The last three years have been a very trying time period for the airline industry. Some airlines have made great strides in an attempt to return to profitability. I would like to take the time to recognize the most prominent airline in the world, United Airlines.
In the three years following the September 11, 2001 attacks, United has greatly improved their chances of survival. They have attempted to right-size their markets. One such example is their SFO-LAX route. Once at more than 40 times daily, it now stands at 18 daily flights. They've used United Express to their benefit, creating profitable feed to their valuable and extensive international flight network, as well as their domestic network. An example of this is the use of UAX from the IAD hub, which feeds UA's profitable trans-Atlantic flights. With the recent creation of Ted, UA has attempted to maximize yields, and make consumers happy with their product. Using Ted to mainly leisure markets benefits both consumers and shareholders alike- low fares, and high profits.
The introduction of a new trans-continental premium product, United's p.s., they aim to keep their current profit-producing customers, as well as attracting new ones. A new high-yield product that I feel will crush the competition (mainly American Airlines), will pay off in the end. Having a streamlined, consistent product will have a positive effect when compared to the competition.
A smart management team, and dedicated employees are the keys to success in delivering UA's new and improved product. If it weren't for you pilots, flight attendants, ground crew, upper management, as well as a plethora of others, UA would not be where it is today- on the road to profitability.
I feel that the choices made by employees and executives have helped steer UA in the right direction. With that said, I would once more like to congratulate you employees (and consumers!), for doing a bang-up job. Keep up the good work, and good luck to you all!
CRPilot From Costa Rica, joined Nov 2004, 311 posts, RR: 0 Reply 1, posted (8 years 7 months 1 day 10 hours ago) and read 8009 times:
I could not agree with you more PanAm330. They are definitely taking steps in the right direction. I particularly applaud them focusing on the profitable international market, and moving the domestic traffic to the UA Express and TED. They're also renegotiating their capacity agreements which also seems like a good move...in this case with AWAC. I hope it works out for them!
Tbird From United States of America, joined Oct 2001, 851 posts, RR: 22 Reply 2, posted (8 years 7 months 1 day 10 hours ago) and read 7993 times:
Third quarter loss of 274 million.
725 million more in connsessions needed.
Possibe scrapping of the union contracts.
"There will be a significant number of staff reductions," Chief Executive Glenn Tilton said at an industry event in Brussels.
Yeah they're headed in the right direction??? I'm glad your not a industry consultant for United or they would be Chap 7 by now......
CRPilot From Costa Rica, joined Nov 2004, 311 posts, RR: 0 Reply 3, posted (8 years 7 months 1 day 9 hours ago) and read 7948 times:
Tbird Survival is the bottom line! And they are doing everything they can to stay a float. You should obviously know that it will take significant reductions in every aspect of the company...equipment, personnel, and service, as well as, a different type of plan which is what we are talking about here.
"I'm glad your not a industry consultant for United or they would be Chap 7 by now......"
No need to get nasty...this is just forum, no one is attempting to run UA, just sharing opinions!
FriendlySkies From United States of America, joined Aug 2004, 4015 posts, RR: 5 Reply 4, posted (8 years 7 months 1 day 9 hours ago) and read 7920 times:
Tbird: And everyone else is just rollin' in the dough, right? I don't see CO or AA people getting raises, no, they're taking cuts too. UA HAS made MANY steps in the right direction, whether you guys want to accept it or not.
ANCFlyer From , joined Dec 1969, posts, RR: Reply 5, posted (8 years 7 months 1 day 9 hours ago) and read 7888 times:
Yup - UA is headed in the right direction . . . CHAOS with the F/As, now that's moving in the right direction alrighty! Don't see CHAOS at CO - they've worked to keep their heads out of their posteriors.
