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Title: United and Continental Announce Merger of Equals to Create World-Class Global Airline Date(s): 3-May-2010 5:30 AM For a complete listing of our news releases, please click here Customers and Communities to Benefit from Greater, Easier Access to World's Most Comprehensive Network; Preserves and Enhances Service to Small Communities Employees to Benefit from Enhanced Long-Term Career Opportunities and Greater Stability as Part of Stronger Global Competitor Shareholders to Benefit from Strong Financial Foundation, Expected Net Annual Synergies of $1.0 Billion to $1.2 Billion and Sustainable Long-Term Value Award-Winning Customer Service Combines With Industry-Leading On-Time Performance Industry-Leading Frequent Flyer Program Provides More Opportunities to Earn and Redeem Miles Worldwide Existing Alliance Partnership Provides Platform for Smooth Integration Name of Airline Will be United with Continental's Logo and Livery
HOUSTON & CHICAGO, May 03, 2010 (BUSINESS WIRE) --Continental (NYSE: CAL) and United (NASDAQ: UAUA) today announced a definitive merger agreement, creating the world's leading airline with superior service to customers, expanded access to an unparalleled global network serving 370 destinations around the world, enhanced long-term career prospects for employees, and a platform for improved profitability and sustainable long-term value for shareholders. The all-stock merger of equals brings together two of the world's premier airlines, creating a combined company well positioned to succeed in an increasingly competitive global and domestic aviation industry. Glenn Tilton, chairman, president and chief executive officer of UAL Corp., will serve as non-executive chairman of the combined company's Board of Directors through December 31, 2012 or the second anniversary of closing, whichever is later. Jeff Smisek, Continental's chairman, president and chief executive officer, will be chief executive officer and a member of the Board of Directors. He will also become executive chairman of the Board upon Tilton's ceasing to be non-executive chairman.
The combined organization will draw on the talented group of leaders from both companies, and key management positions will be determined prior to the transaction's closing. The combined company's management team is expected to include an equitable and balanced selection of executives from each company with the intention that each company will contribute roughly equal numbers. In addition to Smisek and Tilton, the 16-member Board of Directors will include six independent directors from each of the two companies and two union directors required by United's charter.
The holding company for the new entity will be named United Continental Holdings, Inc. and the name of the airline will be United Airlines. The marketing brand will be a combination of the brands of both companies. Aircraft will have the Continental livery, logo and colors with the United name, and the announcement campaign slogan will be "Let's Fly Together." The new company's corporate and operational headquarters will be in Chicago and it will maintain a significant presence in Houston, which will be the combined company's largest hub. Additionally, the CEO will maintain offices in both Chicago and Houston. Tilton said, "Today is a great day for our customers, our employees, our shareholders and our communities as we bring together our two companies in a merger of equals to create a world-class and truly global airline with an unparalleled network serving communites worldwide with outstanding customer service. Building on our Star Alliance partnership, we are creating a stronger, more efficient airline, both operationally and financially, better positioned to succeed in a dynamic and highly competitive global aviation industry. This combination will provide a strong platform for sustainable, long-term value for shareholders, opportunities for employees, and more and better scheduled service and destinations for customers. Knowing and respecting our colleagues at Continental as we do, we are confident that together we can compete successfully in what is now, clearly, a global marketplace." Smisek said, "This combination brings together the best of both organizations and cultures to create a world-class airline with tremendous and enduring strengths. Together, we will have the financial strength necessary to make critical investments to continue to improve our products and services and to achieve and sustain profitability. We have forged a highly collaborative partnership with United over the past two years as we prepared for and executed a seamless transition to Star Alliance, an important achievement that gave us valuable experience in working together and built mutual respect between our two companies. I look forward to working with the employees of both companies around the world, so our airline can become an even stronger global competitor, deliver sustainable profitability, achieve best-in-class customer service under our unified brand, create long-term career opportunities and deliver increased value for shareholders." The combination of United and Continental brings together the two most complementary networks of any U.S. carriers, with minimal domestic and no international route overlaps. The combined company will offer enhanced service to Asia, Europe, Latin America, Africa and the Middle East from well-placed hubs on the East Coast, West Coast, and Southern and Midwestern regions of the United States. The combined company will have 10 hubs, including hubs in the four largest cities in the United States, and will provide enhanced service to underserved small- and medium-sized communities. The combined carrier will continue to serve all the communities each carrier currently serves. Together, Continental and United serve more than 144 million passengers per year as they fly to 370 destinations in 59 countries.
Employees will benefit from improved long-term career opportunities and enhanced job stability by being part of a larger, financially stronger and more geographically diverse carrier that is better able to compete successfully in the global marketplace. The companies believe the effect of the merger on front-line employees will be minimal, with reductions coming principally from retirements, attrition and voluntary programs. The company will provide employees with performance-based incentive compensation programs focused on achieving common goals. The combined company will be focused on creating cooperative labor relations, including negotiating contracts with collective bargaining units that are fair to the company and fair to the employee.
On a pro forma basis, the combined company would have annual revenues of approximately $29 billion based on 2009 financial results, and an unrestricted cash balance of approximately $7.4 billion as of the end of first quarter 2010, including United's recently closed financing transaction.
In the merger, Continental shareholders will receive 1.05 shares of United common stock for each Continental common share they own. United shareholders would own approximately 55% of the equity of the combined company and Continental shareholders would own approximately 45%, including in-the-money convertible securities on an as-converted basis.
The merger is expected to deliver $1.0 billion to $1.2 billion in net annual synergies by 2013, including between $800 million and $900 million of incremental annual revenues, in large part from expanded customer options resulting from the greater scope and scale of the network, and additional international service enabled by the broader network of the combined carrier. Expected synergies are in addition to the significant benefits derived from the companies' existing alliance and expected from their future joint venture relationships. The combined company is also expected to realize between $200 million and $300 million of net cost synergies on a run-rate basis by 2013. One-time costs related to the transaction are expected to total approximately $1.2 billion spread over a three-year period.
The combined airline will have the most modern, fuel-efficient fleet (adjusted for cabin mix) and the best new aircraft order book among major U.S. network carriers. It will have the financial strength to enhance customers' travel experience by enabling it to invest in globally competitive products, upgrade technology, refurbish and replace older aircraft, and implement the best-in-class practices of both airlines. The merger will create the industry's leading frequent flyer program, offering vast opportunities for customers to earn and redeem miles, including on Star Alliance partners.
United and Continental are members of Star Alliance, the world's largest airline network. Star Alliance customers will continue to benefit from service to over 1,000 destinations, more connecting opportunities, additional scheduling flexibility and access to leading reciprocal frequent flyer and airport lounge benefits with Star Alliance's 24 other member airlines around the world.
The merger, which has been approved unanimously by the Boards of Directors of both companies, is conditioned on approval by the shareholders of both companies, receipt of regulatory clearance, and customary closing conditions. The companies expect to complete the transaction in the fourth quarter of 2010. During the period between signing and closing of the merger, the CEOs of both companies will lead a transition team, which will develop a specific integration plan.
J.P. Morgan Securities Inc. and Goldman, Sachs & Co. acted as financial advisors and provided fairness opinions to United, and Lazard and Morgan Stanley acted as financial advisors and provided fairness opinions to Continental. Jones Day, Vinson & Elkins LLP, and Freshfields Bruckhaus Deringer LLP acted as legal advisors to Continental, and Cravath, Swaine & Moore LLP acted as legal advisor to United. CHICAGO TRIBUNE...,04/30/10 Published on April 29, 2010 6:41 PM | Submit a comment By Julie Johnsson | Wrapping up the corporate equivalent of speed-dating, United and Continental Airlines are expected to announce Monday that they are combining operations to create the world's largest airline. The transaction, which must still be approved by both airlines' boards, would be structured as a merger of equals, with neither side paying a premium for the other's stock, said a person close to the talks. United's board is expected to vote on the deal Friday, which was reached in less than three weeks. Continental directors are meeting Friday to review the transaction's terms and are expected to vote Sunday. The transaction is the first major strategic initiative undertaken by new Continental CEO Jeff Smisek, 55, who took the helm of the Houston-based carrier at the start of the year. Continental entered into talks with United earlier this month on the condition that Smisek head the merged entity, sources said. United CEO Glenn Tilton, 62, will be named non-executive chairman of the new airline and is expected to serve on its board through a two-year transition period. The rest of the management team will be named later by Smisek. Although the new carrier will continue to be called United and its headquarters will remain in Chicago, Smisek and other Continental executives hope Continental's culture of fostering good relations with customers and employees will prevail, sources said That could prove a challenge, observers said. United's reputation was badly battered during its three-year bankruptcy last decade that also damaged the morale of employees, who took steep pay cuts and gave up their pensions to ensure the carrier's survival. But over the past two years, United has placed greater emphasis on pleasing customers. Its planes are cleaner, many are outfitted with new interiors, and it routinely posts the best on-time performance among its network airline peers. Continental, however, sets the bar for service among large domestic carriers, receiving the highest marks from passengers in Zagat's 2009 Airline Survey, by a wide margin. The Continental and United brands will likely remain in the market until the carrier receives a single operating certificate from the FAA, a process that took the recently merged Delta and Northwest Airlines two years to accomplish. Over that time, Smisek and his team plan to work hard to ensure there is a uniform level of service at the new United, a source said.
