Pay for United CEO Jeff Smisek jumps to USD$14.7 million from USD$4.4 million

the obscenity of executive compensation is truly staggering...

Compensation for Jeff Smisek, chief executive of United Continental Holdings, surged in 2011, reflecting greater responsibilities after a 2010 merger that created the world's largest airline, according to a filing.
Total compensation rose to USD$14.7 million last year from USD$4.4 million the previous year, the company said in a proxy statement on Friday.

Much of the increase came from a USD$7.5 million stock award that vests over three years and is subject to performance goals including revenue and cost synergies from the merger of United and Continental Airlines, according to the filing.

Smisek was also awarded USD$4.4 million non-equity incentive compensation. About USD$2.4 million of that was payment for years 2009-2011 that was earned in 2011 and based partly on Continental's performance before the October 2010 merger.

even more staggering is that it comes on top of a $400M loss in the last quarter...

The parent of United Airlines reported a first-quarter loss that more than doubled from a year ago thanks to costs related to integrating Continental Airlines.

United Continental Holdings said it had a $448 million net loss, or a $1.36 loss per share, in the first three months of the year, not as bad as analysts expected.

Excluding $162 million in charges mainly linked to the integration costs, the loss amounted to $286 million, or 87 cents per share, UAL said. The Wall Street average estimate was for a $1.03 loss per share.

since i used to work at united, i know first-hand just how much the officers are focused on themselves and their own personal gains... i've already been "treated" to the "new" united and, believe me, it's no improvement... in fact, quite the contrary...

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Another goddam $10B bailout - American Airlines wants to hand its pensions over to the PBGC

on december 1, i predicted this...

American Airlines will use its bankruptcy as a $10B bailout by kicking its pensions to taxpayers

based on this...

Taxpayers May Have To Pay AMR Pension Bill

based on the precedent set by united airlines in 2005 when i posted this...

United defaults on pension plans; CEO buys $4.5M condo

so now we have this...

AMR To Seek End To Worker Pensions - PBGC

The US Pension Benefit Guaranty Corporation, which has responsibility for insuring certain benefits under private defined benefit pension plans, said on Tuesday it believes American Airlines will seek to terminate employee pensions in bankruptcy.

The agency said it filed a USD$92 million lien against American parent AMR for the balance of unpaid pension plan contributions. It added that the lien was applied to AMR assets outside the United States, mainly in Latin America.

[...]

The US Pension Benefit Guaranty Corporation, which has responsibility for insuring certain benefits under private defined benefit pension plans, said on Tuesday it believes American Airlines will seek to terminate employee pensions in bankruptcy.

The agency said it filed a USD$92 million lien against American parent AMR for the balance of unpaid pension plan contributions. It added that the lien was applied to AMR assets outside the United States, mainly in Latin America.

make no mistake... what american airlines is asking for is a $10B bailout... bankruptcy is a very convenient way for companies to void their labor contracts, neuter their unions and hand off their pension liabilities to the government taxpayers hapless citizens us suckers to pick up the tab... privatizing profits, socializing losses... it's the american way...

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If corporate senior management was truly honest...

they would say that they don't want any employees... employees are fundamental irritants, lazy, no-good, lying, worthless sacks of shit that suck up company resources, generate customer complaints and only serve to reduce the amount of money that could otherwise find its way into the pockets of the execs...

when i worked for united airlines, the not-so-funny joke was that the senior execs were in the eternal search for the airline version of the mcdonald's cash register, something so simple that any idiot could operate it, preferably an idiot that would work for minimum wage and not insist on belonging to a union... if you've flown recently, you can see that, with electronic booking, ticketing, online check-in, and airport electronic check-in kiosks, the airlines have surpassed themselves... the "any idiots" are now us, the passengers... the airline employees are only there to prevent serious meltdowns...

the cartoon below is perhaps the best representation i've seen lately of the realities of organizational life... make no mistake... this reality is not restricted to large corporations, the private sector or the united states... it applies around the world to organizations of all stripes... thankfully, there are exceptions but they are pathetically few and far between...

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A modest proposal for replacing Guantánamo

having just completed an 11-hour flight on my favorite airline from hell, united, i am moved to suggest that detainees from guantánamo could very easily be placed instead in the economy section of a united 747 and shuttled endlessly back and forth across the atlantic while being forced to watch bad movies and eat tasteless food, all the while being strapped into a seat that, at best, would provide legroom but precious little comfort to a 5 year-old... i seriously doubt it would be a tenth as expensive as guantánamo and the opportunities for escape at 36,000 feet would certainly be minimal...

just a thought...

