Proposal: Move Headquarters From Ccy

Aug 23, 2002
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A move from Crystal City to a more cost effective location, like Mobile Alabama could be in the future plans.....I think it should be looked at very seriously...

I wonder if a study has been made on what the savings would be ? I bet an ernomous savings in adminstrative costs including rental space ?

Plus, it would make the Alabama Retirement investors happy with that relocation...It would bring prestigue, and a financial boost to their area...

If everything is on the table at this point with the airline, here's an area to evaluate administrative costs, just like the evaluations and reductions in the airport operating expenses, etc ....

The airline may find that a relocation like that could enable the company to
operate with a smaller administrative staff there, as well....
 
Your post is misleading, it implies that they are moving, or that it will provide a thread to an article concerning a move. That's how rumors get started. Frankly, I think moving now would not be advisable. They should wait to see if they are going to file bankruptcy. While move if they are going to liquidate or consolidate or whatever?
 
wonderful idea but i think they should try and make some cash at first.
rumor of moving PIT maintenance also,but wheres the cash? :shock:
 
Bogus thread title...


The "should US move it's HQ from Arlington...???" has been discussed elsewhere.
 
Moving to AL would imply that RSA is in this for the long haul which even under the best of circumstances would not be the case IMHO.

Some companies like to have their HQ near one of their facilites and other companies do just the opposite. I beleive Boeing moved to Chicago from Seattle.

In the short run, i doubt that UAIR can afford to make such a move. In the long run, it probably provides some financial benefit.
 
Relocation to a cheaper city can be financially beneficial, but the idea isn't just to find a cheap city. There still has to be a large talent pool or the ability to draw outside talent to the area. I don't believe a city such as BHM is quite large enough to have either. But is shouldn't be hard for U to find a cheaper city that still has a large talent pool and draw since the DC area has one of the highest costs of living in the US. I vote for a move but not to such a small city as BHM. CLT is a good candidate as it has proven strength with the banking industry and is one of U's hubs.
 
People......the ship is sinking and you are concerned about the placement of the deck chairs????

Best if you brush up on your mustering drills instead :ph34r: !!
 
E-TRONS said:
People......the ship is sinking and you are concerned about the placement of the deck chairs????
When the deck chairs are made of lead and contribute significantly to the sinking of the ship, yes...we are concerned about their placement. It's called seeing the forest. Cuts need to be made in wages across the board...not just labor. One of the easiest and most effective payroll cost cuts would be to relocate HDQ to a city where only 1/2 of the current salary needed to cover cost of living in CCY would go just as far. Housing, commuting, parking, groceries, etc are far more expensive in CCY than almost any other city. This is the one workgroup that can be relocated without affecting ops (can't relocate a DCA ramper to BHM and still serve DCA) and that wouldn't feel the cuts at all b/c fewer dollars in another city would stretch just as far.

These are significant cost cuts that would definitely help the bottom line tremendously. And you know what...I bet that labor would be happy to know that mgmt would be taking substantial pay cuts and that just might be what is needed for morale.

This is not insignificant as you try to make it seem. There is a major opportunity here.
 
Nobody ever got anywhere by not trying. With paper, pens, and computer equipment being the major eqpt to move for HDQ, it would not be as drastic an expense as one would think. Especially if the move were to CLT which is not all that far from DC and which is much cheaper.

U is not going to pull out of this downward spiral by sitting back and feeling sorry for themselves. They need to make wise investments with the few resources they have remaining and a HDQ relocation would serve just that. And as I mentioned...just think of the high that the employees would get in knowing that mgmt took a paycut. U needs to increase revenues, sure, but I think even more importantly, they need to increase morale. Why not do something that both cuts costs and increases morale?!
 
I still say, why would they bother with the logistics and expense of a move, when there is a real question about survival. To me, that would be something to consider after meeting with unioins and deciding if they can move ahead, and after the plan is working. I have never heard of a company in the dire situation that U is in chaning corporate headquarters.
 
Wouldn't you think that this would help the unions feel that mgmt is also willing to make sacrafices and therefore this would make the unions more willing to go along with the transition?

I can't get over the notion that if it hasn't been tried before then it won't work now. Looking at the history of struggling airlines (and the tremendously high failure rate of these carriers), I would not be apt to try to copy their actions and would not throw out obvious cost cutting and morale boosting ideas just b/c they haven't been tried before.

Compared to the normal operating expenses of an airline, the "expense" of a move would be quite minimal and would generate substantial returns within a couple of months of the move.

Don't be afraid to try new things. Look at HP. They had the bleakest outlook just a few years ago and have turned things around not by looking at their "failing airlines guidebook" but by trying new things. It works and times like this are the best time to make such a change.

Oh...and Boeing is a good example of an ailing company relocating its HDQ. The jury is still out on that venture but the situation is quite different from U's.
 
Yep, Boeing moved to more expensive territory to be closer to DC.

Does anybody have ANY idea what kind of savings could actually be had and at what cost? Again, Crystal City, isn't exactly PA Ave. I think this is mostly resentment. Should jetBlue move away from New York City? Feel free to be pissed off. It's a free country, but I'm not buying the 'logic.'
 

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