United Airlines

The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. The classic airline model consists of First Class, Business Class and Economy, and the demographics that make up the classes have both similarities and differences to the other classes. For instance there may be similarities between business class travellers on a particular flight, but they will not all be travelling for the same reason. An almost-universal characteristic of air travel is that customers do not fly for the sake of flying; the destination is the important element and the travel is a by-product, a means-to-an-end that involves the necessity of an aircraft that gets the customer from point A to point B.

Over 35 years ago, Rollin King and Herb Kelleher decided to create a different type of airline. They began with the simple notion: If you get your passengers to their destinations when they want to get there, on time and at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. They were right (Southwest Airlines, 2004)!

United Airlines is a large internationally recognised airline serving over 300 destinations worldwide, making them the second largest in terms of just pure number of destinations. The airline operates within the private sector as a publicly listed company with the share price trading at $71.25 on February 1st, 2017. Founded in the 1930’s as Vamey Airlines, they have grown exponentially and are

United Airlines, established in 1934, is an air transportation company with operations in North and Latin America, Europe, the Middle East, and the Asia-Pacific with headquarters in Chicago, Illinois. As an airline company, one of the primary functions of United Airlines is the air transportation of not only passengers but also cargo to and from numerous different locations. However, United Airlines also has functions in selling fuel, as well as in services related to catering, ground handling, and maintenance (Airlines, 2017). United Airlines’ ground handling services are substantial enough that in 2015, United Airlines established United Ground Express to supplement their customer service and cargo operations at airports across the United States. In total, United Airlines and United Ground Express manage approximately 5,000 flights per day to 362 different airports worldwide (United Airlines, 2015).

Currently 51.8% of United’s income is generated through its international fleet, and 48.2% is generated within the domestic market.[iv] United Airlines is headquartered in Elk Grove Township, Chicago and operates 3,568 daily departures from 31 countries, which includes 225 domestic and international cities. The firm’s main hubs are located in Los Angeles, San Francisco, Denver, Chicago, and Washington, D.C.

In the world, there are many airline organizations and each company has different strengths and weaknesses. Among all airline companies, United Airlines is one of the famous company in the United States. Its mission is to become “the airline customers want to fly, the airline employees want to work for and the airline shareholders want to invest in (“Corporate Fact Sheet”, 2010).” It seems like the company is on the right track to operate itself based on the mission statement. According to TheStreet.com (2016), however, United Airlines is selected as the worst airline in the United States.

The objective of United is to make a continuation of growth in the market share simply through offering the lowest rates in terms of fares. Currently, the health of US economy relies heavily on United Airlines. Businesspersons travelling have been seeking participation in meetings for companies through meeting spaces that are vital like the second life by telephone and videoconferencing. Many families have sought out from flying to location of vacations because of the economic downtown in the two previous years and the weak stock market, as well as concerns of job security. However, experts are trying to resolve the case arguing that the economy of United States is recovering. This is

Good Evening board members and staff, I am Megan Wilson, the Chief Executive Officer (CEO) of your company, Southwest Airlines. We have gathered here this evening to take a look at the current position of our company, how we are measuring up to our competition, and what I am proposing we do to continue our success within our future. First I will start off with the mission of our airlines, as many of you know it is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. Our mission to our employees is to be committed to provide our employees with a stable work

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.

According to the World Tourism Organization (UNWTO), in 2014 international tourist arrivals are expected to increase by approximately 4%, slightly above UNWTO’s long-term forecast of 3.8% per year for the period 2010 to 2020 (Compendium of Tourism Statistics Data 2009-2013, 2015). “Thus, UCH, with its comprehensive global route network, is well positioned to benefit from increasing global tourism industry, which in turn would help the company to generate additional revenues” (UAL Corporation SWOT Analysis, 2014). With the increase in nonstop routes and international tourism rising, the opportunity for United Airlines to capitalize on both business and leisure travelers is forecasted to drive

Southwest Airlines has effectively used a variety of promotional elements in its integrated marketing communications, making it one of America’s largest airlines with 3,300 flights a day to 72 domestic cities. Southwest Airlines has used all four possible elements of the promotion mix: advertising, public relations, personal selling, and sales promotion, but has focused primarily on advertising and public relations to add value to the product offered to customers. Its focus on advertising and public relations is directly related to its large size and it’s nationwide reach. Also, advertising and public relations are the

Airline companies are becoming more and more competitive as the low budget discount airlines are becoming popular. It is key for airlines to differentiate themselves among the various airlines to choose from, and United Airlines wanted to ensure that it offered products and services for all marketing segments. “United realized that it needed to develop a customer-centric future strategy and galvanize its organization to improve the customer experience for its most valued customers” (Prophet, 2012, para. 1). This paper discusses the marketing plan for the newly merged

United is the largest airline in the world in terms of the number of destinations and one of the largest in terms of fleet size and revenue. It is arguably the oldest surviving airline in the United States. United presently operates more than seven hundred aircraft with a route structure circling the globe. United Airlines was not officially formed until March 28, 1931, when it was incorporated as a management company designed to coordinate the activities of its subsidiary airlines. The addition of National Air Transport in 1930 allowed United to operate the first true transcontinental air route, from San Francisco to New York (Salem, January 2017). United Airline’s previous hubs were the Cleveland Hopkins International Airport, Miami International Airport, Stapleton International Airport and JFK International Airport in New York. The company employs over 80000 people. It is a public, listed company with stock being listed on the New York Stock Exchange. Airlines offers over 130 international destinations to its clients in over 60 nations across all the continents in the world. United Airlines offers various products to its clients based on the affordability and the preferred price range. These products include; the United Basic economy (which is the cheapest), then the United Economy, United Economy plus, United First, United Premium service, United Polaris Business and then the United Polaris, first which is the most expensive product for the customers.

In spite of the low switching costs and the absence of proprietary goods and services, generally speaking, there is a low threat to new entrants in the airline industry. The huge amount of capital make reprisals against new entrants through a price drop. This is evident among existing companies. Despite low switching costs, customer loyalty prevails

In less than twenty years, the global industry has gone through tremendous change. Several airlines had gone out of business that had been on top of the industry for years. One of the remarkable changes had been airline alliances. The case focuses on the airline industry and how airlines are forming alliances and joint ventures. It then introduces the partner firms Air France KLM , and Delta . Air France KLM had over 25 collaborative agreements with other carriers and was a founding member of Skyteam, one of the leading airline groups. Air France KLM and Delta Airlines formed revenue