United Airlines is reported to be in a downsizing mode as it is currently offering its flight attendants a package of as much as $100,000. This U.S. based carrier have posted a quarterly loss on their earnings and needed to cut back on expenses.
With the cost-cutting mode, the employees who have been offered the early retirement package are eligible for lump sum payments from the company.
The carrier is aiming for around 2,000 personnel to accept the package. According to Megan McCarthy, spokeswoman for the carrier, the "cost is less to have a flight attendant with less experience versus one that has more."
During the buyout discussions, the Assocuation of Flight Attendants were closely involved. The package was offered to both United Airlines and Continental Airlines employees prior to its merger and in the order of seniority. The parties are currently in the negotiation phase.
United Airlines Inc. is an American carrier headquartered in Chicago, Illinois. It is a wholly owned subsidiary of United Continental Holdings. In 2010, it underwent a $3 billion merger with Continental Airlines and combined its operations to become the world's biggest carrier. Jeff Smisek, Continental's CEO, headed the merged company.
As of September 2014, the carrier operates more than 700 mainline aircrafts. United operates out of nine airline hubs in Guam, Japan and in the United States. The company is publicly traded unde rits parent, United Continental Holdings at the New York Stock Exchange.
After the two airlines' merger, the performance of the new airlines were lower compared to its counterparts, Delta Air Lines Inc., American Airline Group, and Southwest Airlines Co. Although the shares of United were up 31 percent this year, its rivals have gained around 12 percent to as much as 50 percent higher that what United is currently at.
At some point in time, United Airlines was owned by one of the world's largest airplane maufacturer, The Boeing Company.
