United Airlines and Flight Attendants Reach Tentative Agreement on Contract Concessions To Avoid Ban

[UAL777flyer]

DCT JVL,

Try to keep in mind that the only barometer with which to measure whether Senior Mgmt's initial cost cutting requests were unreasonable is an approved ATSB loan guarantee application. It's still anyone's guess whether the cost cuts that we've gotten will be enough in their eyes.

 

[sumsonic]

767jetz,

I have to agree with you. Tilton has to know, or much more than we, what the ATSB is asking for. There is no way we pulled the 5.8 number out of our a$$. There had to be some discussion over that with the folks in D.C.

 

[UAL777flyer]

767jetz,

I should have been more clear. Given the continually weakening industry revenue picture, there is reason to believe that if things continue to worsen, our cost cuts won't be viewed as enough in the ATSB's eyes. US Airways is currently faced with that situation. Remember, the stipulation to the ATSB loan guarantee is the ability to generate a 7% profit margin by the end of the loan. As the industry revenue picture further deteriorates, it puts pressure on our revenue forecasts that go into our ATSB business model. That is what I was getting at.

I agree that Tilton is smart. I have nothing but the utmost respect for the man. I honestly think he's going to turn this airline on its' ear and surprise people with the changes that are coming.

 

[767jetz]

[blockquote]
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On 11/12/2002 1:08:53 PM UAL777flyer wrote:

DCT JVL,

It's still anyone's guess whether the cost cuts that we've gotten will be enough in their eyes.
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[/blockquote]

UAL777flyer,

I disagree. I think there is a reason the # ended up at $5.8B over 5&1/2 years. As you've stated before, Tilton is a smart guy. At this point I think he has a good idea of what they want, and wouldn't waste time going to the ATSB with a proposal that didn't have an excellent chance of being approved. If we can get everyone on board, I think he will have the tools and leverage to pull it off and avoid the courts. It has become obvious that CH11 is not what he came here to accomplish.