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Extension of DIP financing and needing to use the ladies room.

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Source: Jane Allen

Date: Nov 19, 2004

I'll begin by updating you on a number of things happening in bankruptcy court today. The judge granted our motions to amend our DIP financing and extend the exclusivity period through January 31. This provides us with substantial financial and business stability and flexibility as we focus on additional cost savings and the 1113 process. The judge also ruled on the company's 1113 (c) scheduling motion. He ruled that, in the event the company and any of its unions do not reach consensual agreements on proposed contract changes, he will begin a hearing on January 7 to determine the matter. The judge told the parties that, if he can, he will issue a ruling from the bench at the conclusion of that trial. If not, he will rule on or before the January 21 omnibus hearing. Of course, we hope to avoid any trial on 1113 (c) by reaching consensual agreements with all of our union-represented groups.

Last week I met with employees in our London domicile and on Monday I visited O'Hare. I appreciate the hospitality extended at both locations, as well as the opportunity to hear from many of you during my town hall meetings. I also understand that a comment I made at the O'Hare caused some concern. Let me explain.

The session went long, and a few minutes before 1:00pm I said I needed to break since I had been on my feet since 9:30am and needed to break to use the ladies room. I don't think everyone in the room heard the last part of my comment. Obviously, my choice of words was poor -- especially since I appreciate how long our flight attendants are on their feet when they are working. When I say I appreciate your hard work and the great job you are doing for our customer, I sincerely mean it.

Despite this, I believe both the Chicago and London meetings were very good. I continue to be impressed with your understanding of the business, your courage to ask tough questions and your willingness to listen to the answers. I know that what is happening in our company affects everyone very deeply. I understand your emotion and concern surrounding our current situation. But accompanying that is your extraordinary determination and your resolve to do everything within your control to ensure United's long-term success. That attitude is what sets us apart from our competition. Our Marketrak ratings are a tangible sign that you are focused on the customer.

Once again, our October ratings for customer satisfaction are excellent. We achieved a definite intent to repurchase rating of 39.2, which is just above our fourth-quarter Success-Sharing goal of 38.6. Onboard employees contributed to that effort by delivering the highest October flight attendant rating since we've been keeping records. We also had record-setting meal ratings, with the highest rated October since 1998. That's excellent work, and you accomplished it in the face of record load factors and many distractions. Thank you to everyone for continuing to provide the kind of service that makes customers say they will choose United again the next time they fly.

On a related topic, your collective efforts are made up of individual actions that generate customer loyalty. Randy Loveland, district sales manager for United was so impressed with this Denver-based crew that he felt compelled to share his experience with me.

"Wayne Hickey, Donna Wolford and Cindy Hamilton were all upbeat, warm, caring and professional. Every customer was greeted with a smile and welcoming comment as they boarded. They assisted in the cabin helping customers stow bags. Wayne gave perhaps the finest exit-row instructions I've ever heard.

When Donna learned that I was a district sales manager, she relayed a story about an influential customer who has been avoiding United since the summer of 2000. Donna has stayed in touch via email with this gentleman's wife, who still prefers flying United. She asked me to contact the customer and encourage him to come back to United. Donna cares enough about United and our customers and their perceptions of United that she is still looking for ways to turn this customer around - four years later. "

I want to thank Wayne, Donna and Cindy for leaving Randy with such a memorable experience. Great work.

That's all for today. Take care of yourselves and have a good weekend.

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