More job cuts at United

Ashley Milne-Tyte Jun 15, 2006
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More job cuts at United

Ashley Milne-Tyte Jun 15, 2006
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TEXT OF STORY

TESS VIGELAND: United Airlines cut wages, pensions and other costs to get out of bankruptcy in February, so all the restructuring pain should be over, right? Well it’s not. The carrier just announced it’s eliminating even more jobs. Ashley Milne-Tyte has more.


ASHLEY MILNE-TYTE: United is laying off 11 percent of its salaried workers and cutting millions in other costs.

Aviation consultant Michael Boyd says these moves show the airline still doesn’t have its act together.

MICHAEL BOYD: United’s main competitors — American, Continental, even Delta — are starting to make operating profits. United is still having operating losses, so I don’t know what they did for three years in Chapter 11 but obviously it didn’t do the trick.

He says while competitors announce plans for lucrative new routes . . .

BOYD: We don’t hear any really substantive plans for United Airlines.

Boyd says despite the turmoil of the last few years, the airline has been able to maintain employee morale and quality customer service. But he doubts the current leadership can capitalize on these strengths.

I’m Ashley Milne-Tyte for Marketplace.

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