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DL introduces Operational Performance Commitment for Corp Accts

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Old Aug 4, 2015, 8:29 am
  #16  
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Originally Posted by BearX220
Right now it is, but they're smack in the middle of merger chaos. And they're motivated to straighten things out and avoid the errors of their competitors. UA has already signaled that it's not going to expend the effort to improve.
AA was mediocre to poor, even before the merger. US, for all their faults, has been quite good for the past few years. Operational performance is definitely one area where US has a lot to teach the AA side of the house.
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Old Aug 4, 2015, 9:38 am
  #17  
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Personally, if I were a major oneworld person, I would find the concept of US teaching AA to be rather frightening.
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Old Aug 4, 2015, 10:09 am
  #18  
 
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Originally Posted by BearX220
Right now it is, but they're smack in the middle of merger chaos. And they're motivated to straighten things out and avoid the errors of their competitors. UA has already signaled that it's not going to expend the effort to improve.
The bolded statement is unsupported and your own (biased) supposition.

While Delta's announcement gives it some good press and a potential tool to gain more corporate clients, I don't think anyone is in a position to say AA can complete a smooth integration and boost operational performance. Of course, gratuitous attacks on United are a popular past time.
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Old Aug 4, 2015, 10:38 am
  #19  
 
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Originally Posted by Axey
This is an arrow aimed right at the heart of United's corporate accounts. As we enter procurement season, this is going to be an interesting few months for United. Running an operational disaster does have consequences. ^
DL has a vulnerable target. I wondered what specifics would follow Anderson's public remarks about seeing "huge share and revenue shifts" from operational reliability.
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Old Aug 4, 2015, 10:44 am
  #20  
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Smart move by DL IMO
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Old Aug 4, 2015, 11:30 am
  #21  
 
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Originally Posted by fly18725
The bolded statement is unsupported and your own (biased) supposition.

While Delta's announcement gives it some good press and a potential tool to gain more corporate clients, I don't think anyone is in a position to say AA can complete a smooth integration and boost operational performance. Of course, gratuitous attacks on United are a popular past time.
By consistently blaming anything but UA's lack of focus on running a good operation Smisek has opened UA up to such gratuitous attacks.
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Old Aug 4, 2015, 11:35 am
  #22  
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Originally Posted by MSPeconomist
Personally, if I were a major oneworld person, I would find the concept of US teaching AA to be rather frightening.
From an operational standpoint, it is simply not disputable that US was knocking it out of the park the last few years before the merger. I know that doesn't fit with the cliches about US, but it is the truth.
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Old Aug 4, 2015, 12:09 pm
  #23  
 
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Originally Posted by fly18725
This doesn't bode well for AA either, as their operational performance is pretty mediocre as well. The good news is Delta is only promising they'll be more on-time than AA and UA, once weather is excluded (plus other footnotes).

Regardless, a very shrewd PR move on Delta's part.
I think that there is wide understanding that AA/US will have a hard time re opperations until they get more integrated, and as such people are expecting it. AA/US has also been going out of its way to be proactive, which takes some of the sting out of it.

This said, I understand that AA/US is in the middle of a series of changes to try to improve OT performance and that Parker and Co are not happy, and that the July numbers for them will look much more competitive than did June.

The main difference is that I seriously doubt that Parker will accept a goal of sub-80% OT like UA has, nor will he believe that getting over 80% has "diminishing returns."

Parker will also have integrated work groups shortly, and with scheduling adjustments should be able to put AA/US well over 80%, I doubt that Jeff could even if he were willing to spend $$ (and he is not) to try to get to over 80%.
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Old Aug 4, 2015, 12:25 pm
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Originally Posted by spin88
I think that there is wide understanding that AA/US will have a hard time re opperations until they get more integrated, and as such people are expecting it. AA/US has also been going out of its way to be proactive, which takes some of the sting out of it.

This said, I understand that AA/US is in the middle of a series of changes to try to improve OT performance and that Parker and Co are not happy, and that the July numbers for them will look much more competitive than did June.

The main difference is that I seriously doubt that Parker will accept a goal of sub-80% OT like UA has, nor will he believe that getting over 80% has "diminishing returns."

Parker will also have integrated work groups shortly, and with scheduling adjustments should be able to put AA/US well over 80%, I doubt that Jeff could even if he were willing to spend $$ (and he is not) to try to get to over 80%.
I think that getting about 80% starts moving beyond MX delays but more into territory that doesn't fall under WX but is still beyond carrier control like being 45th in line for departure at JFK, or circling for 30 min at ORD waiting for landing clearance.

I know carriers don't have to offer as many flights at peak times, but they are peak times for a reason that is when passengers want to be flying. So that is avoidable yet unavoidable at the same time. Especially in the summer when everyone's schedule ramps up.

Which is partly why HA/AS are always leaders in on-time performance...limited exposure to busy airspace.
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Old Aug 4, 2015, 1:43 pm
  #25  
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Originally Posted by BearX220
Right now it is, but they're smack in the middle of merger chaos. And they're motivated to straighten things out and avoid the errors of their competitors. UA has already signaled that it's not going to expend the effort to improve.
Delta's timing couldn't be better. Right in the middle of another summer UA meltdown and right in the middle of the AA/US merger. The folks down in Atlanta aren't stupid.
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Old Aug 4, 2015, 1:49 pm
  #26  
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Sales gimmick, but it does make the point that DL's operationally far from being the worst of the US airline lot.
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Old Aug 4, 2015, 2:22 pm
  #27  
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Originally Posted by pbarnette
From an operational standpoint, it is simply not disputable that US was knocking it out of the park the last few years before the merger. I know that doesn't fit with the cliches about US, but it is the truth.
I agree. I have also found the front line to be very good. The only other airline (Other than DL) where I am guaranteed to get a PDB is US.
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Old Aug 4, 2015, 3:28 pm
  #28  
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Originally Posted by pbarnette
From an operational standpoint, it is simply not disputable that US was knocking it out of the park the last few years before the merger.
Knocking it out of the park? Eh.

Beating AA and American Eagle by a bunch in on-time performance? Handily.
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Old Aug 5, 2015, 1:46 pm
  #29  
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Originally Posted by BearX220
UA has already signaled that it's not going to expend the effort to improve.
Originally Posted by fly18725
The bolded statement is unsupported and your own (biased) supposition..
Originally Posted by kop84
By consistently blaming anything but UA's lack of focus on running a good operation Smisek has opened UA up to such gratuitous attacks.
Clear signals that UA has settled into its current quality levels:

** Smisek's remark that striving for better than 80% OT yields diminishing returns.

** Smisek's decision to spend $3B on a stock buyback instead of investing in system upgrades.

** OT and completion rates that are worse than six months ago, when UA issued external communications boilerplate saying it understood the importance of reliability.

** Repeat paralyzing IT meltdowns with no explanation and no visible campaign to lower odds of recurrence.

** Dead silence from corporate in the face of disasters like Goose Bay or coverage from Reuters, WSJ, etc. portraying UA as degenerating.

Come on. This is United's new normal. That's not a "gratuitous attack." Them's the facts.
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Old Aug 5, 2015, 5:19 pm
  #30  
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I wonder if UA and AA will just lengthen their schedules to get more "on-time" arrivals. It worked for DL.
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