United Airlines: Difference between revisions
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In 1988, the bilateral (though not reciprocal) treaty with Japan was amended to allow additional routes between the two countries. United's application to fly from Chicago to Tokyo, a significant gap in its routes previously, was approved.{{Citation needed|date=April 2009}} |
In 1988, the bilateral (though not reciprocal) treaty with Japan was amended to allow additional routes between the two countries. United's application to fly from Chicago to Tokyo, a significant gap in its routes previously, was approved.{{Citation needed|date=April 2009}} |
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United is focusing on its international presence, notably in the [[People's Republic of China]], with nonstop flights to [[Beijing]], [[Shanghai]], [[Guangzhou]] (beginning June 30, 2010), and [[Hong Kong]] from its hubs in Chicago, San Francisco and Washington, D.C. In September 2007 United was granted a route from San Francisco to Guangzhou.<ref>[http://www.united.com/speech/detail/0,6862,53282,00.html united.com{{ndash}} Speech detail<!-- Bot generated title -->]</ref> These routes offer a higher proportion of premium fare passengers while being relatively insulated from the [[cut-throat competition]] in the domestic market, especially from low-cost carriers. United competes vigorously with discount carriers on about 70 percent of its domestic market. United has also focused more on Latin America, a region from which it had largely retreated in the last decade, and added new destinations and frequencies to Mexico and the Caribbean. United also is planing to operate non stop flights to the Indian |
United is focusing on its international presence, notably in the [[People's Republic of China]], with nonstop flights to [[Beijing]], [[Shanghai]], [[Guangzhou]] (beginning June 30, 2010), and [[Hong Kong]] from its hubs in Chicago, San Francisco and Washington, D.C. In September 2007 United was granted a route from San Francisco to Guangzhou.<ref>[http://www.united.com/speech/detail/0,6862,53282,00.html united.com{{ndash}} Speech detail<!-- Bot generated title -->]</ref> These routes offer a higher proportion of premium fare passengers while being relatively insulated from the [[cut-throat competition]] in the domestic market, especially from low-cost carriers. United competes vigorously with discount carriers on about 70 percent of its domestic market. United has also focused more on Latin America, a region from which it had largely retreated in the last decade, and added new destinations and frequencies to Mexico and the Caribbean. United also is planing to operate non stop flights to the Indian cities of [[Bangalore]] and [[Delhi]] from 30<sup>th</sup> November, 2009 and 2<sup>nd</sup> December from Chicago. |
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====Former hubs and focus cities==== |
====Former hubs and focus cities==== |
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Revision as of 13:00, 29 September 2009
 | This article needs additional citations for verification. (March 2009) |
| File:United Airlines.svg | |||||||
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| Founded | 1926 (as Boeing Air Transport), became United Air Lines in 1934 | ||||||
|---|---|---|---|---|---|---|---|
| Hubs | |||||||
| Frequent-flyer program | Mileage Plus | ||||||
| Alliance | Star Alliance | ||||||
| Fleet size | 372 | ||||||
| Destinations | 114 excl.code-share | ||||||
| Parent company | UAL Corporation | ||||||
| Headquarters | Chicago, Illinois | ||||||
| Key people | Glenn F. Tilton (Chairman, CEO) John P. Tague (President) Kathryn Mikells (CFO) Alexandria Marren(SVP) | ||||||
| Website | www.united.com | ||||||
United Air Lines, Inc., trading as United Airlines (Nasdaq: UAUA), is a major airline of the United States.[1] It is a subsidiary of UAL Corporation with corporate offices in Chicago at 77 West Wacker Drive in the Chicago Loop. United's largest hub is O'Hare International Airport, where it has more than 550 daily departures. United also has hubs in Denver International Airport, Washington Dulles International Airport, San Francisco International Airport, and Los Angeles International Airport.[2] Its largest maintenance hub is the Maintenance Operations Center at San Francisco International Airport. United's parent company UAL Corporation announced that it will move its operational base from Elk Grove Township, Illinois to the Willis Tower (née Sears Tower) in downtown Chicago in 2010.[3]
As of July 31, 2006, United was the world's third largest airline by revenue-passenger-miles (behind Delta Air Lines and American Airlines), third-largest by total operating revenues (behind Air France-KLM and American Airlines), and fourth-largest by total passengers transported (behind Delta Air Lines, American Airlines and Southwest Airlines). United has 48,000 employees[3] and operates 372 aircraft.
History
Beginnings
United Airlines traces its claim to be the oldest commercial airline in the United States to the Varney Airlines air mail service of Walter Varney, who also founded Continental Airlines. It was founded in Boise, Idaho. Varney's chief pilot, Leon D. "Lee" Cuddeback, flew the first Contract Air Mail flight in a Swallow biplane from Varney's headquarters in Boise, Idaho to the railroad mail hub at Pasco, Washington on April 6, 1926, and returned the following day with 200 pounds of mail.[4] April 6 is regarded in the United Airlines company history as both its own birthday[5] and the date on which "true" airline service—operating on fixed routes and fixed schedules—began in the United States. Varney Airlines' original 1925 hangar served as a portion of the terminal building for the Boise Airport until 2003, when the structure was replaced.
