to the view that United should fail. Does it make you as angry as it makes me? We must take action and prove them wrong. Here are some facts that will help you understand our current position:

The updated business plan includes labor cost reductions over the next five and one half years, which are the historic agreement between management and the coalition of our six labor groups. At this point, we have moved beyond the coalition phase of the negotiations and now are negotiating bilateral contract amendments with the various unions.

In addition to labor cost reductions, our plan includes specific non-labor profit improvements of 1.4 billion dollars annually, and a process for developing an additional 400 million dollars in savings. All of the reductions will provide us with the ability to compete more effectively with our lower-cost competitors. Our business plan will give us the ability to compete vigorously in the changed marketplace; to be able to repay a $2 billion loan in five years; and to prosper into the future.

Over the past year, our company has implemented significant cost-cutting actions. We deferred delivery of 45 aircraft; we cut our schedule and capacity by 23 percent since the tragic events of Sept. 11, 2001; we furloughed 20,000 employees; we retired 99 Boeing 727 and 737-200 aircraft; and we completely restructured our schedule to increase flights to more profitable markets, including the significant actions taken earlier this week.  These are just a few of the critical steps we’ve taken to bring costs in line with revenues, while maintaining our high standards for reliability, safety and service.

Ladies and gentlemen, here are two ways in which you can help…

First… Engage our customers! Show them that United is worthy of obtaining the federal loan guarantee. With every action, demonstrate confidence that United will survive. Show customers that you care about them and the survival of our company. Let them know that all eighty thousand, dedicated United employees are pulling together to ensure their future travel needs are met despite the view of our competitors and some of the media. Ensure our customers fly United because of your exceptional service. Do every thing you can to ensure the next time they fly; they will want to fly with United and the best flight attendants in the industry.

Second… I need you to let the ATSB and the White House know that you are a real person who has a personal stake in our company’s success. Whether you are a flight attendant, division staff member, retiree or a Clipped Winger… you play an integral role in promoting our company. The ATSB and the White House need to hear that a federal loan guarantee is essential to the future of United, its employees and our loyal customers. Tell them that United is worthy of the loan guarantee. Tell them that we are in it for the long term! Prove the media and our competitors wrong – stand-up for United in solidarity and with pride.

The company is calling every United employee, past or present, to action. Write a letter to the ATSB board members and to President Bush that encourages approval of our loan application. Sample letters are available at all domiciles and can be downloaded from the Call to Action web site on SkyNet. Please fax your letter to DCAGV at (202) 296-2873 or drop it off at any domicile.

Time is of the essence! All letters need to be delivered by Monday, October 28th. I know this isn’t much time, but this is extremely important. I’ll sign off for now, as we’ve all got some work to do… Thank you for listening and I’ll talk to you next week.

< Return to Latest News


Printed from www.jumpseatnews.com. Have a nice day!
© 1999-2026 Jumpseatnews.com.  Meet Melvin.  Privacy.  Powered by Cocky.