Management News

United Introduces Short-Term and Long-Term Business Plan to Unions, Lays Groundwork to Emerge

Topic

Planning

Key Words

business plan

InfoTrac Reference

A95489529
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News Story

When United Airlines filed for Chapter 11, CEO Tilton promised to share the new business plan with employees and unions. Vice President Doug Hacker describes the short term plan as "working under very tight timeframes established by our lenders to reduce labor costs." The aim of the long term plan is to emerge from Chapter 11, have a competitive product and cost structure, and be able to survive future economic changes.

The airline plans to have a variety of products that meet different needs. This includes business markets, leisure customers, and international travelers. To appeal to the more cost competitive markets, United plans to offer a separate airline with a more competitive cost structure. To serve small communities, United will continue the Express service with regional jets.

United must include forward looking statements in its plan, which are subject to many risks, uncertainties and factors relating to the operations and business environments of United.

Questions

1.	What is a business plan, and why is important for a large company, in general, to have a business plan?
2.	What are the benefits for United, specifically, to have a business plan, and to share it with its workers and the unions?
3.	Look up the Private Securities Litigation Reform Act of 1995 on the Internet. What is the purpose of this Act?

Source

"United Introduces Short-Term and Long-Term Business Plan to Unions, Lays Groundwork to Emerge," M2 Presswire, December 16, 2002.

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