United Kingdom
United States
Asia Pacific
United’s bankruptcy – Comment by Jeremy Skidmore
I was recently in the US and turned on a television to hear an amazing news report: “United Airlines has filed for Chapter 11 bankruptcy, but its flight schedules will not be affected.”
In the UK, that would be a contradiction in terms, but in the US there is a different system.
When a company is in a total mess, it is allowed to file for bankruptcy and carry on operating while it keeps creditors at arms length and tries to sort out its problems.
And boy, has United got problems.
The airline is losing a mind-boggling $20 million a day and has been tagged the biggest business failure in US aviation history.
There’s a certain irony in airline being able to escape the harsh realities of the free market after forcing travel agents to accept them with commission cuts.
Of course, United has had to deal with extraordinary circumstances – no one predicted the September 11 attacks or the subsequent fall-out.
And United is a US institution which most people would like to see continue flying.
Let’s hope that it gets its house in order quickly.
United has some extraordinary labour costs and rules. Some pilots on $300,000 a year are able to take long holidays as part of their contracts and a fully-licensed mechanic, earning around $100,000 a year, is at the gate every time a plane pushes off.
These issues need to be addressed and unprofitable routes cut if United is not to go the way of Pan Am and TWA.
And if United does pull through, let’s hope it remembers those agents who are currently trying to reassure their customers that they should still book with the airline.
What’s your view? Write to us and let us know.
mailto:[email protected]
Read previous comments by Jeremy:
12-Dec-2002 The role of independent agents – Comment by Jeremy Skidmore
03-Dec-2002 Anyone got any good news? – Comment by Jeremy Skidmore
26-Nov-2002 Comment: Agent consortia should join, says Jeremy Skidmore
20-Nov-2002 Comment: Winter Bookings, by Jeremy Skidmore
13-Nov-2002 Comment: Timeshare and Resort Conference
05-Nov-2002 Comment: MyTravel
23-Oct-2002 Comment: The ABTA Convention
Walt Leger on New Orleans’ Resilience and Major Events Ahead
Cindy Mackin Shares Estes Park’s Winter Thrills
Mark Jaronski of Explore Georgia on FIFA World Cup 2026
Connecting Small Businesses to Global Tourism Markets: Nate Huff of Tourism Exchange
North Carolina’s Resilience: Wit Tuttell on Recovery and Tourism
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
BA suspending all Heathrow to Abu Dhabi flights
Unexpected wave rocks cruise ship
Report: Cruise guest died after ship lashed in heavy storm
British teen in serious condition after paraglider collision
JetBlue scraps London Gatwick flights