Another example that this is going to be COdbaUA
Aug 3, 2011 | 10:29 am
#31
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It's disingenuous to say that a company with a PMCO CEO and majority PMCO leadership team isn't tilting towards PMCO policies & procedures. Whether it's emotion, preference, financial decisions, etc. that's what's happening.
$misek's on record saying he came into the merger thinking E+ was DOA, that there was no way it could be profitable, and that he wanted to kill it off. You don't think there's any emotion in that? Lo and behold, PMUA books showed him that it actually was a pretty profitable enterprise. I'm hoping that was a humbling experience for him - but I doubt it.
We've already seen them backtrack (or start the process of backtracking) where their PMCO-mindset decisions have been in conflict with the realities of this airline. I'm sure we'll see many more as there's been a lot of shortsightedness to date.
$misek's on record saying he came into the merger thinking E+ was DOA, that there was no way it could be profitable, and that he wanted to kill it off. You don't think there's any emotion in that? Lo and behold, PMUA books showed him that it actually was a pretty profitable enterprise. I'm hoping that was a humbling experience for him - but I doubt it.
We've already seen them backtrack (or start the process of backtracking) where their PMCO-mindset decisions have been in conflict with the realities of this airline. I'm sure we'll see many more as there's been a lot of shortsightedness to date.
Aug 3, 2011 | 10:32 am
#32
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Management reports to the Board of Directors, who in turn are accountable to the shareholders. The board has 9 PMUA directors and 7 PMCO directors, so a PMCO bias at that level seems unlikely.
$misek's on record saying he came into the merger thinking E+ was DOA, that there was no way it could be profitable, and that he wanted to kill it off. You don't think there's any emotion in that? Lo and behold, PMUA books showed him that it actually was a pretty profitable enterprise. I'm hoping that was a humbling experience for him - but I doubt it.
We've already seen them backtrack (or start the process of backtracking) where their PMCO-mindset decisions have been in conflict with the realities of this airline. I'm sure we'll see many more as there's been a lot of shortsightedness to date.
We've already seen them backtrack (or start the process of backtracking) where their PMCO-mindset decisions have been in conflict with the realities of this airline. I'm sure we'll see many more as there's been a lot of shortsightedness to date.
Aug 3, 2011 | 10:34 am
#33
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They aren't personal attacks. You don't have all the behind the scenes info, and you don't understand that IAH is more important then IAD. Think about it, people avoid IAH because of B, do people avoid IAD because of C/D? Not so much. If IAH is going to be the biggest hub, you need to make everything nice for your passengers.
Aug 3, 2011 | 10:37 am
#34
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Making "prudent business decisions" is not cut and dry. Many assumptions have to be made, and how one looks at those assumptions can dictate the outcome.
You can look at something as basic as coffee or pillows. CO spends $X for coffee. UA spends $Y. If X < Y is X the prudent business decision? Not necessarily. If Y allows you to position yourself as a higher-end offering that people may pay for, or increase customer satisfaction thereby increasing future business, then perhaps the differential may be worthwhile. Who knows.
You can look at something as basic as coffee or pillows. CO spends $X for coffee. UA spends $Y. If X < Y is X the prudent business decision? Not necessarily. If Y allows you to position yourself as a higher-end offering that people may pay for, or increase customer satisfaction thereby increasing future business, then perhaps the differential may be worthwhile. Who knows.
A valid point. Yet, despite all of the maligned changes made thus far, UA is seeing more higher yield traffic. How do you reconcile that?
Aug 3, 2011 | 10:40 am
#35
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Originally Posted by sxf24
A valid point. Yet, despite all of the maligned changes made thus far, UA is seeing more higher yield traffic. How do you reconcile that?
Aug 3, 2011 | 10:42 am
#36
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Aug 3, 2011 | 10:42 am
#37
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Better network; improving economy.
Aug 3, 2011 | 10:44 am
#38
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Aug 3, 2011 | 10:49 am
#39
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I imagine the $6 billion partial-hole in the ground the WMAA is helping to finance probably limits its ability to pony up cash for terminal improvements; looks like the city of Houston is paying for 30% of the Terminal B renovations.
Aug 3, 2011 | 10:50 am
#40
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Sure, and it's probably for good reasons, as 1) IAH is the largest hub of the combined airline, and 2) generally speaking, Houston's airport authority is far more responsive to carrier issues & concerns and is much willing to play ball than the MWAA.
Last edited by iluv2fly; Aug 3, 2011 at 10:19 pm Reason: merge
Aug 3, 2011 | 11:17 am
#41
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It's disingenuous to say that a company with a PMCO CEO and majority PMCO leadership team isn't tilting towards PMCO policies & procedures. Whether it's emotion, preference, financial decisions, etc. that's what's happening.
$misek's on record saying he came into the merger thinking E+ was DOA, that there was no way it could be profitable, and that he wanted to kill it off. You don't think there's any emotion in that? Lo and behold, PMUA books showed him that it actually was a pretty profitable enterprise. I'm hoping that was a humbling experience for him - but I doubt it.
We've already seen them backtrack (or start the process of backtracking) where their PMCO-mindset decisions have been in conflict with the realities of this airline. I'm sure we'll see many more as there's been a lot of shortsightedness to date.
$misek's on record saying he came into the merger thinking E+ was DOA, that there was no way it could be profitable, and that he wanted to kill it off. You don't think there's any emotion in that? Lo and behold, PMUA books showed him that it actually was a pretty profitable enterprise. I'm hoping that was a humbling experience for him - but I doubt it.
We've already seen them backtrack (or start the process of backtracking) where their PMCO-mindset decisions have been in conflict with the realities of this airline. I'm sure we'll see many more as there's been a lot of shortsightedness to date.
Now, while it's true that the majority of the leadership is PMCO, two of the key positions as far as travelers go, President of Mileage Plus and the COO are both PMUA.
Aug 3, 2011 | 11:21 am
#42
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Houston doesn't have the same level of competition in the city/region. People are going to go through there regardless.
IAD should have come first, sorry.
Aug 3, 2011 | 11:22 am
#43
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IAD will be going away soon in this merger at this rate....just look at the start of the shift toward EWR with widebodies...once people stop flying out IAD, then CO oops I mean UA can argue noone uses IAD anymore.
I want my UA back!
I want my UA back!
Aug 3, 2011 | 11:27 am
#44
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What exactly does that mean? Do your rants have a logical basis, or is your position emotionally based?
I guess management is doing something right then.
Last edited by iluv2fly; Aug 3, 2011 at 10:20 pm Reason: merge
Aug 3, 2011 | 11:29 am
#45
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No I don't see "emotion" in an opinion about E+. It was an EXPECTATION which had nothing to do with emotion and once properly studied, the decision to keep E+ was determined to be the more profitable. It is evidence that CO management is acting rationally and not emotionally. I think the emotion here stems from some UA customers who seem to think that everything management does is an affront to historic UA.
The bigger issue is that the guy walked into the merger biased against one of the strongest product features of his merger partner, CONVINCED it had no future at his new airline, as opposed to saying "I'm going to keep an open mind and let the facts decide".
Wait, which airline has the severe widebody shortage?