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Eating your young - General Motors couldn't find its ass with both hands

i visited the saturn facility a number of years ago and was vastly impressed with the fact that a hide-bound company like gm could create a greenfield start-up and give it enough freedom and autonomy to actually succeed... at the time, i was working with united airlines, a company that was essentially trying to do the same thing with shuttle by united and the indianapolis maintenance base... interestingly enough, at that time, the concerns and obstacles cited by the saturn employees were exactly the same as those being cited by those working on the shuttle product and those folks - like me - who were feverishly trying to make a success out of the new maintenance base, namely, being ground into dust by the need for the home office folks to do everything by THEIR book rather than allowing something new and different to flourish...

so...

tragically, gm has decided to torpedo the best thing it ever had going for it...

what a bunch of fools...

General Motors Co. said Wednesday it would shut down its Saturn brand after an agreement with Penske Automotive Group Inc. to acquire it fell apart.

Penske, citing concerns of whether it could continue to supply vehicles after a manufacturing contract with GM ran out, ended talks with GM Wednesday to acquire the brand.

GM CEO Fritz Henderson said in statement that Saturn and its dealership network will be phased out.

patético...

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9/11 - eight years to the day, I'm back in Dulles airport

september 11, 2001, i was working here at washington d.c. dulles international airport for united airlines... needless to say, it was a day that will be forever burned in my memory... i've posted on the details of that day in previous blog posts (here and here, among others), and i'm not going to repeat them here...

however, once again i find myself in dulles airport on 11 september, eight years on, this time waiting for a flight to london, and i'm stunned at how little things have changed... in many ways, it's as if the clock had been turned back... same gates, same crowds, same godforsaken airline...

here's what i consider to be a solid observation for the day from rebecca solnit at tomdispatch...

Eight years ago, 2,600 people lost their lives in Manhattan, and then several million people lost their story. The al-Qaeda attack on the Twin Towers did not defeat New Yorkers. It destroyed the buildings, contaminated the region, killed thousands, and disrupted the global economy, but it most assuredly did not conquer the citizenry. They were only defeated when their resilience was stolen from them by clichés, by the invisibility of what they accomplished that extraordinary morning, and by the very word 'terrorism,' which suggests that they, or we, were all terrified. The distortion, even obliteration, of what actually happened was a necessary precursor to launching the obscene response that culminated in a war on Iraq, a war we lost (even if some of us don't know that yet), and the loss of civil liberties and democratic principles that went with it.

it's a sobering day for reflection...

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A reason for hope...? Is something in the air...?

well, in argentina anyway...

yesterday at ezeiza airport in buenos aires, while waiting in line to present my passport at immigration, i noted that the argentine "citizens only" line had cleared and that the agent at the window was checking out the long line of foreigners remaining... he stood up and left his booth... at first i thought he was going for a break, but then i noticed that he had not only left the booth door open, but had walked over to the foreigner line and was looking over the people there... he finally motioned to one couple further back in the line, opened up the restraining strap, and directed them over to his booth... i wondered what had caused him to pick out those particular people until i saw the woman cradling a small baby in her arms... accustomed as i am to uninspired and insensitive customer service, i have to admit i was both surprised and pleased... then, after taking care of the couple with their baby, he continued right on to help clear the foreigner line, definitely not the indifference i've come to expect from argentine government employees...

a few minutes later, after loading my stuff into a taxi, the driver, a pleasant older gentleman, announced that he needed to stop for gas and wanted to know if that would be ok with me... i'm always honored by a considerate request, so of course i said "no problema"... he pulled into the petrobras service station on the airport grounds where all the pumps were occupied by other cars, so he held back a bit to wait his turn... another car jumped ahead of him and, when the space at the pump had cleared, the driver pulled right in... the attendant (yes, they still have gas station attendants in argentina) had obviously made note of the situation and, when the line-jumper got out of his car, spoke to him while gesturing to my taxi driver, clearly indicating that he should give way and let my taxi driver go first... my driver simply smiled and waved for the man already at the pump to go ahead... the man, somewhat bemused at this point, graciously accepted the kindness with a nod and a smile of his own... and, as if that wasn't enough of a display of decency, when we were out on the toll road into the city, the taxi driver offered me a butterscotch toffee...! needless to say, he got a handsome tip, a tip he accepted with his own indication of bemused surprise along with a modest smile...

