system

If United is going to come out of this unscathed, what they need at the top right now is a lawyer.

Delta and American pay attention!

system

I wonder what course is taught in law school that prepares a lawyer for running an airline? It’s nice that the top three executives are receiving no pay during the pandemic, but I’m pretty sure the board of directors will make it up to them later on. (Stock options anyone?)

1 reply

system

John,

Nothing in law school prepares its graduates to run an airline.

But United hasn’t been an airline for at least a decade. It has been a black box whose function is to create value for its shareholders. Airplanes and passengers were not a passion but necessary evils to generate cash flow.

With that model in collapse, United now needs a leader who can successfully navigate restructuring and liquidation, negotiate debt forbearance and maximize the corporation’s share of future federal relief. In other words - a lawyer.

1 reply

system

Kim, I agree on the part about not being an airline any more. To me, the seminal moment was when Continental and United merged. It once again answered the question of what do you get when you mix something good with something mediocre - a bigger portion of mediocre. Continental was run by Gordon Bethune, a pilot and airline guy who understood the business. He and his management group rescued Continental from bankruptcy and built it into a really good airline. The rank and file employees respected Gordon and willingly worked for him. He was known to wander through an airport (with no entourage), visiting with the employees and listening to their comments. He was also qualified to fly most of the jets in Continental’s fleet. I’m pretty sure none of the current set of “managers” has ever done that.