L.1011
Topic Author
Posts: 2163
Joined: Mon Aug 13, 2001 7:46 am

Could This Save UA?

Sat Dec 14, 2002 10:52 am

Could UA survive by turning into something like Virgin? I mean with premium service and lower fares.
 
gigneil
Posts: 14133
Joined: Fri Nov 08, 2002 10:25 am

RE: Could This Save UA?

Sat Dec 14, 2002 11:34 am

While I agree to win all this UA both needs to increase service levels and lower fares, but a Virgin comparison is difficult for me.

Virgin is really better compared to Pan Am, for example. Very few domestic flights, primarily an international carrier.

I tend to agree with the logic that if UA starts trimming too many domestic routes, even marginal ones, they'll be inadvertently affecting their other, profitable, connections. I'm not sure focusing only on their international markets will save them, although I think the international markets are their most important.

3 short years ago, this was the most powerful airline on Earth. Logic suggests that if we analyze what they were doing then, what they're doing differently now, and adjust for the economic downturn, progress can be made.


N

Speaking of logic... I'm off to see ST: Nemesis here shortly. They have all sorts of aviation, just not the realistic kind.
 
apollo13
Posts: 559
Joined: Sun Oct 29, 2000 1:04 pm

RE: Could This Save UA?

Sat Dec 14, 2002 2:49 pm

I hope so its lucky for my family that my uncle was not laid off. He loves his piloting job and would do anything to keep it.
 
elwood64151
Posts: 2410
Joined: Fri Feb 08, 2002 10:22 am

RE: Could This Save UA?

Sat Dec 14, 2002 3:02 pm

The fact of the matter is, UAL needs to cut costs, nothing else. Their fares are in line with the rest of the industry, generally, but they are losing money much faster than CO, DL, or even AA.

The reason is that they have too many employees who are earning too much money as a whole and their executives refuse to cut their own salaries. Additionally, the company operates some flights that simply will never make money and needs to trim those routes to smaller aircraft or fewer flights. Finally, the company needs to cut its older, higher cost aircraft, like the 737-200, in favor of low-cost aircraft, which for UA means the 737-300/400/NG and unfortunately the A319/20/21 (appologies to you Airbus fans out there). It probably also means a reduction of service on some routes from the 747-400 to 767s and even on some the 757.

Finally, if the company consolidated one of its four hubs or two of its six domestic focus cities, it might fare better, as well.
Those who fail to learn history are doomed to repeat it in summer school.
 
Guest

RE: Could This Save UA?

Sat Dec 14, 2002 4:00 pm

Elwood,

As far as United's fleet goes, the 737-200A fleet was retired last November, along with the 727, which leaves the 737-3/500, 747-400, 757, 767, 777, A319/20.

Rumors around UAL are that the the 737 fleet will be drastically reduced or eliminated altogether, 1/2 to 2/3 of the 747s will go, 767-200s will go. United will not be investing in 737NGs after bankruptcy, because they already have a well established Airbus fleet, and for what United uses those planes for, the marginally better performing 737NG isn't really needed.

Eventually, United's fleet will be compsed of the A319/320, 747, 757, 767-300, 777.
 
Guest

RE: Could This Save UA?

Sat Dec 14, 2002 4:57 pm

The fact of the matter is, UAL needs to cut costs, nothing else. Their fares are in line with the rest of the industry, generally, but they are losing money much faster than CO, DL, or even AA.

Thats the name of the game right there.  Big thumbs up If the airline is "transforming" into anything - it'll be a pile of liquidation papers. It's too late in the game to rewrite the business and change it into a Southwest, JetBlue, Virgin, Air Congo, anything...

The only thing that will work will be the same carrier with lower costs flying the same planes to the same destinations with cheaper employees and a some fewer amenities.

Anything more will fuck the company permanently. Trust me.

TNNH

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