In 1927, airplane pioneer William Boeing founded his own airline, Boeing Air Transport, and began buying other airmail carriers, including Varney's. Within four years, Boeing's holdings grew to include airlines, airplane and parts manufacturing companies, and several airports. In 1929, the company changed its name to United Aircraft and Transport Corp. (UATC). In 1930, as the capacity of airplanes proved sufficient to carry not only mail but also passengers, Boeing Air Transport hired a registered nurse, Ellen Church, to assist passengers. United claims Church as the first airline stewardess.[citation needed] On May 7, 1930, UATC completed the acquisition of National Air Transport Inc, a large carrier based in Chicago.[6] On March 28, 1931, UATC formed the corporation United Air Lines, Inc. to manage the UATC airline subsidiaries.[7]
Following the Air Mail scandal of 1930, the Air Mail Act of 1934 banned the common ownership of manufacturers and airlines. UATC's President Philip G. Johnson was forced to resign and moved to Trans-Canada Airlines, the future Air Canada. William Boeing's company was broken into three: a parts supplier (the future United Technologies), an aircraft manufacturer (the Boeing Airplane Company), and the United Air Lines airline group. The airline company's new president, hired to make a fresh start as airmail contracts were re-awarded in 1934, was William A. Patterson, who remained as president of United Airlines until 1963.[citation needed]
Expansion into a national carrier
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United's early route system, formed by connecting U.S. air mail routes, operated east-to-west along a transcontinental route from New York City via Chicago and Salt Lake City to San Francisco, as well as north-and-south along the West Coast. The early interconnections during this era became the basis of major United hubs in Chicago and San Francisco, followed later by additional hubs in Denver and Washington, D.C. These four cities remain United's principal hubs to this day.
On the night of October 11, 1933, a United Boeing 247 exploded in mid-air and crashed near Chesterton, Indiana, killing all seven aboard. Investigation revealed that the explosion was caused by a nitroglycerin bomb placed in the baggage hold. The United Airlines Chesterton Crash is believed to be the first proven case of air sabotage in commercial aviation history. No suspects or motives were ever discovered.
During World War II, United-trained ground crews modified airplanes for use as bombers, and transported mail, material, and passengers in support of the war effort. Post-war United benefited from both the wartime development of new airplane technologies (like the pressurized cabin which permitted planes to fly above the weather) and a boom in customer demand for air travel. This was also the period in which Pan American Airways established a Tokyo hub and revived its Pacific route system that would later be acquired by United.
On November 1, 1955, United Airlines Flight 629, which was flying from Stapleton Airport in Denver to Portland, Oregon, was bombed, killing everyone on board the Douglas DC-6B aircraft. The bomb was planted by Jack Graham who placed the device in his mother's luggage with the intent of collecting on her life insurance policy. Graham was arrested, tried, and was executed a year after the explosion.[8]
United merged with Capital Airlines on June 1, 1961, making it the world's largest commercial airline and giving it a route network covering the entire United States.
In 1968 the company reorganized, creating UAL Corporation, with United Airlines as a wholly owned subsidiary.
United Airlines has the distinction of being the only commercial airline to have operated Executive One, the designation given to a civilian flight which the U.S. President is aboard. On December 23, 1973, then President Richard Nixon flew as a passenger aboard a United DC-10 flight from Washington Dulles to Los Angeles. White House staff explained that this was done to conserve fuel by not having to fly the usual Boeing 707 Air Force aircraft.[9] In keeping with the common practice of having two aircraft immediately available at all times during Presidential travel, an Air Force aircraft flew behind in case of an emergency.
De-regulation
United had begun to seek overseas routes in the 1960s, but the Transpacific Route Case (1969) denied them this expansion. It did not gain an overseas route until 1983, when they began flights to Tokyo from Portland and Seattle. In 1985, United agreed to purchase Pan American World Airways' entire Pacific Division, Boeing 747SPs, and L-1011-500s for $750 million. By the end of 1986, United operated flights to 13 Pacific destinations, most of which were purchased from the ailing Pan American World Airways.
Economic turmoil, labor unrest, and the pressures of the 1978 Airline Deregulation Act greatly affected the company, which incurred losses and saw a greatly increased turnover in its senior management through the 1970s and early 1980s.
In May 1981, one week after rival American Airlines launched AAdvantage, the first modern frequent flyer program, United launched its Mileage Plus.
In 1982, United became the launch carrier for the Boeing 767, taking its first delivery of 767-200s on August 19.
In 1984, United became the first airline to serve all 50 states when it introduced service to Atlanta, Nashville, Memphis, Little Rock, Fargo, Casper, Jackson, and Charleston.
Strike of 1985
On May 17, 1985, United's pilots went on a 29-day strike claiming the CEO, Richard Ferris, was trying to "break the unions." They used management's proposed "B-scale" pilot pay rates as proof.[10] American Airlines already had a non-merging B-scale for its pilots.[11] Ferris insisted United had to have pilot costs no higher than American's, so he offered United pilots a "word-for-word" contract to match American's, or the same bottom line numbers. The United ALPA-MEC rejected that offer. The only choice left, to achieve parity with American's pilot costs, was to begin a B-scale for United's new-hire pilots.[12]
Ferris wanted that B-scale to merge in the captain's ranks, which was more generous than American's B-scale, that never merged at all. But, the ALPA MEC insisted they merge in the new pilot's sixth-year with the airline. In the final hours before the strike, nearly all issues had been resolved, except for the time length of the B-scale.[13] It appeared that would be resolved too as negotiations continued. ALPA negotiators delivered a new counter-proposal at 12:20 A.M. in an effort to avoid the strike. However, MEC Chairman Roger Hall, who was hosting a national teleconference from the Odeum (a convention center in the Chicago suburbs) with F. Lee Bailey, declared the strike was on at 12:01 A.M., on May 17, without further consulting the negotiators, some of whom believed they could find agreement on all contract terms, if the negotiations were allowed to continue. Moments before the ALPA announced strike deadline, they began a "countdown of the final 30 seconds from Chicago" (the Odeum teleconference). Doing that made it impossible to extend the strike deadline, so that the final issues could be resolved without a strike.[14][15]
Mr. Ferris changed United's parent company's name from UAL Corporation to Allegis in February, 1987 but the name change was short lived.[16][17] Following Ferris' termination by the board, Allegis divested its non-airline properties in 1987 and reverted to the name UAL Corp. in May 1988.[16]
Record-setting flight
In 1988, using a 747SP-21 purchased from Pan American World Airways, United flew a 2-stop around-the-world flight to raise money for the Friendship Foundation, to which the plane was 'loaned'. The flight made a very short-lived record for fastest flight around the globe; within a month, a Gulfstream IV business jet had broken Friendship One's record.[18]
Employee Stock Ownership Plan
The decline of Pan American World Airways continued to offer new opportunities for United. In 1991 the company expanded dramatically, purchasing Pan Am's routes to London Heathrow Airport. In direct negotiations with the UK government, United also obtained rights to fly to Heathrow from Chicago—the only Heathrow rights provided to a US carrier subsequent to the Bermuda II Treaty.[citation needed] However, the aftermath of the Gulf War and increased competition from low-cost carriers led to losses of USD $332M in 1991 and USD$ 957M in 1992.[citation needed] In 1992, United purchased now-defunct Pan Am's Latin American and Caribbean routes and Miami gates, but United allowed months to elapse between Pan Am's demise and its launch of service. During this time, American Airlines nearly doubled in size in Miami and Latin America, and as a result, United never saw much success in the region.[citation needed]
In 1994, United's pilots, machinists, bag handlers and non-contract employees agreed to acquire 55% of company stock in exchange for 15% to 25% salary concessions. The flight attendants voted to not participate in the deal, and at the beginning some wore buttons saying "we just work here." The Employee Stock Ownership Plan (ESOP) made United the largest employee-owned corporation in the world. United used the opportunity to create a low-cost subsidiary, Shuttle by United, in an attempt to compete with low-cost carriers.
