American Consumer Council: “United Is Broken”
by Thomas Hinton
President & CEO, American Consumer Council
[Editor: Regarding "United Breaks Guitars" on YouTube:] While Dave Carroll and Taylor Guitars have come out winners, one must wonder what in the world United Airlines’ management was thinking? Did no one at United Airlines call a “time out” to ask their colleagues, “Hey, how do we come out of this scenario without egg on our face?” Sadly, this isn’t an isolated case at United Airlines. Acts of stupidity and customer abuse are repeated multiple times every day by a growing number of disingenuous United Airlines employees who lack common sense and do dumb things that alienate their customers and passengers. I’ve witnessed it personally in Chicago and Denver several times. Of course, it begs the obvious question — why?
Read the rest of the story »
United Airlines OPC Moving to Willis (Sears) Tower
The Chicago Tribune in its online edition for August 4 is reporting that United has struck a deal with the city to move its Operations Center from Elk Grove Village/Arlington Heights to Willis (formerly Sears) Tower in the West Loop:
… the nation’s third-largest carrier decided to take advantage of a stagnant real estate market to seek low rent from landlords willing to deal and aid from municipalities eager to spur economic growth.
“The going-in proposition is that we aren’t going to provide a lot of upfront cash to do it,” [Operations SVP] Kolshak said. “I believe the solution we’re going to announce is going to be very attractive.”
United is drawing fire from aviation experts who question why it would locate its nerve center in a building identified as a potential target of terrorists.
Good luck to my 2,820 former colleagues who will now apparently have to become train commuters, or learn to endure a 90-120 minute car trip to and from work each day. As if they weren’t under enough stress already.
CEO Glenn Tilton apparently doesn’t intend to commute very far — when this nutty move is complete, everything that was formerly World Headquarters will be within 2-3 miles of his Lake Shore Drive living room.
United Breaks Guitars: The Saga … In Video
Canadian musician Dave Carroll posted his viral-revenge video on YouTube on July 5, some eight months after United Airlines baggage handlers damaged his guitar and the airline refused to compensate him for his loss. Dave’s musical tribute to corporate idiocy went viral almost immediately, logging 1 million hits in about 36 hours. It quickly became a media phenomenon as well as a public relations disaster for United. Here’s the timeline:
Read more
Crain’s Chicago Business: Tilton’s Troubles
Crain’s has this piece about United’s current cash flow problems. In the piece, the author (John Pletz) states what is now common knowledge:
That’s far from the flight path Mr. Tilton, 61, envisioned when the longtime oil industry executive took charge of a struggling United in 2002. He expected to purge excess costs in Chapter 11 bankruptcy proceedings, then initiate a badly needed airline industry consolidation with a sale or merger that would send him into retirement with a handsome payday.
“That was Glenn’s plan — to consolidate,” says Mo Garfinkle, CEO of Virginia-based GCW Consulting LLC, who has advised Mr. Tilton and United. “The game plan now is to survive.”
So, this begs the question: How well is United now positioned to survive?
Read more
Jim Cramer Welcomes Glenn Tilton
For over twenty-five years, Jim Cramer has been offering streetwise business advice to investors. He’s a multi-faceted talent, having worn hats as an investigative reporter, lawyer, investor, hedge fund manager, entrepreneur, media personality and author. His current platforms, TheStreet.com (he’s co-founder) and CNBC’s Mad Money, have legions of loyal followers who tune in for Cramer’s distinct brand of brash, no-nonsense, pragmatic advice to investors.
Last month, in response to an email suggestion from a viewer who is a UAUA employee, Cramer bestowed upon United CEO Glenn Tilton a singular honor: a spot on Mad Money’s “CEO Wall of Shame.”
Read more
