Saudi PC,
Overall, I think that UAL as an Airline will not exist in five years.
I think that the salaries were not the reason for the troubles at UAL.....
It might surprise you, but there was a time when United pilots volunteered to fly *FREE* for one day a month. Management declined the offer.
And the salaries certainly won't be a problem with the ERP II
That there is much more going on than meets the eye with the transfer of flying to the Express carriers, both at my company and other US carriers as well.
Over 5 billion dollars was wasted by UAL Management in the last 3 years. The US AIR Merger, which was nothing but an attempt to pay "structure fees" to the CEO's of both companies for concluding the deal. Hundreds of millions of dollars were to be paid there.
The failed AVOLAR, a businessjet operation. Just folded up and tanked, and now the company is being sued for all the aircraft it ordered but will never buy. After the first cash assistance from the goverment after 911 UAL cut a check out of it to buy business jets.
I could go on and on, but UAL Corporation, as opposed to UAL Air Line, is transforming itself from operating an Airline to operating a Ticketing Agency, selling tickets for scheduled air travel on aircraft it does not operate, either thru the express operation or the Deathstar Alliance.
Notice I did not say aircraft owned, for United has provided the financing for Express Operators to buy RJ's and paid their crew training costs.
(You think I think the Deathstar Alliance is bad? Just do some research on what Oneworld has done to their pilot forces...Just a hint of things to come for the Deathstar pilots.)
Then there is the problem of stock. Many people have sold short, but the problem is that as an ESOP company, stock was lent to sell short that was not in existence. Right now the SEC is looking into this; search Yahoo business for United and short selling for the complete story.
There is no business plan at United, except to shrink until profitablility. That will not happen, as it did not at Pan Am and TWA. Eastern was a different story, with the upstreaming of cash to Continental and the subsequent looting of the airline.
Remember, there is a fundamental difference between UAL Corp and United Air Lines. United Air Lines is a subsidary of UAL Corp, who is calling the shots.
United could run a profitable airline, if they change from a Travel Agency to an airline. Imagine what would happen if we yanked first class out of all the narrowbodies, increased the seat pitch, utilized the aircraft ten hours a day, and charged $39.00 a seat for an hour flight.
Do you think the furloughed UAL pilots would fly at the same wages as SW or Jet Blue? You bet they would.....
There would be no more Southwest or Jet Blue. They could not compete with the economies of scale.