United made substantial use of its employee-ownership in its marketing communications, with slogans such as "the employee-owners of United invite you to come fly the friendly skies," "we don't just work here," and "thank you for calling United Airlines; please hold and one of our owner-representatives will be with you shortly."
The financial outcomes of the ESOP were decidedly uneven for different players. As part of ESOP agreement, United CEO Wolf resigned and took a consulting job with Lazard Freres, the very investment company he had hired to advise United's board during the ESOP buyout process. Stewart Oran, the key legal advisor to the pilots' union, received a $5.5 million package to join the management of the new employee-owned company as legal counsel after the ESOP was formed.[19] United's unions, having larger voice in running the company, later successfully bargained for significant pay increases, but the effect was only short-term. The rank and file employees were locked into their stock, which got wiped out in the eventual bankruptcy. It was around this period (in 1993) that United introduced its grey and blue color scheme. It had been criticized that the color scheme blended with the darkness during nighttime operations.[20]
Turn-of-the-Century Developments
In 1997, United co-founded the Star Alliance with Air Canada, Lufthansa, SAS and Thai Airways. That same year, United opened a major hub at Los Angeles International Airport.
United was the launch customer of the Boeing 777 and had significant input on its design. It was also the first airline to introduce the twin-jet in commercial service.
In 1998, Delta Air Lines and United introduced a marketing partnership that included a reciprocal redemption agreement between SkyMiles and Mileage Plus programs and shared lounges.[21] This scheme allowed members of either frequent flier program to earn miles on both carriers and utilize both carriers' lounges.[21] Delta and United attempted to form an even cozier codeshare relationship, but this was deal was effectively killed by ALPA.[22] The marketing partnership ended in divorce in 2003, but paved the way for a future alliance with US Airways.
In May 2000, United announced plans to acquire competitor US Airways in a complex deal valued at $11.6 billion. The offer drew immediate scorn from consumer groups and employees of both airlines. By the following year, regulatory sentiment was against the deal, and United withdrew the offer just before the Department of Justice barred the merger on antitrust grounds in July. The two airlines subsequently formed an amicable partnership that led to US Airways' entrance into the Star Alliance.
May 2000 also saw a bitter contract dispute between United and its pilots' union. Planning for the busy summer season, United had counted on its pilots flying overtime. However, the pilots could not be forced to work overtime, and most pilots refused to fly the extra hours. Although United knew they would have to cancel numerous flights if this were to happen, they did not hire new pilots to make up for the potential shortage. Over the summer, United had to cancel a large portion of its schedule at its major hubs. Eventually, CEO Jim Goodwin and the rest of the management had to get the pilots back in the cockpits and quickly offered the pilots a 48% increase over four years with up to 28% upfront.
September 11, 2001
As part of the September 11, 2001 terrorist attacks, two United Airlines planes were hijacked by terrorists affiliated with al-Qaeda. One aircraft was a Boeing 767-222 (Flight 175) that crashed into the South Tower of the World Trade Center in New York City and the other was a Boeing 757-222 (Flight 93) that crashed in rural Pennsylvania. Flight 93 was suspected to have been directed towards the United States Capitol building according to the United States Department of Homeland Security.
Bankruptcy and reorganization
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With a strong presence on the West coast, United benefited from the dot-com boom which boosted traffic (especially premium traffic) to the San Francisco hub. This increase was only temporary and when the 'bubble' finally burst United was in a worse position than before because it had failed to keep costs under control, for example giving its pilots pay raises of up to 28% in the summer of 2000.[3] Coupled with a battered network (after the dot-com bust), the September 11 attacks, and skyrocketing oil prices, the company lost $2.14 billion in 2001 on revenues of $16.14 billion. In the same year United applied for a $1.5 billion loan guarantee from the federal Air Transportation Stabilization Board established in the wake of the September 11 attacks. When the IAM (a union comprised of ground service workers and mechanics) failed to approve the loan guarantee (while all other unions approved the loan guarantee), the application was rejected in late 2002 and the company was forced to seek debtor-in-possession financing from commercial sources to cover the expected future losses. United tried several times to obtain the government loans, even enlisting several congressmen and senators for help. The government rejected the application claiming United "could probably obtain the $2 billion in financing it needs to emerge from protection without a federal loan guarantee."[4]
Unable to secure additional capital, UAL Corporation filed for chapter 11 bankruptcy protection in December 2002. The ESOP was terminated, although by then its shares had become virtually worthless. Blame for the bankruptcy has fallen on the events of September 11, which triggered financial crisis in all the major North American airlines, coupled with the economic slowdown that was underway.[5]
United continued operations during its bankruptcy, but was forced to cut its costs drastically. Tens of thousands of workers were furloughed, and all city ticket offices in the US closed. The airline canceled several existing and planned routes, and eliminated its entire Latin American gateway and flight crew base at Miami International Airport after March 1, 2004. In 2003, United abandoned its maintenance hubs in Oakland and Indianapolis, even though maintenance was less expensive in Indianapolis, and transferred work to its San Francisco Maintenance Operations Center. Furthermore, they reduced their mainline fleet from 557 (before 9/11) to 460 aircraft.
