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United Airlines says it will lay off 950 pilots

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United Airlines says it will lay off 950 pilots

Old 23rd Jun 2008, 20:41
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United Airlines says it will lay off 950 pilots

Mon Jun 23, 2008 3:48pm EDT


CHICAGO (Reuters) - UAL Corp, parent of United Airlines, said on Monday it plans to lay off 950 of its pilots.

A UAL spokeswoman said the No. 2 U.S. carrier informed the employees of its intentions on Monday.

http://www.reuters.com/article/busin...rpc=23&sp=true

http://moneynews.newsmax.com/compani...23/106888.html
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Old 24th Jun 2008, 00:25
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What is wrong in the US, with that kneejerk laying off people.
Very sad to hear this; all the best of luck to all involved.
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Old 24th Jun 2008, 00:37
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what is the airline industry coming too?.
i guess it's been sad for many years.

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Old 24th Jun 2008, 02:33
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Red face

Subject: United Furlough Numbers


This is Keith Rimer, system chief pilot, with a message for United pilots on Monday, June 23.
We announced on June 4 that we would be removing a total of 100 aircraft from our mainline fleet in response to record high oil prices and a softening economy. These reductions will begin in September, continue through the end of 2008 and well into 2009. If you follow the industry, you know that other airlines are taking similar actions. At last count, U.S. network carriers had announced plans to remove nearly 300 mainline aircraft from their fleets by the end of 2009, in order to reduce industry capacity.
Reducing our schedule to get back on the path to profitability in light of dramatically higher fuel costs inevitably involves reducing the number of people we have to run the operation. Reductions in salaried and management staffs have already begun in a number of areas. In flight operations, layoffs of salaried and management employees are expected to begin in mid-July. In total, the number of salaried and management positions at United will be reduced by 1400-1600 people.
With regard to reductions in pilot manpower, our scheduling group is finalizing details of the initial round of reductions for the fall, beginning in September. As a result, we will begin the related process of distributing furlough notices. The first notices will go out in mid-July to furlough approximately 100 pilots for the September flying month. The furlough process will be facilitated through our domiciles and follow contractual procedures.
Overall, our fleet reduction plans include our entire fleet of 94 B737 aircraft as well as six B747s. This will take time to accomplish – well into 2009 before it is complete. We expect that, as we reduce our fleet by these 100 aircraft, we will furlough approximately 950 active pilots by the end of 2009. Due to the number of pilots on military and personal leaves, we currently anticipate that approximately 1450 furlough notices will be distributed over time in order to reduce our active pilot ranks by 950.
We have had ongoing discussions with ALPA concerning ways to mitigate the number of involuntary furloughs. The outcome of these discussions could reduce the number of involuntary furloughs.
As always, we will keep you informed as decisions are made that could affect you. We hope to have more detail on the furlough mitigation actions to share with you as soon as they are finalized with ALPA. Details on the first furloughs for the September flying month will be available in a few weeks. At the appropriate time, your domicile will work with you during this process.
Furloughs are an unfortunate and difficult reality of the airline industry. It's common to find long-tenured pilots who have been affected by furloughs in their careers. We plan to the best extent possible not to be in a situation that requires pilots to be furloughed. However, circumstances unforeseen just several months ago in the case of unprecedented fuel prices are now causing us to adjust our flying and related manpower. As we move forward through this process, we will treat everyone in a respectful manner, understanding the personal impacts that these actions can have.
Clearly, this is a difficult time for us to operate through. However, safety, of course, must remain first and foremost when we fly. While business decisions are being made in response to the circumstances we are faced with as a company, I know that, as pilots, you recognize the importance of a single focus in the cockpit.
Thank you.
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Old 24th Jun 2008, 08:18
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And how much $$$ are the top executives going to get?
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Old 24th Jun 2008, 08:26
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Irrelevant - executives are paid by returns to equity, not returns to the labour force.
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Old 24th Jun 2008, 09:36
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What is wrong in the US, with that kneejerk laying off people.
I'm afraid its not a kneejerk reaction. Oil prices are staying high and may well go higher, Demand from China and India will make up for any fall in the west. Indian has been paying $6 a gallon for Gas for several years and their economy is still growing at 8%. Both countries can afford to pay the current price for oil and higher it would seem.
The Gulf states are expanding their economies and can affords to use their own oil at any price. T Boone Pickens has said that thats it, oil supply has peaked.
The world is going to have a hard future.
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Old 24th Jun 2008, 09:47
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$9 per (USA) gallon in UK.
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Old 24th Jun 2008, 11:22
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migration

It seems like our folks will have to migrate overseas specially to Middle East and Asia.
Shenzen Air has received more than 200 applications just this month for its 737 fleet, Emirates over 500 in 2008.
CNN its just broacasting that Qantas pilots are on strike!
New world crisis on the way AGAIN?
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Old 24th Jun 2008, 11:34
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"In 10 years, we will have exported close to $10 trillion out of the country if we continue on the same basis we're going now. It is the greatest transfer of wealth in the history of mankind,"
http://moneynews.newsmax.com/streett...17/105212.html

