A discussion about the airline industry, airline employees, and all things related

THEY SHOULD GO (OR STAY) WHERE THE PRICE IS RIGHT -- NO OTHER REASON.

You are right, United is looking to cut costs so they can return to making money. I am sure Chicago and Illinois wants to make the price right for them.

I live about 1 mile from UA Headquarters and several of my family members work there. My wife works at a hospital in Elk Grove Village. It would be a significant loss to our local economy if they were to move. Here is a local article on the subject which I found interesting.
____________________________________

May 10, 2006
By Julie Johnsson, Thomas A. Corfman and Greg Hinz

United mulls moving HQ downtown, or out of town


(Crain’s) — United Airlines is exploring moving its corporate headquarters from Elk Grove Township to downtown Chicago or possibly another major city, sources say.
The nation’s second-largest airline, which emerged from bankruptcy protection in February, is searching for more than 150,000 square feet of office space to house about 350 senior officials and staff, say people familiar with its plans.

Those people say the move would separate parent UAL Corp.’s executive offices from the giant operations center that coordinates its flights and airport facilities around the world. It would simultaneously relocate hundreds of out-of-state workers into the vacant space left by its departing executives.

United has hired Dallas-based tenant representative Staubach Co. to review its real estate options, sources say. Steven Stratton, managing principal in Staubach's Chicago office, declined comment.

“We’re looking at how best to optimize and consolidate our facilities,” says a United spokeswoman. “It’s premature to speculate” on whether that process could lead to a headquarters move.

People close to United describe its planning as being in the early stages, but moving rapidly. The airline expects to make a decision on its headquarters by Labor Day, and would occupy its new offices by early 2007.

While United is thought to favor relocating to Chicago, the airline is also scouting other cities where it operates hubs, including San Francisco and Denver, sources say.

The airline is expected to seek government incentives to defray the cost of the move.

City and state officials are familiar with United’s plans and are actively working to keep its headquarters here, sources say. The airline is one of the largest employers in Illinois, employing 16,000 workers in the region and 3,600 at its world headquarters.

A spokeswoman for Mayor Richard Daley says she’s not aware of any personal contact between the mayor and United CEO Glenn Tilton on the matter. Paul O’Connor, executive director of World Business Chicago, couldn’t be reached for comment.
This is not the first time that United’s management has flirted with the idea of departing its aging world headquarters building for Chicago. A decade ago, United seriously studied moving to a tract of land adjacent to O’Hare International Airport, but ultimately decided the upheaval would be too costly

Thanks for the local story from Chicago. What I do not understand is, why they need to hire yet another firm and pay them loads of money to tell United if they need to move or not and where too. Wouldn't it make more sense to move, if it is even needed, to a location that your own company decides is best for the operations and money saving efforts?

Moving HQ operations when you just emerged from Chapter 11 just doesnt seem smart...

Somehow I think there are going to be some large tax breaks filtered into the equation.