Which way UA?

There are substantial disagreements between United Airlines management and it’s creditors, who have substantial say in it’s operations while in bankruptcy.

United’s creditors object to the millions being paid to consultants McKinsey & Company. United wants to engage the consultants even more.

But the disagreement really isn’t about the payments — it’s about the product being received. McKinsey recommends that United start a low cost carrier as a separate operation. The creditors committee sees that as a dubious strategy. And other than the cost cuts that United has already achieved, the airline has no other clearly articulated strategy.

So the airline is at a crossroads. They may or may not be able to move forward with their consultant, and they may or may not be able to move forward with their strategy. Which means they may need another business plan before they can emerge from bankruptcy.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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