The Airlines Pilot Association threw its support to the current leadership of United Continental Airlines who is fighting off the attempts of two hedge fund bonders to gain control of six seats in the company's 15-seat board. United's mechanics and flight attendants are members of the Union.
Chicago Tribune reports that the Union, which has 12,000 members, expressed its confidence and trust in United's CEO Oscar Munoz and Chairman Henry L. Meyer III, while voicing concerns over the new investors' "coup attempts" being done allegedly for their own selfish reasons. Todd Inslet, a Union leader who is also a United board member, says that the takeover "unnecessarily distracts all employees from our commitment to improve customer service and grow United Airlines."
According to Reuters, Union's statement effectively countered a letter sent by the investors, PAR Capital Management Inc. and Altimeter Capital Management LP, to the airline's 80,000 employees, deploring the company's "underperformance" caused by a board that is "underqualified, ineffective, complacent, and entrenched." Stockholders and customers also received a copy from the two investors who jointly own 7.1% of the airline.
A new board of directors led by Gordon Bethune is the investors' offered solution. Bethune, who was responsible for taking the company to new financial heights from 1994 to 2004, just might perform the same miracle for United which is currently bogged down by low revenues, technical difficulties, and a demoralized workfroce.
Accordingt to ABC News, Munoz was implementing the necessary changes in the airline when he had to take an urgent medical leave. Now, many shareholders are concerned that a looming Board battle might distract him from finishing the job.
Despite the takeover, many shareholders still support him, including the airline's own union for flight attendant. Its president, Sara Nelson, says, "Oscar Munoz has presented a vision for United Airlines that passengers and employees can believe in. Our union has worked with a lot of management teams over seven decades and we have rarely experienced a CEO as engaged or committed to the success of an airline."
