Glenn Tilton, the CEO and President of United Airlines, is increasingly showing his weakness and inability as an airline manager. Moreover, since his election as chairman (not the head) of the Air Transport Association of America (ATA), he has used his position to lobby (the ATA is a lobbying organization) for changes in aviation legislation that do not benefit the United Airlines franchise or its employees. This, in addition to his lack of prior airline experience, makes him a danger to the survival of United Airlines.

Please click here to read the full report.

Last month, the two airlines announced a partnership that will allow both airlines to sell seats on a Washington, D.C.-to-Madrid route, using Aer Lingus aircraft not flown by United or Aer Lingus pilots. The flights, operating under the current Aer Lingus certificate, are scheduled to begin in March 2010.

“It is imperative that we work together on both sides of the Atlantic to prevent the anti-labor aspects of this agreement from impacting pilots from our two airlines,” said Captain Steve Wallach, chairman of the United MEC. “This partnership between United and Aer Lingus will set a dangerous precedent regarding international air travel where pilots on both sides of the Atlantic will pay a steep price. We will explore every regulatory, legislative and legal avenue to protect the rights and careers of our members.”

“We are very pleased to have entered into this protocol agreement with the United pilots and we will be working with them to confront the challenges this partnership poses to both our pilot groups,” said Captain Evan Cullen, president of the IALPA. “We look forward to working with our United colleagues to explore every option to end our respective company’s blatant disregard and lack of loyalty to their pilots, as well as to their corporate identities.”

Founded in 1931, ALPA represents 52,500 pilots at 36 airlines in the U.S. and Canada, including the approximately 7,800 pilots of United Airlines of which 606 are on furlough.

I’m going to go out on a limb and say that both United and Aer Lingus made a big mistake yesterday when they announced a joint venture that I can best describe as goofy. But that’s about the closest I can get to saying something nice. More importantly, United has decided that yes, labor relations can (and apparently should) get worse. Aer Lingus not only agrees, but it also has proven that it has no clue what to do with its business. I actually worry that in the long run, this could be the end of United. So for that, they’ve certainly earned themselves the Cranky Jackass award. Let me explain.

First, let’s talk details. Aer Lingus and United will join forces to first fly Washington/Dulles to Madrid in summer of 2010 (that’s a lot of notice) and then fly elsewhere the following summer. All costs and revenues will be shared between the two on the joint venture routes. Aer Lingus will be responsible for actually flying the route with three A330s (1/3 of its existing long haul fleet, though 6 more A330s are coming in starting this year) that will have Aer Lingus branding on the outside and apparently both United and Aer Lingus branding on the inside. United will be in charge of actually filling the plane. It appears the crews will come from the US but won’t be United employees. I’m not entirely sure how that will be structured yet, but my guess is that it will be low cost, non-union labor.

Please click here to read the full story.

“Aer Lingus has advised the Irish press that this joint venture will operate an Aer Lingus aircraft with neither United nor Aer Lingus employees, under a separate operating certificate and under newly established wages and working conditions. Obviously, this partnership will be accomplished at the expense of United’s and Aer Lingus’ own pilots and other employees. This development, where United attempts to establish an airline operation without the use of United aircraft or employees, is nothing less than the outsourcing of jobs to an international company, and clearly demonstrates that this management continues to make business decisions without regard to its pilots and other employees.

“The United pilots are exploring every option to put an end to the company’s blatant disregard and lack of loyalty to the United Airlines brand.”

Based upon Tilton’s past performance, the pilots see no signs that things are going to get better in the future under his watch. During Tilton’s tenure, the pilots point out, it has been apparent that United does not have a strategy that will enable it to take charge of its destiny.

“In many ways, United Airlines has moved backward,” said Captain Steve Wallach, chairman of the United Master Executive Council of the Air Line Pilots Association. “To its pilots, employees and passengers, United Airlines is but a shell of its former self. Rather than using the reorganization afforded by bankruptcy, including the billions of dollars contributed by the pilots and other employees to build upon United’s core strengths and brand equity, Mr. Tilton and his executives squandered a rare opportunity to return this airline to its leadership position in the airline industry.

To read the full story, including Glenn Tilton's Failures, please click here.

December 16, 2008

To our passengers,

“As the Holiday Season approaches, the professional pilots of United Airlines want to assure our passengers that whether you are headed home to share the holidays with loved ones or enjoying vacation travel, we’ll continue to go the extra mile to make sure that you get to your destinations in comfort with minimum stress and inconvenience.