Earnings Preview: 4Q loss seen at UAL United Airlines parent UAL Corp. is scheduled to report fourth-quarter results on Wednesday. Here's a summary of key developments in the period. OVERVIEW: United's routes to Asia have long meant that its business is more tied to business traffic than other airlines. So during the recession, United suffered more than other airlines. Analysts say that United — and its shares — should benefit once business travel picks up. Like other carriers, United has been raising bag fees and trying to raise fares. On Thursday United matched a fare increase led by American Airlines, which generally added $16 to the cost of round-trip tickets, according to FareCompare.com CEO Rick Seaney. Meanwhile, United gets to sit on the sidelines while American fights with Delta over a deeper relationship with Japan Airlines. JAL filed for bankruptcy protection earlier this month and is expected to shrink while it reorganizes. United is one of the two biggest U.S. carriers to Asia (Delta is the other), and United already has a partnership with JAL rival All Nippon Airways. The JAL bankruptcy could give United and ANA a chance to cherry-pick new flying in Asia. "Our partner is not going to be happy picking up JAL's route that are not profitable. But for those that are profitable, we would be interested," United CEO Glenn Tilton said at the Wings Club in New York on Thursday. BY THE NUMBERS: As of Friday, analysts surveyed by Thomson Reuters expected UAL to lose about $262 million, or $1.47 per share, on revenue of $4.09 billion in the fourth quarter. That doesn't count one-time items, so UAL's final numbers under standard accounting rules could be different. Analysts expect a loss of $1.23 billion for the full year. During the fourth quarter of 2008, UAL lost $1.3 billion — more than half of it on bad fuel hedges. Even without those hedges it would have lost $555 million. Revenue a year earlier fell 9.6 percent to $4.55 billion. ANALYST TAKE: Analysts in general have been bullish on Chicago-based United because it stands to benefit so much if the economy recovers. Next Generation Equity Research analyst Dan McKenzie raised his UAL price target to $19, from $13 previously. He wrote that UAL is his second-highest airline pick, behind US Airways Group Inc. McKenzie wrote that United is "the airline most levered to a recovery in international demand." WHAT'S AHEAD: Maybe a merger with Continental. The two have long been seen as likely partners, although Continental has resisted so far. McKenzie called a United-Continental merger "inevitable" in the next six months to a year. The two are already working closely together as members of the Star Alliance airline group. United, like other airlines, is expected to keep trying to raise fares. Domestic yields — the amount each passenger pays to fly one mile — fell 11.8 percent during 2009, according to the Air Transport Association. STOCK PERFORMANCE: During the fourth quarter, UAL shares jumped 40 percent, from $9.22 to $12.91, as investors bet that the airline would be helped by an economic recovery. For comparison, the Amex Airline Index (which includes United) rose 17.4 percent during the same period. |
The vice president of Resource and Planning of United Airlines, a U.S.-based carrier, says Ghana’s stability and strong democratic credentials influenced the company’s decision to launch a non-stop daily flight from Washington, D.C. to Accra scheduled beginning Friday. Greg Kaldhal says United Airlines is excited about the prospects of the daily flight to Ghana and promises to provide customers convenient and comfortable travel opportunities to Africa’s fastest-growing cities. “We are excited about launching a service to Accra, Ghana today, our first service into Africa. Daily flights will begin from Washington-Dulles, our east coast gateway to Europe, the Middle East and Africa with return flights that will leave Accra about 11 o’clock at night and arrive into our first bank in Washington-Dulles, which will permit our customers from Accra to not only go to Washington but then on connecting service throughout the United States,” he said. United’s new Africa schedule makes it only the second U.S.-based carrier to provide non-stop flights to six continents. AFP Photo According to United Airlines, the maiden flight which begins its daily non-stop service to Africa is scheduled for 20 June from Washington-Dulles Airport to Kotoka International Airport in Ghana’s capital, Accra. Kaldhal said United Airlines is excited about the prospects of its daily flights to Accra. “As we look around the world for opportunities to place our assets, Africa in general and Ghana in particular is already decent size and growing market, Market that is now able to sustain non-stop services as evident by the amount of international service going into that market or has gone into that market over the last year or so…,” Kaldhal said. He also said United Airlines sees Ghana as a very stable democracy and an emerging economy. The international community often describes Ghana as a model of democracy, characterized by political stability, and respect for the rule of law and fundamental human rights and also enjoys peace and political harmony, qualities they say are essential for socio-economic progress and cultural advancement. Ambassador Daniel Ohene Agyekum, Ghana’s envoy to the United States is scheduled to participate in the launching of United Airlines non-stop flight service from Washington, D.C. to Accra. Industry experts say United Airlines controls 12 percent of America’s market making it the second-largest U.S. airline. According to United Airlines, the company operates approximately 3,300 flights a day to more than 230 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. On Tuesday, May 25, John Tague, president of United Airlines, sent the Dear Colleague: Earlier today, United 935 encountered severe turbulence over the Atlantic Ocean en route from London to Los Angeles. We diverted the flight to Montreal in order to get medical attention for one of our crew members who, along with nine passengers, was injured. The LHR-based flight attendant was in surgery today for a compound fracture to her leg. Early reports are that the encounter came without warning. Our flight crew, both in the cockpit and in the cabin, professionally handled what was a serious and stressful event. This is the second significant turbulence incident involving injuries that we’ve had so far this year. Particularly as we head into the summer season, it’s important that we continue to be vigilant and work together to avoid injuries whereever we can. It takes a team effort, including pilots and dispatchers working together to adapt flight plans to route around predictive turbulence and crews responding to warnings and alerts from the cockpit. For all of our best efforts, however, turbulence encounters continue to be a serious safety issue. Beyond turbulence encounters, we generally see an increase in injuries to our people during the busy summer months. We know that following standard work and maintaining awareness can make a difference, even in a busy operation. Last summer, our injury rate was lower than during previous summers. We would like nothing more than to continue that trend. Nothing is more important than your safety and that of our customers. We wish our flight attendant a speedy recovery. A supervisor from the O’Hare Onboard Service domicile, Carol Bertacchi, is en route to Montreal to provide support and will remain with her for several days. John
United Airlines to add 25 Dreamliners to fleet United Airlines has just confirmed that 25 new Dreamliners will be added to its fleet in a new deal estimated to be worth around US$4.2 billion at average list prices. In a joint statement United Airlines and Boeing says the new order for 25 Boeing 787-800 aircraft also include options for a further 50, and signals the first United order for new aircraft in 11 years. "United's Boeing 787 order represents a substantial investment in our future and will enhance the significant progress we are making in improving the global competitiveness of our company," said John Tague, United Airlines President. It's understood that the order will begin delivery as it retires its aging Boeing 747 and 767 fleet on international routes. Jan 19, 2010 Extending Helping Hands to Haiti The Operations Control Center and departments across the company have been buzzing with planning for every last detail of the humanitarian flights we are organizing into Haiti beginning this week. From the security briefings for our crews who will land at the Port au Prince (PAP) airport to preparing precious cargo, such as food, water and medical supplies, scores of United employees from across the company are working behind the scenes to support this effort. "Our people have done a terrific job of reaching out to our partners and coordinating their donations and involvement in a very large and complex relief effort, as well as working quickly and effectively to address the significant operational challenges of preparing for the missions," says Glenn Tilton. "From planning the transportation of cargo and people and the flights themselves, to the ongoing work with aid agencies in the United States and in Haiti, the entire team is doing great work." Critical to such humanitarian aid missions is our ability to connect supplies and relief workers with needs on the ground in Haiti. Our Corporate Social Investment team has partnered with relief organizations in the U.S. and in Haiti, and identified more than 500,000 pounds of food, water, and medical supplies that are critically needed. In addition, 100,000 pounds of cargo is already in our cargo warehouse at ORD awaiting transport. Our partner organizations are providing relief workers and medical personnel - - with doctors, nurses and others ready to fly to Haiti. An aid effort of this magnitude is not without its complications. Responsibility for control of aircraft takeoff-and-landing slots is split between the Haitian government and U.S. Southern Command, which is overseeing