United CFO Rainey Implies Certain Elites were "Over Entitled".
May 21, 2012, 1:25 pm
#676
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While John was not referring to upgrades, we know they remain a hot topic, especially with respect to selling upgrades. As discussed in other threads, our continued goal is to simply sell our First Class seats as close to their intended retail price as possible. The Y/B/M instant upgrade fares that we offer our Premier members, for example, are only a modest discount from our retail First Class fares, and the buy-ups we offer based on these fares are simply an extension of this. In the coming year, we will be adding more transparency to the upgrade process, and will also be making important improvements to the upgrade system itself. Please be assured, whether your concern is that we reward loyalty solely or that we also offer a higher level of benefits to those loyal members who also spend more, we are listening.
A non-elite SHOULD NEVER be getting a sub-$100 upgrade offer for the ~98% of flights where there are more elites than F seats available! Yet they do! That's not the difference between their fare and the "retail price".
Are these just the never-ending "defects" and "glitches" in SHARES that we hear about?
May 21, 2012, 1:25 pm
#677
Join Date: Feb 2005
Posts: 251
You know, it occurs to me that if I wanted to destroy an airline intentionally, I wouldn't do much differently from what the Continental HouCrew has done here. Everything from drive away and piss-off customers to corrupt travel records to making it difficult at the airport to generally losing credibility to creating a hostile environment for employees. Really, it almost seems an intentional script...
May 21, 2012, 1:28 pm
#678
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From http://www.businesstravelnews.com/Bu...irlines&a=mgmt
"We picked Shares [a legacy Continental system furnished by HP] for a couple of reasons. One, we have significant intellectual property rights in Shares. And secondly, we have spent a lot of time offloading the host on Shares—making it more web-based and less tied to the mainframe, which means we can be much faster to market with product innovations. That's the right platform for us to get to."
So much for "much faster."
"We picked Shares [a legacy Continental system furnished by HP] for a couple of reasons. One, we have significant intellectual property rights in Shares. And secondly, we have spent a lot of time offloading the host on Shares—making it more web-based and less tied to the mainframe, which means we can be much faster to market with product innovations. That's the right platform for us to get to."
So much for "much faster."
Anyone with any knowledge of the airline business in Senior Management, knows how big a mistake keeping SHARES was. The Industry is laughing at them. Customers too.
Forgive them Father for they know not what they do.
Last edited by ibuyyoufly; May 21, 2012 at 1:33 pm
May 21, 2012, 1:29 pm
#679
Join Date: Feb 2008
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You know, it occurs to me that if I wanted to destroy an airline intentionally, I wouldn't do much differently from what the Continental HouCrew has done here. Everything from drive away and piss-off customers to corrupt travel records to making it difficult at the airport to generally losing credibility to creating a hostile environment for employees. Really, it almost seems an intentional script...
Blow up the United name and reputation, then re-emerge years later as your own alternative - the return of good 'ole Continental?
May 21, 2012, 1:31 pm
#680
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WOW! I can't believe this CFO is allowed to talk in public - pathetic.
May 21, 2012, 1:33 pm
#681
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He's more of a numbers guy more than an airline guy. That is the biggest understatement EVER.
Anyway stock is up over 4 percent today so the strategy has worked. They are going to shrink this thing to the most profitable airline ever!
Anyway stock is up over 4 percent today so the strategy has worked. They are going to shrink this thing to the most profitable airline ever!
May 21, 2012, 1:35 pm
#682
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May 21, 2012, 1:37 pm
#683
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To the same end of any CEO joining a company not their own: to drive up the share price short term while unloading the stock they've received as compensation, at the expense of the company long term, and then getting out before it completely falls apart.
May 21, 2012, 1:38 pm
#684
Join Date: Sep 2003
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I'm glad he was honest (compared to the bull**** that comes out of Smisek's mouth) and said it in a public environment. I don't blame these guys one bit as they are driving revenue and profitability, i.e., their job. Surely they have many monkey MBAs behind Excel models that prove their actions have greater benefit than either inaction (i.e., continuance of old policies) or the consequential loss of future revenues.
