United conserving cash while angering both customers and employees

[jimntx]

What could possible go wrong?

Cranky Flyer's take on cash conservation moves at United.
https://crankyflier.com/2020/05/11/uniteds-short-sighted-efforts-to-preserve-cash-at-all-costs/

Observation by CF that requires some thought...
"If any airline comes out of this without filing for bankruptcy protection, it will be a victory." Link that to Boeing CEO prediction that at least one major airline will go under this year. Doesn't sound like Fall is going to be just college football and Thanksgiving.

 

[eolesen]

Keep in mind Brett's current business as a concierge for customers means he has to hear about it when his customers don't qualify for a refund, so he's probably looking at this thru a different lens than the average person because he's not able to help out as many people booked on UA as he can who are booked on AA or DL..

It's hard to blame UA for what's going on, and the employees I know aren't resentful for the situation. Let's see how that tune changes after the layoff decisions are made in July. Two of the people I know have already decided that the voluntary offer is better than uncertainty, so they're pulling their own plug on their own terms. I know a couple of others on the bubble, and at least one who already stumbled into a better job offer and left without waiting for the buyout to be announced. If involuntary layoffs are kept to a minimum, that resentment Brett talks about might be minimized.

 

[jimntx]

Good points. Wait and see is the watch word of the day. And the earlier that some get their name in the pot for current job openings, the better. In my 5 career work history, there were at least 2 changes that I knew I was not going to be retained in the shake-up, so why not wave a fond farewell and try another company? I just did it a little more extremely by effecting wildly different job changes (the jobs were so different it's why I considered them career changes. Example: last change was from senior systems analyst in a major oil company's IT department to a flight attendant at American Airlines.)

 

[truth 101]

Keep in mind Brett's current business as a concierge for customers means he has to hear about it when his customers don't qualify for a refund, so he's probably looking at this thru a different lens than the average person because he's not able to help out as many people booked on UA as he can who are booked on AA or DL..

It's hard to blame UA for what's going on, and the employees I know aren't resentful for the situation. Let's see how that tune changes after the layoff decisions are made in July. Two of the people I know have already decided that the voluntary offer is better than uncertainty, so they're pulling their own plug on their own terms. I know a couple of others on the bubble, and at least one who already stumbled into a better job offer and left without waiting for the buyout to be announced. If involuntary layoffs are kept to a minimum, that resentment Brett talks about might be minimized.

It’s not hard to blame ual at all, actually it’s quite easy!
31 year A/C mechanic! ESOP , pension. And more. I don’t forget I learn from it.

 

[Buck]

" UAL 30 year AMT’s are being offered $500 k " to leave?

 

[truth 101]

Brother I don’t know what medication you’re on but please don’t work on aircraft! 500k ?? Yeah right! lol

 

[eolesen]

There's no world I can imagine where it would make sense to do that versus following the contract and laying off by juniority.

Three to six months salary? Maybe. Not three to six years, though.

 

[truth 101]

The poster ( Buck) is the typical moron or escapee from a mental asylum! Ual offering anything decent not in the playbook! Managed by serious CROOKS that spend the first 10 minutes of a video or townhall congratulating each other! Freaking pathetic idiots!
Kirby crying is one for the ages! lol

 

[Kev3188]

Buck's a good guy. He phrased it in the form of a question.

You must be a lot of fun to share a Ready Room with.

 

[Buck]

The poster ( truth 101) is the typical moron or escapee from a mental asylum!

 

[Buck]

 

[eolesen]

The poster ( Buck) is the typical moron or escapee from a mental asylum! Ual offering anything decent not in the playbook! Managed by serious CROOKS that spend the first 10 minutes of a video or townhall congratulating each other! Freaking pathetic idiots!
Kirby crying is one for the ages! lol

Sounds like someone who needs to take the VSP that Buck posted.

 

[swamt]

" UAL 30 year AMT’s are being offered $500 k " to leave?

Maybe 50K. Not 500K.

I see no where in this offer that would lead anyone to an offer of 500K early out. Am I missing something?

 

[eolesen]

UA's been adamant about "no cash" and the offer Buck shared is pretty consistent with that. The only way there's a dollar amount is if you look at the value of the benefits being extended and whatever severance is called for by the contracts. Employee rates for insurance could easily be worth $15-20,000 a year compared to COBRA, and being paid for the "garden leave" might add up to $50K for some.

 

[swamt]

Now this is an interesting article that if I'm reading correctly is not good for United.
In this article it says that United's "passenger volumes" went from 6% up 12% for the mid April to mid May time period. Am I comprehending this correctly as Load Factor? Or does "passenger volume" also include any and all passengers including the non-revers?? If this is the case, these numbers are NOT good. I am reading where other airlines are already in the 35% LF range and increasing as move into June. Not sure where Delta is exactly on their LF but both SWA and AA are reporting right at the same LF's for April, May and bookings for June and July so far. Also with our leadership saying they expect LF to get close to if not at 50% by end of june and I think he said in hopes of reaching 2/3's + going into July and Aug. Still capping the middle seats off thru July, but also said expects regular flight schedules up to where we were at end of 2019 by the end of 2020.
It's hard for me to fathom United at only 6-12% right now...

https://www.yahoo.com/news/united-airlines-little-bit-less-152153639.html