U.S. military relief efforts in Haiti. Given the shifting nature of how slots are awarded, our first relief flight is planned for Wednesday, January 20, and will depart Chicago for Port au Prince, make a stop in San Juan, Puerto Rico, and arrive back in Chicago upon completion of the mission. We are evaluating completing up to 40 relief flights that would operate as soon as the next slots are available to us, including Thursday and the period between January 28th and February 10. Dozens of employees, from our operations teams to Caribbean stations to frontline employees and headquarters have teamed up to deliver an active response to the situation. For Wednesday's mission, Flight Operations and the OCC have developed flight plans that accommodate a wide range of scenarios. A number of aircraft operated into PAP using visual flight rules, and aircraft operators arrived in the area without securing slots, disturbing the scheduled flow of air traffic. As a result, we are developing flight plans for ORD-PAP, PAP-SJU, PAP-Santo Domingo (SDQ) and plans that involve Punta Cana (PUJ) in the Dominican Republic, which we serve seasonally. We are also focused on supporting our aircraft once it's on the ground, as well, including airfield lighting concerns, FOD issues, fueled-and-ready ground servicing equipment, and safe and secure ways to offload the cargo. Much of the cargo shipped to us as aid has come to us in varying states of readiness for shipping, prompting our ground teams at O'Hare, where nearly 100,000 lbs. of cargo is being staged, to come up with creative solutions for packaging. Passenger lists for the relief flights, both northbound and southbound, continue to be built as Corporate Social Investment coordinates lists of relief agencies with medical personnel who want to be on the flights and the U.S. Army reaches out to United with lists of its own for the return flights. With the assistance of our contacts in Customs and Border Patrol, the corporate safety team is evaluating any security concerns. We are attempting to pre-clear passengers whom we believe will depart PAP on Wednesday. The legal department worked with our corporate medical department to analyze the risks around United medical personnel staffing relief flights and to help plan our approach to providing care. Medical support will be available for the flights to support United employees on the missions. Monday night, two of our pilots, who are also in the Air National Guard, departed from San Juan, Puerto Rico, to PAP to provide us with on-the-ground intelligence and to meet our first flight when it arrives on Wednesday. Crew scheduling has booked hotel rooms for crews in San Juan for the balance of the week and are prepared to evaluate the need as we are able to firm up plans for additional relief flights. Delta ground handles our aircraft in SJU and is available to assist, says SJU Station Manager Jack Quinones. The gates available to United in SJU for the relief flights are also immediately next to the gates we operate from daily. The OCC is also partially activating the Emergency Management Center to provide realtime support for the missions. Opening the EMC will ensure participation from the key operational elements of the airline in the relief flights, and streamline the flow of information to and from the affected stations and divisions of the company regarding our support to Haiti. Look to NewsReal and SkyNet for additional updates as we operate our relief efforts. As noted in Monday's story, monetary donations are truly the best way for employees to help. |
Jan 29, 2010
On its second day operating, a new underground train that whisks travelers to their gates at Dulles International Airport went out of service for 41 minutes. The unmanned AeroTrain shut down at 9:25 p.m. Wednesday after control room operators detected an open door in a tunnel between two of the four stations. The door, leading to a maintenance corridor, had mistakenly been left open by a firefighter responding to an unrelated alarm, said Robert Yingling, a spokesman for the Metropolitan Washington Airports Authority, which operates Dulles. He said the train's safety procedures required the system to shut down in the event that passengers in the tunnel were in danger. The airport ran mobile lounges from the main terminal to the gates during the delay; about half of the diesel-powered shuttle buses remain in service. The mishap prompted United Airlines, the dominant carrier at Dulles, to hold three flights, with the longest delay 11 minutes. Six passengers missed their connections, Yingling said. The $1.5.billion AeroTrain went into service Tuesday after almost nine years of construction. "All of the safety mechanisms [on the train] worked" Yingling said. "This is certainly something we take very seriously, and we're going to investigate how we can handle these incidents more smoothly in the future." |
The following series of articles give us insight into the deliberate thinking that led to the recent aircraft order. We may be skeptical about United's management, but it appears to me that the level of transparency has increased. On a different issue, a friend who is familiar with the many airline benefit programs, has pointed out that most airlines (other than UAL) give higher boarding priority to active employees than to retirees. Should we ever merge with Continental, let's hope we preserve UAL's boarding priority system. Pete Sofman ============ ======= The following 6 articles appeared on UAL NewsReal: Investing in Our Future, United Places Order for Next-Generation Aircraft December 8, 2009 United Issues RFP for Next Generation Aircraft A Smart, Strategic Move to Strengthen Our Fleet Boeing - 787 Dreamliner Airbus - A350 XWB Our continued progress on the fundamentals of running a good airline -- Focus on 5 -- provides us the opportunity to define our widebody strategy for the next two decades. Today, we announced that we have ordered 25 Airbus A350 XWB aircraft and 25 Boeing 787 Dreamliner aircraft, and we have future purchase rights for 50 of each aircraft. This aircraft order is a significant investment in our company's future that will enable us to reduce operating costs and better match aircraft to key markets we serve, while providing customers and employees with state-of-the- art cabin comfort. The new technology aircraft will reduce fuel burn and environmental impact, while enabling service to a broader array of international destinations. We expect to take delivery of the aircraft between 2016 and 2019; at the same time, we will retire our international Boeing 747s and 767s. New aircraft will bring a variety of benefits: * With the A350 powered by the Rolls Royce Trent XWB engine and the B787 powered by either the Rolls Royce Trent 1000 or the GE GEnx, we estimate we will reduce our fuel costs and carbon emissions from the 50 aircraft by 33 percent compared to the aircraft they will replace. * We also expect average lifetime maintenance costs to be approximately 40 percent lower per available seat mile than the aircraft that will be retired. * These 50 new aircraft provide us the right size and range to meet the needs of our global network while allowing us to stay true to our capacity discipline. Introducing them will reduce the average seat count by 19 percent compared to the aircraft they will replace and by 10 percent when averaged over the entire international fleet. * The state-of-the- art cockpits, with features such as advanced avionics and electronic flight bags, give our pilots the best possible tools to ensure a smooth flight. * These aircraft also provide our maintenance team with state-of-the- art aircraft health monitoring capabilities to allow them to easily identify and fix problems, ensuring minimal disruptions to our schedule. * Also, with quieter engines, they will help reduce the noise impacts to communities around the airports we serve. The increased range of these new aircraft will allow us to take full advantage of our strategically located network of U.S. domestic hubs, allowing new nonstop service from our hubs to destinations throughout Africa, Asia Pacific, the Middle East and Europe, while improving the economics on international routes we already serve. The smaller size and improved cost and fuel efficiency of these aircraft offer substantially improved economics relative to our current fleet, regardless of market conditions. In addition, the deferral and substitution rights we have secured with both manufacturers provide us with significant flexibility to manage changing market conditions throughout the replacement cycle. We have also secured considerable backstop financing from both manufacturers, which will protect us in the event of tight credit markets as new aircraft are delivered. The initial cash impact of the order is minimal, ensuring that the order does not impede our ability to continue to build our liquidity and strengthen our balance sheet as the economy recovers. For both orders combined, we will have a cash outflow of just 60 million dollars over the next three years. Ordering aircraft from both Airbus and Boeing provides the right aircraft to meet the needs of our network. Neither the A350 nor the B787 alone can efficiently serve our entire long-haul network. Further, having future purchase rights with both manufacturers also ensures we will be able to secure the best pricing for incremental aircraft over the life of the fleet replacement process. We last took delivery of aircraft in 2002 and last ordered aircraft in 1998. While the request for proposal contemplated both widebody and narrowbody aircraft, we will consider narrowbody re-fleeting next year. ------------ --------- ------- Anatomy of an Aircraft Order: First in a Series December 18, 2009 This week, United employees were among those that watched online and followed media reports of the Boeing 787 Dreamliner's first test flight. While the event was eagerly followed by aviation fans around the world, it took on special significance for United. Just a week ago, we announced our first new aircraft order in more than a decade, an order