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Dec. 9, 2002
GAVIN ANDERSON DEALS
WITH UAL CHAPTER 11 FILING
 

United Airlines is using Gavin Anderson to handle media relations concerning today's Chapter 11 filing by its parent company UAL Corp. The Air Transportation Stabilization Board's rejection of UAL's bid for $1.8 billion in loan guarantees last week spurred the bankruptcy filing.

UAL CEO Glenn Tilton, who recently joined the company from ChevronTexaco, promises "business as usual" as the carrier restructures. He cited the "tragic events of Sept. 11" in which two United planes were hijacked, and the decline in business travel among reasons for the reorganization.

The company, which has lost a combined $3.8 billion during the past seven quarters, has arranged a $1.5 billion "debtor in possession" financing from a group headed by J.P. Morgan Chase and Citibank.

CT's Rosemary Moore joined UA as senior VP-corporate affairs in November. She was VP–public and government affairs at the San Francisco energy giant.

GA president Robert Mead leads the account. The firm is an Omnicom unit.

 
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Responses:
 

Been there, done that... (12/11):
BUSINESS AS USUAL is correct! They tried this with Mandy Patinkin-narrated "United Rising" and instead, went into the loo.

United's CEO ought to say, as he beats his breast, "We are going to do business NOT as usual. Rather, we are going to treat our customers with courtesy, respect and care. Those of you who have flown with us know that is a BIG change!"

Director of Communications (12/11):
UAL's "Business as Usual," is actually the wrong message.

It is their business as usual that has placed them in this position and if they are attempting to garner public and financial support they should be projecting a much more proactive message.

Been there, done that... (12/9):
All the PR and Media Relations in the world will not disguise these facts:

- United's cost structure is absurdly high compared to the rest of the industry (as well as on its own terms) and will not allow sustained operations as is

- United has treated its passengers with contempt for years and it's now coming back to bite them (see www.untied.com)

- United's route structure depends on hub-and-spoke which is inefficient and prone to waves of delays and cancellations based on an adverse weather event in any one hub or area

- Their management is incompetent (remember the failed merger with US Airways?)


 

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