WSJ: United Continental Struggles to Stabilize
#166
Formerly known as UATexasFlyer
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So far AA gets it for HVFs. UA just gives away status and continues to dilute it while at the same time flushing services in a stopped up RJ145 commode.
Submitted while on an AA flight in F with working wifi.
#167
Join Date: Feb 2002
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Not sure if there was an additional engagement added, but not much new there. My bet is they are running 'project quality.' Bain was handling integration.
AA decided to go with McKinsey for their integration work. UA and DL used Bain for that. I don't hear fears AA is about to launch a sub-carrier.
And of course it was the CO situation in the 90s that gave Bain its name in the aviation practice.
In other words, consultants are messing around with all the big airlines, and have been for decades.
#168
Join Date: May 2005
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Most people do not realize how many of the GS are actually comped. It's large number. United is basically throwing everyone else under the bus, and trying to take care of the GS who as said who have ZERO loyalty to them in the first place.
#169
Join Date: May 2001
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The story seems to really miss the mark, except for the bottom line which is worse than the competition.
The faults at United are not just IT and labor integration - it's a complete failure to execute day-in day-out. They do not run on time. They do not update their product and are being surpassed now by rivals. They do not have happy employees in a service business. It is an across-the-board failure and it starts at the top. Not to mention that they are hemmoraging HVF, which is one of the reasons net income is low.
Honestly the reporter really does not seem to have done much homework, other than to state the obvious: "Houston we have a problem"
The faults at United are not just IT and labor integration - it's a complete failure to execute day-in day-out. They do not run on time. They do not update their product and are being surpassed now by rivals. They do not have happy employees in a service business. It is an across-the-board failure and it starts at the top. Not to mention that they are hemmoraging HVF, which is one of the reasons net income is low.
Honestly the reporter really does not seem to have done much homework, other than to state the obvious: "Houston we have a problem"
this is my biggest issue
#170
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Most people do not realize how many of the GS are actually comped. It's large number. United is basically throwing everyone else under the bus, and trying to take care of the GS who as said who have ZERO loyalty to them in the first place.
Presumably this is to keep the corporate ranks somewhat happy.. but it won't help them, as they cannot provide the experience that status ought to engender.
(at the same time, making it harder for people to qualify the 'real' way)
#171
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But it was still a lot better (operationally) than this.
#172
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Oh great they hired those morons at McKinsey? So much for already going off the deep end, there is more bad stuff to come our way. Between that gasbag Hunter Keay and now McKinsey, the "blame the customer, then grab their cojones and twist" mentality will find soil to grow deep roots at UA
well, the McKinsey group is simply looking at more of a cost cutting measure that will drive more of the way United makes purchases for goods/services, not necessarily driven towards what a customer may or may not see. There are still many places in this company that has multiple groups all doing the same thing from the merger. McKinsey is coming in and advising.........why the F do you need multiple people doing the same job type of thing.
And I think it is naive to think that customers won't see the impact of cost cutting measures devised by McKinsey. We certainly will notice. And that is if McK will truly only deal with internal matters, which I don't think they will at all.
If you are thinking of changing allegiances, it is definitely caveat emptor....
Last edited by FlyinHawaiian; Jun 9, 2014 at 4:15 pm Reason: Merge
#173
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You won't see anything at all now for 6-9 months as every policy, decision, change will be frozen until these companies get to have a good look at everything.
#174
Join Date: Dec 2010
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This. Big time.
You do realize the irony of your last statement given that McKinsey and BCG have both been brought in, right?
And I think it is naive to think that customers won't see the impact of cost cutting measures devised by McKinsey. We certainly will notice. And that is if McK will truly only deal with internal matters, which I don't think they will at all.
While you are right, there is a growing number of us long time EXPs who are highly concerned about recent decisions and actions by AA and there os no doubt EXP and the entire airline is no longer even nearly as good as it was as little as 2 years ago. Doug has joined the race to the bottom. It is clearly visible to anyone who is willing to really look...meal windows, seat comfort, AAdvantage changes to redemption and availability, YQ surcharges, call center issues during IRROPs that make UA look stellar, increasingly terrible EXP desk staff, and the list goes on. There is very little good news and if AA spins it as such, it is usually double speak of the finest kind (like when they devalued AAnytime awards and tooted that the pricing is now lower).