that included 50 aircraft -- 25 each of Boeing's 787s and Airbus's A350s. The process of preparing to purchase 21st century aircraft for United's fleet involved a small, select team of people within the airline and started well before we issued a request for proposal to manufacturers in June of 2009. There's a saying, "it takes a village," to accomplish great things, and our order process certainly involved a connected, well coordinated approach within our company. There were three main teams involved in getting us to the finish line of a deal: * The economic evaluation team started work about two and a half years ago. They were tasked with establishing United's optimum fleet mix, assuming our current network, but also with identifying new opportunities with the more capable aircraft. * In early 2008, United established a technical advisory team to evaluate the aircraft and engine offerings from the various manufacturers in intricate detail, with the goal of finalizing the United "spec," or customization, for each fleet type family member. * In late spring 2009, we got the go-ahead from the board of directors to pursue an aircraft order. At that time, the negotiating team began its work to drive the best deal for United. Nina Jonsson, director-Fleet Planning, understood the significance of the work that was ahead of the teams. "When the economic crisis hit and we were forced to retire our fleet of aging B737s, the short-term aircraft replacement need went away. But a long-term fleet replacement plan had to be established. We had put our financial and operational house in order and earned the opportunity to purchase new aircraft." Fleet Planning assisted in coordinating the teams' work on all the myriad details that make up the fleet replacement process. In 2007, the fleet replacement work led to discussions about the rapidly aging B737s and B757s on the narrowbody side; the B747s and B767s followed closely behind in maturity. Typical retirement age for commercial aircraft is around 25 years at major U.S. airlines, and with a large fleet, it's impossible to replace them all at the same time. "At our strategic board meeting in September 2007, the board gave the go-ahead to start evaluating our aircraft options in detail with the manufacturers, " Nina says. "And while the fuel crisis of 2008 drove a hiatus in our planning, a significant amount of the work had already been done when we proceeded in earnest with the order earlier this year." ------------ --------- --------- -------- Anatomy of an Aircraft Order, Part 2: The Fleet Analysis Team December 22, 2009 A new aircraft order is one of the largest asset acquisitions an airline can face. Few decisions are more critical to our success than the aircraft we fly. They drive our economics, customer satisfaction and are the "office" for many of our employees. To determine the appropriate fleet for the airline, an economic evaluation team was formed to take a hard look at the questions we needed to answer. The team had representatives from Finance and Network Planning. David Leib with Paul Joklik, from Finance, worked with Andrew Buchanan from International Network Planning and David Jehn and Mark Nelsen from Domestic Planning. The early work was all economic analysis, known as fleet replacement economics. It included establishing whether the improved operating costs, like lower fuel burn, plus greater mission capabilities, could offset the higher ownership cost of a new aircraft. We also looked at timing of the replacement to determine if it made sense to replace aircraft earlier than their typical retirement age, usually about 25 years. We took into consideration the competitive landscape, with many of our industry peers having placed orders already for new-generation aircraft. And, given the cyclical nature of our industry, we evaluated our risk exposure to fuel price changes, revenue swings, and overall economic influences, among other things. According to Paul Joklik, senior manager-Financial Analysis and Corporate Development, whose team worked closely with Enterprise Optimization, "We built all existing and potential new aircraft costs and capabilities into our financial models, and with the revenue and network information provided from Planning we used the financial models to help us decide: Which aircraft are optimal for the network? Which fleet mix drives the best result to our bottom line? What is the best time to replace our aircraft, or at what point does the fleet become uneconomical to support as it ages?" "In addition to forecasting traffic and revenue for the markets we fly, Planning also provided Finance guidance on the operational capabilities we need in the future to serve existing markets and grow our global network in the future," said Greg Kaldahl, vice president-Network Planning. "What's interesting about the modeling we did is the approach not only of how the new planes would fit into our current network, but what the planes help us do in the future and the things these aircraft will let us do with the route network," says Andrew Buchanan, manager-Internation al Network Planning Strategy. "So we're not just talking about which aircraft are best to fly roundtrips between Chicago and Hong Kong, for example, but instead how the capabilities of the aircraft and the economics change the way that we view the network." The Dreamliners we ordered have the same range our B747s do today. The larger, A350 aircraft have 11 percent more range, which allows us to fly smaller aircraft much further than we fly today and connect points around the globe nonstop that today we can't reach. As a result of the great work by this team, we have been able to identify the aircraft with the right size, the right capabilities with the right economics for United in the future. ------------ --------- --------- -------- Anatomy of an Aircraft Order, Part 3: The Technical Advisory Team Builds the Definition of a United Airplane December 23, 2009 Brian Chapman in Operational Engineering has proud memories of his time on the Technical Advisory Team that helped select the aircraft United announced it was ordering in mid-December. "It is a great privilege to be part of the evaluation team," Brian says. "We got to see the future of United up close and personal. As a team member, it was my job to evaluate the relative performance capabilities of the various airplanes under consideration. " The technical advisory team was assembled in early 2008, composed of key subject matter experts across the company nominated by senior officers in their divisions to represent their functional areas; the team was led by Fleet Planning. The group's role was to evaluate the aircraft and engine offerings from the various manufacturers in painstaking detail, with the goal of finalizing the United "spec," or customization, for each fleet type family member. The team represented a cross-section of the company, including Flight Operations, United Services, Onboard Service, Customer Experience, Powerplant Engineering, Airport Operations and Cargo, Ops Engineering and Technical Sourcing. "We built the team at a very sensitive economic time, so it had to be a small group and selected in a way that would best represent the needs of all key functional areas and provide a tremendous amount of expertise," says Greg Taylor, SVP-Corporate Planning and Strategy. The group spent the first four months of 2008 essentially almost full-time with the manufacturers to evaluate the potential aircraft in detail. They went to Seattle and Toulouse to do detailed avionics studies, walk through multiple cabin configurations and galley layouts, and examine jumpseats and crew rests in detail. The goal was to finalize the "spec" -- essentially arriving at the definition of a United airplane. "It's similar to the standard package versus options available to you when you purchase a car," says Nina Jonsson, director-Fleet Planning. "In the history of the industry, we had a reputation for customizing our specs more than other carriers, almost to the extreme. In the past, that hindered our flexibility, making it harder to get used aircraft into the fleet, meet our own fleet standards, transfer aircraft back to lessors or sell retired aircraft to other operators. It's hard to undo the customization. " With this campaign, we made a conscious decision to customize only rarely. Avoiding customization simplifies the production schedule for Boeing and Airbus and reduces costs. For example, the typical spec document for a B777 is 50 pages -- on the B787, it's a single page and includes only very basic items, such as crew rest, a secondary barrier, etc. "On the B777, every nut, bolt, avionics box and screen on the flight deck was special ordered for United -- so you can imagine the cost it drove," says Nina. The technical advisory team met for four months and spent 80 percent of their time on the specs for the Boeing 787-8 and B787-9, as well as the Airbus A350-800, -900 and -1000. While we placed orders for the A787-8 and the A350-900, we also evaluated aircraft that, according to our future purchase rights, we could substitute to be ready if and when we need them. With the fuel crisis of 2008, the technical evaluation team stopped its work, but further analysis of the business case continued. When we were given the go-ahead in earnest this year to proceed with the order, the technical team was well prepared to finalize the remaining details of each aircraft, supporting the eventual deal we signed. Stay tuned to NewsReal for the next story in our fleet replacement series on the negotiating team that put together the deal. Visit SkyNet for additional information about our aircraft order and to read other stories in this series. ------------ --------- --------- -------- Anatomy of an Aircraft Order, Part 4: The Negotiating Team December 28, 2009 "United is a big customer anytime there's an aircraft order, so both vendors wanted to be the winner," says Greg Taylor, SVP-Corporate Planning and Strategy. "Each of them wanted to win United for the future, so they were both very aggressive. "However, as we fine-tuned the