Don't get me wrong, I never said U management was the sharpest team in the industry or Rocky and Bullwinkle didn't get rich and fat while trying to merge with UA. They've made some stupid decisions (Metro Jet to name one) and they've done some things that will still be felt years to come.
I never said shrinking the an airline to profitability is possible. In fact, it makes it worse in many ways. What happens when you park planes and are forced to furlough pilots? Do you lay off the high-priced, arguably over paid senior pilots? No, due to union rules the lowest seniority pilots get laid off first, resulting in a unit cost increase on what remains in your network. Getting rid of some overcapacity (meaning big jets) and switching to RJs is an entirely different matter. Do you really need 5 737s a day to BUF from PIT and PHL? No. You would most likely be better off with a few RJs and a couple of jets on peak trips. This would help to reduce the costs a bit and rationalize capacity.
What about BWI? U just signed a deal with Southwest last week to sell the 25+ gates. What was once a mini-hub for U is now gone, so what do you do with those planes? Park even more aircraft? Lay off even more staff? As the cuts run deeper their unit costs are going to continue to rise to a point where the breakeven load factor is so high that it's impossible to make a dime, even in good times like TWA experienced.
Look at the facts: PIT, PHL, and CLT can't grow too much more. LGA is in gridlock, and the international component (excluding the Caribbean stuff) is almost a joke. They are not ever going to be a big 3 carrier and they will never be able to handle the cost levels of a big 3 carrier. I think management and labor combined need to start discussing wage levels, eliminating scope clauses, and figuring out how to reshape your company so pilots like you can get back to work ASAP. I hope you get called soon.