At the same time, the airline continued to invest in new projects. On November 12, 2003, it launched a new low-cost carrier, Ted, to compete with other low-cost airlines. In 2004 it launched its luxury "p.s." (for "premium service") service on re-configured 757s from JFK Airport in New York City to Los Angeles and San Francisco. The service was targeted to business customers and high-end leisure customers in the coast-to-coast market.
Financial pressure on the airline was heavy. The SARS epidemic in 2003 depressed traffic on United's extensive Pacific network. The soaring cost of jet fuel ate away remaining profits United made. United implemented several fare hikes on overseas routes, citing rising fuel costs, in 2004 and 2005. Two days after its triumphant first flight to Vietnam, United announced that it would cut U.S. flight capacity by 14% after the holidays and add more international flights, which were more profitable.
United took advantage of its Chapter 11 status to negotiate hard-to-cut costs with employees, suppliers, and contractors, including cancellation of feeder contracts with United Express Atlantic Coast Airlines (which became Independence Air) and Air Wisconsin (which became a US Airways Express carrier).
Most controversial of all, however, was the 2005 cancellation of its pension plan, the largest such default in U.S. corporate history. It renegotiated its contracts with the pilots' and mechanics' unions and the Association of Flight Attendants for lower pay. Criticism was also leveled at the CEO, Glenn Tilton, for demanding pay cuts from employees while receiving the highest salary of any major U.S. airline CEO.[23]
Originally slated to exit bankruptcy protection after 2½ years in the third quarter of 2005, United requested yet another extension in light of record-high fuel prices. On August 26, 2005, the bankruptcy court extended the airline's exclusive right to file a reorganization plan to November 1, although it also stated firmly this extension would be the last. United announced at the same time it had raised $3 billion in exit financing and filed its Plan of Reorganization, as announced, on September 7, 2005.
The bankruptcy court approved the restructuring plan on January 20, 2006, clearing the way for United to exit bankruptcy on February 1, 2006, and finally return to normal operations.
Beyond Chapter 11
On December 9, 2004, the airline made history when UA869 (747-400) landed at Ho Chi Minh City (Saigon), Vietnam. The scheduled flight from San Francisco via Hong Kong (SFO-HKG-SGN) was the first by a U.S. airline since the end of the Vietnam War, when Pan Am halted service shortly before the fall of Saigon in 1975.
On July 16, 2006, United Airlines announced that it would be moving its headquarters from 1200 East Algonquin Road in suburban Elk Grove Township to 77 West Wacker Drive.[24] The Top 350 Executives were moved in the first half of 2007 to 77 West Wacker. The Elk Grove Village campus was renamed an Operations Center.
On August 4, 2006, United Airlines formally ended free meals served in the economy cabin on domestic flights. The change came after scaling back the amenity over several years since 2001, until it was finally eliminated when the airline cut it from United p.s. flights.[25][26]
United's management have called for consolidation in the industry. The Wall Street Journal revealed on December 12, 2006, that Continental Airlines was in merger discussions with United. A deal was not "certain or imminent," with the talks being in a preliminary state.[27][28] On April 4, 2007, United and British carrier BMI announced that they would 'effectively merge their trans-Atlantic operations', which would involve strengthening their alliance to a level far more intimate than its current code-share alliance.[29][30] The merged operations would begin in March 2008, if approved. On May 3, 2007, United acquired an equity stake in its longtime partner Aloha Airlines.[31] On June 14, 2007, CFO Jake Brace said his company is still looking to tie the knot with a suitable merger partner.[32]
On June 19, 2008, United Airlines announced an extensive partnership with Continental Airlines. This partnership will include codeshare and frequent flyer agreements. Also, Continental has decided to leave SkyTeam to join the Star Alliance and streamline the new agreements with United. However, before any partnerships can go into effect, Continental must receive regulatory approval, and until any approval has been given, it will be business-as-usual.[33]
Recent news
As of September 2007, United's largest owner was Bank of America, and Fidelity Investments became the second largest owner by acquiring an 11 percent stake in the company.[34]
On September 25, 2007, United received permission from the FAA for non-stop service from SFO to Guangzhou, China starting in April 2008. Its application to fly between Los Angeles and Shanghai in 2009 was denied. Due to the impact of higher fuel costs it was announced on April 14, 2008, that this route would be delayed for one year.
United has been investigating significant potential changes to its corporate structure. The initiatives under consideration include:[35]
- Divesting of the Maintenance, Repair and Overhaul operations at SFO.
- Spinning off the cargo division.
- Spinning off the Mileage Plus frequent flier program.
On November 14, 2007, Pardus Capital Management LP, a hedge fund that owns 7 million shares of Delta and 5.6 million shares of United, called for the two carriers to merge. This action sent shares of both airlines up. However, the two airlines quickly denied official talks of any merger.[36][37][38]
On February 19, 2008, Westin Hotels & Resorts announced a refreshed partnership with United where Westin will provide products from their Heavenly Bed line on p.s. routes later this year.
In May 2008, the American Customer Satisfaction Index scored United Airlines second-last among US-based airlines in customer satisfaction with a 21% decrease since the study began in 1994 and a 11% decrease over the previous year.[39]
On June 12, 2008, United announced it would charge $15 for the first checked bag, becoming the second United States airline to do so, the first being American Airlines.[40] The charges, while not affecting every United flight, were created in an effort to offset high fuel prices.