business cases for a new aircraft order, it became obvious to us that a single manufacturer' s aircraft family could not fit our network needs," says Greg. "The A350-800 was too large to replace our B767s. The B787 was too small to replace our B747s. Boeing made the case that the larger B777s could replace the B747s, but we decided that new B777s don't make sense for our long term fleet plan. B777s are great airplanes, but technology has moved on. If we purchased new B777s now, we would be at a competitive disadvantage for years to come as other carriers re-fleet with new technology aircraft. The deals we ultimately achieved will give us a fully competitive fleet and define our fleet strategy for the next 20 to 30 years." We fly 111 widebodies today, and the order beyond the initial 25 of each aircraft type is for 50 additional purchase rights from each manufacturer. That's sufficient to replace the widebodies over the long term -- and will allow us to ensure that the manufacturers compete against each other for each replacement aircraft. That same flexibility will also help us maintain our competitive leverage on the engine contracts. "When we announced the RFP, we expected it to be winner take all, because we wanted the manufacturers to put their best price on the table. ven though we ordered from both vendors in the end, we think the pricing and terms we got in this deal are about as good as possible." That was precisely the goal of the negotiations committee, for whom confidentiality throughout the process was critical. "It's a pretty good rule of thumb: to keep a secret, don't tell anybody!" laughs Greg Taylor, SVP-. "Vendors are always hungry for competitive information, so we wanted the smallest number of people possible on the negotiating team that was responsible for the new aircraft order." "We thought to ourselves, 'why not place an aircraft order at the bottom of the cycle? Most likely we will take delivery of the aircraft in better economic times," says Greg. "We thought we had a solid economic rationale, even though it ran counter to the timing for any aircraft orders in the industry." Beginning in July, the negotiating team sat down daily with the manufacturers to hammer out a deal. In addition to Greg and Fleet Planning, Strategic Sourcing had two representatives -- Gavin Molloy and Alex Orosz. Lawyers David Olaussen and Tom Bondi participated from United's Legal department. With input from the Planning, Analytical and Technical teams, the Negotiation Team worked through all of the aircraft possibilities, and, in effect, worked on four separate deals -- two airframe deals and two engine deals, the last of which is nearing completion. Beyond the negotiations themselves, the team worked in parallel on all the detailed contract language of an aircraft order. "There were hundreds of pages of legalese that the teams worked through -- Legal and Sourcing did a tremendous job," Greg says. "From term sheets to letters of intent, the language had to reflect every component of the deals we were seeking." The teams worked through remedies if the aircraft don't perform as expected or if the aircraft are delayed, maintenance cost guarantees, reliability guarantees, substitution rights, deferral rights and more. With the term sheets signed, we expect to finalize the detailed documentation in February. Visit SkyNet for additional information about our aircraft order and to read other stories in this series. ------------ --------- --------- -------- With the order placed, and first deliveries six years into the future, the next three years or so will be relatively quiet, with our focus on the individual aircraft's design development. With the A350, we will continue to work with Airbus on the design evolution, and we'll continue to follow Boeing closely for any changes to the B787 when that aircraft begins operating. The first test flight flew on December 15. Two to two-and-a-half years before we take delivery of the aircraft, we start in earnest the preparation efforts for welcoming the new aircraft to the fleet. There will be two parallel bodies of work. The first will involve finalizing what the aircraft should look like. "An airline's needs change over the years, so we'll revisit the manufacturers and finalize the spec for the aircraft and the cabin product and cast it in stone," says Nina Jonsson, director-Fleet Planning. The second track involves preparing United for the B787 and A350 arrivals. We will begin training for flight attendants, pilots and mechanics; we will start to order spare parts; we'll get specialized equipment in place and will identify any special requirements for our airports and terminals to service those aircraft. We'll also get the Federal Aviation Administration involved in all the steps we need to take to allow us to add the aircraft to our operating certificate. This is a highly complex and rigorous process to launch that first revenue flight with the new aircraft. ------------ --------- --------- --------
Leeham News and Comment Update, November 12: We’ve learned United is splitting the wide-body and narrow-body RFPs into two, now planning to make two purchases instead of one. The wide-body order will come first. Boeing has recently become aggressive with 787 offers and now this is a real competition between the 787 and A350. The narrow-body RFP will almost certainly slip to 2010. Original Post: United Airlines is nearing a decision on refleeting, replacing Boeing 747s, 777s 767s and 757s. Flight International has this detail. Flightglobal’s ACAS database shows United operates 25 747-400s, 34 767-300ERs, 19 777-200s, 33 777-200ERs and 94 757s. This would be a huge order for Airbus or Boeing. United previously said it plans to stick with one supplier. The original RFP drew hoots from the industry. United sought terms that were considered ridiculous by many, particularly given United’s own financial condition and the existing backlogs at Airbus and Boeing. Industry sources said UA wanted the winning manufacturer to buy the 767s and 757s at above market valuations and lease them back at below market rental rates; to finance 100% of the new airplanes; and require no down payment or progress payments. United said it is not interested in the Airbus A380 or the Boeing 747-8; one industry source said United might consider the 747 if Boeing would finance 105% of the purchase price, a prospect considered unlikely even though Boeing needs a new passenger-version customer. We are told UA believes the 787 in unable to perform the missions desired (perhaps a reflection of the overweight and fuel burn issues) and that the 777-300ER is considered by UA to be “old technology.” (This would be the second airline to take this view that we know of, if the characterization is correct.) We’re told Airbus seems to have the advantage to win the order. We’re told of the prospect of 35 A350s could be initially ordered. The A320 family, which comprises the bulk of UA’s mainline fleet now that the Boeing 737 Classics have been retired, has the advantage over Boeing’s 737NG, we’re told. The Airbus plan to add winglets to the A320 family, beginning with the A321 to better compare with the 757, may be significant. UA does not operate the A321 today. The A321 does not have quite the range of the 757 and winglets would make the airplane a better US trans-con airliner. We speculate that this might be a key to winning the UA order. Airbus is also to decide by the end of next year whether to re-engine the A320 family, and officials are talking with CFM International, Pratt & Whitney, Rolls-Royce and International Aero Engines about doing so. Entry into service would be about four years after a decision, or late 2014 or in 2015. Airbus said it doesn’t plan a replacement airplane until 2024. Boeing will likely be forced into a similar decision along the same timeline whether to re-engine the 737. Interestingly, it was United’s order for the A319/A320 that spurred Boeing to develop the 737NG. Boeing stubbornly offered the 737-400 to United, up to then an exclusive Boeing operator (McDonnell Douglas DC-10s being the exception). Boeing did not believe UA would order the A320 and refused to offer an update of the venerable 737. When UA ch0se Airbus, Boeing developed the 737NG. It is unlikely re-engining will play a role in UA’s decision because Airbus won’t decide until YE2010. But we always like ironies and throw in this tidbit “just because.” ======================
Drunk Pilot Adds to Air India's Woes
One of four pilots on the "zero-delay" flight from Mumbai to New York failed a breathalyzer administered as part of pre-flight checks, the story said. The 15-17-hour non-stop flight, which is virtually guaranteed to take off on time, was delayed by 45 minutes, the story said. Between July 2008 and 2009, 29 pilots failed the breath analyzer tests, most often during festivals and New Year, the story said, but reporting to fly while drunk is not a criminal offense in India. Sep 26, 2009 - More Rumor Control From the MEC Rumor: Attarian reportedly has said we are getting new uniforms (again). Is this true and if so, is it merger related? Truth: The MEC Uniform Committee has been wear testing an optional new uniform that is similar to the current uniform but made by Brooks Brothers. The wear test is complete, and we are waiting to hear from United management to see if the uniform will get final approval. The Uniform Committee has not heard anything official that the company is looking into new uniforms. Rumor: UAL has hired a Washington law firm that specializes in corporate bankruptcies. Rumor: I heard that UAL hired lawyers a few months ago in New York to file for bankruptcy again. However, this time it would be "close the doors," and one of the Star Alliance Partners was going to buy UAL so all the Frequent Fliers stuff would transfer over, uninterrupted. Truth: This rumor, in various emails that speculates who is dividing the assets, is false. United has not hired bankruptcy counsel. United does employ a number of law firms for various reasons of which any one of them may also have bankruptcy attorneys.