“We are very much aware that the friendly skies have become less friendly in recent times because of increased costs, reduced flights and cutbacks in in-flight service and amenities. We have been at the forefront when it comes to resisting these cost-cutting initiatives because we do not believe that our passengers should be penalized for the mistakes of United’s management. We still feel that way and are still fighting the fight on behalf of our passengers.

“As we get into the winter months, we want you to know that United is an all-weather airline. United pilots pioneered many of the safety innovations such as onboard weather radar, anti-skid brakes, enhanced weather forecasting, and improved navigation instruments that allow safe operation in inclement weather. And we will not allow our airline to fabricate excuses for not serving the needs of our passengers.

“On behalf of United’s professional pilots, we want to extend our best wishes to all for a joyous Holiday Season. We will continue to do all that we can to make the skies friendlier for our valued passengers who continue to be our number one priority.”

The Pilots of United Airlines

United Chapter, Air Line Pilots Association

Chicago, Ill., October 21, 2008-- United Airlines’ announced $779 million loss for the third quarter, $519 million attributable to poor fuel hedges, is yet another example of incompetence and lack of fiscal responsibility by its CEO and his executives, according to the pilots of United Airlines.

United CEO Glenn Tilton, who, ironically, came to United from ChevronTexaco, one of the nation’s largest oil companies, ought to perform better.

“How is it that an oil man such as Glenn Tilton can’t figure out how to stem losses from hedging jet fuel?” asked Captain Steve Wallach, chairman of the United Chapter of the Air Line Pilots Association. “United’s shortcomings under Mr. Tilton’s direction are well chronicled, but this latest reported loss is a real head-scratcher. It took him too long to realize the value of hedging, and then he entered the market too late.

“It is the hope of the pilots I represent that this oil man’s inability to properly hedge fuel at an airline doesn’t translate into additional charges being passed along to our passengers as a way to compensate for his failings.”

United recently announced it was doubling the fee it charges passengers for checking a second bag. The pilots say this increase essentially raises taxes on passengers at a time when a stimulus is needed. In the meantime, incoming CFO Kathryn Mikells will be paid $525,000 per year plus bonuses and stock options. United’s executive compensation far exceeds their performance, and it starts at the top with CEO Tilton.

“It’s time this airline’s Board of Directors takes a real hard, close look as to why United Airlines continues to bleed money and overpay incompetent executives,” added Captain Wallach. “We are at the point where the tired, old excuses from Mr. Tilton and his executives no longer resonate with the pilots, employees and passengers of this airline. It’s time for real leadership; leadership from someone with the vision, experience and know-how necessary to run a world class airline.”

The United pilots have set up a petition available by clicking here for United passengers to demand the removal of the added fees to the second bag, to restore the service passengers once expected from United Airlines, and to contact United’s Board of Directors.

The alliance is led by each pilot group’s Master Chairman, along with each group’s Negotiating, Communications and Strike Preparedness Committees. A joint meeting of the groups was held at the ALPA headquarters in Herndon, Va., earlier this month.

“We want to ensure that the proposed United/Continental alliance not only is profitable for the two companies, but that the pilots of both of our airlines will be able to share the benefits this business arrangement will provide,” said Captain Jay Pierce, chairman of the Continental Master Executive Council.

Captain Steve Wallach, chairman of the United Master Executive Council, added, “The similarities between our two pilot groups far outweigh any differences that may exist,” he said. “It would be wise for management at our respective airlines to recognize that we will not allow this alliance between our two companies as an opportunity for our respective managements to whipsaw our pilot groups against one another. We will continue to coordinate our efforts in the areas of negotiations and strategic preparedness.”

After attempts earlier this year to consummate a merger between United and Continental failed, the two companies subsequently announced a plan to create a strategic alliance.

A domestic UAL/CAL code share arrangement, and Continental’s pending shift from SkyTeam to the Star Alliance, present a unique opportunity for both pilot groups to create synergies during contract negotiations. Continental’s pilots are in the midst of contract talks for a new labor agreement that becomes amendable on December 31, 2008. The amendable date for United’s pilots is December 31, 2009.

“The value of bringing together our two pilot groups to share common strategies while the two airlines create their alliance cannot be underestimated,” said Captain Pierce. Captain Wallach added, “We want to make it clear to our respective company executives that even a ‘virtual merger’ such as their alliance represents will require the cooperation of the pilots from both airlines to be successful.”

The Houston-based Continental Master Executive Council (MEC), which represents 5,000 pilots and the Chicago-based United MEC, which represents 7,800 pilots, are part of the Air Line Pilots Association, International (ALPA), which represents nearly 53,000 pilots at 37 airlines in the United States and Canada.