On June 28, 2008, United announced the cessation of several international routes including San Francisco-Nagoya and Chicago-Mexico City.[41][42][43]
On September 8, 2008, the price of UAL shares fell by nearly 99% in fifteen minutes to $0.01 US amid rumors of another bankruptcy, before NASDAQ temporarily halted trading. The rumors were traced to an old story on the South Florida Sun-Sentinel website about the 2002 bankruptcy being picked up by Google News and subsequently presented by Bloomberg LP as breaking story. The share price subsequently recovered most of its value.[44] On February 1, 2006, United emerged from Chapter 11 bankruptcy protection under which it had operated since December 9, 2002, the largest and longest airline bankruptcy case in the history of the industry.[45]
In February 2008, UAL Corporation and Continental Airlines began advanced stages of merger negotiations and were expected to announce their decision in the immediate aftermath of a definitive merger agreement between rival Delta Air Lines and Northwest Airlines.[46] The timing of the events was notable because Northwest's golden shares in Continental (that gave Northwest veto authority against any merger involving Continental) could be redeemed, freeing Continental to pursue a marriage with United. On April 27, 2008, Continental broke off merger negotiations with United and stated it was going to stand alone.[47] Despite ending merger talks, Continental has announced that it will join United in the Star Alliance[48]
On April 27, 2008, it was reported that UAL Corporation and US Airways Group, Inc. were in the advanced stages of merger negotiations as well. Sources stated that a merger was expected to be announced within two weeks of the report.[49] United pilots vociferously rejected the proposal and vowed to fight it.[50] Star Alliance co-founder Lufthansa Airlines CEO Wolfgang Mayrhuber threw his support behind a marriage of partner carriers United and US Airways.[51]
On June 4, 2008, United announced it would close its Ted unit.[52] The ex-Ted Airbus aircraft will be reconfigured and returned to mainline configuration; to compensate the removal of United's Boeing 737s that are set to be retired, reducing the mainline fleet from 460 to 360 aircraft and furthering the airline's goal of cutting domestic capacity by 15 percent.
In January 2009, United announced a code-sharing agreement with Aer Lingus for flights between Washington Dulles International Airport and Madrid, Spain. Aer Lingus will operate the service, which is permitted under recent open skies agreements between the US and EU.[53]
On January 6, 2009, Ted ended operations converting its entire fleet into United mainline fleet. All Ted flights were changed into United mainline flights. The interior and exterior aircraft conversion from Ted configuration to mainline configuration continues.
As of May 2009, the U.S. Department of Transportation rated UAL eleventh among 19 US carriers in lost, damaged, delayed or pilfered baggage with 3.67 complaints per 1,000 passengers.[54] In July 2009, a viral music video, "United Breaks Guitars"[55] was released about a disputed damaged baggage claim with the airline. United said it would like to use the video as a staff training tool to help the company improve its internal "corporate culture" relating to its customer relations in that area of its services.[56]
Merger discussions with Continental and US Airways
On April 28, 2008, United and US Airways reportedly were in advanced merger talks following the announcement that the board of Continental Airlines, another prospective merger partner, had voted not to pursue a merger with United.[57]
Oil price increases since 2003
On June 19, 2008, CEOs of both United Airlines and Continental Airlines signed a pact which possibly could eventually lead to a merger between the two airlines. The alliance is an agreement to link international networks and share technology and passenger perks. This agreement is basically a "virtual merger" that will include many of the benefits of a merger without the actual costs and restructuring involved. The alliance will take effect in about a year after Delta Air Lines and Northwest Airlines complete their merger, as that will release Continental from the SkyTeam contract and allow for the required nine-month notice. Additionally, Continental has declared that they will join the Star Alliance, once Delta and Northwest merge.[58]
2009 recession and new jet orders
In June 2009, United asked manufacturers Boeing and Airbus to submit proposals to sell the airline up to 150 jets in a winner-take-all competition. United is taking advantage of declining sales at both plane makers to reap steep price reductions; the large size of this prospective order will also influence pricing.[59] The Wall Street Journal cited the average ages of four types of jets in United's fleet as follows:
- Boeing 747 – 13 years
- Boeing 777 – 10 years
- Boeing 767 – 14 years
- Boeing 757 – 17 years
Destinations
United Airlines flies to 73 domestic destinations and 41 international destinations in 25 countries across Asia, Americas, Europe and Oceania, not including cities only served by United Express.
Route network
United operates an extensive domestic route network concentrated in the Midwest and western United States. United is also prominent in transcontinental, transatlantic, and transpacific service. It is the leading US carrier to Hawaii and largest to Asia and Australia, flying 26.15 billion transpacific revenue passenger miles in 2006 on 306 weekly departures. Between September 2006 and August 2007, United carried 3.3 million passengers to/from the Hawaiian Islands.[citation needed]
United is the only other US carrier besides Northwest/Delta to serve Vietnam and to operate its own aircraft from the US mainland to Australia. Northwest/Delta began similar services in the summer of 2009.[60][61] United is the only US carrier to serve Kuwait as Delta withdrew its services in July 2009.
In 1988, the bilateral (though not reciprocal) treaty with Japan was amended to allow additional routes between the two countries. United's application to fly from Chicago to Tokyo, a significant gap in its routes previously, was approved.[citation needed]
United is focusing on its international presence, notably in the People's Republic of China, with nonstop flights to Beijing, Shanghai, Guangzhou (beginning June 30, 2010), and Hong Kong from its hubs in Chicago, San Francisco and Washington, D.C. In September 2007 United was granted a route from San Francisco to Guangzhou.[62] These routes offer a higher proportion of premium fare passengers while being relatively insulated from the cut-throat competition in the domestic market, especially from low-cost carriers. United competes vigorously with discount carriers on about 70 percent of its domestic market. United has also focused more on Latin America, a region from which it had largely retreated in the last decade, and added new destinations and frequencies to Mexico and the Caribbean. United also is planing to operate non stop flights to the Indian cities of Bangalore and Delhi from 30th November, 2009 and 2nd December from Chicago.
