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5 fascinating facts about the new UA

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Old Aug 6, 2012, 12:46 am
  #61  
 
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Great Read. The Flat Tire rule was enlightening...
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Old Aug 6, 2012, 12:49 am
  #62  
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Originally Posted by char777
Look at the article again. The article in the OP says that PMUA was planning on axing E+: ....
and then it says
The new United ended up keeping the section, which is a good thing.
and the article is about "new united" so I'm a bit suspicious of timeline of pre-merger E+ discussion. Is pre-merger -- the announcement of merger or referring to 3/3.
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Old Aug 6, 2012, 12:50 am
  #63  
 
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Originally Posted by garykung
Thanks - It is difficult for me to believe PMUA want to axe E+ (I remember around that time, DL rolled out EC to compete with E+).

BTW - I am the OP.
Gotcha. I meant OP to stand for just 'original post', but it can stand for the original poster as well I guess.

Reading that section a little more closely, the decision to axe E+ at PMUA must have been when it was elite-only and before they realized they could start charging GMs to sit in it. IIRC, that was quite some time ago.

Originally Posted by WineCountryUA
and the article is about "new united" so I'm a bit suspicious of timeline of pre-merger E+ discussion. Is pre-merger -- the announcement of merger or referring to 3/3.
I think the article means it was decided pre-merger. Here's why:

1) The article says "Before the merger between United and Continental"

2) The article credits Maria Walter, director of merch, as the one who saved E+ by coming up with the idea to monetize it. A quick search shows that Maria Walter worked at PMUA for several years. (I can't tell if she's at the new UA; her LinkedIn page says she is, but there's no mention of her on the corporate site).

The end of that section is ambiguous in talking about "the new United", but I think the author skipped a few steps and failed to realize that the airline called "United" evaluated E+ at two separate occasions.

Last edited by iluv2fly; Aug 6, 2012 at 6:27 am Reason: merge
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Old Aug 6, 2012, 4:35 am
  #64  
 
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Originally Posted by Indelaware
We simply have different perspectives of PMUA and PMCO which is not surprising. Those who liked CO dislike the new UA because it is not like the old CO and those who liked the old UA dislike the new UA because it is different. Besides integrating labor, merging customer expectations is a very difficult thing for any management team to do. At worst, UA will see PMUA and PMCO customers leave for AA, DL, and US. Leaving is a choice customers can make and they are thus happy with the new airline once the choice is made. But when changes come as a result of a merger customers of both prior airlines dislike the changes because they are not changes they would have made. One thing saving UA from all of us leaving: consolidation has gone so extreem and planes are so full, there is not enough space for everyone to not fly UA.
The empirical evidence has shown that pmUA handled IRROPS much better than pmCO and the current airline called United. Apollo/Fastair simply allowed much quicker rebooking and super elites were treated much better.

Originally Posted by char777
I think the article means it was decided pre-merger. Here's why:

1) The article says "Before the merger between United and Continental"

2) The article credits Maria Walter, director of merch, as the one who saved E+ by coming up with the idea to monetize it. A quick search shows that Maria Walter worked at PMUA for several years. (I can't tell if she's at the new UA; her LinkedIn page says she is, but there's no mention of her on the corporate site).

The end of that section is ambiguous in talking about "the new United", but I think the author skipped a few steps and failed to realize that the airline called "United" evaluated E+ at two separate occasions.
Exactly. Its clear that pmUA decided to change the nature of how E+ was offered - removing OAL Star Gold access and access for those on full Y tickets (that part seems short sighted). It killed a lot of those empty middles, but it made a huge difference to the bottom line.

