United Airlines Case Study

The article was reported in the National Geographic Traveler Magazine in the December 2012/January 2013 issue. Christopher writes about two separate airlines and the potential of what could make or break a person. He used different points to breakdown what airline companies are doing to the economy. He published the article to make people become more conscious thinkers and look at the entire package/company when it comes the cost of booking with an airline. Let’s look at how the customer service, expenses and hospitality play a factor when choosing an airline. The Good versus the Evil in the air.

1. United Airlines is owned by the UAL Corporation and was incorporated on December 30, 1968. The actual company was formed may years before this actually in 1925 and was a private mail carrying service between Pasco, Washington, and Elko, Nevada, and from these humble beginnings they formed a were able to start a company that would come to be a global leader in the airline service. From the 1960’s to the 1980’s the company had 6 different presidents and started to expand and venture into different aspects of business other then airlines and were unable to have any success. These companies that they purchased were not a success and were later resold.

: On average, over 8 million people fly around the world daily and over 2 billion fly in the United States daily. Everyone wants non expensive flights, comfortable seating, and on-time flights. Spirit Airlines is an airline that prides themselves on provided very low costs to customers and they strive to be the most cost efficient airline in regards to their competitors. “Spirit Airlines was founded in 1964 as a Clippert Trucking Company” (https://www.spirit.com/history.aspx) and has grown to servicing beyond coast –to- coast and has transitioned to low-cost carrier and ultra-low cost carrier. Spirit Airlines transitioned to Airbus fleet and consists of A319s, A320s, and A321. The A319s has seats 145 customers, the A320 seats 174 customers,

United Airlines and Continental Airlines, two major airlines companies, agreed to a merger that would create the world’s largest airline. Such important deal has a lot of problems to be dealt with, from technical, for example how to put the companies databases together, to more fundamental, like how the company should be ruled.

They serve no meals, do not offer seat assignments, and do not baggage to other airlines. They avoid airports with high landing fees or frequent delay. All of this enables them to make quicker turns and fly more legs each day, resulting in lower fares. Today they are without question the most successful airline in America-if not the world.” (p.8, 2002)

United airlines are known for building a sustainable future for its customers. They have over 47,000 employees and operate the most huge track network of any airline in history. They services 1,071 destinations and flew to 170 countries international. They’re working on building a working culture that their employees will enjoy and love coming to work. United is committed to leading the global airline industry by

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.

People judge the airline company whether is good or not mostly depends on their reputation.

I would characterize the U.S. airline industry in the early 1990’s as a steak being trimmed of all its fat, the economic climate created a financial calamity of bankruptcies and collapse by major airlines, which in turn created opportunity for smaller more efficient carriers with cost advantages to enter a near oligopoly industry. The economic distress the airlines industry encountered was spawned from recession and a doubling of fuel prices during the Gulf War in 1991. Fuel, the second largest cost to the industry, an uncontrollable cost that raised havoc on this industry,

American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.

In recent years, full service airlines are facing different challenges including the increasing competition, market shifts and the change of customer needs. This essay is to analysis the three main difficulties faced by full service airline and suggests some improvements.

The United States economy has been able to grow steadily after the 200 recessionand because of this, most businesses have been able to also grow effectively. The airline should therefore invest heavily in refurbishing its aircrafts and also investing in projects that will attract employees. To fully take advantage of this project, the United airline should embrace good marketing startegies and also provide competitive prices to its customers.

Piedmont Airlines recently invested over $1 million in state of the art equipment and employee development in order to forecast and analyze the appropriate amount of discounted fares to offer per flight. The company discovered that by offering several discounted flights to consumers willing to book their travel well in advance of their departure date left many options available for the business traveler who needed to book much closer to the actual departure date. The analysis was the task of the Revenue Enhancement Department (RED) managed by Marilyn Hoppe. While this state of the art equipment was a step in the right direction, Marilyn believed that there were still a lot of subjective decisions being made and

This proposal addresses the needed steps to be taken in order for Southwest Airlines to see continued growth in the airline industry. Southwest Airlines has been able to remain one of the most profitable airlines in the industry for an extended period of time. Even with the hindrance of the 2001 terrorist attacks involving airplanes and the U.S recession of 2008, Southwest has continued to see strong revenue growth. Meanwhile, other companies were experiencing major losses and in some cases folding. Southwest Airlines has capitalized on the company’s strength of being the top low cost

With 1988 operating income of $801 million on a revenue of $8.55 billion, American Airlines, Inc. (American), principal subsidiary of Dallas/Fort Worth-based AMR Corporation, was the largest airline in the United States. At year-end 1988 American operated 468 aircraft on 2,200 flights daily to 151 destinations in the United States, Bermuda, Canada, Mexico, the Caribbean, France, Great Britain, Japan, Mexico, Puerto Rico, Spain, Switzerland, Venezuela, and West Germany.