Rumor: One of our pilots said he sat next to one of our MEC Representatives on a flight home and that he asked that MEC Representative about the progress on our contract. The response from that MEC Representative was that we would never have a contract again from United Airlines. When this pilot asked the MEC Representative about what he meant, the MEC Representative said, "use your imagination. " So, what did the MEC Representative mean when he said that we will never have a contract with United Airlines again? Upcoming merger plans that will preempt a contract? Parting out of United? United not entering into a contract with its pilots? Truth: We will have an amended contract with United whether it comes through the Section 6 process which we are currently involved in or it comes through a merger. Since we don't know who this MEC Representative was, we cannot clarify what context the pilot was speaking or what he was attempting to imply. The progress of our contract negotiations may be found atwww.Contract2009. com. Rumor: Heard UAL will be grounding more 747-400s due to down turn in passengers. Rumor: The latest rumor I heard was that United was looking at parking 16 of our 747-400's? Is this true? Truth: United has no plans to park any additional aircraft. Rumor: I've heard that UAL has approached the negotiating committee with a proposal regarding flying aircraft in the 70+ seat range that is currently non-existent at UAL. Is there any dialogue between the company and UAL ALPA regarding UAL insourcing flying currently outsourced to UAL express carriers? If so, what is the dialogue? Truth: A proposal (as discussed in ALPA's opening letter to the Company) from ALPA was given to the Company for pay rates for United pilots to fly 90 seat aircraft. The Negotiating Committee is still awaiting the Company's response. Truth: A major goal of the MEC and the Negotiating Committee is to improve our pilots' scope protection. We have presented our scope improvement proposals to the Company and are awaiting their response. It is unclear at this point what United's relationship with Frontier will be a competitor or a partner given the Republic Airways connection. FV "Cort" de Peyster
August 14, 2009 6:41 PM "Also according to Washington insider law firms, United has retained bankruptcy counsel. (Again) Thoughts are that it will be a Chapter 7 filing possibly as early as late 2009 or early 2010, with most assets going to STAR Alliance partners in such a fashion so as to avoid disruption of the Mileage Plus program (and others), the financial integrity of the STAR Alliance, and allow for transfer of other assets (aircraft, etc.) in such a fashion so as to avoid union “involvement” or interference". July 13, 12:35 PM, Chicago Examiner United Airlines continues to be a troubled company. The Chicago-based airline stock is trading at levels indicating bankruptcy is once again likely. With air travel down due to the economic recession United Airlines finds itself in danger of running out of cash. Cash is exactly what United needs right now with more than $1.5 billion in debt due early next year. Some experts are publicly stating that United Airlines can survive until the middle of next year unless the economy drastically improves. So United Airlines is on a trek to failure unless dramatic changes are made. If the economy takes off and business travel rises to previous levels and fuel prices do not rise substantially United will be okay. If this does not happen as described they won't be okay. So with the economic situation of today, United needs a strategy to solve their core issues assuming there will be no economic recovery. The drastic changes that are required for United Airlines to move beyond their current woes is to bring in new leadership that is capable of orchestrating a merger and relieving the company from its excessive debt burden. United Airlines needs to face the reality that Tilton is not the right CEO for the company. In fact, he may have been the right leader to be at the helm during 2007 when oil prices surged and jet fuel reached historic levels, but when his level of expertise was most crucially needed he failed the company. Being a former oil man, Tilton should have better handled the commodity issues of 2007. He should have had a strategy to hedge oil futures to protect the company from the dynamic shifts in the market. This was Tilton's initial strategic failure and it is still hindering the company today. According to Mo Garfinkile, CEO of Virginia-based GCW Consulting LLC, who has advised Mr.Tilton and United "the game plan now is to survive." Now the company is headed once again into bankruptcy and if it lands there again it will be a prime candidate for being liquidated and most likely will not survive. With the drop in air traffic and strong competitors like Southwest Airlines expanding into the traditional business route and offering lower-priced options, the airline industry will squeeze the weaker players out. The industry is in need of consolidation and if business leaders don't do it through mergers the market will do it through bankruptcy and liquidation. United Airlines will be part of the industry consolidation but they may not survive it.
The next few months will be crucial for United Airlines as it and other US airlines cope with a cash squeeze. ...Cash squeeze may put United Airlines in a bind By Julie Johnsson | Tribune reporter The next few months will be crucial for United Airlines as it and other U.S. airlines cope with a cash squeeze. The global recession has caused airline ticket sales to plunge deeper than anyone -- carriers or analysts -- anticipated. Rather than banking cash from peak-season flying this summer as they normally do, United and its peers are paying a king's ransom to borrow money to get them through the winter months, when demand for air travel usually chills. But after leveraging everything from frequent-flier miles to spare jet engines, United is running low on assets that it can use as collateral for debt or sell to raise cash. That limits the Chicago carrier's options as it faces new requirements by its credit card processors to keep unrestricted cash near the present level of $2.5 billion, analysts said. Related links * The prospect of another lean winter for U.S. carriers could spur more consolidation, analysts said, with United and Houston-based Continental Airlines as the likeliest carriers to head back into merger negotiations. After talks failed in 2008, the two created a close partnership, or virtual merger, which has recently drawn scrutiny from the Justice Department, potentially making the venture less attractive than a full combination. "I think that merger makes a lot of sense," said Roger King, airline analyst for CreditSights Inc. Cash is tight across the airline industry, and Ft. Worth-based American Airlines and Tempe, Ariz.-based US Airways could also face liquidity crises if conditions deteriorate, analysts warned. American faces steep debt payments over the next year and pressure from a credit card processor. US Airways has little debt but thin cash reserves. "The whole industry is looking at an erosion of liquidity and cash flow," said Bill Warlick, senior director and lead airline analyst with Fitch Ratings. "It's a very grim revenue picture." The need for action is especially pressing for United. If its cash holdings decline, two major credit card processors, JPMorgan Chase & Co. and American Express, could require it to set aside hundreds of millions of dollars to safeguard advance bookings in case the company folds. Under an agreement that took effect March 1, American Express requires United to pony up money on a sliding scale if its unrestricted cash falls below $2.4 billion. The lower United's cash, the greater the amount it must set aside. United may also pledge aircraft, real estate and other assets as collateral. As of January 2010, Chase will require United to hold at least $2.5 billion, a provision that would have cost United $134 million had it been effective in May. If United's cash falls to $1 billion, Chase would require it to set aside half of its monthly credit card charges, according to a Securities and Exchange Commission filing. While credit card firms pushed Frontier Airlines into bankruptcy last year, analysts think it very unlikely that they'd pursue similar drastic measures with United unless operations deteriorate to the point where the airline isn't viable. Chase, in particular, has a deep partnership with United that gives it a vested interest in keeping the carrier aloft. Chase's Mileage Plus affinity card is one of its most popular credit cards, while the bank last year gave United $600 million for the advance purchase of frequent-flier miles. A Chase spokesman declined to comment. "When you have big boys at the table like credit card companies, and a big airline like United, nobody is going to throw anybody into bankruptcy," King said. "They're going to find a way around it, unless there's no way around it." United's fortunes could improve if the economy improves, business travel recovers or airline prices start rising in earnest. The nation's third-largest carrier cut earlier and deeper than rivals, positioning it to weather the 15 percent to 20 percent drop in revenues that airlines are likely to see this year. "We are already benefiting from the cost reductions under way as demonstrated by our strong cost performance over the past several quarters," United spokeswoman Jean Medina said. "Per our second-quarter guidance, we are positioned to gain further competitive advantage in this area, positioning us to get back to profitability as the economy rebounds and for the long term." United also stands to gain hundreds of millions of dollars related to its fuel hedges if oil prices stay close to current levels. Still, United's margin to maneuver is slim, analysts said, and could be narrowed further by a number of factors, from another oil spike to a renewed, deadlier outbreak of the swine flu. "Certainly, they would benefit from any recovery," said Philip Baggaley, managing director and senior credit analyst with Standard & Poor's. "Unfortunately most observers, including Standard & Poor's economists, believe it will be a pretty weak recovery. But anything helps at this point."
April 17th - Call To Action --- I apologize Ladies and gentleman I did something I try never to do. I helped spread a rumor. When I was told about the boarding priority and the insurance, not knowing that it was just a rumor, I along with my trusty computer and the power of the Internet, helped spread the rumor. And for this I apologize. Along the way I upset a lot of people and one that I upset and most likely hurt was Dale Harper. Now I do not know Dale, I have never met him. I have no idea as to where he lives nor do I know where he worked. I do know that Dale to me seems like a wonderful person and he has been doing a great job in keeping us retirees informed on a number of matters. To you Dale, I am truly sorry for the headaches that I have caused you on this matter. Please Dale, please accept my apology. It wasn't until I myself read the proposals, not once but twice that I began to wonder. I myself could not see what I helped spread. I finally contacted via the e-mail a John Medeiaos at the union. It is my understanding that John is our representative (retirees) with the union. I asked and John answered. No there is no proposal about the insurance. No there is no proposal about the boarding priority. And NO, we the retirees do not get to vote on the contract. In closing again I want to apologize. I am sorry for those I upset and I am sorry for those I hurt. But I am not sorry for making everyone aware that there is a contract coming up and that we should be aware of the fact. And like the original Call To Action, I ask you to send this to all that you sent the original. Help spread the word. It was a rumor and I am sorry I helped spread it. Wally Gullang Huntley
April 15th, 2009 I have received many copies of this following = about our bennies.
