CHICAGO (AP) -- United Airlines'' pilots union reiterated strong opposition Monday to the company''s proposal for a low-cost carrier even as United pushed ahead with the concept by naming an official in charge of it.
In the latest sign of dissent within bankrupt United over starting a discount airline, pilots'' union chief Paul Whiteford sent CEO Glenn Tilton a letter saying the sides are miles apart on the planned carrier with no progress in sight.
Whiteford, who represents United''s 9,000 pilots, disputed Tilton''s numerous recent statements that the Air Line Pilots Association and the company are in general agreement on the elements of United''s restructuring.
Let me be clear: ALPA and the company do not share a common vision for a low-cost carrier, he said. We question the business wisdom of the concept; we are concerned about the execution risk inherent in your program, and we are fundamentally and unequivocally opposed to any separate airline entity within United that operates under a separate labor agreement, seniority list or corporate structure.
We are miles apart on this issue -- and several others -- with no progress in sight, Whiteford said in the letter, which was sent to other union leaders.
United had no immediate response.
Specific plans for the low-fare carrier, including a name and launch date, are being worked out. But in the latest evidence that management is intent on going ahead with the airline -- code-named Starfish -- the company announced on a recorded hot line that 19-year United veteran Sean Donohue will be vice president in charge of the low-cost carrier along with another executive from outside the company who has yet to be selected.
United plans to shift about a third of its capacity to the separate airline in order to better compete against discount rivals such as Southwest Airlines and JetBlue Airways on many of its routes.
Despite the poor track record of major carriers'' low-cost subsidiaries, Tilton has told employees in a series of recent meetings that the market has changed and that creating a discount airline is the only way for United to avoid shrinking significantly, including giving up routes and laying off thousands more workers.
Like the pilots, the flight attendants'' union has resisted the low-fare carrier concept, concerned about jobs, seniority and whether it makes good business sense.
The machinists'' union has refrained from public comment on the concept. But Randy Canale, president of the union district representing baggage handlers and public contact workers, told members earlier this month that the separate carrier could prove to be the only viable alternative to a competitively irrelevant, shrinking UAL -- United''s parent company.IAM negotiators walked
out of meetings last week after the company refused to
negotiate.
UAL shares rose 4 cents to close at $1.10 on the New York Stock Exchange.
www.united.com
In the latest sign of dissent within bankrupt United over starting a discount airline, pilots'' union chief Paul Whiteford sent CEO Glenn Tilton a letter saying the sides are miles apart on the planned carrier with no progress in sight.
Whiteford, who represents United''s 9,000 pilots, disputed Tilton''s numerous recent statements that the Air Line Pilots Association and the company are in general agreement on the elements of United''s restructuring.
Let me be clear: ALPA and the company do not share a common vision for a low-cost carrier, he said. We question the business wisdom of the concept; we are concerned about the execution risk inherent in your program, and we are fundamentally and unequivocally opposed to any separate airline entity within United that operates under a separate labor agreement, seniority list or corporate structure.
We are miles apart on this issue -- and several others -- with no progress in sight, Whiteford said in the letter, which was sent to other union leaders.
United had no immediate response.
Specific plans for the low-fare carrier, including a name and launch date, are being worked out. But in the latest evidence that management is intent on going ahead with the airline -- code-named Starfish -- the company announced on a recorded hot line that 19-year United veteran Sean Donohue will be vice president in charge of the low-cost carrier along with another executive from outside the company who has yet to be selected.
United plans to shift about a third of its capacity to the separate airline in order to better compete against discount rivals such as Southwest Airlines and JetBlue Airways on many of its routes.
Despite the poor track record of major carriers'' low-cost subsidiaries, Tilton has told employees in a series of recent meetings that the market has changed and that creating a discount airline is the only way for United to avoid shrinking significantly, including giving up routes and laying off thousands more workers.
Like the pilots, the flight attendants'' union has resisted the low-fare carrier concept, concerned about jobs, seniority and whether it makes good business sense.
The machinists'' union has refrained from public comment on the concept. But Randy Canale, president of the union district representing baggage handlers and public contact workers, told members earlier this month that the separate carrier could prove to be the only viable alternative to a competitively irrelevant, shrinking UAL -- United''s parent company.IAM negotiators walked
out of meetings last week after the company refused to
negotiate.
UAL shares rose 4 cents to close at $1.10 on the New York Stock Exchange.
www.united.com
