Oh lord! Here comes the CH7 dog and pony show again. Since I don''t have much time here is the short version:
1. If you read the press release you will see that this was for the month of April (war and SARS). You will also see that Brace said that those events dragged down our numbers, and that things are now improving.
2. Cost cuts are now taking effect. THESE WERE NOT IN EFFECT IN APRIL. The pay cuts were but not the productivity changes. Speaking from a pilot''s point of view, we have taken additional pay cuts since April in the form of commom 747/777 and 737/A320 pay rates. I should know, I have the paycheck and dismal schedule to prove it.
We have also reduced A/C lease rates which were not reflected for April, and we continue to reduce costs in all areas. This is an ongoing process which will take several months to complete. You can''t take a company the size of UAL in this economy and suddenly make it profitable.
3. Despite what many think, Glen Tilton does know what he is doing. People may not like every decision that he makes, but the man is extremely competent. Now that the cost cutting measures are in place he is turning his attention to restructuring management. Examples of this are the hiring of the gentleman from ATA (I forget his name), and the addition of the dean of Northwestern U''s Kellogg School of Management to our BOD. My personal opinion is that he is lining up an all-star team.
I''m sure this post will attract the usual crowd of doom-and-gloomers, but the simple fact is that United is going to survive.