In order to cover up for quarterly loss and control the operating cost of the airlines, United Continental Holdings Inc (NYSE:UAL) is offering an Enhanced Early Out Program to its flight attendants while paying up to $100,000 in severance money.
United Continental Holdings Inc (NYSE:UAL) is likely to pay up to $100,000 to its flight attendants who opt for early furlough and the amount will depend upon some eligibility qualifications. The senior vice-president for Inflight Services at United Continental Holdings Inc (NYSE:UAL), Sam Risoli, said,
“We’re excited to offer this extraordinary early out program, and we look forward to rewarding Flight Attendants who’ve contributed so much to United over the years.”
The airline has worked together with the Association of Flight Attendants to device a formula for the early out program. Risoli further added,
“Working together with the AFA Master Executive Council Presidents Ken Diaz, Suzanne Hendricks and Marcus Valentino, we were able to develop a program that provides great benefits, minimizes disruption to Flight Attendants due to staffing imbalances and at the same time helps us be more competitive.”
As of now United Continental Holdings Inc (NYSE:UAL) has nearly 23,000 flight attendants and the company is expecting at least 2,100 attendants to accept the deal. One of the primary reasons for these early out programs from airliners is to control their operating expenses by replacing senor flight attendants, expensive, with entry-level workers.
Earlier, United Continental Holdings Inc (NYSE:UAL) witnessed a slight decline in its share prices, which closed at $49.56 with a decline of 1.69%. The company spent $64 million last year in early out programs and as many as 1,200 ground workers and pilots accepted the offer.
This article has been written by Prakash Pandey.