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United CEO Visits DIA To Reassure Workers, Passengers

Tilton Promises Stronger, Leaner Airline Will Emerge

POSTED: 8:25 a.m. MST December 10, 2002
UPDATED: 11:12 a.m. MST December 10, 2002

The chief executive officer of United Airlines chief toured Denver International Airport Tuesday morning to show his support for the airline's employees and passengers.

United CEO Glenn Tilton

A day after the airline filed for bankruptcy, an upbeat and optimistic Glenn Tilton shook hands with passengers and employees and thanked them for their loyalty.

His stop at DIA, the airline's second-biggest hub after Chicago, is part of the company's morale-boosting tour. He planned to visit United's other hubs, Los Angeles, San Francisco, and Washington-Dulles, though the airline would not say when.

"Thanks for flying United," he said as he shook hands across ticket counters and while in passenger lines.

Wearing a "United Will Stand" button, Tilton was emphatic when he reassured customers and workers that United will survive bankruptcy, and come out a leaner more competitive company, better able to answer the challenge of deteriorating revenues and low-cost competition.

UNITED AIRLINES
FACTS

Analysts have said United's operational costs are significantly higher than some other carriers, especially discount airlines.

However, during a brief meeting with reporters Tilton made it clear that more job cuts are likely soon and that all prior labor agreements are subject to change.

"A successful business model is going to protect jobs. They're going to be good jobs, they're going to be sustainable jobs. We don't want to come back to this place again," he said.

He said the airline is "stress testing" all of its route to make sure it only keep those that contribute to cash flow and have long-term value.

He said the company wouldn't want to give up domestic or international routes that are likely to become profitable when the world economy improves.

Tilton said operations during the first day of bankruptcy were, as expected, normal. He said 90 percent of departures and arrivals were on time and load factors were good.

"So from our perspective yesterday was a flawless day," he said.

United has been losing as much as $20 million a day.

Immediate Pay Cuts

Some United employees are already feeling the effects of bankruptcy. Both union and non-union workers face immediate pay cuts, the airline said.

Senior executives, including Tilton, will take an immediate average wage cut of 11 percent.

And beginning Monday, lower-ranking, non-union, salaried workers will take pay cuts of 2.8 to 10.7 percent, United announced. United officials have already begun talks with unions on wage and benefit concessions.

Prior to the bankruptcy filing, the company had announced it would cut more than 9,000 next year. Now, that number is likely to increase, 7NEWS reported.

Eight of United's 44 senior executives will be laid-off but they haven't been named.

The future of United stock is still up in the air. United Airlines has not been taken off the New York Stock Exchange -- at least not yet. The stock price closed at 93 cents a share on heavy trading volume Monday.

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