Former hubs and focus cities
|
United's route network has been trimmed and streamlined to a few central hubs, resulting in the closure of these former hubs or de-listing as focus cities:
- Cleveland (Focus city, traffic moved to Dulles, its east coast hub)
- Miami (Latin hub, dismantled due to competition with American Airlines)
- New York-JFK (Focus city, dismantled after 9/11)
- Portland (Focus city, traffic moved to San Francisco International Airport)
- Seattle (Focus city, dismantled due to competition with Alaska Airlines and West coast consolidation to San Francisco and Los Angeles)
- Tokyo-Narita (Focus city)
Fleet
Passenger
As of September 20, 2009, United operated 372 aircraft with average fleet age of 13.5 years. United's Boeing Customer Number is "22" ie a 747-422.[63]
| Aircraft | In Service | Passengers (First/Business/Economy Plus/Economy) |
Routes | IFE | Notes |
|---|---|---|---|---|---|
| Airbus A319-131 | 55 | 120 (8/0/40/72) | Domestic, Canada, Mexico, Caribbean | Overhead LCDs, Audio | |
| Airbus A320-232 | 97 | 138 (12/0/36/90) 144 (12/0/42/90) |
Domestic, Canada, Mexico, Caribbean | Overhead LCDs, Audio | 18 Ted planes have been converted. Feature leather seats in United First and Economy. |
| Boeing 737-322 | 11 | 120 (8/0/46/66) 128 (8/0/46/74) |
Domestic, Canada | Audio | All to exit service by October 28 of 2009. |
| Boeing 747-422 | 25 | 347 (14/73/88/172) New configuration 374 (12/52/70/240) |
International | Overhead monitors, Audio, AVOD | New Configuration features AVOD in First and Business with bulkhead LCD's in Economy. Ship 8405 is a 747-451. |
| Boeing 757-222 | 97 | p.s. 110 (12/26/72/0) 182 (24/0/50/108) |
p.s. LAX-JFK and SFO-JFK 2-class Domestic, Canada and the Caribbean |
AVOD | p.s. flights feature handheld media players in United First and United Business and are slated to be fitted with Aircell internet access One to exit service in September 2009 |
| Boeing 767-322/ER | 35 | 183 (6/26/71/80) 244 (34/0/64/146) |
3-class: Transatlantic, Latin America 2-class: Domestic, Hawaii |
PTVs, AVOD | |
| Boeing 777-222 | 19 | 348 (36/0/89/223) 258 (12/49/77/120) |
3-class: Transatlantic, Latin America, Transpacific 2-class: Domestic, Hawaii |
PTVs, Audio | Launch customer New configuration 777-222s to receive larger LCD screens in seat backs and re-designed seats in all classes. |
| Boeing 777-222/ER | 33 | 253 (10/45/84/114) 258 (12/49/77/120) |
Intercontinental (Europe, Asia, Middle East) | PTVs, Audio | New configuration 777-222/ERs to receive larger LCD screens in seat backs and re-designed seats in all classes. |
| Total | 372 |
Business class available on three-class configurations.
United is in talks with Airbus and Boeing about a possible fourth quarter order for up to 150 airplanes to update its widebody fleet and replace its 757s.[64]
Retired
|
| Aircraft | Year Retired | Replacement | Notes |
|---|---|---|---|
| Lockheed L-1011 TriStar[65] | 1989 | McDonnell Douglas DC-10 | Bought from Pan Am; Sold to Delta |
| Douglas DC-8 | 1992 | Boeing 757-200 | Largest DC-8 operator in the world |
| Boeing 727-100 | 1993 | Boeing 737-500 | Launch customer |
| Boeing 747SP | 1995 | Boeing 747-400 | Bought from Pan Am |
| Boeing 747-100 | 1999 | Boeing 777-200/200ER | |
| McDonnell Douglas DC-10 | 2001 | Boeing 777-200/200ER | Launch customer (along with American) |
| Boeing 747-200 | 2001 | Boeing 747-400 | |
| Boeing 727-200 | 2001 | Airbus A320 family | Launch customer |
| Boeing 737-200 | 2001 | Airbus A320 family | Launch customer |
| Boeing 767-200 | 2005 | Boeing 767-300ER | Launch customer |
| Boeing 737-500 | 2009 | ||
| Boeing 40A | |||
| Boeing 80A | |||
| Boeing 247 | |||
| Boeing 377 | |||
| Boeing 720 | |||
| Beechcraft 1900 | |||
| Convair 340 | |||
| Douglas DC-3 | |||
| Douglas DC-6 | |||
| Douglas DC-7 | |||
| Ford Tri-Motor | |||
| Sud Aviation Caravelle | Boeing 737-200 | ||
| British Aircraft Swallow | Air Mail | ||
| de Havilland Comet | Ordered by Capital, never delivered | ||
| Vickers Viscount | |||
| Curtiss JN-4D (Jenny) |
United was the launch customer for a number of aircraft types, including the McDonnell Douglas DC-10 and several Boeing aircraft: the Boeing 727 the Boeing 737-200, the Boeing 767, and the Boeing 777. Although not a launch customer, jet aircraft operated by United has included the Lockheed L-1011 (received in the Pan Am Pacific Route purchase, later traded with Delta Air Lines for the DC-10 aircraft Delta received in their merger with Western Airlines), Douglas (later McDonnell Douglas) DC-8, and Sud (later Aerospatiale) Caravelle. In 1965, United placed an order for six BAC/Sud (now BAe and Aerospatiale) Concordes but the order was later canceled.
