It never fails to happen. I'm in the last throes of putting together an issue of PlaneBusiness Banter and a piece of news comes into the email box, or comes over the telephone that is so totally distracting that it then makes it very difficult to finish the issue at hand.
Today was one of those days.
The piece of news? That United Airlines has received the okay from some of its debt holders to essentially "give away" $250 million to shareholders in the form of a "special dividend." But wait, it gets better.
This is just the first giveaway. The airline has authorization to "give away" another $250 million.
I really don't have the words to describe how absolutely horrific I think this news is.
With United Airlines, you have an airline management team that enriched itself after an extended stay in bankruptcy at a level that far exceeded anything else ever seen before in this industry. Essentially the same management team that took the airline into bankruptcy in the first place.
Now that same management team -- the same one that also convinced a tottering bankruptcy judge and the PBGC that it was incapable of paying its pension obligations -- that same management team is going to give away $250 million to its shareholders.
And not a dime to its employees.
Oh, it is not that I am not aware of "why" the airline has chosen to do this. But I guess I just never thought they would actually do it.
All I can say tonight to the management team at United is this -- good luck.
Good luck getting your employees to do anything -- anything -- above and beyond what is minimally required of them.
Good luck in expecting those same employees to provide the level of service that you keep saying is going to be part of your "premium product offering."
Good luck in attracting any of the best and the brightest in this industry who might be considering a position with your company.
Good luck in your misguided efforts to "maximize shareholder value."
Last time I looked, the airline industry is still, no matter what CEO Glenn Tilton or CFO Jake Brace, or the Board of Directors at United Airlines seem to believe -- a service industry.
But if these people think that providing the best passenger service can ever be a possibility after this latest slap in the face to every United Airlines' employee -- they are solely mistaken.
United management -- you've made your decision.
United shareholders -- I hope you enjoy your $2 and change dividend.
United employees -- good luck.
Ticker: (Nasdaq:UAUA)
Technorati Tags: airline industry news, airline stocks, airline unions, airlines, United Airlines, wall street
Posted by Holly at 05:40 PM | Permalink | Comments (0)
Today was one of those days.
The piece of news? That United Airlines has received the okay from some of its debt holders to essentially "give away" $250 million to shareholders in the form of a "special dividend." But wait, it gets better.
This is just the first giveaway. The airline has authorization to "give away" another $250 million.
I really don't have the words to describe how absolutely horrific I think this news is.
With United Airlines, you have an airline management team that enriched itself after an extended stay in bankruptcy at a level that far exceeded anything else ever seen before in this industry. Essentially the same management team that took the airline into bankruptcy in the first place.
Now that same management team -- the same one that also convinced a tottering bankruptcy judge and the PBGC that it was incapable of paying its pension obligations -- that same management team is going to give away $250 million to its shareholders.
And not a dime to its employees.
Oh, it is not that I am not aware of "why" the airline has chosen to do this. But I guess I just never thought they would actually do it.
All I can say tonight to the management team at United is this -- good luck.
Good luck getting your employees to do anything -- anything -- above and beyond what is minimally required of them.
Good luck in expecting those same employees to provide the level of service that you keep saying is going to be part of your "premium product offering."
Good luck in attracting any of the best and the brightest in this industry who might be considering a position with your company.
Good luck in your misguided efforts to "maximize shareholder value."
Last time I looked, the airline industry is still, no matter what CEO Glenn Tilton or CFO Jake Brace, or the Board of Directors at United Airlines seem to believe -- a service industry.
But if these people think that providing the best passenger service can ever be a possibility after this latest slap in the face to every United Airlines' employee -- they are solely mistaken.
United management -- you've made your decision.
United shareholders -- I hope you enjoy your $2 and change dividend.
United employees -- good luck.
Ticker: (Nasdaq:UAUA)
Technorati Tags: airline industry news, airline stocks, airline unions, airlines, United Airlines, wall street
Posted by Holly at 05:40 PM | Permalink | Comments (0)
)
