The Wall Street Journal espousing the fact that certain analysts believe that United Airlines should discontinue certain flight service from San Francisco to Washington, D.C. does not necessarily mean that United Airlines should do so. In fact, United Airlines must certainly consider that action as one of the options available to them, but it other options are equally as accessible, and may make a lot more sense. Although accountants are charged with the responsibility of making sense of the numbers, company executives are charged with seeing the 'big picture' and making decisions based on what is best for the entire company, even if that means that some flights are less profitable (or not profitable at all) than others. Company leaders at United have to understand the market structure including what would happen if the decision was made to drop the unprofitable route. If United was to give up that particular route the question then becomes 'what are the ripple effects?' of that decision. The negative aspects of such an action as dropping an unprofitable flight might lead to further negative consequences. As one recent report touted "It is no secret that the airline industry is bracing for a tough 2012" (Shannon, 2011, p. 24) and United must take that into consideration as well. When airline companies are forecasting rough seas, decisions such as dropping unprofitable flights become even more important. On one hand, dropping the San Francisco to Washington flight may
3. Obviously one of the biggest financial impacts that the company has faced was the terrorist attacks on September 11th and the financial and economic impact that this event caused on its own. United airlines responded to the attacks by installing bullet proof doors on all the cockpits and
Airline travel is arguably safer than that of car travel, with not only less risk for in motion issues and collisions of any sort, but not issues about missing the turn off. Airline travel issues do not usually persist during travel, yet can sometimes happen before the take-off even begins. The issue with Airline travel is not travel hazards, but instead travel protocols often carried out by the airline companies. United Airlines specifically has gone through too many CEO switches and un-transparent business ethics leading to customer complaints and needs to reevaluate business ethics.
In this scenario, there are several problems at each level. At the organizational level, there has not been an ethical leader in place to unify the airline company and its employees. At the group/team level, there is not enough employee moral to produce and maintain premier customer service to the airline guests. At the individual level, the job has become a burden that is unsatisfying and unrewarding. The most important problem is at the organizational level.
United Airlines moved closer to a fallout this week, as a result of the incident where the police dragged out a paying passenger off one of their flights. Dr. Dao was assaulted by Chicago police and suffered a concussion and other injuries. The controversy is still under investigation by both United and the aviation department.
On February 14, 1997, days before one of the busiest travel times and holidays of the year, thousands of American Airline pilots prepared to walk off their jobs if a deal wasn't made by midnight between the Allied Pilots Association and American Airlines. Passengers worried that they would be stranded and out of money, began to re-book their American flights with other airlines and making other arrangements for travel. Although negotiations were still in progress, American began to prepare for the strike that loomed overhead. They braced themselves by canceling all international flights and several domestic flights which cost them millions in profits. After hours of bargaining with little progress, the Allied Pilots Association called a strike
1. There are a few trends in the US airline industry. One is consolidation, wherein existing players merge in an attempt to lower their costs and generate operating synergies. The most recent major merger was the United Continental merger, which is still an ongoing affair, but has created the largest airline in the United States by market share (Martin, 2012). Another trend is towards low-cost carriers. In the US, Southwest has been a long-running success and JetBlue a strong new competitor, but in other countries this business model has proven exceptionally successful. The third major trend is the upward trend in jet fuel prices, and the increasing importance that this puts on hedging fuel prices and capacity management (Hinton, 2011).
United Airlines is committed to work and serve in the most adequate way with both employees and customers, as a result we are taking the necessary actions in this case such as changing overbooking rules within our airline, so that our passengers do not get affected, also training our current and future employees, so they are familiar with these new
United Airlines is the second of the world’s largest, and strongest, airlines. From humble beginnings as a small air mail providers flying Contract Air Mail (CAM) route 5 from Elko, Nevada to Pasco, Washington rail road center, to an airline today that is a premier member and cofounder of the Star Alliance, with numerous other airlines that span the globe, United has had a long and colorful past.
