Republic Holdings, United face turbulent skies
Filed under: Company News, Economy
Long before the rest of economy went to pot, the airline industry was awash in an ocean of red ink. Some things never change. Republic Airways Holdings (RJET) yesterday offered to buy bankrupt Frontier Airlines (FRNTQ) for $108.8 million. Indianapolis-based Republic will still need to get court approval to bring the airline out of bankruptcy.Republic gave a $40 million debtor-in-possession loan to Frontier and held a $150 million unsecured claim, so it's no surprise that Republic wanted to buy the airline, the Associated Press said.
In more bad airline news, UAL Corp. (UAUA)'s United Airlines said today it will cut 600 flight-attendant positions as it looks to cut costs.
"The cuts are in addition to the 1,550 flight attendant jobs eliminated last year as the third largest U.S. airline downsized," Reuters notes. "Those reductions were achieved through voluntary furloughs, and the company said it would again offer workers voluntary exit packages." UAL currently represents 13,500 flight attendants.
Spurred by rising oil prices, the International Air Transport Association is forecasting that the world's airlines will lose $4.7 billion this year, surpassing the bloodletting the airline industry experienced after the September 11 terrorist attacks. Layoffs are continuing.
And the travel itinerary gets even worse. Last week, AMR Corp. (AMR)'s American Airlines announced plans to cut 1,600 jobs; Delta Airlines (DAL) indicates that it may increase the number of its announced job cuts; and US Airways Group (LCC) said it wants to slash 400 flight attendant positions, according to Bloomberg News. Looks like the skies that consumers are flying won't be friendly for a long time.
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Dell in a handbasket: Should founder Michael Dell resign?
Reader Comments (Page 1 of 2)
6-24-2009 @ 7:57AM
we said...
considering the way passengers are treated Im surprised that anyone is traveling- charge for everything- jam in as many as you can- treat people like cattle- yea thats a good way to get people to travel- the airlines hv been treating passengers like dirt for years- their employees always came before passengers- you cant run a business like that
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6-24-2009 @ 11:51AM
Jonathan said...
At least most airlines still give soft drinks, water and coffee free. On Irish Air Lingus, they charge for all this--you have to demand "galley water" to "take your meds" if you want some free water.
6-24-2009 @ 9:51AM
Michelle said...
AN OPEN LETTER TO PRESIDENT OBAMA
By Lou Pritchett
Dear President Obama:
You are the thirteenth President under whom I have lived and unlike any of the others, you truly scare me.
You scare me because after months of exposure, I know nothing about you.
You scare me because I do not know how you paid for your expensive Ivy League education and your upscale lifestyle and housing with no visible signs of support.
You scare me because you did not spend the formative years of youth growing up in America and culturally you are not an American.
You scare me because you have never run a company or met a payroll.
You scare me because you have never had military experience, thus don't understand it at its core.
You scare me because you lack humility and 'class', always blaming others.
You scare me because for over half your life you have aligned yourself with radical extremists who hate America and you refuse to publicly denounce these radicals who wish to see America fail.
You scare me because you are a cheerleader for the 'blame America' crowd and deliver this message abroad.
You scare me because you want to change America to a European style country where the government sector dominates instead of the private sector.
You scare me because you want to replace our health care system with a government controlled one.
You scare me because you prefer 'wind mills' to responsibly capitalizing on our own vast oil, coal and shale reserves.
You scare me because you want to kill the American capitalist goose that lays the golden egg which provides the highest standard of living in the world.
You scare me because you have begun to use 'extortion' tactics against certain banks and corporations.
You scare me because your own political party shrinks from challenging you on your wild and irresponsible spending proposals.
You scare me because you will not openly listen to or even consider opposing points of view from intelligent people.
You scare me because you falsely believe that you are both omnipotent and omniscient.
You scare me because the media gives you a free pass on everything you do.
You scare me because you demonize and want to silence the Limbaughs, Hannitys, O'Relllys and Becks who offer opposing, conservative points of view.
You scare me because you prefer controlling over governing.
Finally, you scare me because if you serve a second term I will probably not feel safe in writing a similar letter in 8 years.
Lou Pritchett
Note: Lou Pritchett is a former vice president of Procter & Gamble whose career at that company spanned 36 years before his retirement in 1989, and he is the author of the 1995 business book, Stop Paddling & Start Rocking the Boat.
Mr. Pritchett confirmed that he was indeed the author of the much-circulated "open letter." “I did write the 'you scare me' letter. I sent it to the NY Times but they never acknowledged or published it. However, it hit the internet and according to the ‘experts’ has had over 500,000 hits.