Begin forwarded message: Mar 1, 2009 Fellow DENTK employees, __._,_.___ LAX and UAL article in the Daily Breeze Airport settlement is reached Los Angeles World Airports agrees to pay DAILY BREEZE BLOGS Under the agreement announced Monday, United will relinquish four gates at Terminal 6, freeing up space that could be used by other airlines. "It's valuable real estate," said Kelly Martin, LAWA's attorney. "We've United also will give up the customs facility in Terminal 7, allowing the The settlement also ends a four-year dispute over United's use of gates in Before 2005, those planes used a small remote terminal on the eastern edge Having recently declared bankruptcy, United consolidated its operations at That was more convenient for passengers, but airport officials claimed that If United had given up its gates at Terminal 8, its competitors would have The dispute wound up in front of a bankruptcy judge, with LAWA demanding Under the settlement announced Monday, United will be allowed to keep its Passengers must walk across the tarmac to board the smaller airplanes. Airport officials said the agreement would help end years of rancor with gene.maddaus@ dailybreeze. com
All I Wanted Was to Talk to My Family, and Get Some Dry Socks One month ago, I landed Flight 1549 safely in the Hudson River. In some ways, that was the easy part. Capt. Chesley B. Sullenberger III From the magazine issue dated Feb 23, 2009 It's been a month since the airplane I piloted, US Airways Flight 1549, made an emergency landing in the Hudson River. Since then, the attention given to me and my crew—I'm trying to resist, somewhat unsuccessfully, everyone's attempt to make this about fewer than five people—has obviously been immense. But I still don't think of myself as a celebrity. It's been a difficult adjustment, initially because of the "hero" mantle that was pushed in my direction. I felt for a long time that that wasn't an appropriate word. As my wife, Lorrie, pointed out on "60 Minutes," a hero is someone who decides to run into a burning building. This was different—this was a situation that was thrust upon us. I didn't choose to do what I did. That was why initially I decided that if someone offered me the gift of their thankfulness, I should accept it gratefully—but then not take it on as my own. As time went by, though, I was better able to put everything in perspective and realize how this event had touched people's lives, how ready they were for good news, how much they wanted to feel hopeful again. Partly it's because this occurred as the U.S. presidency was changing hands. We've had a worldwide economic downturn, and people were confused, fearful and just so ready for good news. They wanted to feel reassured, I think, that all the things we value, all our ideals, still exist—that they're still there, even if they're not always evident. When I was very young, my father impressed upon me that a commander is responsible for the welfare of everyone in his care. Any commander who got someone hurt because of lack of foresight or poor judgment had committed an unforgivable sin. My father was a dentist in the Navy, serving in Hawaii and San Diego from 1941 to 1945. He never saw combat, but he knew many who did. In the military, you get drilled into you the idea that you are responsible for every aspect of everyone's welfare. During every minute of the flight, I was confident I could solve the next problem. My first officer, Jeff Skiles, and I did what airline pilots do: we followed our training, and our philosophy of life. We valued every life on that airplane and knew it was our responsibility to try to save each one, in spite of the sudden and complete failure of our aircraft. We never gave up. Having a plan enabled us to keep our hope alive. Perhaps in a similar fashion, people who are in their own personal crises—a pink slip, a foreclosure—can be reminded that no matter how dire the circumstance, or how little time you have to deal with it, further action is always possible. There's always a way out of even the tightest spot. You can survive. Even though we had a successful outcome, it's human nature to wonder about the what-ifs. The second-guessing was much more frequent, and intense, in the first few days at night, when I couldn't sleep. It was hard to shut my brain off and get back to sleep. Sometimes I didn't, I couldn't. It was part of the posttraumatic stress that we have all felt, that each of the crew members has reported to each other. It's funny—for the first two weeks after the accident, Jeff kept telling me, "I just want my old life back." But the other day he finally said for the first time, "You know, this is OK. I'm learning to like this. This is good." I think he's coming to terms with what's happened. He realizes that he's entitled to the attention. That he can still be true to himself. That accepting it isn't selling out. Besides the outpouring of support from the passengers, the most touching sentiments I have received have been from other pilots. They tell me that because of the years of economic difficulties faced by the airline industry and its employees and the decreased respect for the profession, they have not felt proud to go to work—some of them for decades. Now, they tell me, they do. And they thank me for that. They thank us, the crew, because we've reminded people what all of us do every day, what's really at stake. They feel like they've regained some of the respect they'd lost. What's next? I will return to flying for my airline—when I'm ready. I'm not sure when that will be. Probably a few months. I still haven't had many nights at home. My family and I are trying hard to remain true to ourselves and not let this change us, but there's a steep learning curve. The trajectory of our lives has changed forever. And we're determined to make good come out of this in every way that we can. Capt. Sullenberger and his crew saved all 155 lives aboard US Airways Flight 1549.
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JAL May Drop International Routes Dec 31, 2009 By Bradley Perrett http://tinyurl. com/ybrbnpo Japan Airlines may lose its entire international operation under a plan that would reduce the mighty but profitless airline, Asia's largest, to a mere domestic carrier. All Nippon Airways would take over all of Japan Airlines' international services under the plan that the government is considering. Government and Japan Airlines' sources apparently leaked the details to the Mainichi Shimbun newspaper. The Ministry of Land, Infrastructure, Transport and Tourism is opposed to the proposal, but the Mainichi cites some Japan Airlines executives as saying it is not a bad idea. The rules governing state-directed rescues are forcing consideration of such a radical move. A restructuring agency, the Enterprise Turnaround Initiative Corp. of Japan is working on a bailout plan for the struggling airline but can help companies only if they can be turned around within three years. The government is evidently concerned that a profit within three years would be unachievable if Japan Airlines kept its international network. The loss of foreign services would greatly diminish the stakes in the ongoing tussle over Japan Airlines' alliance membership. The giant carrier is a prized partner in Oneworld, whose leading member American Airlines has been trying to ward off attempts by Delta to lure Japan Airlines to Skyteam. But if All Nippon gets the international operations, the big winners will be that carrier's partners in the Star Alliance. While restructuring Japan Airlines is a pressing issue, keeping it afloat by warding off a cash crunch is the immediate problem. To do that, the Development Bank of Japan has agreed to increase its unsecured lending to the company, reports Jiji news agency. The state bank had previously agreed to extend ¥100 billion without security to the airline, which has taken up ¥55 billion. The increase followed a meeting between the bank and two ministers, including Transport Minister Seiji Maehara. The restructuring agency has raised the possibility of bankruptcy and court-directed reorganization of Japan Airlines with creditors. That move has increased pressure on the company's 8,800 retirees to accept a 30% cut in benefits. It also raises the risk that shareholdings in the business would be wiped out. The stock fell to a record low this week. ============ ======
Heathrow incident. British Say United Pilot Was Drunk From United Dear fellow employee: There is no greater commitment at United Airlines than that which we make to safety. It is the bedrock on which our standard operating procedures are built and the true north that guides our daily decision making. We know that you have read or heard in the media today of an unfortunate incident in which one of our pilots reported for duty allegedly over the legal limit of alcohol consumption. We are gathering the facts, doing our own investigation and will most assuredly take appropriate action based on the outcome. Importantly, the other crew members on this flight demonstrated the absolute right course of action, consistent with their training, by raising their concerns and taking steps that resulted in the appropriate action being taken. They made the safety of that flight their personal responsibility. We recognize them for their judgment and commitment to safety. It is this same commitment on the part of our 46,000 employees each and every day that has built a safety record of which we are all justifiably proud. We are clearly focused on the safe operation of every flight and the safety of our people and passengers throughout our daily operation. I want to thank each of you for your part in ensuring that we continue to run a safe airline. Our commitment to safety is unwavering and we appreciate all that you do to support it. John Tague Lots of speculation on this matter but we must all remember it is only that.
