United Airlines

949 Words4 Pages
Selection of and Justification for Alternatives
Competition
There is no doubt the advent of readily-obtainable pricing and availability for airline travel via the internet has changed competition drastically. Not only are customers able to search and select flight times and destinations from each individual airline’s own website, but they now also have the ability to compare everything regarding the flights from plane types, durations, layovers, connecting flights, additional fees and fares on independent travel booking sites such as Travelocity and Expedia; with multiple carriers listed side by side. For this reason, United Airlines has no choice but to implement a strategy involving their marketing which creates a positive view of the
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United had one of the most prosperous times once the employee-ownership settlement was reached. This proved that employees having a stake in the business tend to work harder and increases the customer satisfaction ratings in turn. Although the economic downfall and 9/11 completely shattered the airline industry, the downfall of United’s ESOP was because management never enacted an ownership culture. United’s membership within the SkyTeam does afford benefits above those enjoyed by just the customers. SkyTeam has the capability for pilots and mechanics from multiple airlines to train and learn from within and upkeep of the fleets are shared. Instead of bearing the entire cost for these advantages, they are distributed amongst the complementary strategic alliance (Hitt, Ireland & Hoskissin, 2011).
General Industry Challenges United has the ability to offset the peaks and valleys of fuel costs by hedging the costs. Additionally, they are able to make use of their SkyTeam alliances to form a major buyer conglomerate, which will allow even stronger negotiation abilities. Furthermore, by keeping strong relationships with both Boeing and Airbus, they will realize lower purchase prices and greater returns on investments when selling aging aircraft. By fostering share agreements with other airlines, United will gain lower usage costs for airport slots, and
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