Say Carrier Is "Shell Of Former Self" Under Tilton's Watch
Pilots for United Airlines got their parting shots in Tuesday
ahead of the New Year... saying that under CEO Glenn Tilton's
watch, United Airlines in 2008 "clearly failed" in its efforts to
regain its former stature as the world's preeminent airline.
"Over the past year, the airline has been plagued by an
appalling lack of leadership and vision among Tilton and his
executives," the pilots union stated. "Tilton and his executives
have kept United Airlines mired in financial and operational
stagnation ever since it exited bankruptcy nearly three years
ago.
"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.
"United has reacted to events, as opposed to anticipating and
controlling them. As just one example, as a former oil industry
executive, one would have expected Tilton to have taken early and
decisive action to hedge against rising fuel costs. The record
shows that he failed dismally in this task."
As ANN has reported extensively, pilots at
United have been increasingly bold in taking the embattled CEO
(shown below) to task for what they consider to be Tilton's
excessive financial compensation for a substandard performance.
Tilton's total compensation package comes to $10.3 million a
year -- including salary, stock grants, options and other added
extras. The pilots say that's the highest compensation package in
the airline industry, and more than double what American Airlines
CEO Gerard Arpey hauls in.
By comparison, pilots point out, United's employees have taken
it on the chin -- giving up their pay and benefits while United
struggled in bankruptcy. The carrier has also fallen to near the
bottom in many customer satisfaction rankings... which is likely no
coincidence.
"Mr. Tilton's consistent answer to United's problems has been to
penalize those who contribute the most to United's success: its
employees and its customers," said Wallach. "While Tilton and his
hand-picked executives have continued to receive increasing
benefits for themselves, employees have been laid off, and our
passengers have been inconvenienced with a series of ill-timed and
ill-conceived fees and unpopular cutbacks in service. To paraphrase
an old advertising expression, 'This is no way to run an airline,'
but that's what you can expect from a former oil company executive,
clearly someone unfamiliar with running a service industry, who
never before had to care about his employees or serve the needs of
his customers.
"2008 alone proves that Tilton's so-called leadership at United
is a failure," Wallach concluded. "Tilton's body of work during his
tenure at United Airlines speaks for itself. It simply is not
working. The pilots recognize it. The employees recognize it. The
passengers certainly recognize it. The investment community
recognizes it. It's time for the United Board of Directors to
realize it.
"United Airlines must free itself from failed leadership and
lack of vision so that it can become, once again, the airline for
which pilots and employees are proud to work, and on which
passengers will want to fly."
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