UAL Stock Price, Management and Impact on Passengers
Jul 2, 2015, 12:14 pm
#16
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That comment got me to see who owns UAL stock & since 93% institutional of which over half is Jeffey himself. His cuts to get perceived profit are merely pathological, psychotic self-profit. Plus as countless many said, UAL would make not just any real profit but far more profit if they valued their customer. They're done when low fuel prices go.
The CEO of United currently owns 408K shares out of 354MM held by institutions.
Jul 2, 2015, 1:54 pm
#17
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There are however many threads on FT from people swearing that they know 10,000 people who are jumping ship from UACO because Smisek is using a lower threadcount for the hot towels in F. But, the fact is that UA is on an even keel, it's running a profit and pax satisfaction, as publicly reported, is up.
Capacity is down and fares are up. That means fewer award seats available and more pax competing for fewer UG (at a time when paid F and corporate discounts are up). So, of course, some distressed people out there.
But, the fact is that FF programs are like sheep. They aren't the same, but they do follow each other. So the grass isn't going to be greener elsewhere and, if it is, it won't be for long.
In the end, the CEO's duty is to shareholders. That means keeping pax happy enough to sell tickets and that's what's happening.
Capacity is down and fares are up. That means fewer award seats available and more pax competing for fewer UG (at a time when paid F and corporate discounts are up). So, of course, some distressed people out there.
But, the fact is that FF programs are like sheep. They aren't the same, but they do follow each other. So the grass isn't going to be greener elsewhere and, if it is, it won't be for long.
In the end, the CEO's duty is to shareholders. That means keeping pax happy enough to sell tickets and that's what's happening.
An even keel and the CEO's duty? Maybe so, but compared to peer DAL, not so great. Over the past 5 years, DAL has increased it's value by 263%, and UAL has increased it's value by 175%. So, while Smisek and team have indeed increased shareholder value, those share holders would have seen a much greater return with the other pony in the race.
PAX satisfaction is up? According to whom? I've not see one CSI study where UA isn't dead last, or very near the bottom.
There's just a bit more going on at UAL than lower thread counts for hot towels...it's a long, long, long list. From crap coffee to no pillows and the cost cutting measures Smisek love to brag about like serving FC pax cashew bits instead of cashews, and saving money by not chasing OT performance beyond 80%.
Last edited by transportbiz; Jul 2, 2015 at 2:01 pm
Jul 2, 2015, 10:57 pm
#18
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Given folks are responding to 3 1/2 year old posts and institutional ownership of UA is publicly available, seems best to close this thread.
WineCountryUA
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WineCountryUA
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