Lorenzo's puppet back in this industry?

Tim Nelson

Veteran
Jan 5, 2003
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Bartlett
www.usaviation.com
Alpa lec response to new united hires. Sito from iam chose to stand down by not going public and most likely voted as a bod member. At least alpa opposed the Lorenzo(ite), below:

In the case of Andrew Levy, management has failed to disclose all of his work history. The following facts should not have been left off his resume:

· Andrew Levy was Mr. Frank Lorenzos right-hand man at Savoy Capital. Yes, that Frank Lorenzo, the one permanently banned from the airline industry. 


· Levy worked for ValuJet in 1996 when one of their planes crashed in the everglades killing 110 people. The underlying cause of the accident was blatant disregard for safety regulations due to cost cutting. Levys department was in the crosshairs of the investigation. 


· Levy possesses neither a CPA nor an MBA. Common sense would require them. 


· Allegiant is an ultra-low-cost operation, similar to ValuJet. The absence of an accident does not mean the presence of safety. 


· Levy has never worked for a large airline before. United Airlines is nearly 20 times the size of Allegiant with a different, far more complex business model. 


· After his departure from Allegiant in 2014, Allegiant came under federal scrutiny for suspicious financial dealings. 


As you can see, there are reasons to be concerned about the appointment of Andrew Levy. CEO Oscar Munoz assured us that, after a top-down review of the organization, there would be changes. We welcome change but strongly oppose the appointment of Levy; he is underqualified and is tainted by Lorenzo, ValuJet, and Allegiant. 


Our concern with the appointment of Julia Haywood is less about her resume and more to do with the recommendations Boston Consulting Group (BCG) gave United under her leadership. The BCG recommended we start wholesale shrinking the airline to cut costs. They advocated we close the Los Angeles and Washington, D.C., hubs (and perhaps others) and take other draconian measures to close the cost gap between Delta and us. Everyone knows that in the airline industry, you cannot shrink your way to profitability. This is especially true during robust profitable years, as we currently experience. The failure of Haywoods BCG to see the big picture is troubling. Their report was myopic, failing to identify the importance of closing the capacity gap with Delta, improving the operation, and the true value of hubs in LA and DC. 


In summary, we are disappointed in the selection of both Andrew Levy and Julia Haywood. We wish them the best, but their track records do not sit well with us.
 
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I do wish people would do a little bit of math when they come up with these great spin jobs....
 
· Andrew Levy was Mr. Frank Lorenzos right-hand man at Savoy Capital. Yes, that Frank Lorenzo, the one permanently banned from the airline industry. 


· Levy worked for ValuJet in 1996 when one of their planes crashed in the everglades killing 110 people. The underlying cause of the accident was blatant disregard for safety regulations due to cost cutting. Levys department was in the crosshairs of the investigation. 

Levy is 46. He was 24 when he went to work for Valujet, 26 when he went to work for Savoy, and was 28 when he left Savoy.

I really don't think a 28 year old would have been Lorenzo's right-hand man at Savoy.

Nor would I hold a 26 year old responsible for the decisions made at Valujet. There were people far more experienced and culpable for the decisions made there.
 
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