Smisek: Better Service This Summer
#61
Join Date: May 2013
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But having been unable to answer that challenge, I would note that the "fix" to NYC is for airlines to be charged the same amount for every slot regardless of plane size, or bid for slots. As long as an ERJ-145 pays 1/6 of the landing fee as a 777 there will continue to be misuse of landing slots.
If the NYC airports figure out how much they wanted to raise, and divided it over the landing slots, or auctioned off the slots, it would push the airlines to fly bigger planes, which would benefit EVERYONE. There should not be any erj-145s (or small corporate jets) at EWR sucking up landing slots. If someone wants to use that take off/landing slot, let them bid for it or pay the same for it, so as a scares resource its properly allocated.
If the NYC airports figure out how much they wanted to raise, and divided it over the landing slots, or auctioned off the slots, it would push the airlines to fly bigger planes, which would benefit EVERYONE. There should not be any erj-145s (or small corporate jets) at EWR sucking up landing slots. If someone wants to use that take off/landing slot, let them bid for it or pay the same for it, so as a scares resource its properly allocated.
How long do you think it's going to take the government to add new capacity at EWR/JFK/LGA? Let's try over a decade or more, and the capacity increases due to NexGen are not going to be enough. Basically EWR would need to be rebuilt or the NJP buried under it, for starters.
So what is the solution? Reducing frequency is the only option. That means cutting back on Express flights and up-gauging other flights to reduce frequency. Unfortunately neither UA nor its competitors has the correct fleet mix for that right now, and they bowed to consumer pressure for more frequency while ignoring the fixed limitations of airway system capacity.
So, that leaves us with improving internal processes to better handle the IIROPS that do occur because of fixed capacity limitations. What is lacking in this process is robustness and flexibility - in short, the system should be constantly and automatically monitoring connection/cancel risk for every passenger, sorting by priority (elite tier, fare paid, etc) and auto-rebooking or auto-protecting on the fly as needed to ensure a seamless transfer for the customer.
Stuck overnight due to an at-fault issue - the system should auto-print hotel/meal vouchers to be claimed at E-Service machines by affected passengers (and provided to GS/1K automatically regardless of delay fault). The baggage system should show current location/status of bags during a delay or forced overnight so a passenger can access their reservation online or by phone and determine where their bag is.
That is just scratching the surface - but unfortunately UA selected a last-gen IT system that limits flexibility.
So what is the solution? Reducing frequency is the only option. That means cutting back on Express flights and up-gauging other flights to reduce frequency. Unfortunately neither UA nor its competitors has the correct fleet mix for that right now, and they bowed to consumer pressure for more frequency while ignoring the fixed limitations of airway system capacity.
So, that leaves us with improving internal processes to better handle the IIROPS that do occur because of fixed capacity limitations. What is lacking in this process is robustness and flexibility - in short, the system should be constantly and automatically monitoring connection/cancel risk for every passenger, sorting by priority (elite tier, fare paid, etc) and auto-rebooking or auto-protecting on the fly as needed to ensure a seamless transfer for the customer.
Stuck overnight due to an at-fault issue - the system should auto-print hotel/meal vouchers to be claimed at E-Service machines by affected passengers (and provided to GS/1K automatically regardless of delay fault). The baggage system should show current location/status of bags during a delay or forced overnight so a passenger can access their reservation online or by phone and determine where their bag is.
That is just scratching the surface - but unfortunately UA selected a last-gen IT system that limits flexibility.
Ignoring the unnecessary and false digs at the IT systems (all major airlines use similarly ancient mainframe systems), UA could certainly improve the pro-activeness of re-booking and recovery. I'm sure all of the things you describe are being looked at or worked on. Hopefully the functionality will come sooner rather than later.
#62
Join Date: Mar 2010
Location: Orygun
Posts: 461
Does "service" encompass the food offerings? I have heard rumblings they are improving the Y BOB. Haven't seen anything yet.
I haven't flown a whole lot of UA this year. But when I have this is what I have received in F on the midcons I have been on (always going through DEN or IAH):
- Shrimp salad or chicken calzone deal sans fruit/salad x4
- Mediterranean snack plate sans fruit/salad x1
- Mexican snack plate (aka the salt lick) sans fruit/salad x2
- Cheeseburger sans anything else x1
I haven't flown a whole lot of UA this year. But when I have this is what I have received in F on the midcons I have been on (always going through DEN or IAH):
- Shrimp salad or chicken calzone deal sans fruit/salad x4
- Mediterranean snack plate sans fruit/salad x1
- Mexican snack plate (aka the salt lick) sans fruit/salad x2
- Cheeseburger sans anything else x1
#63
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I thought the problem with NYC ATC is the number of aircraft, not the size. While more mainline improves the inflight experience for customers, it certainly doesn't help in the event of weather, since you can't operate more flights because they're on bigger planes.
