United Airlines has confirmed that it plans to set up a low cost carrier as part of its restructuring strategy, but the news has set it on a collision course with its pilots.
The Airline Pilots Association says United appears to be proposing a break-up of the airline and they will oppose the moves.
United, now in bankruptcy protection, sees the creation of a low cost unit as vital to its prospects. “The task before us is to transform United into a successful and aggressive competitor for the long term for all customers and across all markets. We believe that a low-cost carrier, fully integrated into a global hub and spoke network for the first time, will be a critical and dynamic element in United’s future strength,” the company said in a statement.
Captain Paul Whiteford, Chairman of the United Master Executive Council of Air Line Pilots Association, International, accused the company of locking its pilots out of negotiations about the future since it filed for Chapter 11 Bankruptcy Protection in December.
“Instead, they appear to be proposing a plan to break-up United Airlines by giving United routes, aircraft and other assets to another company – with a whole set of new managers and employees,” he said. “If so, United’s management is now telling us to give up on United Airlines as we know it.
“We know that United has suffered stunning losses over the past two years and we agree that United must undergo a bold restructuring to become profitable and competitive. The United pilots are prepared to make the sacrifices necessary to make our company competitive and profitable in every market we serve, including the markets served by low cost carriers.”
“But,” said Captain Whiteford, “we will not let management break up the strongest asset base and route network in the airline industry. We will oppose management’s break-up plan by every lawful means available to us.”
United confirmed its intentions of entering the low cost sector only hours after the nation’s third largest carrier, Delta Air Lines, unveiled its own low fare operation, Song, which will fly between north-east US and Florida, starting in April.
http://news.airwise.com/display/story.html?name=2003/01/1043928856.html
By: mongu - 31st January 2003 at 19:44
RE: Pilots Condemn United Low Cost Plan
Something has to give. There aren’t really any lowcost airlines in the US. I know they have Southwest and Jetblue, but for a country that size it is nothing like enough.
By: KabirT - 31st January 2003 at 16:02
RE: Pilots Condemn United Low Cost Plan
Yes but it will be a sad site to see a monster being brought down to a harmless deer!
By: A330Crazy - 30th January 2003 at 19:10
RE: Pilots Condemn United Low Cost Plan
You’d think they’d be a little happier. I think that its a good idea for United to go low fare, it may improve theie chances of staying alive!
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January 30, 2003 at 3:48 pm