The real evaluation came after the merger.
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Old Aug 6, 2012, 5:42 am
  #65  
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Originally Posted by char777
If what this article says is true (and admittedly it can be difficult for journalists to pick up complex details like this and convey them properly), we can say that "United" evaluated E+ twice: once right before the merger, and once during/after the merger w/r/t extending it to the PMCO fleet.
I wouldn't be surprised if Elliot misunderstood his handlers, and in fact they were referring to the initial $misek period where he came in guns blazing determined to axe it
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Old Aug 6, 2012, 7:13 am
  #66  
 
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Originally Posted by char777
The article quoted in the OP says that PMUA (that's right, UA before the merger) seriously considered, or even planned, to axe E+. A lot of the squawk boxes on here are either misreading that, reading over it, or didn't bother to read the article altogether and jumped to attack mode.

It was also reported several months ago that the new UA also went through another evaluation as to whether E+ should continue. There was a quote from Smisek at that time (or perhaps it was one of the other executives) who said something along the lines of that E+ was a 'no-brainer' to keep just looking at the cost benefits and not even considering the loyalty aspect. I tried to find the quote quickly just now but couldn't.



Look at the article again. The article in the OP says that PMUA was planning on axing E+:



If what this article says is true (and admittedly it can be difficult for journalists to pick up complex details like this and convey them properly), we can say that "United" evaluated E+ twice: once right before the merger, and once during/after the merger w/r/t extending it to the PMCO fleet.
Originally Posted by WineCountryUA
and then it says and the article is about "new united" so I'm a bit suspicious of timeline of pre-merger E+ discussion. Is pre-merger -- the announcement of merger or referring to 3/3.
Originally Posted by char777
Gotcha. I meant OP to stand for just 'original post', but it can stand for the original poster as well I guess.

Reading that section a little more closely, the decision to axe E+ at PMUA must have been when it was elite-only and before they realized they could start charging GMs to sit in it. IIRC, that was quite some time ago.



I think the article means it was decided pre-merger. Here's why:

1) The article says "Before the merger between United and Continental"

2) The article credits Maria Walter, director of merch, as the one who saved E+ by coming up with the idea to monetize it. A quick search shows that Maria Walter worked at PMUA for several years. (I can't tell if she's at the new UA; her LinkedIn page says she is, but there's no mention of her on the corporate site).

The end of that section is ambiguous in talking about "the new United", but I think the author skipped a few steps and failed to realize that the airline called "United" evaluated E+ at two separate occasions.
United was selling E+ to all pax on the front page of their website at least as early as 2008. They also did E+ upsells when the E+ cabin wasn't filled by elites as early as 2005. Both of these I found by searching on FT.

What this tells me is that UA was considering eliminating E+ sometime in the 2005 to 2008 timeframe, well before any merger with CO was in the works. I'd also assume that eliminating E+ was examined again as a part of the UA/CO merger process.

From the article:
But Maria Walter, the airline’s director of merchandising and revenue optimization, begged for a reprieve. What if she should upsell other economy class passengers into Economy Plus? Would they consider saving it?
My read of this is that she was responsible for introducing E+ upsells sometime in the 2005 to 2008 timeframe and that CO and mergers weren't a part of the decision at that time.
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Old Aug 6, 2012, 1:22 pm
  #67  
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What's really fascinating about this post

It's getting almost no attention. Because its a direct refute of conventional wisdom by a few members that's been repeatedly stated as fact, which turns out to be wrong. And then go to some length to try and re-interpret the meaning of English because it doesn't support their narrative.

So we'll add this one to the other lists of 'truths' which have also been rejected; strike, poor earnings, mass migration of elites, etc.
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Old Aug 6, 2012, 4:18 pm
  #68  
 
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Originally Posted by Indelaware
Please, no need to call people names. i am not dense and hardly selfish. If E+ was eliminated seating space throughout the plane could be equalized. A bit more for those currently in standard E and a bit less for those in E+ thus being more fair for everyone. Likewise, it might also permit a tad more customers aboard which would both allow for decreased fares (greater supply of seats) increased fuel efficency (more profit for airline) better usage of limited natural resources, and decreased per passenger polution (a plus for everyone).

Here's definition of lu·di·crous: So foolish, unreasonable, or out of place as to be amusing.
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