now that i think about it, maybe it's not just argentina...

i've learned to always check my various frequent flyer accounts online to make sure the proper mileage credits have been posted... possibly because they know i hate them passionately, it seems the airline that consistently fails in this area is united...

a couple of years ago, i carried on a running battle with united for damn near a year to get lufthansa mileage credits posted... because it involved two flight legs, one from belgrade to munich and the other from munich to jfk, it was a considerable chunk of mileage, and i was damned sure they were going to give me the proper credit which, after much hell-raising on my part, they finally did...

so, after arriving in afghanistan, i checked to see if the extremely large number of miles from buenos aires to dubai had been posted... sure enough, the leg between sao paulo and dubai was there but the leg from buenos aires to sao paulo was missing... i followed the instructions for claiming mileage credit from a partner airline by sending them the original boarding pass and all the pertinent itinerary information, and then checked regularly to see if it had been posted... nothing... when i got back to the u.s., i checked to see if the equally large number of miles from dubai to reno had been posted... sure enough, the jfk to reno legs were there but the massive chunk from dubai to jfk wasn't... shortly thereafter, i received a letter from united announcing that the buenos aires-sao paulo leg couldn't be credited for some damn reason or another...

i was now not only very pissed but also dreading another lengthy pitched battle... i girded my loins and called the customer service center where, naturally, the nested set of automated options DIDN'T include the option to speak to a live person... fortunately, i know enough to press "zero" which takes me to a live service rep... when she came on the line, i dispensed with all formalities and immediately asked to be connected with a supervisor... when she asked the nature of my call, i simply said "no," that i just wanted to speak directly to a supervisor... when the supervisor came on the line, i slowly explained the situation and made it clear that any bureaucratic nonsense would be completely unacceptable... the supervisor was looking at all the information i had sent on her computer screen, but patiently explained that they didn't have a ticket number and that, without a ticket number, they wouldn't be able to credit the mileage... i pointed out that, as a contractor, the ticket had been purchased for me, and that i didn't HAVE the ticket number... i also inquired as to why three legs of a five-leg itinerary had been posted but not the other two... much to my surprise, the supervisor told me that she would take it upon herself to get everything resolved and would call me back within a week to ten days... somewhat stunned at this offer of genuine customer service, i accepted and thanked her before ringing off...

now, in argentina at least, if ANY business or service person promises to call you back about ANYTHING, you can pretty well assume it won't happen, so let's just say, even though it was the u.s., i was dubious about ever hearing from the united customer service person again... i had basically put it out of my mind until two days ago when, son of a gun, i answered the phone and it was the very same united customer service person calling to tell me that everything had been taken care of... when i finished picking my jaw up off the floor, i thanked her profusely...i told her what i always tell everyone these days who gives me good customer service - i NEVER take good customer service for granted... what i take for granted is BAD customer service and i'm always delighted and amazed when someone treats me righteously...

do you suppose i'm seeing a trend...?

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Aw, poor United Airlines... Boo-f&*^%$#@-hoo...

i was on the merger team for the FIRST attempt to join united with us airways, and i can tell you it was an unmitigated disaster well BEFORE the government declined to give its blessing...

dealing with united's senior management is not something i would wish on my worst enemy... they're predatory, heartless and totally dedicated to their own personal enrichment at the expense of anyone who gets in their way... i doubt seriously if the upper management gang over at us airways is any different... the only force that keeps these crooks in check is their pilots' union, and THAT'S only because the self-centered behavior of pilots is even MORE excessive than that of their management...

no surprise here...

Talks between United Airlines and US Airways appear to have fallen apart, marking the second time in a month that United failed to reach a deal with a rival airline and putting the future of industry consolidation in question, people with knowledge of the discussions said Tuesday night.

United’s board, and its chief executive, Glenn F. Tilton, raised questions about the arrangement in the past few days, according to three people who were briefed on the decision making but spoke on condition of anonymity

There has been little to no contact between United Airlines and US Airways in recent days and the internal teams of senior executives at both companies, as well as external bankers and lawyers assigned to the project, have put it on “permanent hold,” one person involved in the talks said. While it remained possible the talks could be revived, people involved in the most recent discussions said they had never advanced to final negotiations.

the biggest tragedy here for both airlines is that, as always, whatever negative consequences accrue will fall directly on the shoulders of the employees, the ones least equipped to deal with them, and the ones who must, on a day-to-day basis, deal with people like you and me, the passengers... when you're paying to check that bag and voicing your displeasure to the agent who's collecting your money, remember that the problem doesn't lie with that person...

