demkr

Yeah. Which is why it's interesting that DL invested a HUGE amount in domestic IFE/wifi , domestic F class (increased the # of seats on many of their aircrafts), and expanded their network to include a lot of point-to-point routes...which is contrary to what everyone else has been doing.

But they must be doing something right, because they're consistently profitable. I think they had 1 unprofitable quarter after the Japanese earthquake.

Yes, we know about the SkyPesos and int'l SWU usage. But for some people like me, that's not too bad. I fly maybe 1 int'l flight a year, and I rarely redeem miles for flights

nor4

I think a person's face tells you a lot about that person. So those of you who "read" faces, here's UA's new CFO's face

He went to Baylor for undergrad and business. I have my own "read" of him, but you miight enjoy conjuring up your own narrative.

I don't know if this picture is his college graduation picture or a current picture.

eflyte

It's just a stupid comment for an executive to make in a public setting. There are lots of ways to say that the frequent flyer program is not allocating rewards in a way that drives the desired customer behavior without insulting your customers.

desperationsearch

Funny thing is when a firm creates a reward program for achieving certain milestones, and then doesn't provide the promised rewards but only reveals that AFTER the customer reaches the milestones, it is common to expect them to get the torches and pitchforks.

I'll be in the mob when we come after Smisek and Rainey. Their own hubris will lead to their downfall.

The customer provides the cash - they're not the problem.

iahphx

I'm sorry, but if you ask ANY Wall Street analyst about CO and UA pre-merger, they will be in 100% agreement with my statement. There's a reason why the people who are now in charge are in charge.

That said, the real genius at CO was Gordon Bethune (and his now largely forgotten sidekick, a Bain guy by the name of Greg Brenneman). The people running the airline the last few years are basicially their proteges. They were trained in the Bethune School of Management. That's a good thing. But, at this point, nobody is 100% sure if they're as good as the originals. It's not easy to follow in a great leader's footsteps. There's some reason to believe the current team might not be as good as Bethune, but we really won't know that for a couple of years as the merger plays out.

blug

DL is indeed successful in terms of profit. However, I do know quite a few millionaires who, although made a lot of money, are absolutely annoying, stupid and arrogant. Same with companies. Being rich really doesn't equal being successful, IMHO.

I would be happy to let you know those low class, sneaky business practices by DL I've encountered but that would be way off topic.

nor4

An interesting nickname for those of you who saw the movie. Good to know he has a sense of humor. Maybe this is all just a joke.

FlyWorld

Agreed. It seems his greatest wish is to be rid of us all. Until today, I'd been developing a strategy of UA-minimization by focusing on partners for foreign travel for first time in my life.

Now, given Rainey's vicious desire to be rid of us entirely, I'm thinking harder than ever about totally abandoning UA.

Sickening what fools have taken control of this once admirable company. After 9/11 when they were near rock bottom, I bought shares in UA. I believed in UA. I never sold those shares. So, so, sad. Such a waste.

Agreed 100%. I will never pay anything beyond discounted economy to fly COdbaUA crap on a long-haul flight. If conditions dictate I need to pay for Z or higher fare, that money will go to a *A partner, not the Texas Meatheads.

Never before in my life have I uttered these words but if my desire for an upgrade on an otherwise totally inferior product is a loathed sense of entitlement to this new regime, then **** them. No pillows. Can't even drink the coffee, much less eat the food. Get real.

BayAreaPilot

Righto, UA's revenue underperformance is due to not enough service to Japan. Even though UA serves more airports in Japan (10) than any other American carrier (DL only serves 5).

It has nothing at all to do with angry customers leaving. Nothing at all.

Sprezzatura

I've got 1 flight left on UA and I'm out. All other travel is now booked on AA. Hope to see some of you on the dAArk side!

FlyingNut724

I think given the recent examples of their decisions we have a pretty good idea that they are not as good. Here are just a few examples I've seen...

1) screwed up the fuel hedge (DL took a step up by purchasing a refinery)
2) adopted a computer system that required them to add 600 additional people
3) failed to adequately train their employees before switching to the new computer system
4) put procedures in place that require exceptionally long customer service interactions (thereby reducing the efficiency of each CS rep)
5) incited the pilot unions to threaten to strike

Not sure why he thinks these practices are going to attract the high value customer. I guess the upside for UA is that no one will want to book any trips well in advance with all those uncertainties. So, perhaps that is their plan.

aacharya

You chose "should buy a refinery" as your #1 example? I didn't even bother with the rest...

MoJ0

SAME THOUGHT HERE. As a marketer I'm gobsmacked. Will be interested in how this plays out next week... WSJ middle seat, USA Today... I think the story is the radical culture shift and remake of both pmCO and pmUA into new ValueJet_--er, I mean AirTran.

PanAmWT

CO was a better and more healthy company than UA was, not necessarily the skill of the respective management teams. They were two different airlines, different markets, and somewhat different customer base (more long haul international flyers in UA). And Tilton came out of retirement with no intention to lead beyond the minimum time to turn around the company. We will have to see how the CO managers run the new UA. So far I am far from encouraged. I do see one way for them to more likely succeed: greatly change the new UA to make it resemble the PMCO in terms of smaller international footprint, smaller percentage of VFFs, and a more rudimentary IT requirement that can be satisfied by SHARES withhout providing the high level of service for IRROPS and upgrade programs offered by PMUA. This would be good news to shareholders and some customers. For us interntional TPAC flyers, we will just look elsewhere. Fortunately there are more choices in Asia than ever, and they do fly to SFO and LAX. Mr. Rainey's remark was a wake up call, it is time for us to open our eyes and unhinge ourselves from the UA MP/1K program. By next year, we will have at least CA, SQ, TG, NH, OZ and BR all in *A. My colleagues and myselves will thank Mr. Rainey and will try not to burden him as much by then.

desperationsearch

That must be the plan. They intend to continue to reduce willing customers, and reduce available capacity as well, all until their entire route network is one overbooked RJ flying between Houston and Newark and a Dreamliner flying between Chicago and San Fran. With only two planes they wont need all those greedy, crybaby, over-entitled customers to constantly fill them.