United To Relocate World HQ?

[JungleClone]

JAMAKE1,

Sadly, this UA management is about doing nothing to set themselves apart from the pack. They picked all the low-hanging fruit in Chapter 11 in terms of reducing costs. What have they done to substantially trim the fat? Do you know how much waste there is in the middle management ranks at WHQ? Directors and Managing Directors everywhere. And the mere fact that Jake Brace is still employed tells me all I need to know about Glenn Tilton's leadership ability. Whether you are willing to admit it or not, this current UA Leadership Team is not the group that will lead this airline into the future. They're incapable of doing it. Once Glenn is successful in shopping a UA consolidation with someone (CO? DL?), he will ride off into the sunset with his millions. He was hired to steer UA through a successful bankruptcy reorganization. That mission is now complete. He hasn't the desire to run UA for the long haul.

 

[The Gopher]

He was hired to steer UA through a successful bankruptcy reorganization. That mission is now complete. He hasn't the desire to run UA for the long haul.

Considering that the "Top 400" got their stock options that vest over five years, that's a longer event horizon than many companies, and certainly longer than most airlines. That long vesting schedule keeps UA out of a second CH 11 in my view, as their worth would be eliminated if that were to happen.

Second, I have heard rumors of the following depts going downtown:

• Planning (VP Greg Taylor's group)
• Marketing
• PR
• Legal

I'm sure we'll hear more in the weeks ahead.

 

[JungleClone]

It would certainly be no surprise if Planning and Marketing move downtown to the new UA Taj Mahal on Wacker. Those two departments are usually located wherever the executives are. I just don't understand the necessity of moving. If the whole point is to consolidate facilities, you're still branching off part of your HQ into ANOTHER facility. And think of the message it sends that only the top 350 managers are moving. This will allow them to further isolate themselves from the actual workers.

Short of consolidating everyone into 1 new facility, I don't see the point of this move. However, I'm sure it comes with a nice phat quid pro quo. In other words, I'm sure UA is getting a sweet deal on this move. And I wouldn't be surprised if it also resulted in a reduction in the Jet-A tax that is levied by the City of Chicago on UA.

Maybe once Glenn and Jake and the boys get settled into their nice new, luxurious offices, maybe then they can actually put together a solid plan for UA to make money consistently.

 

[dc3fanatic]

It would certainly be no surprise if Planning and Marketing move downtown to the new UA Taj Mahal on Wacker. Those two departments are usually located wherever the executives are. I just don't understand the necessity of moving. If the whole point is to consolidate facilities, you're still branching off part of your HQ into ANOTHER facility. And think of the message it sends that only the top 350 managers are moving. This will allow them to further isolate themselves from the actual workers.

Short of consolidating everyone into 1 new facility, I don't see the point of this move. However, I'm sure it comes with a nice phat quid pro quo. In other words, I'm sure UA is getting a sweet deal on this move. And I wouldn't be surprised if it also resulted in a reduction in the Jet-A tax that is levied by the City of Chicago on UA.

Maybe once Glenn and Jake and the boys get settled into their nice new, luxurious offices, maybe then they can actually put together a solid plan for UA to make money consistently.

They are making the move because they negotiated a deal that makes financial sense to the company.

 

[novaqt]

Sometimes it makes sense to relocate and get rent concessions over time plus up-to-date build outs thrown in and don't forget the benies being thrown in by the State of Illinois. Staying in Elk Grove Village building apparently was costing too much in taxes, building costs, etc. So why not move to better quarters for alot less expense over years. The old building will be utilized for other company operations which in turn will release these operations from rents elsewhere. United receives tax incentives by doing this. You have to sit down and crunch the numbers to see why it is actually better to move to newer quarters than to stay in the old one. It actually saves United money over time.

 

[whatkindoffreshhell]

How will this new HQ improve the customer experience and sell more tix?

Also, how do Glenn/Jake expect the pension-poor employees to react?

I don't care how Brace twists the stats to show this is a cash-positive move. C'mon, they are cutting 1,000 employees but still need a cushier office? A $15-20 mil budget?

:mf_boff: without the lube

 

[phasersonstun2]

Wherever CO's HQ is, that'swhere the new UAL (soon to be CO) will be. Heard it from a source WAY up there at CO.

 

[JungleClone]

I'm sorry. You can justify it all you want, but I have a HUGE problem with relocating only your top 300 managers/execs to a new building. What is the benefit, other than isolating themselves from further scrutiny by the people who actually do the work at WHQ? This was nothing more than corporate blackmail in order for UA to get some sweet tax breaks, especially on ORD fuel. UA's senior management team wants to be accountable to no one, except the quid pro quo Board of Directors who don't have enough backbone to fill a thimble.

 

[dc3fanatic]

How will this new HQ improve the customer experience and sell more tix?

Also, how do Glenn/Jake expect the pension-poor employees to react?

I don't care how Brace twists the stats to show this is a cash-positive move. C'mon, they are cutting 1,000 employees but still need a cushier office? A $15-20 mil budget?

:mf_boff: without the lube

WHQ is running out of room due to consolidation. You malcontents love to poke holes in every good moves mgmt makes.

You do this move, you save money through fuel concessions and other icentives offered by the city.

net net, it's a good move. Why is that so hard for everyone to get?

 

[casual rat]

It's hard for some to understand because the current UAL Management has made some questionable moves in the past and continue to do so. Moving to Wacker may be a good decision on their part. It's hard to trust in a Leadership who walks away from their obligations to retired employees. A Leadership who states that it searches for revenue growth, but loses revenue by reducing its costs. And finally, a Management group who dramatically benefits monetarily outside of everyone else associated with the Company's success. Mistrust makes them hard to understand...