Is Ch11 unavoidable for UA next year?
#61
FlyerTalk Evangelist
Join Date: Aug 2007
Location: SEA, but up and down the coast a lot
Programs: Oceanic Airlines Gold Elite
Posts: 20,392
#62
FlyerTalk Evangelist
Original Poster
Join Date: Dec 2004
Location: East Coast
Programs: AA CONCIERGE KEY & 1MM, HILTON DIAMOND
Posts: 11,970
"United Airlines was the worst U.S. airline —and Virgin America was the best — among leading U.S. airlines last year, a report said Monday. Overall, carriers had their second-best score in the more than the two decades since researchers began measuring quality of service."
http://www.dailyfinance.com/on/unite...-toilet-paper/
"In a week that saw United Airlines (UAL) place dead last in a customer service ranking of the major airlines, a picture surfaced that gives some idea of how the airline earned that dubious distinction. A member of travel forum FlyerTalk posted this picture, which he says he snapped in the lavatory of a United Airlines flight."
http://www.huffingtonpost.com/2013/0...n_3038556.html
"United Airlines, whose consumer complaint rate nearly doubled last year, had the worst performance. United has merged with Continental Airlines, but has had rough spots in integrating the operations of the two carriers."
Thus, I maintain my position that UA is an all-time low. Explain to me how the company isn't when being last means that all your competitors are above you and there is no way to get ranked lower.
Last edited by fly747first; Dec 14, 2013 at 10:32 pm
#63
A FlyerTalk Posting Legend
Join Date: Apr 2001
Location: PSM
Posts: 69,232
Got it...you're taking some data and interpreting it badly in an effort to prove your point. That's fine, but it isn't reality.
Even if we accept that UA today is the absolute worst operation in the USA that doesn't mean that it is worse today than it has ever been, either operationally, financially or in any other way.
Even if we accept that UA today is the absolute worst operation in the USA that doesn't mean that it is worse today than it has ever been, either operationally, financially or in any other way.
#64
FlyerTalk Evangelist
Original Poster
Join Date: Dec 2004
Location: East Coast
Programs: AA CONCIERGE KEY & 1MM, HILTON DIAMOND
Posts: 11,970
Got it...you're taking some data and interpreting it badly in an effort to prove your point. That's fine, but it isn't reality.
Even if we accept that UA today is the absolute worst operation in the USA that doesn't mean that it is worse today than it has ever been, either operationally, financially or in any other way.
Even if we accept that UA today is the absolute worst operation in the USA that doesn't mean that it is worse today than it has ever been, either operationally, financially or in any other way.
#65
Moderator: United Airlines
Join Date: Jun 2007
Location: SFO
Programs: UA Plat 1.995MM, Hyatt Discoverist, Marriott Plat/LT Gold, Hilton Silver, IHG Plat
Posts: 66,856
even if this, it does not mean UA needs or would even qualify for Chapter 11 at this time or the near future. The recent (past qtr, past year) financial performance is far better (note I did not say "great") than other periods of UA's history. The entire premise of this thread is misplaced.
#66
FlyerTalk Evangelist
Original Poster
Join Date: Dec 2004
Location: East Coast
Programs: AA CONCIERGE KEY & 1MM, HILTON DIAMOND
Posts: 11,970
even if this, it does not mean UA needs or would even qualify for Chapter 11 at this time or the near future. The recent (past qtr, past year) financial performance is far better (note I did not say "great") than other periods of UA's history. The entire premise of this thread is misplaced.
You may want to read this:
http://www.macrumors.com/2011/09/19/...d-to-innovate/
#67
Moderator: United Airlines
Join Date: Jun 2007
Location: SFO
Programs: UA Plat 1.995MM, Hyatt Discoverist, Marriott Plat/LT Gold, Hilton Silver, IHG Plat
Posts: 66,856
From lack of innovation to poor customer service, there are a variety of factors that when combined can have very serious consequences... similar to when we say "disasters don't just happen, they are triggered by a chain of critical events."