By THE ASSOCIATED PRESS Filed at 8:54 p.m. ET Re: UAL 3rd quarter resultsTuesday, October 20, 2009 2:33 PM Wonder when UAX will buy UAUA? Skywest Airlines Extended To United Secured Term Loan Of $80M
Airlines Third-Quarter Earnings Forecasts * By The Associated Press Here are the consensus forecasts of analysts for third-quarter earnings or loss per share and revenue for the nation's nine largest airline companies, according to Thomson Reuters as of Thursday morning. Figures from third quarter of 2008 are in parentheses. -- AirTran Holdings Inc.: forecast to report 11 cents earnings per share; $597 million revenue. (Lost 91 cents per share; $673 million in revenue during last year's third quarter.) -- Alaska Air Group Inc.: $2.04 earnings per share; $968 million. (Lost $2.40 per share; $1.07 billion revenue a year ago.) -- AMR Corp., parent of American Airlines: loss of 86 cents per share; $5.10 billion. (Lost 17 cents per share; $6.42 billion revenue.) -- Continental Airlines Inc.: 2 cents earnings per share; $3.30 billion. (Lost $2.14 per share; $4.16 billion revenue.) -- Delta Air Lines Inc.: loss of 7 cents per share; $7.60 billion. (Lost 13 cents per share; $5.72 billion revenue.) -- JetBlue Airways Corp.: 4 cents earnings per share; $851 million. (Lost 2 cents per share; $902 million revenue.) -- Southwest Airlines Co.: loss of 1 cent per share; $2.59 billion. (Lost 16 cents per share; $2.89 billion revenue.) -- UAL Corp., parent of United Airlines: loss of $1.09 per share; $4.33 billion. (Lost $6.13 per share; $5.57 billion revenue.) -- US Airways Group Inc.: loss of 92 cents per share; $2.71 billion. (Lost $8.45 per share; $3.26 billion revenue.) Sources: Thomson Reuters; company press releases and regulatory filings Question: Why would J.P. Morgan put a BUY recommendation of UAUA and US AIR? Those two will have the largest losses in their best quarter, if forecasts are accurate. 8. 25, 2009. The DOT is getting antsy about Family Airlines in LAS and it seems to just keep going on and on with no progress. I have seen it at a startup. You think tomorrow is the day. And the day with the money never comes..... Apparently the DOT is growing frustrated and Family won't answer the questions and doesn't even have the startup money they need. (Cranky Flyer has an article today about Family Airlines: http://crankyflier. com/category/ airline/family- airlines/ ) JIM MOREHEAD
By ANDY PASZTOR The Turkish Airlines jet that crashed and killed nine people last week as it approached Amsterdam's Schiphol Airport most likely didn't experience engine failure, run out of fuel or suffer an upset from turbulence created by a larger airliner it was following, according to people familiar with the investigation's preliminary findings. Dutch investigators are scheduled to give their first public update Wednesday morning, but they aren't expected to pinpoint the specific cause of the crash, which also injured more than half of the 135 people aboard. Early evidence, these people said, indicates the mid-morning approach to the airport in drizzle and relatively good visibility was uneventful until the Boeing 737 suddenly lost speed and slammed into a field about a mile short of the runway. With obvious engine problems seemingly ruled out, among the issues investigators are focusing on is which of the pilots was flying the aircraft, and what commands he gave before the crash. Some industry officials said they have been told that on final approach right before impact, the plane's forward speed abruptly dropped by more than 30 miles per hour. Depending on power settings, aircraft configuration and other factors, such a dramatic slowdown with landing gear and wing flaps deployed could create big problems in maintaining adequate lift. The head of the Dutch Safety Authority previously was quoted saying that "because of a lack of speed (the plane) literally fell out of the sky." One of the items investigators are expected to discuss Wednesday is whether the plane's stall-warning device – called a "stick shaker" – activated to alert the crew that the plane may have been flying at a dangerously slow speed. All of the pilots on Turkish Airlines Flight 1951 from Istanbul died when the plane broke into three pieces. Dutch investigators and airline officials have declined to comment. A spokesman for the U.S. National Transportation Safety Board, which also is participating in the investigation, also had no comment. According to people familiar with the probe, some investigators believe the pilot at the controls during the approach was Olgay Ozgur, the junior member of the cockpit crew. The airline said Mr. Ozgur was born in 1980 and had four years of flight experience. Capt. Hasan Tahsin Ansan had 30 years of flight time and the third pilot, Murat Sezer, had 20 years, according to a statement by the airline Tuesday. So far, neither the airline nor investigators have commented on this issue. Days after the crash, a Turkisk pilots' group claimed turbulence from a larger plane landing in front of the Boeing 737 may have caused the accident. Investigators responded that they intend to look into all potential causes, from so-called wake turbulence to bird strikes to possible fuel starvation of the engines. But more recently, safety experts on both sides of the Atlantic and people familiar with the investigation discounted the likelihood that turbulence played a major role in the accident. They said preliminary air-traffic data, the Turkish airliner's sudden drop in speed and the pattern of wreckage on the ground all provide evidence against such theories. A severe upset from wake turbulence, for example, typically puts a big jet into a roll but doesn't produce a swift and dramatic drop in airspeed. Schiphol crash pilot's death draws cockpit door scrutiny By David Learmount
The Turkish Airlines Boeing 737-800 crash on approach to Amsterdam Schiphol airport is the first survivable incident in which the anti-hijacking cockpit security door was shown to be a hazard for pilots. Turkey's main English language newspaper Hurriyet has reported an on-scene witness statement that one of the pilots survived the crash even if badly injured, but he was not rescued in time to save his life. Rescue teams eventually had to recover the bodies of the three pilots - one was traveling in the jump-seat - by cutting through the cockpit roof. "According to the eye-witnesses and passengers, first aid came 40 minutes after landing," said Ziya Yilmaz, Turkish Air Line Pilots Associaton (TALPA) president tells ATI. "The first officer was screaming and waiting 40 minutes for rescue. We will inform IFALPA and ask why?" The Dutch Safety Board says it cannot comment on the allegations in the Hurriyet report, adding that it is investigating all scenarios, including the Turkish Airline Pilots Association allegation that wake vortex from a previous aircraft may have contributed to the accident. The Board added that more information may be available "after the weekend". The Hurriyet report, quoting Turkey's Dogan news agency, says that Ismail Akyuz, a Turkish man living in Amsterdam, and his wife were travelling along the main road near the airport when the aircraft came down in fields close to them. Akyuz told Hurriyet: "We took notice of the plane after we realised it was Turkish." The two crossed the field in which the aircraft had come to a halt, says the report. Akyuz described to Dogan what they found: "I saw the hand of the pilot in the front part of the plane. He was in the throes of death. When I arrived he was still alive but couldn't move. I heard him noisily breathing. Akyuz continued: "When we first arrived at the scene we saw people lying on the ground injured. Some of them had broken legs... I entered the fuselage from one of the open doors and walked to the back part of the plane. There were couple of people there and we helped them to get out." He also commented: "It took around 20 minutes before the rescue teams got to the scene as a secondary road leads there." The Safety Board said it is unable, at present, to provide the time it took for the crash rescue team to arrive at the accident scene. Runway 18R is the furthest of the runways from the main part of Schiphol airport, and the wrecked hull was about 1km short of the runway threshold outside the airport boundary. Dutch authorities have also been unable to confirm whether the rescue teams were able to determine whether the cockpit crew were dead when they reached the accident scene. But they concentrated first on evacuating badly injured survivors because they could not penetrate the cockpit door. "The cockpit doors changed after 9/11," says TALPA's Yilmaz. "But in the crashes, how will the pilots be rescued from the cockpit?" The seven-year-old 737 (TC-JGE) crashed while inbound from Istanbul, Turkey on 25 February. It came down in open fields on short final approach slightly to the left of the extended centreline. Accident investigators say that initial download from the flight data recorder shows it had "very low" forward speed. This fact is borne out by the extremely short skid marks on the ground before the hull came to rest. The aircraft hit the surface in landing configuration, and witnesses say the nose was very high. The investigators confirm the tail hit the ground first, partly severing it, and the aircraft had a high vertical speed, which accounts for the nine fatalities and a large number of serious injuries among the seven crew and 127 passengers. February 15, 2009 Plane that crashed near Buffalo was on autopilot
In Plane Crash, Loss of Momentum Still a Mystery AMHERST, N.Y. — The commuter plane that crashed near Buffalo on Thursday The flight, Continental Connection Flight 3407, began from _Newark Liberty
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UAL Corporation has added a news release to its Investor Relations website.
