WSJ Article: Smisek says UA on the Mend
Jun 16, 2013, 10:12 pm
#16
Join Date: Aug 2011
Programs: UA 1K
Posts: 8,634
Is the switch to whole cashews really, honestly, truly a "cut"?
Jun 16, 2013, 10:13 pm
#17
Join Date: Dec 2012
Location: SEA
Programs: UA Plat, HH Diamond, MR Gold, Hertz Prez Circle
Posts: 572
Yes and no... The little things are little, until a pile of them becomes big. It's ironic that he points out stuff like this in the same article that he admits they "changed too much too fast".
Customers rarely notice teeny tiny changes. But eventually you cross an invisible threshold where everything gets noticed, all at once. I think there's been ample FT threads pointing out the degradation of foodservice in GF/J/F, so the overall downgrade HAS been noticed. Frankly, nobody would have noticed this if he hadn't opened his mouth! But now when I'm in F this coming Tuesday, I'm going to stare at the nuts and laugh... then sigh.
Customers rarely notice teeny tiny changes. But eventually you cross an invisible threshold where everything gets noticed, all at once. I think there's been ample FT threads pointing out the degradation of foodservice in GF/J/F, so the overall downgrade HAS been noticed. Frankly, nobody would have noticed this if he hadn't opened his mouth! But now when I'm in F this coming Tuesday, I'm going to stare at the nuts and laugh... then sigh.
Who's going to notice the nut cuts if there isn't as much F space to go around to begin with?
You are right tho, there is a point where something will catch my eye and then I start getting a little more scrutinizing about stuff and become fed up when i realize its pretty cheap.
Jun 16, 2013, 10:14 pm
#18
Join Date: Sep 2003
Location: LAX
Programs: UA MM | BA Silver
Posts: 7,192
Jun 16, 2013, 10:16 pm
#19
Join Date: Jun 2005
Posts: 4,645
Jun 16, 2013, 10:23 pm
#20
Join Date: Aug 2006
Location: US
Programs: AA/UA/DL
Posts: 2,773
Quote:
Mr. Smisek said he takes inspiration from Delta, "which is doing quite well, which I'm delighted with because they're two years ahead of us" in absorbing its 2008 acquisition of Northwest Airlines.
Delta last month announced plans to begin paying a quarterly dividend of six cents a share, and to buy back $500 million of its stock.
Mr. Smisek said United has "absolutely every intention of paying a dividend to our shareholders. The time is not right now, but the time will come."
Mr. Smisek said he takes inspiration from Delta, "which is doing quite well, which I'm delighted with because they're two years ahead of us" in absorbing its 2008 acquisition of Northwest Airlines.
Delta last month announced plans to begin paying a quarterly dividend of six cents a share, and to buy back $500 million of its stock.
Mr. Smisek said United has "absolutely every intention of paying a dividend to our shareholders. The time is not right now, but the time will come."
DL can success is not because of cutting corners (DL FFP does) while UA is only thinking how to cutting corners.....
Last edited by pigx5; Jun 16, 2013 at 10:30 pm
Jun 16, 2013, 10:28 pm
#21
Join Date: Dec 2002
Location: SFO
Posts: 3,938
OT, but somewhat related: Googling the WSJ headline no longer works (atleast for me and looks like one other person on this thread). If this is a common problem, then perhaps we might want to revisit sharing the WSJ links.
"Customers don't care if it's a whole nut or split in half," Mr. Smisek said
Last edited by malgudi; Jun 16, 2013 at 10:49 pm
Jun 16, 2013, 10:34 pm
#22
Join Date: Jun 2011
Location: MEL
Programs: VAG
Posts: 1,865
If I were running UA, the first thing I'd do would be the complete abolition of UDUs. If you want a seat in F, you gotta pay for it, with dollars or miles. I might lower F fares and mileage upgrade fees while I was at it. Then, once customers had been trained to quit expecting free upgrades, I might start thinking about making domestic F a worthwhile experience again.
That'd be short term pain (for the airline, not just the customers, as planes would be flying with more empty seats) but long term gain. Sometimes it really does make sense to fire your most over-entitled customers.
Jun 16, 2013, 10:38 pm
#23
Join Date: Aug 2006
Location: US
Programs: AA/UA/DL
Posts: 2,773
If people were actually paying F fares for their F seats, then I'm sure there'd be absolutely no way they'd be eliminating F seats.
If I were running UA, the first thing I'd do would be the complete abolition of UDUs. If you want a seat in F, you gotta pay for it, with dollars or miles. I might lower F fares and mileage upgrade fees while I was at it. Then, once customers had been trained to quit expecting free upgrades, I might start thinking about making domestic F a worthwhile experience again.
That'd be short term pain (for the airline, not just the customers, as planes would be flying with more empty seats) but long term gain. Sometimes it really does make sense to fire your most over-entitled customers.
