Today, United Airlines filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code.
Reorganization under Chapter 11 is the only way at this point to build on what we’ve accomplished, to secure United’s long-term future and to ensure that United can continue to meet the needs of our customers while remaining a major player in the global airline industry.
Chapter 11 is specifically designed to provide United with protection from creditors so that we can focus on our customers and begin to implement a long-term plan to create a more competitive and successful United.
It is important for our employees, our customers, and our business associates outside of the United States to know that Chapter 11 is not equivalent to bankruptcy in many other countries, where the term is often synonymous with liquidation. Filing for Chapter 11 protection does not mean that United is going out of business. In fact, it means exactly the opposite.
We have taken immediate steps to minimize any potential impact of our Chapter 11 proceeding on our customers. Our flight operations will continue as usual in the U.S. and around the world. Customer programs such as Mileage Plus and Red Carpet Clubs will continue without interruption. All tickets will be honored and current refund and exchange policies remain in effect. Our Star Alliance and other code-sharing agreements will not be affected by our filing. United remains a major player in the global airline industry. We have built one of the strongest brands in the business. We have a hard-won reputation for safety and reliability and it is critical that we all do everything we can to maintain customers’ confidence in United.
I know that you are all worried about the implications of this filing on you personally and on your ability to do the job.
We have filed motions with the Court, which we expect to be approved immediately, to pay employee salaries, wages and benefits without interruption and through the normal process.
These motions cover a variety of other issues that enable United to continue to run its operations and provide service as usual, such as the payment to vendors for fuel, hotels, food service and other goods and services.
The success of our reorganization depends in large part on knowing and believing that we will emerge a better airline. That belief will help us all maintain a positive, confident attitude and do our jobs as professionally as always.
One of the most critical factors in emerging successfully from Chapter 11 will be our ability to remain focused on serving our customers every day.
We can get everything else right but if we don’t value every one of our customers, we don’t have a business. Our customers have choices and we need to ensure they choose to stay with United.
Importantly, our competitors will be watching us carefully during this time. Recently, they’ve made clear their opinions of our company and their intentions to take business from us. I think that they underestimate our people and I think they underestimate our resolve to get this company repositioned as the industry leader.
We must send an unmistakable signal in our actions every day that we will be out there competing for every customer – including theirs -- and operating at our best. I’m counting on everyone to do his or her best work. I believe in the future of this company and the idea that our best days are ahead.
I am confident that we will persevere and emerge from this process a stronger, better company and I am personally committed to communicating directly and often with you as we move through the process.
In the meantime, thank you for your personal commitment and for your support.
Keep your heads up and stay united.