--------------------------------------------------------------------------------
.American Family Association – Tupelo, MS 38803
www.afa.net
Reply
6-24-2009 @ 10:45AM
CONCERNED CITIZEN said...
LOU & MICHELLE, HE DOESN'T SCARE THE MAJORITY OF AMERICANS WHO VOTED FOR HIM. STOP LIVING IN FEAR, WE FEAR WHAT WE DON'T UNDERSTAND SO EDUCATE YOURSELF. THANK YOU.
6-24-2009 @ 10:46AM
allan said...
Its clear that the author of said open letter is an articulate and educated man.
I do wonder, however, has he applied these standards to previous Presidents, those of privilege, pseudo military service, the same blind support from their own party?
Has he looked at the crisis generated in recent years by applying some of the techniques he seeks to critique?
Are there suggestions/ideas/compromises anywhere in this open letter?
The media personalities he mentions do exactly to our President as he suggest Mr. Obama does to them. Did he accept the storm of criticism aimed at our last President?
What we need is more co-operation and less partisan nonsense!
Thank you!!
6-24-2009 @ 1:45PM
Frank said...
And you, sir, scare me, because you mislead people, misstate facts, make assumptions as truth, and were not scared when George W. Bush was president, which is perhaps the scariest thing of all....
6-24-2009 @ 9:53AM
Flyboy Ron said...
The real tragedy is the flight attendants to be furloughed will be the last of the young/pleasant ones, and all that will be left are the old/mean/fat ones who treat you like you're bothering them.
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6-24-2009 @ 10:14AM
LUV 2 FLY said...
YOU SUMMED IT UP EXACTLY THE WAY IT IS ... THEY ARE NASTY AND MEAN .. NOT ONLY TO THE PAX BUT TO THE OTHER F/A's WHO AREN'T APART OF THEIR INTERNATIONAL GROUP .. THEY THINK THAT THEY ARE SO SUPERIOR TO THE REST OF THE WORKFORCE .. BUY THEM OUT !!!!!!!!!
6-24-2009 @ 10:14AM
LUV 2 FLY said...
IT SADDENS ME TO SEE UNITED ONCE AGAIN IMPLEMENT THEIR FURLOUGH GAME ... YOU THINK THEY WOULD OFFER A BUYOUT TO GET RID OF THE NASTY OLD WOMEN AND KEEP THE JUNIOR AND MIDDLE OF SENIORITY GUYS AND GALS WHO LOVE TO WORK THERE.. YOU THINK THAT THEY WOULD HAVE LEARNED FROM THE MOPST RECENT SURVEY TARGETING INTERNATIONAL TRAVEL .. UNFORTUNATELY UNITED GOT THE TITLE OF THE RUDEST FLIGHT ATTENDANTS AND THEY CANNOT FIGURE OUT WHY ??? LOOK AT THE WORN OUT DISGRUNTED WOMEN WORKING THOSE FLIGHTS .. THEY HATE UNITED AND THEY HATE THEIR JOB .. THEY NEED TO BE OFFERED A BUYOUT .. SO UNITED CAN UTILIZE THEIR HARD/PLEASANT WORKERS .. WE AT THE BOTTOM ARE TIRED OF THE TURMOIL UNITED CAUSES IN OUR LIVES BY KEEPING THAT TOP 15% AROUND ... FIX IT !!!!!
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6-24-2009 @ 10:39AM
M said...
I know how the system works. I am just in awe that the Corporations don't want to take the blinders off and get with the program and tell these older FA's it's showtime and you're done flying. Any FA that is 60 and up should be asked to STEP DOWN. Show some CLASS instead of GREED.
6-24-2009 @ 10:13AM
M said...
How is it, that these older FA's are allowed to keep working when they should be retiring? No one wants to see older FA's. Those 50 years old and younger are losing their jobs to these older FA's. What's the deal? Why aren't they having the class to step down and let the younger ones keeps their jobs?
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6-24-2009 @ 10:23AM
LUV 2 FLY said...
ANSWERING M ..... THE WHOLE AIRLINE SYSTEM IS BASED ON SENORITY .. SO THOSE WHO HAVE BEEN THERE SINCE THE 1950'S AND 1960'S KEEP THEIR JOBS WHILE THE OTHER F/A'S EITHER LOSE THEIR JOBS OR ARE PUT BACK ON RESERVE .. IT TRUELY NEEDS AN OVERHAUL ... THEY ALL PAY THE SAME UNION DUES OF 43 DOLLARS A MONTH .. BUT MOST OF THE TIME ONLY THE VERY SENIOR PEOPLE ARE REPRESENTED .. THEY TELL THE REST OF THEM THAT LVOE IT THERE TO QUIT IF THEY DON'T LIKE IT ..... THE FACT IS F/A'S 1980 AND JUNIOR LOVE IT THERE !!!!