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You get the union you deserve - United Airlines mechanics select the Teamsters

i make no secret of my intense dislike of united airlines, specifically the predatory, disgusting creatures that pass for united's senior management... during my 7+ years there, one of the most intensely frustrating experiences (although, perhaps not ironically, also one the most intense learning experiences) of my professional life, i was repeatedly and regularly aghast at the inhumanity and outright vile behavior of those who "lead" that company... their antipathy toward the front-line employees, those who do the real work of every organization, knows no bounds...

united senior management, meet the teamsters... teamsters, meet united senior management...

The Teamsters union, sharply critical of management at United Airlines, won an election on Monday to represent the carrier's mechanics, the airline and union said.

The Teamsters gained majority support to unseat the Aircraft Mechanics Fraternal Association (AMFA), according to a tally of the ballots cast by 6,500 active and furloughed mechanics.

AMFA had represented the United mechanics since 2003 and is expected to step aside once the election results are certified by the National Mediation Board.

"United mechanics will have the Teamsters strength behind them in their fight against outsourcing to foreign repair stations," Teamsters President Jim Hoffa said.

During their two-year campaign to win over membership, the Teamsters union said it would fight maintenance outsourcing and company plans to sell its maintenance base in San Francisco.

i hope the teamsters give united's senior management the ass-kicking they so richly deserve...

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Evidently, I'm not the only one that thinks United Airlines sucks

i posted on this obscene move the other day... not surprisingly, i'm not alone in how i feel about the disgusting fleece job perpetrated by my former employer...

United Airlines said on Tuesday its new USD$25 fee to check a second bag offers "customers choice, flexibility and low fares," but travelers were not buying the explanation and took to blogs to protest.

The airline's new policy -- the first of its kind among major carriers -- has raised the ire of travelers who already feel fleeced by carriers that charge for in-flight goods and services that used to be included in the fare.

The new bag check fee likely will be matched by rival carriers that currently check two bags for free, experts said.

Within hours of United's announcement on Monday, travelers began registering their displeasure.

"I totally agree this is going to hurt the people that can least afford it and who don't know how to play the system. Kind of like the rich getting richer and the poor getting poorer," read one flyertalk posting.

"offers 'customers choice, flexibility and low fares'...??" what a load of crap... i usually do at least 8-10 price comparisons when i'm buying an airline ticket, and united is NEVER in the running at the end... in fact, they're ALWAYS the first to be crossed off my list because their ticket prices tend to be 30% higher than the carrier i end up booking my ticket with... unfortunately, i also know way too much about the inner working of the place, and, if they want me to shut up, they're going to have to kill me...

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United Airlines can go directly to hell

there aren't enough foul expletives in the english language to fully express my feelings for united airlines...

United Airlines said on Monday it will charge some passengers a fee to check more than one bag, a move that may generate USD$100 million annually as the carrier attempts to offset high fuel costs.

The airline is the first major carrier to charge a fee to check a second bag. Some experts have long predicted that carriers would take this step to bolster revenue in an ultra-competitive industry.

"I think this is just the very, very, very beginning," said travel expert Terry Trippler of TripplerTravel. "I think it's going to happen throughout the industry throughout the year."

United's new fee of USD$25 will be charged to customers who purchase non-refundable domestic economy tickets and do not have status in frequent flyer programs at United or one of its partners in the Star Alliance. The carrier will not charge passengers to check one bag.

Previously, the cost to those customers of checking two bags was included in the fare. For all customers, the cost to check up to four more bags will be USD$100 per bag. Previously, the charges ranged from USD$85 to USD$125 per bag.

The cost to check items that require special handling -- large, overweight or fragile items -- will now be either USD$100 or USD$200, depending on the item.

i'm not thrilled about any of the airlines, but united is number one on my shit list...

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United Airlines sucks the big green weenie

after united airlines declared bankruptcy on my birthday, 9 december 2002, wiping out my entire retirement nest egg of employee stock shares, do you have any idea how it feels to read this little pile of bullshit...?

UAL will give shareholders a special payout of USD$2.15 per share, totaling about USD$250 million, United Airlines' parent said on Friday, marking a rare move by an airline to reward investors.

The US airline industry is still recovering from a five-year slump in which it racked up USD$35 billion in losses. During that time, several airlines went into bankruptcy, including United, wiping out shareholders' investments.

