Who would miss United if it just went under?
posted on
May 18, 2005 09:20AM
That`s the exact question phrased by The New York Times (free registration) as the paper takes stock of the airline`s ongoing labor battles. United says paying the $9 billion it owes in pension debts would sink the carrier. Workers unions, on the other hand, say that the airline can — and must — figure out a way to keep its pension plans, and the groups are planning to appeal a judge`s decision that lets United abandon its pension obligations. Adding to the turmoil, employees have threatened to strike if the court allows United to push through other cost cuts. Most experts predict that such a move could take down the airline. And that leads us back to The Times` question: ``Who would miss United if it just went under?`` The airline`s 61,000 employees ``would be devastated, of course,`` the paper writes. But otherwise, as far as the impact to passengers, United`s loss could be easily absorbed by the industry. Rival carriers would likely rush in to fill the void. And, ``because other airlines prize so many of United`s routes, its collapse would not even allow ticket prices to rise much — bad news for other struggling airlines that need higher prices to help them recover costs.`` Meanwhile, the United continues to fly normally as the saga plays out in court. Both sides say progress is being made and they claim a deal is near. Stay tuned…Posted 7:15 a.m.
http://www.usatoday.com/travel/flights/today/2005-05-17-sky-archivemay16_x.htm?csp=N009