United is the only major US airline to not have any orders placed with any aircraft manufacturer. United has stated it would rather wait until the next generation of narrow-body aircraft arrive as they will be able to replace their A319-100, A320-200, and 757-200 fleets at the same time. To cut down on money going out of the franchise, United is retiring its entire Boeing 737 fleet. For the long-haul network, United is a possible candidate to order the Boeing 747-8 Intercontinental and the Boeing 777-300ER. On June 3, 2009, United announced they have submitted proposals to both Boeing and Airbus for an order for up to 150 new aircraft. The order is expected to include new widebody aircraft to supplement or replace the current fleet and new narrow-bodies to replace some of United's 97 strong 757-200 fleet. The airline could place an order as early as this fall.[66]
On April 2, 2008, United Airlines temporarily withdrew its entire fleet of 19 Boeing 777-200 and 33 Boeing 777-200ER aircraft until functional testing of the fire suppression system could be completed. The move was the latest in a series of temporary groundings by U.S. airlines in late March 2008 following a Federal Aviation Administration (FAA) review of compliance with airworthiness directives.[67] Although United has shown no interest in purchasing the Boeing 787 Dreamliner, they have expressed interest in becoming the sole GoldCare maintenance, repair, and overhaul provider for the aircraft.[68]
Last Boeing 737 flight on United
United plans to retire their remaining Boeing 737's from scheduled service on October 28, 2009. As part of a ceremony of celebrating 41 years of service for the airline, United is going to hold a flight from Washington Dulles to San Francisco, with stops in United's hubs in Chicago O'Hare, Denver, and Los Angeles. Each segment will fly as United Airlines Flight 737, purposely. After arriving at San Francisco, the plane will undergo decomissioning at the San Francisco maintanence complex, after which the plane will be sent to Victorville, Ca. (VCV) for storage.
Cabin
United offers in-flight entertainment on all mainline aircraft. Audio programming is provided by XM Satellite Radio. The entire fleet features "From the Flightdeck" on channel 9. This program allows passengers to listen to live radio communications between the cockpit and Air Traffic Control. "From the Flightdeck" can be disabled at the pilot's discretion. United also has partnerships with various television networks who provide programming for video-equipped aircraft. The most prominent of these programming partners was NBC, which provided branded "NBC on United" programming. This long-standing partnership ended in early 2009, when NBC signed a two-year deal with American Airlines.[69] Despite the loss of this partnership, United's television entertainment continues to include several prime time NBC programs.
United First
- United First Suite is offered on Boeing 747-400 and international-configured Boeing 777-200/200ER aircraft and features 78 inch-pitch flat-bed seats which recline to 180 degrees. United First passengers check in at separate counters and receive an invitation to the United International First Class Lounge or United Red Carpet Club. Passengers are given priority when boarding, enjoy priority baggage handling and, where available, can use premier security lines. On board, passengers receive a pre-flight beverage service and a five course meal on linen-dressed tray tables during the flight. Each seat has a personal video screen featuring nine channels of video (seven films and two short subjects). Passengers can select a movie from a collection of compact videocassettes. Passengers have access to personal satellite phones, laptop power ports, noise-canceling headsets, pillows and blankets.
- An upgraded United First Suite is offered on all but 2 internationally configured Boeing 747-400 and all Boeing 767-300ER aircraft. United plans to retrofit this new seat on its entire international fleet of Boeing 747-400, Boeing 767-300ER and Boeing 777-200/200ER aircraft. The new First Suite consists of a six foot-six inch lie-flat bed and a 15.4 inch personal LCD television with full Audio/Video-on-Demand (AVoD). The B767-300 international continues to have the original (smaller) overhead bins.
- United First (Domestic) is offered on all domestically configured United aircraft. Domestic United First includes a cradle seat similar to the international United Business seat, but without the personal reading lamps or personal entertainment units. The seats have a 38 inch pitch, and passengers receive priority boarding and baggage handling, pre-departure beverages, free meals and separate check-in desks.
- United First (p.s.) is offered on all flights between JFK and either SFO or LAX. and has twelve slanted-flat, leather-trimmed seats, with a 68-inch pitch, along with individual portable digital media players offering a wide selection of movies, TV shows, music and games through noise-reducing headsets. Passengers receive full meals, chocolates and signature champagne cocktails, as well as an invitation to the Red Carpet Clubs. Seats include personal reading lights, privacy screens, laptop power ports and personal satellite phones.
United Business
- United Business is offered on all internationally configured aircraft and on a few select domestic flights. In-flight service includes pre-departure beverages, table linens and (on international flight segments only) three course meals designed by chef Charlie Trotter. Passengers are also treated to priority boarding, baggage handling, and access to the Red Carpet Club on day of departure. UA is well along in its programme to upgrade all international-configuration aircraft to the new United Business Suite (180-degree horizontal flat-bed seats). However, these interior upgrades will not start until February 2010 for UA's 777-200 aircraft.
- (Old) United Business Seats These recliner seats a pitch of 55 inches and 150 degree recline. The seat also features laptop power ports which require EmPower adapters. Each seat includes an individual entertainment system offering nine channels of video (seven films and two short-subjects) and noise-reducing headsets. As of September 2009, all UA Boeing 777-200 aircraft and 2 Boeing 747-400 aircraft have this seat type.
- United Business Suite is offered now on nearly all international Boeing 747-400 aircraft and on all international Boeing 767-300ER aircraft. The B767-300 international continues to use the original (i.e. small) overhead bins in first and business class. All seats are 6 feet-4 inches long and have 180 degrees of recline, creating a fully-flat bed. United Business Suite is the first flat-bed business seat to be offered by a U.S. airline. All seats are equipped with a personal 15.4-inch screen personal LCD television, an adjustable headrest, lumbar support, a USB power port, an Apple iPod adapter (to play audio or video through), XM Satellite Radio, a US-style 120V/60Hz power outlet, a reading light, noise-cancelling headphones and a large tray table.[70]
- United Business (p.s.) offers twenty-six leather recliner seats with 54 inch pitch, individual portable digital media players with a wide selection of video choices and noise-reducing headsets, menus including chocolates and champagne, cocktails, reading lights and laptop power ports. The p.s. service is only offered on selected flights between New York and either Los Angeles (LAX) or San Francisco (SFO).
