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United Cuts 1,250 Jobs
3 Reservation Centers Closing
POSTED: 9:25 a.m. MDT October 22, 2002
UPDATED: 3:50 p.m. MDT October 22, 2002
DENVER -- United Airlines says it's cutting 1,250 jobs and closing three reservation centers because of the weak revenue environment.
It's not known if any workers at Denver International Airport will lose their jobs.
Nearly 500 workers at United's call center in San Francisco are affected. They have until Jan. 4 to transfer to other centers around the country. Agents at reservation centers in Long Beach, Calif., and Indianapolis received the same bad news.
United also said that it is changing its jet service to United Express commuter service in five cities.
DIA's largest carrier says the move is part of cost-cutting efforts aimed at saving about $100 million a year.
The announcement comes just three days after United posted an
$889 million third-quarter loss and said its operations have been losing about $7 million a day.
United's new chairman, Glenn Tilton, says the cuts alone won't
be enough to save the airline from bankruptcy. He insists he's
still counting on unions to agree to more cutbacks.
Experts say that more job cutbacks are to be expected, but what it needs -- and what all the other airlines need -- is more passengers.
The number of passengers flying at all of the carriers is down about 20 percent, 7NEWS reported. The biggest decline is in business travelers who often fly last-minute and pay full price.
With fewer passengers getting on board, United has tightened some ticket restrictions in an effort to make profit.
But experts believe those restrictions are the reason why passengers are turned off by the carrier.
"You need to lighten up on those rules. Why do you think people want to fly Southwest? 'Cause they don't have that many stupid rules. Why do people want to fly JetBlue or Frontier? Cause there's fewer stupid rules," said aviation expert Mike Boyd.
Worldwide, United operates more than 1,900 flights daily.
The company has 84,000 employees.
United and the leaders of its five unions have agreed in
principle on the need for $5.8 billion in
labor concessions over 5 1/2 years. But implementation of
such an agreement hinges on separate deals being reached with each
union.
United is seeking a $1.8 billion federal loan guarantee.
Nearly 500 workers at United's call center in San Francisco are affected. They have until Jan. 4 to transfer to other centers around the country. Agents at reservation centers in Long Beach, Calif., and Indianapolis received the same bad news.
United also said that it is changing its jet service to United Express commuter service in five cities.
DIA's largest carrier says the move is part of cost-cutting efforts aimed at saving about $100 million a year.
The announcement comes just three days after United posted an
$889 million third-quarter loss and said its operations have been losing about $7 million a day.
United's new chairman, Glenn Tilton, says the cuts alone won't
be enough to save the airline from bankruptcy. He insists he's
still counting on unions to agree to more cutbacks.
Experts say that more job cutbacks are to be expected, but what it needs -- and what all the other airlines need -- is more passengers.
The number of passengers flying at all of the carriers is down about 20 percent, 7NEWS reported. The biggest decline is in business travelers who often fly last-minute and pay full price.
With fewer passengers getting on board, United has tightened some ticket restrictions in an effort to make profit.
But experts believe those restrictions are the reason why passengers are turned off by the carrier.
"You need to lighten up on those rules. Why do you think people want to fly Southwest? 'Cause they don't have that many stupid rules. Why do people want to fly JetBlue or Frontier? Cause there's fewer stupid rules," said aviation expert Mike Boyd.
Worldwide, United operates more than 1,900 flights daily.
The company has 84,000 employees.
United and the leaders of its five unions have agreed in
principle on the need for $5.8 billion in
labor concessions over 5 1/2 years. But implementation of
such an agreement hinges on separate deals being reached with each
union.
United is seeking a $1.8 billion federal loan guarantee.Copyright 2002 by TheDenverChannel.com. The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