****ed, we are.
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Old 24th Jun 2008, 13:15
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Not really. Oil may have peaked but it will be a gradual decrease. Politicians need to address these issues by straight talking. More nuclear power for starters, otherwise the prettiest countryside in the UK will be blighted by wind farms. Go with what works, go nuclear.
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Old 24th Jun 2008, 13:49
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"In 10 years, we will have exported close to $10 trillion out of the country if we continue on the same basis we're going now. It is the greatest transfer of wealth in the history of mankind,"
What rubbish. The oil is productively used (hopefully) to further generate profits and wealth of US companies. Does this commentator suppose that the US should not pay for resources it consumes in the business of wealth generation, or is he just plucking an extortionate-sounding figure from the air for political gain...?!
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Old 24th Jun 2008, 16:01
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What rubbish. The oil is productively used (hopefully) to further generate profits and wealth of US companies. Does this commentator suppose that the US should not pay for resources it consumes in the business of wealth generation, or is he just plucking an extortionate-sounding figure from the air for political gain...?!
T Boone Pickens is not just anybody http://en.wikipedia.org/wiki/T._Boone_Pickens,_Jr.. Your politics have nothing to do with it its a simple case of mathematics (he's a financial supporter of GW Bush if that matters).

Total current US expenditure on oil is $1.05 Trillion dollars per year (21million barrels per day), over ten years you get the 10Trillion dollar figure. Its about 7.6% of GDP.

US currently imports 13millions barrels per day. At $137 thats $650billion per year extracted from the US economy. US production is declining and demand increasing. US oil consumption per head of population is twice that of the EU countries.
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Old 24th Jun 2008, 18:04
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Irrelevant - executives are paid by returns to equity, not returns to the labour force.
LOL! Perhaps that's how it works in the UK re-heat, but not here. Quite the contrary- as UAL's equity has sunk to new lows, its executives have continued to award themselves larger and larger bonuses. It's good to be king...
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Old 24th Jun 2008, 18:47
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The only way I see it for the US economy to save it self is to become less dependent on outside oil. Take a look at europe.
- Build new nuclear powerplats instead of oil and gas
- Introduce E85 as a fuel to replace normal 95 and 98 octane fuel.
- Focus a lot on wind and wave power.
- Solarpower

Try flying over the neatherlands, denmark or sweden without seeing one single windpower generator... not happening =)

If they can reduce the amount of oil used by the normal population, the price of oil for aircrafts might drop...
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Old 24th Jun 2008, 21:33
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UAL

At one time 1988-90, This pioneer of aircraft construction and transportation decided to stretch out into rental cars and Hotels. Hertz and Hilton. At various times, this legacy carrier has had multi-tiered pay scales for identical work, hat requirements and various exercises in areas unrelated to its core business, originally A/C building, then transport when forced to divest of the building part.

Oil is part of the reason, but not the only one. Not the only aging fleet of midrange A/C, United has some 100 runout airframes, as does American.
What serendipity!! A reason that makes "sense" to the shareholders, furloughees, and other line staff. Don't need hundreds of pilots if clapped out Boeings are headed to D/M. Same MD-80.

Is UAL and its Board creating a new 100M slush fund for executive benefits, incentives and golf money? Standby. When the line had 10 managers in Flight Ops, it had dozens and dozens of "VP'S" SYSTEM WIDE.
She'll land on her feet. Not having to shell out 3.5B for new Boeings and sustain an overloaded staff works wonders for the available execapital to cushion the fall of those admins who had to worry until they came up with the perfect move (s). $6/share?? Hmmmmmm.......
 
Old 24th Jun 2008, 21:49
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Irrelevant - executives are paid by returns to equity, not returns to the labour force.
NoSoupForYou is correct which is the reason executives are the object of substantial scorn by employees in the US and Canada. But the statement is incorrect in another way. Anything that "costs" and subtracts from the bottom line is viewed negatively. Therefore, anything done to employees that reduces their cost actually is a "return" to equity and executives are rewarded for same. The value of a company usually rises any time the employees are beaten down (or laid off) as they, like any expense, are considered financial liabilities from an investor's pov. That's the way business works in the US and, increasingly, Canada.
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Old 24th Jun 2008, 22:08
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PJ2

Very well said.
 
Old 24th Jun 2008, 22:37
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"CNN its just broacasting that Qantas pilots are on strike!"

Desert storm. It's the engineers that are on strike (sort of, 4 hour rolling stoppages). Not the pilots.
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Old 25th Jun 2008, 05:22
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Thumbs down United Airlines sheds 950 pilots

BBC NEWS | Business | United Airlines sheds 950 pilots

US carrier United Airlines has said 950 - about 14% - of its pilots will lose their jobs as spiralling fuel costs and weak consumer spending hit earnings.
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