The problem is that slots in NYC are use it or lose it. If UA cuts Express flights, SWA or Virgin America will (successfully) apply to take over that slot and the congestion problem won't be fixed.
Ignoring the unnecessary and false digs at the IT systems (all major airlines use similarly ancient mainframe systems), UA could certainly improve the pro-activeness of re-booking and recovery. I'm sure all of the things you describe are being looked at or worked on. Hopefully the functionality will come sooner rather than later.
The problem is that slots in NYC are use it or lose it. If UA cuts Express flights, SWA or Virgin America will (successfully) apply to take over that slot and the congestion problem won't be fixed.
Ignoring the unnecessary and false digs at the IT systems (all major airlines use similarly ancient mainframe systems), UA could certainly improve the pro-activeness of re-booking and recovery. I'm sure all of the things you describe are being looked at or worked on. Hopefully the functionality will come sooner rather than later.
You can't proactively modify slots due to bad weather without causing IRROPS that ripple through the system. NextGen and free-flight were suppose to help alleviate these issues, but today looks pretty like yesterday in terms of passenger experience. If nothing is going to change, UA needs to recognize the limitations placed on them and plan accordingly (as do the other carriers), otherwise we might as well bring back the CAB and re-regulate everyone's schedules again.
Sorry, not all airlines use legacy/outdated systems. I can find alot to criticize Delta on, but their upgrade of systems from legacy Deltamatic to their present day robust system makes UA look like they are running a Commodore Pet on BASIC.
#64
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There are no false digs. While you are correct that most major airlines use legacy systems that are similarly ancient, CO has so grossly under-invested in their technology and tools, and as such they have not built on that technology to the level where there are now significant noticeable differences in customer interactions and handling times, especially when compared to their other airline counterparts.
Until that issue is addressed, the CS that Smisek refers to is simply lipstick on a pig.
#65
Join Date: Jul 2005
Posts: 2,324
He's going to have to do more than run a reliable operation - UAL has very real revenue problem that persists to the current day. Smisek is the joke of the industry, inheriting some of the best strategic assets in the industry, only to squander them all because of shortsided arrogance.
Doug Parker said it best - This is what happens when the smaller company institutes all its policies and procedures onto the larger.
Smisek is still running UAL with the training wheels on - he and his brass were vastly overwhelmed with integrating & running such a titanic carrier. As far as I can see, they are stilling actively learning how to run a large global airline that competes for traffic.
Doug Parker said it best - This is what happens when the smaller company institutes all its policies and procedures onto the larger.
Smisek is still running UAL with the training wheels on - he and his brass were vastly overwhelmed with integrating & running such a titanic carrier. As far as I can see, they are stilling actively learning how to run a large global airline that competes for traffic.
#66
Join Date: May 2013
Posts: 3,361
The slots *are* the problem. There are too many slots, and they are set for optimal weather - when things go south, the capacity system falls apart. The FAA touts NextGen as the key, but I doubt it. You can only cram so many skittles into one bag. The FAA needs to cut the number of slots, but given the airlines don't have the right fleet mix, both sides are stuck in a catch-22.
You can't proactively modify slots due to bad weather without causing IRROPS that ripple through the system. NextGen and free-flight were suppose to help alleviate these issues, but today looks pretty like yesterday in terms of passenger experience. If nothing is going to change, UA needs to recognize the limitations placed on them and plan accordingly (as do the other carriers), otherwise we might as well bring back the CAB and re-regulate everyone's schedules again.
Sorry, not all airlines use legacy/outdated systems. I can find alot to criticize Delta on, but their upgrade of systems from legacy Deltamatic to their present day robust system makes UA look like they are running a Commodore Pet on BASIC.
You can't proactively modify slots due to bad weather without causing IRROPS that ripple through the system. NextGen and free-flight were suppose to help alleviate these issues, but today looks pretty like yesterday in terms of passenger experience. If nothing is going to change, UA needs to recognize the limitations placed on them and plan accordingly (as do the other carriers), otherwise we might as well bring back the CAB and re-regulate everyone's schedules again.
