FlyerTalk Forums - View Single Post - Why does profitable UA cut to bone, while AA adds??
Old Feb 11, 2007 | 8:24 pm
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unitedbusiness
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Why does profitable UA cut to bone, while AA adds??

It is a disturbing trend that needs to be addressed: UA is enjoying consecutive profitable quarters, however is continuing to cut its onboard services rather significantly--all while its major competitors (mainly AA) are adding to its onboard products. For example, the temporary cut of C appetizers on IAD-Europe flights, the removal of Y snacks on flights 2 hours or less, the removal of fruit plates in C on some Asian flights, the introduction of expiration dates on 1K drink chits, among others. On the flipside, AA has continually added to its on-board service in recent months, as part of its Invest to Impress plan (including a hot breakfast in C from the US to Europe, new C entrees, savory mints, new cocktail snacks, pre-arrival sparkling water with fruit garnish, Ghirardelli chocolates, among others).

One would think that during profitable times, UA would be doing the opposite and adding new amenities and small touches to grab market share, while continuing to satisfying its legion of frequent fliers.

Why is UA so desperate to further cut costs while it's in the black, at the expense of alienating its premium customer base?
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