United CEO: Airline Industry Needs To Shrink To Survive
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CHICAGO (CBS) -- United's executive chairman says the U.S. airline industry needs to shrink to survive.
Oscar Munoz thinks airlines have to cut labor costs by as much as 50% to stay in the air, but that doesn't necessarily mean cutting half of current workers.
"I think a lot of us are working ways of working in ways where a simple example, a job share program, where you and I would share this job," Munoz said. "And there's one salary versus two for a period of time. So, the payroll costs will have to be down so it's not necessarily losing people."
Munoz recently stepped down as United's CEO. He thinks business travel won't recover until there is a vaccine.
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