CRPilot From Costa Rica, joined Nov 2004, 311 posts, RR: 0 Reply 6, posted (8 years 7 months 1 day 9 hours ago) and read 7867 times:
And what did you expect ANCFlyer?..There is bound to be some conflict with the work force. I know is not fair for a lot of hardworking folks at UA, but unfortunately it is a necessary step to get those concessions to ensure the survival of the company. And really.....come on...comparing CO to UA...why don't you compare the 777 with the Cessna 172 while you're at it?!?!?!
NYCAAer From United States of America, joined Jul 2004, 660 posts, RR: 4 Reply 7, posted (8 years 7 months 1 day 9 hours ago) and read 7865 times:
UAL may also default on its bankruptcy financing next month. They've been rejected for a government loan twice, and a judge last week ruled they must pay San Francisco $155 million in airport bonds. They also have yet to file a reorganization plan and were granted another 60-day extension to file, which also was done in court.
I'm not too worried about their p.s. service. AA tried using 757s in its 2-class configuration this past summer on the JFK-SFO route, and the negative response was so overwhelming, 767s were put back on the flights flown by the 757s.
ANCFlyer From , joined Dec 1969, posts, RR: Reply 8, posted (8 years 7 months 1 day 9 hours ago) and read 7844 times:
CRPilot . . . and when the dust settles, and the new world of US based air carriers is fettered out, CO will still be there, as will AS, NW, AQ, HA and a few others, legacy and LCCs - but I don't think we'll see much of a UA left (and by then US will be written into the history books . . . . long ago). Just the threat of CHAOS - discussed in a different thread - really makes me wanna hop on a UA flight out of ANC . . . really.
CRPilot From Costa Rica, joined Nov 2004, 311 posts, RR: 0 Reply 10, posted (8 years 7 months 1 day 8 hours ago) and read 7726 times:
There is no doubt that our beloved industry here in the U.S. is drastically changing, and while I agree with you on the survival of carriers like CO; there is still a few miles to go for UA. No one has said that it will be easy, and I've mentioned in other forums, they won't be around in the same capacity they are today...but if they play their cards right, there will be a leaner, cleaner UA a few years from now. Too early to call it one way or the other, but like the topic of the forum reads "United Airlines: Stepping In The Right Direction".
Ord From United States of America, joined Jul 1999, 1370 posts, RR: 1 Reply 13, posted (8 years 7 months 1 day 8 hours ago) and read 7680 times:
NYCAAer - There is a huge difference between AA using a two-class 757 and UA using a three-class 757 in the transcon market. AA didn't have, among other things, lie-flat first class seats and extra room in economy (AA's 757 have been converted back to less room throughout coach). I'm sure the negative response by AA flyers was not to the aircraft but to the lack of three-class service transcon flyers are accustomed to. If 757s are so bad on longer flights explain why Continental is having such success with them in transatlantic markets and why they have been widely used in recent years to Hawaii. I have no idea whether or not UA's p.s. will succeed, but to make a comparison to AA using two-class 757s is ridiculous.
UALramperORD From , joined Dec 1969, posts, RR: Reply 15, posted (8 years 7 months 1 day 6 hours ago) and read 7564 times:
An-225, By all means do not feel bad. Word on the ramp here in ORD says that we to may be out of a job come the 7th of January. BTW, they busted me down to part time a while back, how are things on the ramp in DEN?
An-225 From United States of America, joined Sep 2000, 3950 posts, RR: 44 Reply 16, posted (8 years 7 months 1 day 6 hours ago) and read 7528 times:
Ramp in DEN is one big clusterfuck as always. And you know, I am part-time with just a bit over a year seniority... Chances are, I'll join the ranks of real airline employees (who have been furloughed at least once). Keep your head up high, hopefully we'll all prevail through this mess.
Money does not bring you happiness. But it's better to cry in your own private limo than on a cold bus stop.
