Fyi

gatemech

Senior
Aug 24, 2002
361
6
www.usaviation.com
CHICAGO, May 24 (Reuters) - United Airlines Chief Operating Officer Pete McDonald on Monday said employee furloughs could not be ruled out given the high price of jet fuel.

Speaking to reporters at an event to launch Ted, the airline's low-fare unit, from Chicago, McDonald said the current jet fuel crisis was a significant issue. In a court document on Friday, United parent UAL Corp. (UALAQ) said its fuel costs for 2004 would be about $750 million more than originally planned.

McDonald added that while the company was not actively studying the furlough possibility, "there's always that potential."

Fuel prices are at record highs, and United is currently unhedged after having filed for bankruptcy in December 2002. McDonald likened the fuel crisis to last year's outbreak of Severe Acute Respiratory Syndrome, or SARS, and the Iraq war.

"It's got the same effect on us," he said.

United will continue to look for ways to cut costs to offset its jet fuel expense, McDonald added.
 
UAL is recalling voluntarily furloughed flight attendants earlier than expected. They are already running a skeleton staff on the pilot side. What employee group can they furlough from?

They just announced all that expansion to Mexico, Carribean, etc., starting in December. Unless they downsize other flying/routes, I just don't understand how they can cut any more.

Thoughts?
 
They're smoking crack if they think it's gonna come from the pilot side. Our reserves are timing out by the 3rd week of the month. They need to be recalling and not furloughing.
 
Lets see...Dumb...Dumber...and Dumbest

OK...try this....MONEY COMING IN vs. MONEY GOING OUT...It doesn't matter how many hours we work, how few people we have, how well we operate. Do the math, spend more than you take in and eventually it's all gone...unless you barrow more and pray that some day you make enough to pay it all back and still have some to operate on. And look at USAir for example, you will give till there is nothing left...and then YOU"LL find something to give. So shut up with the bravado or the empathetic I'm working with nothing mentality. If fuel costs don't change soon, like 750 million I didn't plan on and didn't include in my application to the ATSB soon, more people are leaving and those that stay are going to take significant concessions. It's not mean, vindictive, or spiteful...just plain ol' sorry assed economics. :angry:

Gee Fly, your right...still damn negative here :D
 
Relax gents. Fuel will come down later this year. Besides you think other airlines aren't feeling the crunch?
 
boeing787 said:
Relax gents. Fuel will come down later this year. Besides you think other airlines aren't feeling the crunch?
A large part of the run-up is do to speculative trading. you are correct, a burp in the Chinese economy, and you'll see oil at sub $28 a barrel.
 
I hope for many peoples sake that you gentlemen are right. Unfortunately, with the program I just saw on the news, someone might want to ask our good friends, the Saudis. They talk about stabilizing markets on one side, and do everything they can to maximize profits on the other. And I don't believe that they nor OPEC ever intend to benchmark crude at $25-$28 as they publicly suggest...translation....we're screwed...IMHO...but don't worry, as soon as I can figure out how we can fly on di-lithium crystals we'll be alright :D