If you are thinking of changing allegiances, it is definitely caveat emptor....
You do realize the irony of your last statement given that McKinsey and BCG have both been brought in, right?
And I think it is naive to think that customers won't see the impact of cost cutting measures devised by McKinsey. We certainly will notice. And that is if McK will truly only deal with internal matters, which I don't think they will at all.
While you are right, there is a growing number of us long time EXPs who are highly concerned about recent decisions and actions by AA and there os no doubt EXP and the entire airline is no longer even nearly as good as it was as little as 2 years ago. Doug has joined the race to the bottom. It is clearly visible to anyone who is willing to really look...meal windows, seat comfort, AAdvantage changes to redemption and availability, YQ surcharges, call center issues during IRROPs that make UA look stellar, increasingly terrible EXP desk staff, and the list goes on. There is very little good news and if AA spins it as such, it is usually double speak of the finest kind (like when they devalued AAnytime awards and tooted that the pricing is now lower).
If you are thinking of changing allegiances, it is definitely caveat emptor....
By the way, the recent jump in mileage requirements for AAnytime awards were certainly painful for many (though not yet as bad as UA's), but I did just find myself booking a bunch of 45k AAnytime awards in Y to Europe for a family trip that I believe would previously have cost 60k miles each. I checked UA as well, where they were going for 65k each, so it's not all bad news.
#175
Join Date: Feb 2002
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While you are right, there is a growing number of us long time EXPs who are highly concerned about recent decisions and actions by AA and there os no doubt EXP and the entire airline is no longer even nearly as good as it was as little as 2 years ago. Doug has joined the race to the bottom. It is clearly visible to anyone who is willing to really look...meal windows, seat comfort, AAdvantage changes to redemption and availability, YQ surcharges, call center issues during IRROPs that make UA look stellar, increasingly terrible EXP desk staff, and the list goes on. There is very little good news and if AA spins it as such, it is usually double speak of the finest kind (like when they devalued AAnytime awards and tooted that the pricing is now lower).
If you are thinking of changing allegiances, it is definitely caveat emptor....
Delta is the 'known' quantity right now, so I split my allegiance between UA and DL.
If Parker and AA take the high road, great, in 2016 I will have a great alternative to Delta, which is much needed. But for 2015 it's UA/DL for me.
Others may differ.
#176
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There is no question AA will devalue under new US management, no different than COdbaUA. Then you will be faced with the choice: Do you fly UA for the better mileage redemption program, or do you fly DL for the better product? AA may have been tops in both but no longer so it won't be the obvious choice anymore.
#177
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Does the Chair of the Joint Chiefs of Staff hire the Department of Labor to come into the Pentagon and analyze their use of paperclips so they can hit mandated budget targets?
#178
Join Date: Feb 2002
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And in the airlines they all do.
So by that logic all management teams should dismissed.
It's a reality, not unique to United.
And yes the joint chief of staff does use consulting firms!
http://www.boozallen.com/consultants...fense-agencies
#179
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These consulting companies are nothing more than snake oil salesmen - nothing but a big scam. I can understand a small or medium size business, privately held, and with management that lacks a broad view of business or their industry asking for outside help from more experienced peers or advisors to introduce fresh ideas, but when a large, publicly traded company with highly paid executives touting extensive academic and professional experience starts bringing in outside consultants to help them run the business, that act alone should be grounds for their dismissal for incompetence.
Does the Chair of the Joint Chiefs of Staff hire the Department of Labor to come into the Pentagon and analyze their use of paperclips so they can hit mandated budget targets?
Does the Chair of the Joint Chiefs of Staff hire the Department of Labor to come into the Pentagon and analyze their use of paperclips so they can hit mandated budget targets?
#180
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There is no question AA will devalue under new US management, no different than COdbaUA. Then you will be faced with the choice: Do you fly UA for the better mileage redemption program, or do you fly DL for the better product? AA may have been tops in both but no longer so it won't be the obvious choice anymore.