If I were running UA, the first thing I'd do would be the complete abolition of UDUs. If you want a seat in F, you gotta pay for it, with dollars or miles. I might lower F fares and mileage upgrade fees while I was at it. Then, once customers had been trained to quit expecting free upgrades, I might start thinking about making domestic F a worthwhile experience again.
That'd be short term pain (for the airline, not just the customers, as planes would be flying with more empty seats) but long term gain. Sometimes it really does make sense to fire your most over-entitled customers.
Jun 16, 2013, 10:42 pm
#24
FlyerTalk Evangelist
Join Date: Mar 2013
Programs: DL PM, MR Titanium/LTP, Hilton Diamond
Posts: 10,130
Most telling quote of the article to me was this one especially the part in bold (not that I'm surprised by the comment). It just reaffirms to me that most of what we see now is the way it's going to be. Smisek is too committed to this approach to turn back now.
"'For far too long, we've operated this company as an airline: Airlines don't make money,' Mr. Smisek said. He wants employees to view United as a business. 'That means constantly looking at ways to do things smarter and less expensively.'"
"'For far too long, we've operated this company as an airline: Airlines don't make money,' Mr. Smisek said. He wants employees to view United as a business. 'That means constantly looking at ways to do things smarter and less expensively.'"
Jun 16, 2013, 10:43 pm
#25
FlyerTalk Evangelist
Join Date: Jun 2007
Location: PDX
Programs: AS 75K, BW Plat, Marriott Gold, IHG Plat, Hilton Gold
Posts: 10,721
Jun 16, 2013, 10:46 pm
#26
Join Date: Sep 2003
Location: LAX
Programs: UA MM | BA Silver
Posts: 7,192
I'm curious about the revamped employee shuttle-bus system @ ORD. I wonder if those who actually use the system have seen a difference (decline or otherwise) in service.
Normally these kind of "changes" work best for those that are not impacted.
Normally these kind of "changes" work best for those that are not impacted.
Jun 16, 2013, 11:14 pm
#27
Join Date: Jun 2007
Location: YVR SFO
Programs: UA G
Posts: 4,866
Yes and no... The little things are little, until a pile of them becomes big. It's ironic that he points out stuff like this in the same article that he admits they "changed too much too fast".
Customers rarely notice teeny tiny changes. But eventually you cross an invisible threshold where everything gets noticed, all at once. I think there's been ample FT threads pointing out the degradation of foodservice in GF/J/F, so the overall downgrade HAS been noticed. Frankly, nobody would have noticed this if he hadn't opened his mouth! But now when I'm in F this coming Tuesday, I'm going to stare at the nuts and laugh... then sigh.
Customers rarely notice teeny tiny changes. But eventually you cross an invisible threshold where everything gets noticed, all at once. I think there's been ample FT threads pointing out the degradation of foodservice in GF/J/F, so the overall downgrade HAS been noticed. Frankly, nobody would have noticed this if he hadn't opened his mouth! But now when I'm in F this coming Tuesday, I'm going to stare at the nuts and laugh... then sigh.
Jun 16, 2013, 11:19 pm
#28
Join Date: Feb 2013
Location: New York
Programs: UA, AA, Hyatt, SPG
Posts: 86
I'd rather they cut the nut than cut the ff program
But the one thing I can't quite figure out is how they intend to increase revenue. At some point you need to actually build your business. You can't cut to profitability.
But the one thing I can't quite figure out is how they intend to increase revenue. At some point you need to actually build your business. You can't cut to profitability.
Jun 16, 2013, 11:59 pm
#29
Join Date: Dec 2007
Location: Las Vegas
Programs: DL Platinum, AA Lifetime Gold, Hilton Diamond, Marriott Platinum, Radisson Premium
Posts: 6,638
Let's see....DL adds F seats, makes sure virtually every plane has wifi, comps snacks in coach to DMs (and I believe lower tiers too)--- all for quite a few years no), UA guts F seats, makes upgrade process arcane, rewards single flight fare class over overall loyalty in most cases, doesn't comp food to 1Ks in coach.
Hmm, seems to be doing everything the opposite.
Yes, DL's MQD's sucks. Yes, it's probably coming for UA. But UA DID cut it's FF program in terms of prioritization of upgrades and upgrade windows.
Other than MQDs and the SkyPesos, DL is a far better airline for the domestic upgrader. UA is the worst airline, in my opinion, for that.
Hmm, seems to be doing everything the opposite.
Yes, DL's MQD's sucks. Yes, it's probably coming for UA. But UA DID cut it's FF program in terms of prioritization of upgrades and upgrade windows.
Other than MQDs and the SkyPesos, DL is a far better airline for the domestic upgrader. UA is the worst airline, in my opinion, for that.
