Fodor's Travel Talk Forums - United Airlines Chapter 11

Fodor's Travel Talk Forums (https://www.fodors.com/community/)

- Europe (https://www.fodors.com/community/europe/)

- - United Airlines Chapter 11 (https://www.fodors.com/community/europe/united-airlines-chapter-11-a-278633/)

United Airlines Chapter 11

Hi to everyone: I don't know if this is the first post on this subject, but I am a member of United's Mileage Plus program and just received an email from United's CEO announcing they have decided to file for Chapter 11 so the airline could reorganize. The email stressed that all existing services, including mileage accrual and redemption, will continue. I am sure we will see some major changes in United's flights in the future, with severe curtailment on some routes. I hope for the sake of maintaining competion, United can do what Continental has successfully accomplished. It would be a los to all of us travelers if United "goes away". Chet

I am all in favor of providing moral and vocal support for United to survive financially, and to continue to operate. But I wince for all the owner employees of United airlines whose stock holdings now have zero value. And I cannot imagine how terrible it must feel, to know that the FF mile accounts of its customers are preserved while the value of shares in the company are not.

John, the value of my company's shares are now just above a dollar, making my stock holdings practically worthless. Its the risk you take when you deal with stock. We still have to take care of our customers though. That's the only way that the stock is ever going to increase in value. I believe that's what United is trying to do by preserving the Frequent Flyer program.

Oh, I thought that with bankruptcy that the value of common stock immediately (or soon) goes to zero. Or do the employee owners have preferred stock or something? Are they "in line" ahead of other creditors?

Hooray! Good news for travellers! Yet another state subsidised behemoth goes to the wall. So far this has meant dramatically lower prices within Europe. I am sorry if some have lost money - perhaps they should try working for a living.I can't afford to subsidise them.

United has always treated its employees very badly. And if you don't consider standing on your feet for 8 hours a day facing customers who tell you "United deserved to go bankrupt" and having to smile and treat them like prized customers you don't know what work is. Being on psychatric drugs for depression helps some. I have not had a raise in 10 yrs. and now the place where my money went without my consent (stocks) are worthless. Funny that the big guys at the top of the ladder could cash thiers in but I must wait until I retire to cash mine in which will never happen. Sounds like Enron to me. But no governmet investigation of that. Basically the government just ignores the situation. Do not be surpirsed to see other big airlines in bankruptcy soon. The fund to help the airlines was not used for that purpose but a report on TV said that it was used to fund UPS and other companies who do not need it. Thank you George W. Bush. The election is only two years away.

I had a talk with a family member, a United officail, who's been with the company many years, about a month ago. He tlod me then, that the company will file for chapter 11, there was no doubt about it. I asked him "what about all those Milage Plus customers?" he said not to worry, the company will honor every single mile. The ONLY parties to be worried are United's suppliers and vendors. Of course, employees will see some changes too. Of course, United will have to trim its business, cancel some routes, get rid of some aircraft. But whoever has a United ticket should not worry, though some flights may change. Any FF should not worry about losing their milage. After all United is not going to vanish. It has HUGE assets. It simply takes the time noe to REORGANIZE, become more efficient, come out of it much stronger and healthier.

How'd I know this would break down into a political arguement? I want UAL to keep flying, and I sympathize with the employees. But here is some more information from the financial pages. UAL is considered to have the hightest costs in the industry, primarily labor costs. This does not mean that the personnel are paid too much. It means in this case that the work rules have become more liberal than the other airlines. We are told that senior flight attendents have 8 - 10 weeks of paid vacation per year, while senior pilots fly only 80 hours per month. The railroads used to refer to this as feather bedding. I do not begrudge a pilot his pay, and flight attendents and counter people work very hard and have to put up with a lot of crap from - us (who, me?). But maybe there is some room for them to move to make their airline more competitive. Since 1994, the last "crisis", there have been 3 labor representatives on UAL's Board of Directors. Is the fox in charge of the hen house? I do not want my tax dollars going to help out an industry if I believe some one is getting a free ride. (My friend, a United retiree, flew rt to Thailand, first class, no charge.) Sorry, "ME" and all the other UAL'ers. I really do hope you can keep things going. Lets not jump on Bush, or management or labor. This is an industry problem, and I hope they can come together and solve. We want, I think, safe airlines, competitive prices, and company's to be profitable. We just have to find the way. It will take all of them. Oh, yeah, and if they discontinue FF mile programs, I won't like it, but I understand.

United Airlines stops flying on December 31st. Book your ticket on Continental Airlines. Gordo . . . . . just kidding

..... and I have a feeling the one who'll stop flying first -- will be Continental.

I wanted to read this thread from the beginning, but I can't find Chapters 1 thru 10.

< Faltering airlines affects other industries. Due to United's bkcy and American's cutback's, this may impact expansion plans for Chicago's O'Hare airport. http://www.cnn.com/2002/TRAVEL/12/12/ohare.expansion.ap/index.html