6-25-2009 @ 12:34AM
LUV 2 FLY said...
ALSO ..... THEY ARE IN A COMPETITION TO SEE WHO CAN BE #1 ON THE COMPANY SENIORITY LIST .. THEY SAY THEY WILL NEVER LEAVE UNLESS THEY DIE THERE .. IT 'S A JOKE .. WHILE OTHER PEOPLE HAVE MOUTHS TO FEED AND RENT/MORTAGES TO PAY .. THAT THESE OLD TIMERS PLAY THIS GAME !!!!!!!!
Reply
6-24-2009 @ 10:34AM
brooks said...
thanks obama for a job well done
Reply
6-24-2009 @ 11:16AM
LUV 2 FLY said...
HEY BROOKS ... OBAMA HAS NOTHING TO DO WITH THE SENORITY STRUCTURE OF THE AIRLINES ... UNITED NEEDS TO BE LIKE DELTA AND OFFER A BUYOUT ... DELTA GOT RID OF APPROX 3,000 OLD TIMERS IN AN INSTANT BY OFFERING A DECENT BUYOUT .. IN FACT THEY HAD TO TURN PEOPLE DOWN THAT WANTED AN EARLY OUT .. SO LEAVE OBAMA OUT OF THIS ONE .. THX :)
6-24-2009 @ 11:11AM
Kas said...
What is happening now.. has nothing to do with the current President. He hasn't been in office long enough.. dummies!
Duh.. !
Take a look back when the budget was balanced..a nd things were fine.. then go from then to now.. and decide who was in between !
Then point the finger!
That aside! ***************************
The airlines.. I have flown several times.. the last was about 3 wks ago. The airports were cramed.. full ! Tickets sold out on every flight I had booked.. and they were asking for people to give up confirmed seats.
EXCUSE ME... How is the airlines in trouble and flights are down ???
Look.. the media has to quit printing crap like this..
There is not any shortage at all what so ever.. in people flying.
Next thing they will try to push down our throats again is the fantasy that there is an oil shortage.. and we need to pay more for energy..
I remember all that from the 70 - 80's.. so they could get gas prices up from 40 cents a gallon to $4 a gallon.
People actually believed it! lol Silly people!
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6-24-2009 @ 11:23AM
DAN said...
OLD (AS YOU GEN EX ASS HOLES CALL US) EMPLOYEES ARE CLEAR MINDED AND HONEST TO A FAULT
THE REASON WHY CORPS ARE HANGING ON TO THEM FOR DEAR LIFE IS BECAUSE YOU YOUNG POT AND PILL HEADS CAN'T CUT THE MUSTARD AS WE OLD WORN ONES CAN
YOU HAVE NO SCROTUM AS WAS PROVEN IN THE LAST PRESIDENTIAL ELECTION
THE IDIOT YOU ELECTED IS A PUPPET OF YOUR "LET THE SUN SHINE IN" LEFT WING LUNITIC WHINERS
Reply
6-24-2009 @ 11:51AM
M said...
LOL! Get your head out of the sand and take the blinders off! You need to step aside and let the younger ones take over. You older FA's are not wanted by the flying public.
Get over yourselves already. And by the way, I do not work for the airlines, but I do fly on commerical airlines and have seen it all. It's time for the older FA's to step down. You guys are rude as can be.
6-24-2009 @ 11:25AM
Mark said...
Wow, flight attendants are getting pay back for being so rude to passengers! What goes around, comes around!
I'm sure there is a Denny's tag with your name on it!
Reply
6-24-2009 @ 11:25AM
M said...
I still say OBAMA is to blame in general. He has done nothing but destroy everything so far and he will continue to do so. That is his agenda. He does NOT care about the United States. What word has he honored?
That aside....
I know of someone being let go ~ as in laid off from an airline that they have worked their butts off for. This person is a FA for this airline that sent letters to those who are being let go. They will continue to fly as scheduled til August and then that's it. I say, instead of contining, to pick up and leave now. Let the FA's that they decided to keep on and we all know they're older ones with higher Seniority Ranks that were allowed to stay on when they should have been told you're out the door. Let them take over now the flights the FA's that were let go. See how they like it and see if they can keep up. They can't and they know it. You know who YOU are FA's, the one crusty ones with the higher Seniority ranks are the ones that should go, bye-bye..Give others a chance. You had yours.
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