Zoomie

United in talks to move operations to Willis (Sears) Tower, reports say
Comments 4 | Recommend 1
12h 55m ago from USA TODAY

United Airlines may soon be operating out of one of the most distinctive locations in America. The nation's No. 3 carrier is reported to be in talks to lease more than 400,000 square feet in the building formerly known as the Sears Tower. The building was renamed the Willis Tower earlier this month. United would use the space to house its operations center, which is currently based in far-suburban Elk Grove Township near O'Hare International Airport.
The Chicago Tribune says "the move, if it were to happen, would allow United parent UAL to cut expenses while giving the nation's tallest building … a major tenant." The Tribune adds "the Elk Grove Township site, with more than 1 million square feet of office space, has about 2,800 United employees, according to the company. The site served as United's headquarters until 2006, when, in exchange for hefty tax breaks and other incentives from the city, the carrier moved its headquarters to 77 W. Wacker Dr." in downtown Chicago. The paper says "more tax breaks are on the table" for UAL to bring its operations into the city.
Crain's Chicago Business, which reported Thursday afternoon, says that a deal, if reached, "would be a major coup for the city (Chicago) — generating far more jobs than the much-publicized headquarters moves by MillerCoors, Boeing and UAL. The deal would also symbolize the trend of jobs migrating from the suburbs to downtown — about 15 years after Sears, Roebuck and Co. moved from the tower to northwest suburban Hoffman Estates in what was a decades-long exodus to the suburbs.” The reports say a deal could be reach as soon as next week." Stay tuned ...
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Zoomie

Honestly, that sounds like a good way to cut costs in a crazy economy.

Let's move United headquarters to the tallest building in the United States with one of the biggest reputations.

And they say this is going to save them money? United pilot union better get back there 2001 contract if this deal goes through.

IF, and that's a big IF, this can possibly save United money, don't you think picking another location (not one of the most famous buildings in the world) would save a $hit#oad more?

This is scary. Why would they move in this environment. Can you imagine what it would cost to move a huge company like United? I'm sure the moving costs would rival close to a billion(just a WAG). That's a lot of furniture to move up and down a couple hundred flights of stairs.

I'm no proponent of a merger, but ladies and gentleman, with United's cash position, how could they even do this?

The only way I could see this possible is if a merger were in the works and the move is a HUGE marketing push. Make the biggest airline in the world and put it in the biggest building the US.

I don't advocate a merger in any way, but this doesn't make any sense IMO unless something were going to happen that is BIG!

Of course, they haven't actually done this yet. Perhaps this is merely a ploy to convince stockholders to buy united for a quick stock bump so they can bump it a point and make millions. This after reporting that they made a "profit" this quarter. This is probably more likely.

jsled

The Elk Grove hq is 60+ acres and 1M sq ft of office space. I imagine UAL could get a chunk of cash for it. More furniture for the fire. Everything is for sale.

Lambourne

I can hear it now,.......May I introduce you to the "What you talkin about Willis, Tower"

L

g-code

Actually from what I have read its not a bad idea. Chicago gives big tax breaks for a company like United to move its facilities downtown. Further, in a recession like this I am sure that the rent is much more reasonable.

SoCalGuy

Now dat be funny.

HSLD

Gary Coleman to be named VP corporate communications

YouTube - Whatcha talkin bout Willis

you heard it here first!

Zoomie

Sure, the rent at the sears tower today is almost guaranteed to be cheaper than it was 5 years ago. However, in a time where they are on the brink of disaster potentially with airline analysts all but calling the time of death for the company, don't you think UAL could save a whole LOT MORE money by moving into another place in Chicago. It's a big city with a lot of tall buildings. In this economy, there is more likely a higher number of buildings with large vacancies. Why not save some money and move into something even less expensive?

I guess the real reason is Tilton and his cronies not only want their millions on the backs of the fine people at United, they also want to have million dollar offices at the top of the tallest building in North America. I'm sure the view will be fantastic as they will be able to keep a better eye on their pilots from that altitude.

P.S. I guess at a minimum, if they can afford to move into more or less the most prestigious/historic/famous building in Chicago(and one of the top building arguably in the world), then I guess the company is better off than everyone thinks; and in addition, they can afford to buy more planes, re-hire their employees and give them all nice pay raises like they enjoyed prior to 9.11.

Brian Z

A billion to move 2800 people!!! That is over 350000 per person. I am guessing your guess is off by around 995,000,000.

Boomer

Going from 1,000,000 square feet to 400,000 square feet. That sounds like less.