United Airlines announces 1,100 job cuts

[OhioChick]

Source: Times Online

June 4, 2008

UAL, the parent of United Airlines, America's second-largest airline, today unveiled dramatic job cuts and slashed domestic capacity, as it struggles with rising fuel costs and America's weakening economy.

The company said that it would cut capacity on its domestic flights by 14 per cent in the fourth quarter, shedding 100 planes from its fleet. Up to 1,100 workers will lose their jobs, on top of 500 previously announced redundancies. The company had already said that it would cut 30 Boeing 737s from its fleet.

Glen Tilton, the chairman and chief executive, said that high fuel costs meant that the company must act decisively to redefine itself. The downsizing follows American Airlines' announcement last month that it would cut domestic capacity by up to 12 per cent. In March, Delta Air Lines, which is merging with Northwest Airlines, said that it would shed 2,000 jobs and reduce its capacity by 10 per cent from 2008 levels year-on-year.

On Monday the International Air Transport Association forecast that its 230-member airlines faced losses of $2.3 billion (£1.2 billion) this year due to soaring fuel costs. Crude oil futures prices peaked at a record high of $135 a barrel nearly two weeks ago, sending fuel prices rocketing.



Read more: http://business.timesonline.co.uk/tol/business/industry_sectors/transport/article4067598.ece

[MichiganVote]

1. Oh good, we're makin' progress. Er..freedom and terrorism, no that's not right

What IS the popular BS point this week anyway?

[lyonn]

3. As if getting on a flight isn't hard enough now, they are reducing

flights? The price of fuel is bs for many reason and of course our wars and threats of wars doesn't help. Recently I realized how little our dollar was worth compared to the Euro, etc.. So I figure $4.00 worth of gas in the U.S. would be a bit over 2.50, really rough estimate! Also, did you notice when word got out that the oil and gas industry has been under investigation since about January that the price per barrel dropped at bit?

George can't leave for Texas soon enough.

[MichiganVote]

4. We're fucked. Greed in the US has increased astronomically.

[Double T]

2. The unemployment line gets longer and longer as the price of ENERGY.......

continues to skyrocket. The GREATEST DEPRESSION rolls on with NO END in sight.

[Barrett808]

5. And that price ain't comin' down...

...ever again.

[Double T]

8. NOPE! bush, cheney, wall street, energy corporations and the oil producing countries........

will make certain of that. Starvation and exposure will wipe out at least half the planet's population. Wonder what THEY have in store for the rest?

[OhioChick]

9. You're Right. n/t

[Beaverhausen]

6. oh crap. those poor people. I guess I better use up my frequent flyer miles now

i need to take a trip this summer and the prices are outrageous, but the choices with my miles suck. With this news I guess I better use them.

[Double T]

7. Better hurry BEFORE there are NO airlines left.

[iaviate1]

10. Southwest is still hedged...

for a couple of years, but it won't last forever. From a strictly business perspective, this is worse than 9/11 for airlines.

[Double T]

11. We're in the first phase of the GREATEST DEPRESSION.

THIS will be far worse than most people could ever imagine. Hedged is the problem, NOT the solution.

[SpiralHawk]

15. That's the Greatest REPUBLICON Depression

Although republicon fatcat cronies will sail through it, while their greed and malfeasance will cause untold suffering in America and around the world.

[OhioChick]

16. Today it's Continental...

3,000 jobs

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3339567

[excess_3]

12. welcome news

spend your money at home

[iaviate1]

13. Because seeing the world is such a horrible thing. n/t

[eilen]

14. you guys write as if there are no other alternatives

what about trains, and ships? People used to take steamer ships overseas. We just will have to take longer vacations! Maybe they will bring back the dirigible. I keep seeing them in films lately. They are a bit incendiary if hit with surface to air heat seeking missiles though.