Hub Closures???

[WooferDog]

This is not soundin' good, folks. FIGHT! FIGHT!! FIGHT!!!
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UAL Mulls Hub Closures in Reorganization
Monday February 24, 7:55 pm ET
By Erik Ahlberg
CHICAGO -- An executive for UAL Corp. (NYSE:UAL - News) said Monday that the airline is mulling the closure of its hubs in Los Angeles, Denver and Washington as part of its reorganization plan.
http://biz.yahoo.com/djus/030224/1955001005_1.html

 

[UnitedChicago]

I was a bit alarmed at first glance...but I believe this is part of contingency planning. Basically the BOD is asking for alternate strategic options beyond the current transormation plan.

I also suspect that Tilton's regime is turning up the heat on the unions. Possibly getting back at the potential talk to oust him.

Don't blow this press release out of proportion please.

P.S.

Just got home from a vacation in Huntington Beach. Did anyone miss me? ha.

United flights were good all around. I flew into John Wayne - great airport. Red Carpet crew was impressive.

 

[Speedbird]

While this may be an alternate plan by management. There is no good reason to let this escape into the public realm when so much is still not known about UAL's recovery plan, and public confidence in thier recovery is shaky at best. Perhaps there is another reason for letting this information out? Like firing a warning shot across the bow of it's employees (esp. ALPA) for recent public pronouncements they've made about Tilton's LCC.

 

[JFK777]

The term "HUB" is overused these days. Washington and LAX are big UA cities but they are not "HUBS". LAX has many flight to the big east coast cities and to NRT, LHR, AKL(not much longer) and SYD. While some international flights are feed at LAX, most large cities(JFK & ORD) have flights to NRT and LHR. If anything more people originate at LAX for international flight connections at ORD, IAD & JFK then connecting from the east coast at LAX. IAD is UA's transatlantic gateway, ORD has flights to the big cities in Europe but the Washington market was largely underserved by Pan AM & TWA.

The UA hubs are SFO, DEN and ORD with some other cities being important because of there large markets or geographic location. LAX and IAD will be important if just for the transcon traffic they generate, but I hope they will play an international role at a "NEW UA"

 

[ual747mech]

[blockquote]
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On 2/25/2003 1228 PM Speedbird wrote:

While this may be an alternate plan by management. There is no good reason to let this escape into the public realm when so much is still not known about UAL's recovery plan, and public confidence in thier recovery is shaky at best. Perhaps there is another reason for letting this information out? Like firing a warning shot across the bow of it's employees (esp. ALPA) for recent public pronouncements they've made about Tilton's LCC.
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[/blockquote]

I think the court is open to the public. You know the press will be there to get fresh news to put on their paper. Try going there on the next calendar.

 

[Cosmo]

They won't have any workforce to keep above the poverty level unless they move the terminals, passengers and local businesses as well! [img src='http://www.usaviation.com/idealbb/images/smilies/9.gif']

How much [b]more[/b] will salaries need to be reduced to pay for all of that?

 

[casual rat]

They should move the 'HUBS' to lower cost of living cities. That way, they can keep their workforce above poverty level wages.

 

[JFK777]

All those "underpaid" F/A and Pilots that are based in high priced cities can live in lower cost places and fly the jumpseat to ORD or other expensive hub cities.

 

[novaqt]

I certainly hope that this is only a warning shot to these airports to backoff on the payments due to them by LAX, DEN, and IAD. These airports are extremely important to UAL as international gateways. It would be better to keep UAL flying out of these gateways than for UAL to relinquish their gates and stop flying from these three hubs.

It would be better if Bush would turn this economy around so the entire airline industry could recover. More and more, it appears that he will be a one termer. He has taken far too long to go to war and have the economy recover. Now its too late. He is losing his support.

 

[prechilill]

I agree IAD and especially DEN would need to keep UAL to help the airport balance sheet, but LAX could probably care less... gate space is a premium there.
If UAL does "pull the plug" on DEN and IAD, what would happen to ACA and Air Wisconsin?

 

[BOBO BENKINS]

I heard Alaska is in talks with ACA for east coast feed.
BOBO