"This shareholder distribution underscores our commitment to creating value for our investors," UAL Chief Executive Glenn Tilton said in a statement.

UAL's move is a sign of the industry's financial recovery as well as the pressure faced by airline managers to reward investors. The payout could put pressure on other carriers in the highly competitive industry to follow suit.

yeah, lemme tell you about the "VALUE" you create for your investors... assholes...

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United Airlines CFO from hell wants airline mergers; hello Teamsters!

jake brace, united airlines chief financial officer, is not a nice man... for some reason, he has managed to stick around at least since i began work there back in 1995, and has occupied the cfo slot since before bankruptcy was declared on my birthday in 2002, a move which wiped out all of my employee stock shares, which were to have been my retirement nest egg...

i was part of the merger team when united and u.s. airways were engaged to be married in 2000, a union which was turned down by the bush administration... it was an ugly mess in a company which was already one of the leaders in rotten treatment of their employees (see below)...

now, jake wants to get bigger... can you smell the greed...?

The US airline industry should consolidate sooner rather than later, and preferably before the end of President George W. Bush's administration, the chief financial officer of UAL said on Monday.

With the US economy slowing and oil prices soaring, US carriers are under pressure to save their fledgling recovery. UAL has been one of the leading proponents of mergers, but has not launched any offers for rivals.

"We want consolidation to happen sooner rather than later and we think that doing something now and getting it done in this administration is a good thing," UAL's CFO Jake Brace said at the Reuters Aerospace and Defense Summit in Washington.

The transition to a new administration could create obstacles to mergers and hinder the progress of carriers pursuing consolidation, said Brace. For that reason, UAL, which is the parent of United Airlines would like to see mergers soon.

"If we were able to control that outcome, that's what we'd do," Brace said.

He declined to say whether he views the Bush administration as receptive to airline consolidation proposals. But he said some industry watchers believe it is.

oh, ya, right... "SOME industry watchers believe it is..." puh-l-e-e-e-e-eze... you're so coy, jake...

and if you don't believe me about rotten treatment of employees, check this...

The Teamsters union is seeking a membership vote to represent mechanics at United Airlines, the group said on Monday.

The Teamsters filed a petition with the National Mediation Board, saying it hoped to conduct a vote within the next six weeks.

United's 10,000 active and furloughed mechanics have been represented by the Aircraft Mechanics Fraternal Association (AMFA) since 2003.

Teamsters represent 40,000 airline workers, including 9,000 mechanics and related employees at 11 airlines. These include UPS, AirTran and Frontier Airlines.

"United's airline mechanics deserve a strong voice that will stand up to management's attack on their economic security and on the flying public's safety," Teamsters President Jim Hoffa said in a statement.

Stephen MacFarlane, assistant national director of AMFA, said the Teamsters "have every right" to pursue United mechanics but AMFA will represent its position.

there's an old maxim in employee relations - you get the union you deserve...

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Where the government keeps stuff (like Flight 93) that they don't want you to see

well, well, well... this is fascinating... and how convenient that it's not too far from where flight 93 went down...



i stood on the tarmac at dulles airport the afternoon of 9/11 and bid farewell to united's emergency reponse team that was headed up to pennsylvania to the flight 93 crash site... i knew most of the people who were going because i worked with them on a daily basis... the really interesting part, to me at least, was talking to them when they got back...

for one thing, they were never allowed into the actual crash site, which i found most peculiar... after all, this was united's official emergency response team and the aircraft did belong to united... the most puzzling thing they told me was that there was a secondary crash site, some distance away from the primary crash site... to me, that could only mean one thing... the plane was already in at least two pieces BEFORE it hit the ground...

here's the piece that i think may explain it... earlier that day, i had reassigned myself to dulles lobby security... even though i was a staff guy, i had been an airport general manager, so i knew a thing or two, plus i couldn't see myself continung to sit at my desk when all hell was breaking loose elsewhere... besides dealing with all the people who suddenly found themselves in dulles airport rather than their final destination after their flights had been ordered out of the sky, there were a lot of police and fbi types running around trying to get information... since i was management, i got asked frequently to check flight data and passenger lists... the flight that was getting the most interest was flight 93... at one point i was told that we needed to be prepared to evacuate the airport because flight 93 was over southern pennsylvania and headed our way, but that they were preparing to shoot it down... ponder THAT for a while...

(thanks to casey at open your mind's eye...)

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