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CNN Live At Daybreak
Turbulent Times Ahead for United Airlines Pilots
Aired December 13, 2002 - 05:44 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Turning now to the cash crunch facing United Airlines. The nation's No. 2 airline is starting up a shuttle service on the West Coast as part of its plan to regain its financial footing. In the meantime, United pilots may have the most to lose under bankruptcy protection.
CNN's Lisa Leiter spent time with one pilot.
(BEGIN VIDEOTAPE)
CAPTAIN STEVE DEREBEY, PILOT, UNITED AIRLINES: Come on.
LISA LEITER, CNN CORRESPONDENT (voice-over): Fifteen years ago, Captain Steve Derebey landed his dream job as a pilot for United Airlines.
S. DEREBEY: I wouldn't have wanted to work for anybody else. It just was my No. 1 choice, and I was glad they felt the same way on me.
LEITER: He and his wife, Jeane, and their two daughters moved from Omaha to Chicago and expected to stay until Derebey retired at the mandatory age of 60. What they never expected that United would go bankrupt and that the airline might not survive.
S. DEREBEY: I had, at that point, about 23-24 years left to go and I thought this would be a terrific way to finish out my career.
LEITER: He also thought it was terrific when United's 8,600 pilots agreed to pay cuts in 1994 for 25 percent ownership of the company. Steve Derebey's stake was once valued at $400,000. Now, it's virtually worthless.
JEANE DEREBEY, PILOT'S WIFE: Well we're going to have to really make the most of the next nine years in order for ourselves to retire comfortably and you know, possibly have something for the children when we're gone.
LEITER (on camera): The pilots arguably have the most to lose in Chapter 11. It would be hard for them to find the same work for the same pay anywhere else. The industry is laying off workers. And even if they could get jobs, captains like Steve Derebey would lose all of their seniority.
(voice-over): The pilots union last month was the first to agree to pay cuts to help United avoid bankruptcy. Now that Chapter 11 is a reality, pilots likely will see their salaries shrink even more.
But some industry experts have no sympathy for the pilots, saying they are to blame for United's woes.
AARON GELLMAN, NORTHWESTERN UNIVERSITY: They were very selfish. They took an enormous increase in wages in August of 2000, which put them ahead of everybody else in the industry.
LEITER: Gellman says the pilots should not only give up more pay but also their clout. They have a seat on the board of directors but could end up losing it in the Chapter 11 process.
Steve Derebey tries to put the blame game aside when he heads off to work but worries he may not be able to retire from the airline he first flew as a young boy.
S. DEREBEY: Most of us, or that like mine, we're going to do everything we can to make this company come out much stronger than it is today.
LEITER: Lisa Leiter, CNN Financial News, Wauconda, Illinois.
(END VIDEOTAPE)
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired December 13, 2002 - 05:44 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Turning now to the cash crunch facing United Airlines. The nation's No. 2 airline is starting up a shuttle service on the West Coast as part of its plan to regain its financial footing. In the meantime, United pilots may have the most to lose under bankruptcy protection.
CNN's Lisa Leiter spent time with one pilot.
(BEGIN VIDEOTAPE)
CAPTAIN STEVE DEREBEY, PILOT, UNITED AIRLINES: Come on.
LISA LEITER, CNN CORRESPONDENT (voice-over): Fifteen years ago, Captain Steve Derebey landed his dream job as a pilot for United Airlines.
S. DEREBEY: I wouldn't have wanted to work for anybody else. It just was my No. 1 choice, and I was glad they felt the same way on me.
LEITER: He and his wife, Jeane, and their two daughters moved from Omaha to Chicago and expected to stay until Derebey retired at the mandatory age of 60. What they never expected that United would go bankrupt and that the airline might not survive.
S. DEREBEY: I had, at that point, about 23-24 years left to go and I thought this would be a terrific way to finish out my career.
LEITER: He also thought it was terrific when United's 8,600 pilots agreed to pay cuts in 1994 for 25 percent ownership of the company. Steve Derebey's stake was once valued at $400,000. Now, it's virtually worthless.
JEANE DEREBEY, PILOT'S WIFE: Well we're going to have to really make the most of the next nine years in order for ourselves to retire comfortably and you know, possibly have something for the children when we're gone.
LEITER (on camera): The pilots arguably have the most to lose in Chapter 11. It would be hard for them to find the same work for the same pay anywhere else. The industry is laying off workers. And even if they could get jobs, captains like Steve Derebey would lose all of their seniority.
(voice-over): The pilots union last month was the first to agree to pay cuts to help United avoid bankruptcy. Now that Chapter 11 is a reality, pilots likely will see their salaries shrink even more.
But some industry experts have no sympathy for the pilots, saying they are to blame for United's woes.
AARON GELLMAN, NORTHWESTERN UNIVERSITY: They were very selfish. They took an enormous increase in wages in August of 2000, which put them ahead of everybody else in the industry.
LEITER: Gellman says the pilots should not only give up more pay but also their clout. They have a seat on the board of directors but could end up losing it in the Chapter 11 process.
Steve Derebey tries to put the blame game aside when he heads off to work but worries he may not be able to retire from the airline he first flew as a young boy.
S. DEREBEY: Most of us, or that like mine, we're going to do everything we can to make this company come out much stronger than it is today.
LEITER: Lisa Leiter, CNN Financial News, Wauconda, Illinois.
(END VIDEOTAPE)
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
