Title of the case: United Airlines

Time Context: 2003 Summary

United Airlines is the world’s largest air carrier and the second largest in the U.S. United is owned and controlled by its parent company UAL Corporation. United has hubs in San Francisco, Chicago, Denver, Los Angeles, and Washington D.C. and also has key international gateways in Tokyo, London, Frankfurt, Miami, and Toronto. During 1995, United was experiencing profit and cash flow problems at that point and in order to achieve an operating cost reduction of $ 4.8 billion, specifically in salaries, Gerald Greenwald, CEO and chairman of the UAL, created an agreement with the pilots, machinists, and non-union salaried employees to accept the wage cuts provided they were given 55% ownership of the airline and each group was awarded one seat on the board of directors.
United Airlines experienced a turbulent journey while traveling in its goal to be the top in airline industry. It was December of 2012, when Glen Tilton, CEO and Chairman of UAL, himself drove to Chicago’s O’Hare International Airport to personally assured UAL flyers that notwithstanding the previous day’s filing of bankruptcy, United will be flying its usual routes and guaranteed the employees that their jobs are secured, for the time being. The company’s financial problems are speculatively and frequently viewed as a result of the 9/11 hijack attack. The terrorists’ attacks of September 11, 2001, draw a major blow to the airline industry; especially, United Airlines. Coupled with the dotcom bust, increasing oil prices, competition from the low cost carriers such as Southwest and Frontier and low revenues, the company lost $2.14 billion in 2001 alone.
However, prior to the terrorist attacks, the airline industry was already facing a slow down due to the weakening economy. UAL experienced a net loss of more than $10