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The following was sent to me by an old United friend, Tony Gattone who retired about 15 years ago from United Airlines after a distinguished career that spanned 40 years. Tony retired from upper managment in the marketing department. He opened China for UAL. He, of course, is very disappointed at the turn of events. He is an airline man through and through. His thoughts are always worth listening to. This came to him from USA Today.
What's next for United? United was denied a second time for a federal loan guarantee, USA TODAY reports. But, while that's a major setback to the bankrupt airline's reorganization plan, customers aren't likely to notice many changes — at least not for awhile. "This is not the end of United Airlines," Darryl Jenkins, head of the Embry Riddle Aeronautical University in Florida, told the Chicago Sun-Times. "It will survive and be a perfectly good airline, but they have a tough quarter ahead of them." While passengers can expect United to keep flying, there could be some changes as United figures its next course of action. Some industry insiders say United may eventually scrap Ted, the low-fare unit it rolled out to battle discounters such as Frontier and JetBlue. United insists it's been a success, but many analysts remain skeptical. If any cuts do come, some of the airline's hubs could feel the pinch. "Denver is one of United's most profitable hubs," John Huggins, the city's economic development director, told the Denver Post. "If they are forced to cut back on operations, presumably they will protect the most profitable operations as best they can." Chicago and San Francisco also appear safe, but United's hub at Washington Dulles is a likely candidate for cuts — if any are made. United is already struggling to add flights there after losing affiliate Atlantic Coast (now Independence Air), and is facing rough competition in the East with fares having dropped to as little as $100 round trip between Dulles on former cash-cow routes such as Pittsburgh, Charleston (W. Va.) and Knoxville (Tenn.). But while fliers will notice only small differences, that's not the case for employees, who now must brace for calls for more cost cuts and an increasingly uncertain future. "The ones I feel bad for are the employees who thought all these concessions were over," Jenkins said. "It's just beginning for them, and that really is unfortunate." Posted at 10:20 a.m. ET
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