State of the Airlines

Monday, January 31, 2005

NEWS: United Airlines Flight Attendants Approve Deal

United Airlines announced today that their flight attendants have approved their tentative contract. The deal includes wage reductions of 9.5% which should come out to around $131 million in annual savings. The approval margin of 56% was far slimmer than the pilots who approved their new deal by a margin of 75%. It makes one wonder if everyone at United really understands the severity of the situation. This contract, like all of the ratified contracts to date, must be approved by the bankruptcy court before going into effect. The court has made it clear that they will not review and approve any of the new union deals until ALL of them are ratified. So we all have to wait to see what comes of the tenuous situation between the mechanic's union, the airline and the bankruptcy court before we can move on to the next chapter of this soap opera. Twenty six months in bankruptcy and still counting...sigh.

Labels: , , , ,