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United Airlines CEO: Increasing Bag Fees Will Help “De-stress the Travel Lifestyle”

United Continental Holdings CEO Oscar Munoz recently told CNBC’s Jim Cramer that better communication with passengers, restoring trust with employees and reinvesting in “customer properties” will help United Airlines live up to the longtime marketing tagline “Fly the Friendly Skies” and once again make passengers “feel good about flying us.”

During Oscar Munoz’s tumultuous tenure at the helm of the United Airlines group, the company has faced more than its share of challenges and public embarrassments – from the mishandled response to news of a passenger being violently removed from an overbooked flight, to a string of animal deaths that forced the airline to temporarily prohibit pets on flights and a series of continuing high profile labor disputes. While admitting to some missteps, the beleaguered airline executive says he has a plan, if not to restore the glamour to air travel, to at least to make the experience somewhat less taxing on the flying public.

“We need to de-stress the travel lifestyle,” Munoz told Jim Cramer in an appearance on CNBC’s Mad Money.  “How do we keep you informed? How do we keep you focused and directed when something goes wrong? But, more importantly, before you even leave your house, you know your flight’s on time, you know where you’re headed.”

Munoz said that the recent increase of bag fees will help to improve the passenger experience, noting that majority of the company’s revenue is reinvested in the airline. He insisted at least a portion of the money put in the company’s coffers through pricey checked bag fees will be used to develop technology and communication systems which will in turn help achieve the goal a making air travel less stressful.

“It’s important to reinvest in the business,” Munoz told viewers. “I think it’s one of the things about this industry that people, our customers, don’t always understand. All that money that we’re getting back is being piled back into the business… We pile that money back into the business for the right things. We want to make you, as our customer, feel good about flying us. And so our customer-centricity, our customer properties, are something we really want to sort of engage.”

The United Continental Holdings chief went on to say that the airline has, in some cases, failed to communicate effectively with both employees and passengers. He said that restoring the trust of the airline’s workforce and customers is an important first step toward making air travel a more pleasant experience once again.

“Trust is the underpinning of a lot of things that we do and that doesn’t compute, as you know, on spreadsheets,” he explained. “But it’s such an important part and foundation for everything we’ve been able to do. It’s a never-ending project with keeping them engaged and motivated, but we’re doing a good job.”

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50 Comments
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AADC10 November 7, 2018

UA is just a follower in the race to the bottom. Like all large companies, the only stakeholders that matter are the shareholders, which coincidentally is where most of the executive compensation lies. Customers, employees, and vendors exist only to be squeezed for the benefit of shareholders. Oscar Munoz and UA could at least innovate on how to accelerate the race to the bottom, but they are incapable of even doing that. They just follow along on the bankster driven circling of the drain. At least if you are accelerating to the bottom, you pick up speed before you crash.

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Boggie Dog November 6, 2018

I'll have some of what he is smoking. Must be good stuff!

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skidooman November 6, 2018

Really wanna "di-stress" travel lifestyle? Simple. Free checked bag. This is the norm in Asia. First bag always free. And the result? Way, WAY less overhead space competition. Because most people will gladly take advantage of it. While in the US it is CRUCIALLY important to be the first ones to board because, you know, otherwise no space left in these overheads. Which forces gate agents and others to hussle, either by pleading with people to check in their bags for free and fetch them to the jet bridge, or by getting bags checked from within the plane once everyone boarded and there isn't enough space for the last joinees' bags. But in the alternate reality of US airlines (except Southwest), fees are really a "nice thing" for customers. Complete nonsense.

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rowingman November 5, 2018

Avoiding his crappy airline de-stresses my travel experience. I would rather crawl through broken glass than fly United.

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Crazy Dave November 4, 2018

UA needs to give Oscar an UA