Thankfully, I have a choice on the carrier that I fly and I'm on the list that have chosen to vote with my corporate and personal spend. American has treated me very well and they have earned my spend. Big deal, I've moved on.
Thankfully, I have a choice on the carrier that I fly and I'm on the list that have chosen to vote with my corporate and personal spend. American has treated me very well and they have earned my spend. Big deal, I've moved on.
May 21, 2012, 1:40 pm
#685
Join Date: Feb 2005
Posts: 251
Except the CIO of the service oriented side of the merger who quit out of integrety....
And the CFO most familiar with the plan and strategy who jumped ship at first chance...
And the brass at AA who offered a never before available straight status match to exec platinum...
And the thousands of 1Ks and GS who took it...
And the agents (almost forgot them) who complained of the arcane system and how hard it was to do their job...
(And the aqueduct - for any Python fans )
but apart from them, I guess you're right - no one.......
And the CFO most familiar with the plan and strategy who jumped ship at first chance...
And the brass at AA who offered a never before available straight status match to exec platinum...
And the thousands of 1Ks and GS who took it...
And the agents (almost forgot them) who complained of the arcane system and how hard it was to do their job...
(And the aqueduct - for any Python fans
)but apart from them, I guess you're right - no one.......
Last edited by J.Edward; May 21, 2012 at 2:34 pm Reason: correction of VBB quote now removed
May 21, 2012, 1:41 pm
#686
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Since you are responding directly to the BofA presentation, please clarify:
Who precisely does UA believe are or were "over-entitled"?
Frankly, the rest of your post was just spin.
May 21, 2012, 1:41 pm
#687
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In agriculture, this entire process is known as "Culling the herd." United is doing just that by carefully, and IMO intentionally, choosing phrases such as "over-entitled."
I've lost some benefits as a lowly 2P, but I can't imagine the feeling of those of you at the 1K level these days.
I've lost some benefits as a lowly 2P, but I can't imagine the feeling of those of you at the 1K level these days.
May 21, 2012, 1:42 pm
#688
Join Date: Apr 2008
Posts: 2,358
Richard Nixon revisited?
This afternoon I went to the site where the speech from Rainey was available yesterday. I wanted to hear the speech again to see if I might have misunderstood the comment that inspired this thread.
I listened to the speech this afternoon. I could not find any reference to elites and their supposed entitlements. Here is the site address:
http://ir.unitedcontinentalholdings....&p=irol-IRHome
Notice that the site is United's "Investor Relations."
Am I using the incorrect web address for the speech?
When I access the site now, there is a link to the speech but I did not hear the offending portion.
Could the missing portion of the tape/speech have been removed because of the bad press over the comment?
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I listened to the speech this afternoon. I could not find any reference to elites and their supposed entitlements. Here is the site address:
http://ir.unitedcontinentalholdings....&p=irol-IRHome
Notice that the site is United's "Investor Relations."
Am I using the incorrect web address for the speech?
When I access the site now, there is a link to the speech but I did not hear the offending portion.
Could the missing portion of the tape/speech have been removed because of the bad press over the comment?
-
Last edited by dgcpaphd; May 21, 2012 at 1:47 pm
May 21, 2012, 1:44 pm
#689
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May 21, 2012, 1:49 pm
#690
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This afternoon I went to the site where the speech from Rainey was available yesterday. I wanted to hear the speech again to see if I might have misunderstood the comment that inspired this thread.
I listened to the speech this afternoon. I could not find any reference to elites and their supposed entitlements. Here is the site address:
http://ir.unitedcontinentalholdings....&p=irol-IRHome
Notice that the site is United's "Investor Relations."
Am I using the incorrect web address for the speech?
When I access the site now, there is a link to the speech but I did not hear the offending portion.
Could the missing portion of the tape/speech have been removed because of the bad press over comment?
-
I listened to the speech this afternoon. I could not find any reference to elites and their supposed entitlements. Here is the site address:
http://ir.unitedcontinentalholdings....&p=irol-IRHome
Notice that the site is United's "Investor Relations."
Am I using the incorrect web address for the speech?
When I access the site now, there is a link to the speech but I did not hear the offending portion.
Could the missing portion of the tape/speech have been removed because of the bad press over comment?
-