United CEO says it doesn’t want to be world’s largest airline, but size still matters

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Mar 9, 2013, 11:40 pm

#76

craz

Suspended

Join Date: Nov 1999

Posts: 24,153

Quote:

Originally Posted by TWATWA

It is disgusting how his PMCO style management is ruining United. I can't believe he still has a job at this airline.

How many shareholders do you think agree with you? As an Overentitled Elite I agree with You , if I owned UAL stock I would Disagree with You

Mar 9, 2013, 11:56 pm

#77

Indelaware

Join Date: Jun 2008

Posts: 4,187

Quote:

Originally Posted by TWATWA

It is disgusting how his PMCO style management is ruining United. I can't believe he still has a job at this airline.

Quote:

Originally Posted by craz

How many shareholders do you think agree with you? As an Overentitled Elite I agree with You , if I owned UAL stock I would Disagree with You

There are some things being ruined, but there are things being fixed as well. They are fixing the gravy train of upgrades and chits, for example. UA needed fixing. CO didn't need fixing, until SMI/J broke it as he is breaking part of UA now while at the same time fixing part of it.

Mar 10, 2013, 5:47 am

#78

halls120

A FlyerTalk Posting Legend

Join Date: Jun 2005

Posts: 57,748

Quote:

Originally Posted by Indelaware

One should always fly the lowest priced (safe) carrier. FF benefits should only come into play when fares are the same. When I am treated better by the person next to me, I feel embarrassed. I always use OLCI so I don't need the Elite Access line at the airport (those few times I do need to go to the counter, I stand in the general line) and I always board last (just like I did long before there was such a thing as a FF plan). And when I get the upgrade, I generally swap seats with someone from the back of the plane, preferably an elderly member of the working-poor. The seats in back are just fine.

We clearly think differently.

we do indeed. What I'm trying to figure out is why you even fly on an airline that offers any differentiation of service. Clearly you feel most comfortable on an airline that offers no F seats, no E+, no priority lines, and no special treatment at all. Which is your right, and I have no problem with that POV, even though I don't share it. It would be nice if your disapproval of what many of us want didn't come with thinly disguised condescension, but as you correctly point out, we all think differently.

Mar 10, 2013, 6:20 am

#79

RNE

Join Date: Sep 2005

Location: JZRO

Posts: 9,169

Quote:

Originally Posted by BrettJG

My current CEO is an accountant. I'm the long time COO, he's relatively new and we battle alot about what makes the company successful.

I got into the same battle and lost. Better luck to you. But I digress. UA's goal should not be to amass size but shareholder wealth. Anathema to many hereon, I know.

RNE, opining that Uncle Jeffrey is managing things just fine by me.

Mar 10, 2013, 8:37 am

#80

FlyWorld

Original Poster

Join Date: Jun 2005

Posts: 4,645

Quote:

Originally Posted by craz

Lets be Fair UA won the awards since it was Giving everything away for a song . And on very low fares folks would have a PNR with 10 segments to it

The more a company gave things away the more awards they won, but that doesnt mean its being Runned properly

Don't understand what you're saying. As a GS/1K, I spent between $20,000 to $60,000 a year with UA, and in exchange for that, I got some upgrades that they are now selling for $29 - $599. So, now they collect, let's say, $5,000 in additional fees on those flights. OK. So, UA "gave away" about $5,000 in annual value. But, in return for that, my spend has dropped by $19861 - $59861. So, if you subtract the $5,000 that they were "giving away" to me from the drop in my spend with them, they are now making $14861 - $54861 less from me than they did in prior years. Let's say I'd have been flying at this rate for another decade. That's a drop of $148610 - 548610, just for 1 single passenger.

So, if CO's short term anti-customer policies have resulted in a drop of between $150K to $500K in revenue from 1 passenger over the next 10 years, how do you figure that UA was "giving away" anything?

I'd say the truth is that CO is "pushing away" customers and profitability.

Mar 10, 2013, 8:44 am

#81

njcommodore

Join Date: Jan 2009

Location: IAD

Programs: UA 1K, Marriott Rewards - LTPP

Posts: 4,240

Quote:

Originally Posted by mitchmu

That's a drop of $148610 - 548610, just for 1 single passenger.

You're paying that for one flight? Yikes, I think you're overpaying. Oh, for multiple flights? They'll sell those seats to other people. You can't look at your spending in a vacuum.

Mar 10, 2013, 8:58 am

#82

FlyWorld

Original Poster

Join Date: Jun 2005

Posts: 4,645

Quote:

Originally Posted by njcommodore

You're paying that for one flight? Yikes, I think you're overpaying. Oh, for multiple flights? They'll sell those seats to other people. You can't look at your spending in a vacuum.

No, no. I'm not one of those people!

I'm saying that, over the last 7 years, my average annual spend has been within that range.

As of now, this year, my total spend with UA is $137, and I don't know if it'll go up from there.

So I'm describing the loss in incremental revenue, adjusting for an estimated value of what they "gave away" to me, from me as a passenger, each year, projected over 10 years at the same run rate.

This year, also, I've got about $1,600 worth of "vouchers" to burn. I never got more than $200 or so worth of vouchers from UA, because UA didn't screw up so often. Forgot to put that into the formula.

Why is it that the CO flag wavers think it's horrible for COdbaUA to "give away" an upgrade to a 1K but it's fine to screw everything up and hand out vouchers like crazy? That's a "give away" too.