JetClipper
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Slightly "tongue-in-cheek," slightly not.
How Much Longer Will Jake Last?
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JungleClone
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Too bad there wasn't a selection for "minutes" 🙄
However, in reality, I don't think Tilton will pull the plug on Brace or Slacker, errrrrrrrrrr Hacker. And that's truly unfortunate. United being turned down 3 times by the ATSB is an affirmation of Brace's failure as CFO. He has presided over the complete downfall of United's balance sheet. UA's Finance Department, the once vaunted WHQCJ, has turned into the Gang That Can't Shoot Straight. And Brace is the Ring Master. He's done NOTHING of substance for this company. He should have been ousted a long time ago, but for whatever reason, Tilton and the BOD don't view him to be a failure. They ought to just poll the workforce.
The clear fallout from United being caught looking for a fastball when the ATSB served up the 'ole curve, is that a new business plan and strategy are needed. Simply trimming labor costs and creating TED isn't going to cut it. A bit more creativity is going to be needed as I've been saying from the get-go. Like it or not, United Senior Mgmt will now have to re-visit the extremely ugly things they elected not to touch when we first filed for bankruptcy. This may finally bring the closing of the LAX hub, which has been analyzed for months. We may finally see the rolling hub concept brought to Chicago. Marginal mainline stations will most likely be candidates for UAX. Marginal UAX stations will most likely be candidates for closure. As an airline, we must simply get our cost structure down to levels that are competitive with JetBlue, Southwest, America West, Air Tran, and Frontier. Forget about AA, DL, NW and CO. Those aren't the carriers eating our lunch and our share. Their own day of reckoning is fast approaching.
I honestly think that the ATSB did United a favor. If they have merely caved in to political pressure and given us the loan, a year from now or sooner, we'd have ended up in the same predicament as US Airways. We have not cut enough. Remember, the goal is to create a cost structure that keeps us competitive and profitable even during down cycles in the Economy. We clearly have not done that. So as painful as it is going to be (and make no mistake about it, it's going to get very painful), the ATSB's decision will finally force United Senior Mgmt to wake up and actually come up with a winning business strategy. With any luck, that endeavors' first order of business will include sh-tcanning Jake the Snake and Slacker, and buying them a one-way ticket back to Business school.
However, in reality, I don't think Tilton will pull the plug on Brace or Slacker, errrrrrrrrrr Hacker. And that's truly unfortunate. United being turned down 3 times by the ATSB is an affirmation of Brace's failure as CFO. He has presided over the complete downfall of United's balance sheet. UA's Finance Department, the once vaunted WHQCJ, has turned into the Gang That Can't Shoot Straight. And Brace is the Ring Master. He's done NOTHING of substance for this company. He should have been ousted a long time ago, but for whatever reason, Tilton and the BOD don't view him to be a failure. They ought to just poll the workforce.
The clear fallout from United being caught looking for a fastball when the ATSB served up the 'ole curve, is that a new business plan and strategy are needed. Simply trimming labor costs and creating TED isn't going to cut it. A bit more creativity is going to be needed as I've been saying from the get-go. Like it or not, United Senior Mgmt will now have to re-visit the extremely ugly things they elected not to touch when we first filed for bankruptcy. This may finally bring the closing of the LAX hub, which has been analyzed for months. We may finally see the rolling hub concept brought to Chicago. Marginal mainline stations will most likely be candidates for UAX. Marginal UAX stations will most likely be candidates for closure. As an airline, we must simply get our cost structure down to levels that are competitive with JetBlue, Southwest, America West, Air Tran, and Frontier. Forget about AA, DL, NW and CO. Those aren't the carriers eating our lunch and our share. Their own day of reckoning is fast approaching.
I honestly think that the ATSB did United a favor. If they have merely caved in to political pressure and given us the loan, a year from now or sooner, we'd have ended up in the same predicament as US Airways. We have not cut enough. Remember, the goal is to create a cost structure that keeps us competitive and profitable even during down cycles in the Economy. We clearly have not done that. So as painful as it is going to be (and make no mistake about it, it's going to get very painful), the ATSB's decision will finally force United Senior Mgmt to wake up and actually come up with a winning business strategy. With any luck, that endeavors' first order of business will include sh-tcanning Jake the Snake and Slacker, and buying them a one-way ticket back to Business school.
whatkindoffreshhell
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Hmmmm, "the gang that can't shoot straight" -- familiar words from a voice from the past!
WorldTraveler
Corn Field
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UAL will not fire Jake because no one else will take the job without being paid a fortune, something UAL cannot do because it will alienate labor.
The best course for UAL is to tie Jake up in a corner and hire a secret team of financial consultants to guide UAL through the remainder bankruptcy. The consultant fees can be buried in the myriad of professional fees which UAL is already paying for restructuring and a real finance chief can be hired when/if the clouds give way to clearer skies.
The best course for UAL is to tie Jake up in a corner and hire a secret team of financial consultants to guide UAL through the remainder bankruptcy. The consultant fees can be buried in the myriad of professional fees which UAL is already paying for restructuring and a real finance chief can be hired when/if the clouds give way to clearer skies.
World Traveller,WorldTraveler said:
With all due respect, UAL has been paying millions every month for these top-flight financial consultants. The fact of the matter is that they pursued a strategy that failed (ATSB). We can all sit here with 20/20 hindsight and say it was a bad strategy but really it wasn't, it just simply didn't work out. Had UAL received the guarantee from the second application upon exit from BK, I believe they would have had the "fire power" to run a couple of LCCs and weak legacy carriers out of business similar to the scenerio with AWA running National out of business with their ATSB guarantee, except on a grand scale. You probably won't be able to find any smarter financial consultants, moreover you will find ones that will pursue the last remaining options available. In other words they won't have to be that smart, at least on a strategic level, and I think even Brace will be able to handle that.
blueskies4ever
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UAL will not fire Jake because no one else will take the job without being paid a fortune, something UAL cannot do because it will alienate labor.
skies.
Alienate labor ?? What are you talking about ? Do you work at UAL ?
Nobody in labor gives a damn if he goes.
skies.
Alienate labor ?? What are you talking about ? Do you work at UAL ?
Nobody in labor gives a damn if he goes.
JungleClone
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Believe me, UAL could find plenty of quality candidates for a job like CFO. With Brace and Slacker as your benchmarks, could you do much worse? And it won't take a fortune to do it. It'll just take what it always takes: a well-structured compensation package. If you want talent, you've got to pay for it. And paying for it means what the market will bear, like it or not.
WorldTraveler
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Are United's unions willing to allow the company to pay big money to acquire the people to turn the company around?
And C54,
I don't really think UAL got its money's worth from all of those strategy consultants. McKinsey's well-circulated strategy paper for UAL was, well, pathetic; it offered nothing insightful or revolutionary - which is exactly what United needs. Further, consultants are famous for recommending exactly what management wants to believe. The ATSB strategy was flawed from the beginning; UAL spent way too long focused on the loan while failing to take the radical steps necessary to restructure the business and not just cut costs.
And C54,
I don't really think UAL got its money's worth from all of those strategy consultants. McKinsey's well-circulated strategy paper for UAL was, well, pathetic; it offered nothing insightful or revolutionary - which is exactly what United needs. Further, consultants are famous for recommending exactly what management wants to believe. The ATSB strategy was flawed from the beginning; UAL spent way too long focused on the loan while failing to take the radical steps necessary to restructure the business and not just cut costs.
