More job cuts at United

Ashley Milne-Tyte Jun 15, 2006
HTML EMBED:
COPY

More job cuts at United

Ashley Milne-Tyte Jun 15, 2006
HTML EMBED:
COPY

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.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.