Goodwin to Resign from United; Chapter 11 Soon?
Strong rumours out of Elk Grove suggest that James Goodwin will resign as CEO of United Airlines in the near future, possibly as soon as Monday.
This situation is not directly related to the events of September 11, but the fallout from those will leave United almost $1 billion in the red for Q3 alone. If insurance refuses to pay out (as has been hinted at), then UA could be bankrupted based on expectations of liability claims. Expect a Chapter 11 filing
from UAL as soon as those suits are filed and the insurance rumours confirmed.
My source also hints at large cuts in International routes, coupled with layoffs/furloughs for approximately 5-10% of the workforce. The plans for ORD-DEL nonstop service are dead in the water. Additionally, look for a wholesale grounding of some of the larger jets in a reduced schedule as soon as next week.
As far as succession goes, either Rono Dutta or Rick Dubinsky will take over the reigns in
the interim as the board seeks an outsider to step in. Favorites for the position include Greg Brenneman (ex-Continental) and Michelle Burns (CFO - Delta). Dubinsky would be an interesting choice based upon his background as ALPA MEC chairman, but he may be the only person who can extract the required massive concessions from labor.
Poor United. How fast the mighty have fallen.