Of course turning a profit and cutting costs are still important to the airline. Adjusting the risk level, of the main four risks, is most important to the fact that it is diminishing their profitability.
American Airlines based on my analysis are above average than their competitors in the airline industry. Overall, the airline is known to be most profitable but also falters compared to their rivals in the industry. Research showed that the airline recently filed for bankruptcy after their merger with US Airways. Even though the merger is a good business aspect it hampered the business revenues. On the other hand, as the company improve the aspects that continues to threaten them, they have a hard time addressing what matters to them most. Customers have been complaining more about American Airlines than any other company with this issue. This may have a big impact on the standing of this company. Customers will then turn their back on the
In light of recent events, United Airlines has been receiving intense media attention due to their quality of customer service that led to a passenger being escorted off a flight in an abnormal way. Airlines are not very popular in the customer service spectrum to begin with. In fact, many people consider flying a hassle and hate to deal with it completely. However, the media has always covered aerial news. The United Airlines story was a big deal in headlines and received an impressive amount of coverage. The British Broadcasting Corporation, Washington Post, and Charlotte Observer news sources all covered the United Airlines scandal with different angles, showing the variety of point of views on the story. However, The British Broadcasting
The issue with United Airlines brought a lot of negative attention to their business. This has made people question their ethics and if they really want to fly with United. Also, it doesn’t only affect the customers, it also affects their employees. Moreover, do the employees really want to deal with all the backlash and work for a company known for overbooking and not handling the situation properly.
There have been few inventions to change how people live and experience the world considerably as the creation of the airplane. Today, traveling by air has become the norm and it would be difficult to imagine life without it. Air travel has improved the way people are able to conduct business by shortening travel time and changing their thought of distance. The companies within the airline industry exist in a very competitive market. One of those companies, Southwest Airlines, features low-fare, no-frills air service with frequent flights of mostly short routes. Costs are kept down by the exclusive use of Boeing 737 aircraft, which allows for low maintenance costs and quicker turnaround times for flights, and by an emphasis on ticketless travel (Encyclopedia Britannica). This paper will address two segments of the general environment and how they affect Southwest and the airline industry; evaluate how Southwest has addressed two forces of competition; predict what Southwest might do to improve its ability to addresses these forces; assess the external threats affecting Southwest; discuss Southwest’s greatest strengths and most significant weaknesses; determine Southwest’s resources, capabilities, and core competencies; and analyze their value chain.
In April 2017, United Airlines experienced its most controversial Public relations crisis ever experience that shocked the nation. The incident occurred on United Airlines Flight 3411, when a passenger was assaulted and forcefully taken off a plane for a seat he paid form. The occurrence was captured on video and watched from all over the world. The way United Airlines and CEO handled the dispute was criticized all over the world. Many people questioned the ethics, moral and the timely manner in the way the business answered to the public. This sparked a pandemonium in the relationship between customers and airlines, and the way customers are treated in an unethical matter, in this case United Airlines and the treatment of Dr. David Dao.
After 9/11 many airline companies will be facing a financial crisis that will shape America banks, stock pricing and insurance company’s community. Airline industry after 9/11, will make many changes to foreign policy and national policy, “the hardest hit business was the airline industry, which suffered major economic damage” (to, H. and Lee, D. (2005). I choose this topic because many Americans really don’t know how 9/11 crippled airline industry. The terrorist attack on September 11, 2001 was a turning point in American history, which killed over 2,000 people and which put fear in many businesses and people, “the terrorist attacks created a great deal of uncertainly for the industry” (Frey, B.S., Luechinger, S. and Stutzer, A. (2007)). 9/11 will show how a nation that pays no attention to the safely regulation of airline industry into something that will haunt America decade after the attack. This research paper will benefit to many business entrepreneurs to serve as a reference tool in the areas of business management, and macroeconomics. This topic can best serve as a good tool for other researcher’s on the subject of banking and finance. This paper will analyze the importance and will point out how 9/11 impact America airline industry.