Jul 6, 2007
Do airline executives bear some responsibility for the severe drop in airline service standards?
In 2006, the Chairman and CEO of United Airlines, a certain Glenn Tilton, received $39.7 million in compensation. That was the year when United Airlines LOST $152 million and also terminated the pensions of its 120,000 workers. Because the default has shifted those obligations to a federal pension guarantor, which imposes limits on its payments, the pension income of United's retirees will now undoubtedly be reduced. Is it any wonder that United's employees are not well known for their service attitudes? Or that, as USA Today recently reported, United had the highest rate of passenger complaints (per number of passengers flown) to the Department of Transportation for all of 2006?
As a reader of these blogs recently reminded me, I'm simply to report facts, and not comment politically upon them. But may I pose a question? Is it proper -- or sensible -- for corporations in the travel field to cut the income of their employees while raising the income of their executives to obscene heights? Should an airline losing 152 million dollars in a single year pay 39.7 million dollars in that same year to its Chairman? And are we, as Americans, tolerating a radical abuse of power by corporate executives in paying themselves out-sized sums that have no relation to their talents or accomplishments?
Write and read comments about this post.
As a reader of these blogs recently reminded me, I'm simply to report facts, and not comment politically upon them. But may I pose a question? Is it proper -- or sensible -- for corporations in the travel field to cut the income of their employees while raising the income of their executives to obscene heights? Should an airline losing 152 million dollars in a single year pay 39.7 million dollars in that same year to its Chairman? And are we, as Americans, tolerating a radical abuse of power by corporate executives in paying themselves out-sized sums that have no relation to their talents or accomplishments?
Write and read comments about this post.
Labels: airlines
Fifty years ago, 
Arthur Frommer is generally acknowledged to be the nation's foremost travel authority. He is the founder of the
