This is for the two people left on Earth who don't already know how desperate Tilton is to bring off a merger and hit the UA lottery off the backs of the frontline workers because he doesn't have the necessary skills or leadership ability to run an airline....
United Airlines CEO mulls mergers, spinoffs
By Laura Mandaro, MarketWatch
Last Update: 5:50 PM ET Oct 5, 2007Print E-mail Subscribe to RSS Disable Live Quotes
SAN FRANCISCO (MarketWatch) -- United Airlines chief Glenn Tilton gave investors words to chew on over the weekend, saying the No. 2 U.S. carrier's five-year plan may include playing a role in industry mergers and new futures for its maintenance and mileage businesses.
Tilton, who is also CEO of United Airlines holding company UAL Corp., said Friday in a note to staff that the airline will invest about $4 billion over the next five years to "support improvements for customers and employees," and drive sales and efficiency gains.
The United Airlines CEO also highlighted its maintenance business and frequent flier miles program as two units on the table for future changes. Analysts have said a spinoff or outright sale of these businesses, which are not considered core operations, could be worth more as independent units than the entire company is valued by investors now.
"In addition to strengthening the performance of the airline, our plan also includes unlocking the value of business units such as United Services and Mileage Plus, and contemplates the eventual consolidation of the industry and United's role in that process," Tilton said in the memo.
Tilton has said previously the Chicago carrier's management would look at options for its United Airlines frequent-flier program. Bear Stearns analyst Frank Boroch in mid-August estimated United Airlines' Mileage Plus program could be worth $7.5 billion compared with the $5.5 billion market capitalization UAL lays claim to now.
And United Airlines has also said it will consider selling a stake in its maintenance organization, which maintains aircraft for its planes and those of other carriers.
The unit, called United Services, employs about 6,900 people, with its largest concentration of technicians, engineers and support staff in the San Francisco area.
The company's board last week met in San Francisco for its annual strategic board meeting, where it was expected to review these businesses.
Tilton on Friday said recent strong results have allowed the company to create a plan for the next half-decade that will "position us for success in an industry that has historically and consistently destroyed value for shareholders and stakeholders."
He said the company will direct is main efforts at "strengthening our core business, and that is where the vast majority of our work and effort will continue to be directed."
Shares rose 2.7% by the close of trading Friday, to $48.40.
Laura Mandaro is a reporter for MarketWatch in San Francisco.
United Airlines CEO mulls mergers, spinoffs
By Laura Mandaro, MarketWatch
Last Update: 5:50 PM ET Oct 5, 2007Print E-mail Subscribe to RSS Disable Live Quotes
SAN FRANCISCO (MarketWatch) -- United Airlines chief Glenn Tilton gave investors words to chew on over the weekend, saying the No. 2 U.S. carrier's five-year plan may include playing a role in industry mergers and new futures for its maintenance and mileage businesses.
Tilton, who is also CEO of United Airlines holding company UAL Corp., said Friday in a note to staff that the airline will invest about $4 billion over the next five years to "support improvements for customers and employees," and drive sales and efficiency gains.
The United Airlines CEO also highlighted its maintenance business and frequent flier miles program as two units on the table for future changes. Analysts have said a spinoff or outright sale of these businesses, which are not considered core operations, could be worth more as independent units than the entire company is valued by investors now.
"In addition to strengthening the performance of the airline, our plan also includes unlocking the value of business units such as United Services and Mileage Plus, and contemplates the eventual consolidation of the industry and United's role in that process," Tilton said in the memo.
Tilton has said previously the Chicago carrier's management would look at options for its United Airlines frequent-flier program. Bear Stearns analyst Frank Boroch in mid-August estimated United Airlines' Mileage Plus program could be worth $7.5 billion compared with the $5.5 billion market capitalization UAL lays claim to now.
And United Airlines has also said it will consider selling a stake in its maintenance organization, which maintains aircraft for its planes and those of other carriers.
The unit, called United Services, employs about 6,900 people, with its largest concentration of technicians, engineers and support staff in the San Francisco area.
The company's board last week met in San Francisco for its annual strategic board meeting, where it was expected to review these businesses.
Tilton on Friday said recent strong results have allowed the company to create a plan for the next half-decade that will "position us for success in an industry that has historically and consistently destroyed value for shareholders and stakeholders."
He said the company will direct is main efforts at "strengthening our core business, and that is where the vast majority of our work and effort will continue to be directed."
Shares rose 2.7% by the close of trading Friday, to $48.40.
Laura Mandaro is a reporter for MarketWatch in San Francisco.