You may want to read this:
http://www.macrumors.com/2011/09/19/...d-to-innovate/
You may want to read this:
http://www.macrumors.com/2011/09/19/...d-to-innovate/
BTW , I don't need to read about Apple's turnaround, I have been in/around "The Valley" since before it was called that or "Silicon Valley." These are not new concepts to long term high tech folks.
#68
Join Date: Jun 2011
Location: Los Angeles, San Francisco, and Osaka
Programs: United Mileage Plus Premier Executive
Posts: 581
It seems United needs Glen Tilton again to save it! The new PMcO regime seems to be making things awful for the customers and it will be sad to see them take United into bankruptcy because of the policies they instituted since the merger. It is sad that arrogance from new management may lead United to bankruptcy when it had really turned a corner before the merger under Tilton. Hope to see the United name fly into the late 20 teens under new leadership!
#69
Join Date: Sep 2010
Location: San Francisco Bay Area
Posts: 5,825
Understand you and many are not pleased (including myself) with UA's direction, but such long term speculation is more a work of fiction -- and overstating things just undermines the seriousiness of the decision.
BTW , I don't need to read about Apple's turnaround, I have been in/around "The Valley" since before it was called that or "Silicon Valley." These are not new concepts to long term high tech folks.
BTW , I don't need to read about Apple's turnaround, I have been in/around "The Valley" since before it was called that or "Silicon Valley." These are not new concepts to long term high tech folks.
And, 747: As you continue to argue with everyone who is offering reasoned feedback on why UA will not enter BK in 2014, you are beginning to appear more like a troll than in your original 'objective' post...
#70
Join Date: Oct 2013
Posts: 36
#71
Join Date: Oct 2013
Posts: 36
They don't go into bankruptcy when their financial performance is worse than their competitors. They go into bankruptcy when their financial performance is so bad that they are unable to pay their bills. Is that the case?
#72
Join Date: Dec 2004
Posts: 2,866
I think that it would be several years before bankruptcy is an issue. Although I will have to shift much of my travel to the new American because UA without US Air does not offer service that I need, American & Delta will not have the capacity to absorb a very large defection from United. I think that it would be a very slow death for United. As we start to flee I think they will get the message and change.
For the 2nd half of 2013 my US Air travel has exceeded United travel and it will go up with the merger. United may be heading to "weak sister" status like Gulf Oil.
It feels like Frank Lorenzo is with us again.
For the 2nd half of 2013 my US Air travel has exceeded United travel and it will go up with the merger. United may be heading to "weak sister" status like Gulf Oil.
It feels like Frank Lorenzo is with us again.
#73
FlyerTalk Evangelist
Join Date: Aug 2002
Location: Bay Area, CA
Programs: UA Plat 2MM; AS MVP Gold 75K
Posts: 35,068
Would anyone 10 years ago have thought that DL would be in such a dominant position? People were complaining about DL and their plastic cups in F.
But they've improved service -- customer service, in-flight experience, amenities, etc. tremendously, and they're reaping the rewards as a result.
Could anyone 5 years ago have thought that US with their limited network and connection focused hubs (PHX, CLT), outperform behemoth UA from a RASM perspective, despite UA's much broader global network and more business-oriented hubs (WAS, ORD, SFO, LAX)?
The industry is quite cyclical.
Last week I had an trip in which SHARES made a sked change that did not meet the minimum connection time. I did not notice until I was making my way back from Germany. The night before I called UA and the agent in SLC would not help by protecting me on a non-stop on another carrier (no space left on UA future flights). Prior to the merger, UA would put me on any carrier from any alliance to get me home The ironic thing is since I originated in FRA the Air Passenger Rights come into play however the agent did not know nor care and to me that is a reflection of the culture of the "new" UA, where the executives don't care about the passengers, which in turn filters down to the front-line staff.