United Economy
- United Economy (International) is available on all internationally configured aircraft in United's fleet. Seats range from 17 to 18 inches wide, and have 31 inches of pitch. All United Economy seats on Boeing 767-300ER and 777-200/200ER aircraft feature an adjustable headrest and personal LCD television in the seatback. Boeing 747-400s do not feature seatback television. United Economy's in-flight entertainment system features nine channels of entertainment, and will be updated in the future to an audio visual on demand system (AVOD). The Boeing 747-400 features overhead monitors throughout the aircraft and projection screens on the bulkheads. United serves free meals on international flights between the US, South America, Europe, the South Pacific and Asia. Shortly after takeoff, passengers are served cocktail snacks and free non-alcoholic drinks. On flights with meals, the main meal consists of a salad, an appetizer, a choice of hot entrées and dessert. On longer flights, United also offers a light pre-arrival meal.
- United Economy (Domestic) is available on all aircraft in United's mainline fleet. Seats range from 17 to 18 inches wide, and have between 31 and 32 inches of pitch. Economy seats on all A319-100, A320-200, 757-200, 767-300ER, and 777-200/200ER aircraft feature adjustable headrests. All 737 aircraft feature last-generation seats lacking headrests. United offers a buy on board program. On United flights between 3 and 5 hours in duration, snackboxes are available for a fee. On United flights of 5 or more hours, fresh sandwiches, salads and snackbox options are also available for a fee. Water, soft drinks, and coffee are complimentary on all flights. Alcoholic beverages are available for a fee on most flights.[71] All A319-100, A320-200, 757-200, 767-300ER, and 777-200/200ER aircraft feature overhead television screens. Short subject television program is shown on flights between 1.5 and 2.5 hours and films are shown on flights over 3 hours.
- Economy Plus is available on all aircraft in the domestic and international fleet. Economy Plus seats are located in the front 6-12 rows of the economy cabin and feature up to 6 inches of additional legroom. Economy Plus is available for free to all Mileage Plus Premier members. It can also be purchased at booking or check-in depending upon availability. All seats in economy on the P.S flights from JFK to LAX and SFO are configured into Economy Plus.
Mileage Plus
Frequent flier programs started in their current form in 1981. United began one week after American Airlines started the first program. United's program is called Mileage Plus.
Airlines who are part of the Star Alliance and others participate in a program enabling passengers on these airlines to receive Mileage Plus credits.
United Airlines has been criticized recently for so called Starnet blocking. United admitted in a Washington Post article that it prevents its Mileage Plus members, regardless of tier, from redeeming rewards on all Star Alliance flights. United Airlines is currently the only known Star Alliance member to restrict access to reward flights.
Miles earned do not expire, provided that any miles are earned or redeemed at least once every 18 months.
Elite level membership, which has added benefits over the standard level membership, is a feature that was not initially part of the program.
Premier Associate (3P) is a new elite level created in 2006 that can be gifted by elite members as a reward for reaching certain plateaus. Privileges are much like Premier members and get access to Economy Plus seating, but does not include the 500-mile e-upgrades or the 25% mileage bonus on flown miles.
Premier (2P) members, who accumulate at least 25,000 Elite Qualifying Miles (EQM) or fly 30 segments, are offered priority boarding, free access to Economy Plus seating, upgrade privileges from any fare, complementary 500-mile e-upgrades and a 25% mileage bonus on flown miles. In 2005, 535,000 members of Mileage Plus qualified for Premier status.
Premier Executive (1P) members fly at least 50,000 EQM or 60 segments, and receive all Premier benefits plus a 100% mileage bonus, higher upgrade priority, access to exit row seating in advance of flight, and lounge access when traveling internationally on any Star Alliance member airline the same day. In 2005, 239,000 members of Mileage Plus qualified for Premier Executive status.
1K (also known as Premier Executive 1K) members fly at least 100,000 EQMs or 100 segments, and receive all Premier Executive benefits plus six free System-wide Upgrades good for a one-class upgrade anywhere United flies, along with the ability to earn confirmed regional upgrades valid across United's North and Latin American route system. 1K passengers are sometimes granted accommodations and meals during flight delays and irregular operations caused by weather or air traffic control. In 2005, 46,000 members of Mileage Plus qualified for 1K status.
Global Services, while not officially part of the Mileage Plus program, is an invitation-only program to recognize United's most valued high-yield customers. Full invitation criteria are not made public by United; re-qualification for current UGS members could be attained by flying 50,000 full-fare miles in a calendar year, according to company letter to members.[72]. Benefits complement and expand upon those offered to 1K passengers, including: higher priority for upgrades and front-of-line access in premium security lines. Global Services members are able to upgrade award flights using miles, system-wide upgrades, confirmed regional upgrades and 500 mile upgrade certificates. In 2005, 18,000 members of Mileage Plus qualified for Global Services membership.
Million Miles and Beyond is a program offered to Mileage Plus members who have flown one million miles or more on United Airlines during their lifetime. These customers permanently receive the benefits of Premier Executive members.
Red Carpet Club
The Red Carpet Club is United Airlines' airport lounge. It includes 35 lounges in 28 major airports around the world. Club membership is available to the public for an annual fee, and includes access to all Red Carpet Clubs along with reciprocal access to US Airways Clubs and most Star Alliance Gold lounges, excluding some lounges operated by the Lufthansa group, when traveling on those carriers. Premier, Premier Executive and 1K members of Mileage Plus are offered discounted membership options. Despite being called the Red Carpet Club, the carpet inside the clubs is not always red, such as the blue carpet used at United's Red Carpet Club at Orlando International Airport, pictured below.
Locations
United also offers an International First Lounge which feature snacks and a self-serve bar at several airports. Access is restricted to customers traveling in long haul international first class or P.S. first class.
