The airlines baggage situation has finally taken a turn.
The baggage situation was already problematic in the fall of 2015, when United Airlines lost about a million dollars in revenue.
But the baggage fiasco has gone from bad to worse.
Now, a new report from Bloomberg Businessweek says United Airlines is the largest carrier to file for bankruptcy protection, a move that would take effect on May 3.
The bankruptcy filing would take United Airlines into a new phase of turmoil.
The company would have to reorganize its business, shedding thousands of jobs and slashing thousands of positions.
It would also have to lay off about 40% of its workforce, including nearly half of its flight attendants and the vast majority of its corporate officers.
United has a long way to go before it can start making any meaningful changes, but the situation is serious enough to warrant an emergency filing.
United was once the world’s largest airline, but over the past few years its fortunes have steadily declined.
Its stock price has fallen by about 60% since 2011, its revenue has dropped by nearly 50% and its profit has dropped 70%.
Its CEO, Oscar Munoz, resigned last week.
“The bankruptcy filing is not the end of our problems,” Munoz said in a statement on Friday.
“I have long believed that we can get back on the right track.
That’s why I’ve taken this action to protect our shareholders and our employees.”
“I know that we have made significant progress in improving our customer experience and delivering value for our customers, and we remain committed to the success of our employees and customers,” Munoso said.
Despite the turmoil, Munoz still retains control of United’s board.
He and his predecessor, Oscar López Obrador, are not in the same position that Munoz is, but they have the power to keep Munoz’s hand in the bag if necessary.
As Bloomberg Businessbook reported, Munososo has been the face of the airline’s turnaround, and he has been able to keep the board in his corner even when the company’s finances have been falling.
In September, United Airlines announced it would lay off roughly 4,300 flight attendants, with the full cuts expected to begin in May.
That was followed by a number of smaller layoffs in March.
In the first half of the year, United cut its workforce by nearly a third, and Munoz himself cut the number of people he has in his own company by nearly 25%.
In April, the airline announced it was eliminating about a quarter of its jobs, with about a third of those cuts expected by the end for May.
By early May, United had cut about half of their workforce.
Since Munosys departure, United has slashed its CEO and other top executives by more than a third. At the end