I had one several months ago where UA simply cancelled the flight in a market. I ended up not needing it, and decided to wait and see what UA would do. The answer was absolutely nothing. I waited until 2 days before the flight to actually change the ticket.
That's part a technology issue, and part business process. Someone needs to be contacting customers in these egregious schedule change situations.
Like many I hope 2014 is the year to be rid of Jeff.
However, the questions seems to be, will UA be able to win back the herds of Elites who have left (after 18 yrs as 1K, I am now AA Platinum).
Once you have lost the Elites and corporate contracts it is very difficult, takes a very long time and tons of effort to win them back. I think because of the radical change in UA a very important business principle has been destroyed - Trust. Corporations and individuals look for a trust in a relationship and once that is gone, it takes a lot to rebuild that. Even with Jeff gone I do not think the herds (including myself) will be rushing back to UA. Once you get comfortable and use to something else ( like AA) you really are not looking to go back. That relationship is something of the past.
...
Elites will not rush back to UA. Trust is broken and the Board of Directors of UA have no one to blame but themselves.
However, the questions seems to be, will UA be able to win back the herds of Elites who have left (after 18 yrs as 1K, I am now AA Platinum).
Once you have lost the Elites and corporate contracts it is very difficult, takes a very long time and tons of effort to win them back. I think because of the radical change in UA a very important business principle has been destroyed - Trust. Corporations and individuals look for a trust in a relationship and once that is gone, it takes a lot to rebuild that. Even with Jeff gone I do not think the herds (including myself) will be rushing back to UA. Once you get comfortable and use to something else ( like AA) you really are not looking to go back. That relationship is something of the past.
...
Elites will not rush back to UA. Trust is broken and the Board of Directors of UA have no one to blame but themselves.
That's basically what a new CEO who gets it is going to have to do.
At the end of the day, people change their decisions all the time. People aren't running back to UA in droves in their present state of poor CS, hot pockets in F, devalued mileage program, etc., because Jeff says they're "flyer friendly."
They'll come back when the place actually looks, feels, and smells a bit different.
Yup, and that pretty much sums it up. While there still are some hard feeling from that, UA was ultimately able to recover from it.
And they can recover from this too, if they do the right things.
#74
Join Date: Sep 2002
Location: Hoboken, NJ; Pembroke Pines, FL
Programs: CO Gold, SPG Gold
Posts: 2,939
I know when I hear it I think about financial results - particularly when you're following up with discussion of Chapter 11. UAs financial results are far from being at an all-time low relative to how badly their financial results have been in the past.
As far as their customer service ratings, I'd like to see their customer service ratings over time before I decide whether they've been worse at customer service. I suspect their customer service ratings from March 2011 were worse than last month.
To answer the question from the original topic: I think that Chapter 11 is unlikely for UA in 2014, barring some exogenous variable that impacts the entire airline industry.
I do think that UA has a lot of areas for financial improvement. Some of these are customer friendly, some are not.
#75
FlyerTalk Evangelist
Join Date: Dec 2009
Location: HaMerkaz/Exit 145
Programs: UA, LY, BA, AA
Posts: 13,167
There is nothing objective about an inflammatory headline that is baseless and terribly uninformed (Chapter 11 'unavoidable' 'next year').
A productive thread would be "What can UA do to win back $35mn of business"
And outline the changes.
Your assumption that it's impossible to win back business because it would be matched is immediately disproved by the market itself. If UA was so good before the merger, it would have been 'impossible' for others to replicate without being copied themselves.
I have never seen a less productive or balanced forum on FlyerTalk than this one since the merger.
A productive thread would be "What can UA do to win back $35mn of business"
And outline the changes.
Your assumption that it's impossible to win back business because it would be matched is immediately disproved by the market itself. If UA was so good before the merger, it would have been 'impossible' for others to replicate without being copied themselves.
I have never seen a less productive or balanced forum on FlyerTalk than this one since the merger.