Sorry, not all airlines use legacy/outdated systems. I can find alot to criticize Delta on, but their upgrade of systems from legacy Deltamatic to their present day robust system makes UA look like they are running a Commodore Pet on BASIC.
For what its worth, Delta still uses Deltamatic. The have fancy front end technology and better applications, but its still the same engine under the hood.
#67
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Perfect analogy. CO has a comparable engine to DL, but CO didn't spring for the power windows, power locks, A/C, leather, stereo or bluetooth. Both cars will get you to the store and back, but it's a totally different ride, and the wife will refuse to ride in the CO model.
#68
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Did you hear the presentation or even read the article? I saw plenty of "owning" the problems in this presentation, and an acknowledgement that they have taken longer to address than he had hoped.
I don't see anything wrong with commenting on the macro factors that affect all airlines - that is part of a CEO's job, to use their position to try to influence these things. I don't see the part where that's shifting the blame (blame for what, by the way?)
I don't see anything wrong with commenting on the macro factors that affect all airlines - that is part of a CEO's job, to use their position to try to influence these things. I don't see the part where that's shifting the blame (blame for what, by the way?)
#69
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You seem to now understand that all issues related to slots and ATC = government problem. Hence, the constant and almost universal messaging from the U.S. majors on the need for better infrastructure.
For what its worth, Delta still uses Deltamatic. The have fancy front end technology and better applications, but its still the same engine under the hood.
For what its worth, Delta still uses Deltamatic. The have fancy front end technology and better applications, but its still the same engine under the hood.
Deltmatic 2013 has nothing to do with Deltamatic 1991 when I had to punch HYD to spit out a boarding pass. They've layered so much advanced functionality on it and integrated other systems so cleanly, it's one of the few shining examples of an airline project done well. Unfortunately they're going to use this advanced technology to start punishing customers, but that's another problem.
Meanwhile SHARES is still kissing cousins with the Apollo GDS clunker I log into for airline bookings - and loath.
Quite honestly, at Continental, I accepted the limits of SHARES (although the agents knew how to use it) without really knowing those limits were impacting my potential experience as a customer because my frame of reference was my experience as a CO customer which I was very happy with. The disconnect seems to be with the UA folks who want a UA customer experience on a CO system - and that is just unlikely to happen with the system as-is. UA folks want lipstick on a pig, while at CO, I didn't realize I had a pig.
#70
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While I would tend to agree with you that communication is important, remember that the airline customer base is somewhat limited. Sure there are always new customers, but many customers are repeat, frequent customers. A once-a-year leisure traveler may buy into the messaging and not see the B.S. component. But the frequent customers and staff on board the plane are not likely to buy into it given the content and Smisek's questionable integrity.
Bottom line, the messaging has to be in line with the experience, or you create a disconnect in the customer's view, and the customer feels duped. If that happens, it creates a negative emotion in the customer's mind, and no communication may have been better.
#71
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I agree. There are a lot of cynics on this board. I've said elsewhere in FT that Smisek deserves credit for stepping out and walking toward the cynicism instead of away from it. Good CEO's worry about three things: financial performance, operational performance and communications with stakeholders. Pre-flight videos may grow tiresome but they are an important part of leadership. As a PR exec I've worked for 8 different CEOs at public companies. The best and most successful CEOs were always willing to "go forth and communicate" even if they risked taking a few rotten tomatoes from the audience.
How can pre-flight videos be an important part of leadership? They offer nothing but sugarcoated gibberish that rarely connects with the reality of the passenger experience. Do I really give a rat's behind about UA's involvement with the PGA? No. I don't even like golf. My takeaway from that nonsense is they shuffle these players around like VIP's and probably bump other revenue passengers around to accomodate their whims.
The network ops segment was interesting - however given the advanced technology and those cute Boeing-themed ceiling light diffusers, I still wonder why we have so many operational problems with such a large, well-staffed, robust ops center....so to me, that segment sort of backfired.
Let me know when senior leadership at UA steps up, personally owns the problems, doesn't transfer blame to other parties and shows me a specific plan of action with timelines so I know when specific problems will be corrected. If Gordon can do it, so can today's leadership.
#72
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I haven't flown a whole lot of UA this year. But when I have this is what I have received in F on the midcons I have been on (always going through DEN or IAH):
- Shrimp salad or chicken calzone deal sans fruit/salad x4
- Mediterranean snack plate sans fruit/salad x1
- Mexican snack plate (aka the salt lick) sans fruit/salad x2
- Cheeseburger sans anything else x1
#73
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#74
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#75
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