I've always said this to people who complain about the merger...

Continental had a product that their customers (and I assume their employees) loved.
United had a product that their customers (and I also assume their employees) loved.

The merger ruined both airlines and pissed off EVERYONE except Smisek and his management team.

Just NOW apparent? It was obvious to a few of us the day it was announced. What did you expect?

Or better, a Glorified. Regional. Airline.

I was not an advocate of the merger when it was announced, as mergers tend to impact customers with less value, choices, and benefits. I hoped CO-UA would have combined the best of both companies, but it is apparent that United is going from First to Worst. United was a great company, and it is regretful that the CO management is operating UA in this manner.

Do you guys really feel this airline is doomed? I'm not a UA FF, but I'm fine with the OVERALL product now, I know I'm paying less, so I kinda know I won't get a TV etc, things like that. But while this "transition" is taking too long, I think the base is there to have a profitable and prosperous airline. They've got a bit of an aging fleet (just eyeballing it, don't know the exact figures), but they've got strong routes and a loyal customer following (which may be dwindling from the sounds of things).

I think they're perhaps behind the other majors right now, but not that far off from getting back to where they should be.

Though from everything I'm seeing, a leadership change is essential, I think the stock kinda rode the coat tails of the sector, but if it breaks away from the trend a bit and slips, you can bet the shareholders will demand a change and that's more powerful than any pilots/customers signing a petition or sending a strongly worded letter.

My 2 cents...

A merger like the DL/NW merger, which didn't make everyone happy by any means, but ended up with an airline with a bigger network that's willing to invest in features that improve customer and elite experience, and has aggressively expanded service in a new hub (SEA).

Imagine if it was UA doing something like, say, adding service into BOS, after improving customer metrics on things like JD Power, adding F seats and IFE, with a 100% WiFi fleet, and with their RASM numbers headed in the right direction...

It didn't HAVE to be a failure. It just ended up that way.

Splitting the airline now would do no good. UA has exhausted a significant amount of their cash reserves they had prior to the merger due to poor performance. It would be really hard to split and then be able to functionally operate against the competitors now. When companies split, they have enough in cash reserves to keep them going and make the transition off different systems, buying power, etc. UA benefits from the cost benefits with the larger size currently and going smaller would just dig a bigger hole.

I think UA's only option right now is going to be to cost cut. Sadly, you can cost cut yourself out of business if you don't find that right balance.

Right. CO wasn't involved in that merger.... :-:

Yes, that's the normal concern. But this one was very predictable.

I status matched to DL the minute I heard that Smisek would be leading the company.


Yup - very obvious. I was surprised by a couple of moves -- the CO paintjob and using SHARES were both pretty boneheaded. But for the most part, this is playing out exactly as one would expect, given how much CO is in charge.


The issue is not transition. People will accept transition. What people are having trouble swallowing is degradation -- in product, service, etc.

If you look at DL/NW, there is not a single NW plane that is in worse shape today than before the merger. They received new interiors and WiFi, at a minimum. And all new planes brought online by DL are loaded with TV, WiFi, etc.

Meanwhile, UA has ripped out entertainment, turned off audio/Ch. 9, put in less comfortable seats, and is taking delivery of new planes with no entertainment whatsoever.

And that's just the fleet side of things. Customer service, upgrades, food, etc., have all been degraded as well.


+1

In fact, UA should have been the best of the mergers -- they had the best hand going into it -- the best hubs, the best route network, a fiercely loyal customer base, the best RASM numbers, etc.

I think CO's arrogant management saw they had a great hand and figured they didn't need to try so hard to win. They over-estimated their competitive advantage (and continue to do so today to some extent), and made some boneheaded moves that were not well thought out. As a result, they are paying dearly for it.

The question is at this point, is it recoverable?