UALramperORD From , joined Dec 1969, posts, RR: Reply 17, posted (8 years 7 months 1 day 6 hours ago) and read 7509 times:
I have 4 and a half years on the ramp in ORD and am still part time, down from full time 3 years ago. I also have been furloughed 2 times(the first time a week after 9/11, then last fall). As long as I get re-called its all good . Also you have'nt seen a clusterfuck until you have seen ramp ops in Chicago. We are down to a lead and one on all narrow bodies and normally a lead and two (or three if you are lucky) on wide bodies. Anyway good luck and drop me a line if you ever blow into ORD.
Avek00 From United States of America, joined Oct 2004, 4094 posts, RR: 18 Reply 18, posted (8 years 7 months 1 day 6 hours ago) and read 7508 times:
United doesn't even know what the "right direction" IS - so how can it be stepping there:
"With the recent creation of Ted, UA has attempted to maximize yields, and make consumers happy with their product."
Actually, United is doing the exact opposite - offering a low-frills product DILUTES passenger yields, not strengthens them. Offering half an airline does NOT entice customers to pay more money for the same flight than they did a year ago.
"The introduction of a new trans-continental premium product, United's p.s., they aim to keep their current profit-producing customers, as well as attracting new ones. A new high-yield product that I feel will crush the competition (mainly American Airlines), will pay off in the end."
American is ALREADY badly crushing United on the premium transcontinental routes - that's what motivated United to come up with p.s. in the first place. That said, I believe (and early anecdotal evidence about p.s. supports this) that p.s. is a brilliant product concept that will ultimately fail on account of poor revenue management and marketing strategies.
Furthermore, as others have stated, United is now two years and counting in bankruptcy, and doesn't have any of the necessary elements lined up to emerge, such as:
1. BK emergence financing;
2. An equity plan sponsor; or
3. A Plan of Reorganization.
While I think that United has at least a 1-in-3 chance of emerging from bankruptcy somewhat intact, it is foolhardy to assert that the company is moving in the right direction - the ONLY right direction is OUT of Chapter 11, and United ain't even close to doing that.
Avek00 From United States of America, joined Oct 2004, 4094 posts, RR: 18 Reply 20, posted (8 years 7 months 1 day 6 hours ago) and read 7480 times:
"LOL, another arm-chair ceo."
There's little "arm-chair" about my post - nothing United is currently doing is without some degree of precedent in this business, and little coming from the company these days indicates that the airline is set to rewrite conventional wisdom in a manner favorable to United.
Avek00 From United States of America, joined Oct 2004, 4094 posts, RR: 18 Reply 22, posted (8 years 7 months 1 day 5 hours ago) and read 7394 times:
Four things that come off of the top of my head:
1. Restructure employee compensation to a modified pay-for-performance model that assures a minimum base pay but also allows for signficant additional compensation in return for increased productivity and achievement of company goals;
2. Remove some United Business seats from the 744 and 777 fleets and reconfigure the cabin to a 60-64" pitch and ~165-170 degrees of recline (essentially mimicking the flat-but-not-level products) with the existing seats until a new International C product can be brought online;
3. Take IAD down to a focus city with flights to the hubs + transcons and LHR - the other longhaul/international desintations ex-IAD destinations should be flown ex-ORD, allowing UA to leverage the strengths of its largest hub;
4. Rework the Mileage Plus program to encourage and incentivize passengers who spend the most money instead of those who simply fly more miles.
I have just outlined four practical ideas that not only seek to cut costs but also put the company in a position to BOOST REVENUES, the thing that United has failed at doing for the last five years.
FriendlySkies From United States of America, joined Aug 2004, 4015 posts, RR: 5 Reply 23, posted (8 years 7 months 1 day 5 hours ago) and read 7386 times:
What a fun discussion! I'll be the first to admit UA has quite a few problems, due to inept management, corrupt unions, disgruntled employees, as well as factors they cannot control (fuel prices, market demand, etc.). The simple fact that THEY ARE STILL HERE is testament enough to the POSITIVE actions that UA has made in the past few months. Not one person knows what will happen to UA, so why don't we all sit back, grab some popcorn, and watch what happens instead of fighting over the future of the airline!