Hello Fellow Fools:My name is Jamake and I'd like to introduce myself as the new CEO of UALCorporation. In this briefing I will be presenting a 5-point plan of action in order to stem the hemmoraging that is currently occuring within the company. The plan is as follows:1. Effective December 1, 2001 USAirways will join the Star Alliance. This union will benefit both UAL shareholders and customers. United will gain important eastcoast and southeast access as well as significant revenue synergies at virtually no cost to the company. Both airlines will codeshare on each other's flights. Mileage Plus members and Dividend Miles members will be able to earn miles on either United or USAirways. Due to the precarious financial positions of both carriers, we are hopeful of expedited approval from the DOJ and furthermore, we will request anti-trust immunity.2. Effective immediately, UAL Corporation will suspend further investment in Avolar. Although, there was opportunity for significant revenue inhancement through the venture, the BOD has agreed that the project can no longer continue due to the current cash crisis at United.3. In an effort to improve operations at United, effective November 1 we will be introducing performance-based compensation and bonuses to our employee groups. Cash bonuses will be offered each month United improves its performance in the areas of on-time departures and baggage handling. It was agreed by the BOD that incentive must be provided in order to restore operational reliability.4. Effective immediately, Gregg Brennan, our new president, and I will begin a series of employee roadshows at all of our hub cities as well as some of our secondary cities, such as JFK, EWR, BOS, MIA, LHR, CDG, NRT, and HKG. These roadshows will enable us to introduce ourselves to our employee groups as well as seek solutions to deficiencies in our operations. I believe that the front line employees are a vital source for information and can provide us with insight into where and why systematic breakdowns occur.5. We are suffering from significant over-capacity in some of our markets where we operate the Boeing 747-400. On December 1, we will begin converting 10 747-400 aircraft to freighters and re-introducing United Worldwide Cargo. Improved revenue performance is expected and rather than spend money on the launch of Avolar, we will merely re-allocate the resources that we already have.Looking forward, as financial stability returns to the company we wouldlike to re-negotiate the scope language in some of our union contracts.The scope clauses inhibit United from owning their United Express partners. I would ultimately like to bring the express carriers into theUAL fold. Due to the fact that we do not own our partners, United suffers from decreased revenue streams that AMR and Continental enjoy.Furthermore, I believe that a gap exists in the quality of service between mainline United and United Express and that by wholly owningour partners we can close this gap.I am also very eager to work with the IAM in bringing negotiations toa close and reaching a mutually acceptable agreement for its members aswell as for the company.I want to thank you for your time and for this opportunity to speak withyou today. Our new management team is eager to get to work in restoringUnited Airlines into a premier world-class global carrier.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Rat