UNITED AIRLINES” chairman and chief executive Glen Tilton, was the guest speaker of the Aviation Club in London last week, putting on an impressive defence of the US Chapter 11 rules concerning trading in insolvency. One thing he made clear, as if we did not know, it is the lawyers who really do well under these conditions, in UA”s case $250m to date. It has to be paid out of the ticket price! Pressed on when the airline would trade normally he first of all said, ”perhaps by early February” and then corrected himself by noting that the date might slip. He said that Ted, United”s challenger in the budget field, was a success, the airline now serving more domestic cities than in 2002. As to new aircraft, that does seem a long way off with United operating the second youngest US fleet. The carrier operates 460 ”planes at the present time. Tilton joined UA from Texaco in 2002 and says he has brought in a whole raft senior off, management changing the airline”s total management outlook. In spite of seeing the international area as the way forward for growth, United has reduced its transatlantic commitment by 8%. In contrast Continental is up by 30%. United Airlines is said to have lost $14.9bn since last turning in a profit in the second quarter of 2000.
http://www.unitedairlines.co.uk