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CEO Jeff Smisek Out;Oscar Munoz new Pres/CEO,Henry Meyer non-ex Chair;FBI case closed

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CEO Jeff Smisek Out;Oscar Munoz new Pres/CEO,Henry Meyer non-ex Chair;FBI case closed

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Old Sep 9, 2015, 1:59 am
  #451  
 
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While certainly refreshing and cheering, this end of the not-so-Dear Leader comes ways too late.

And now that MP and UA itself have the charm of North Korea, it will take a long, long, long time to recover to "normal FFP and alrine" level. If ever - perhaps one of his many minions will take over and the family business goes on as usual.
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Old Sep 9, 2015, 2:25 am
  #452  
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Originally Posted by username
It is just strange a Harvard trained lawyer would be stupid enough to do something like this. I wonder what they were trying to get from Samson - something specific or a "general good relationship" thing? Why would Smisek/UA risk so much for any favors from its landlord? How come there was no internal checks and balances in UA to prevent this kind of stuff?

It also says a lot about our government officials - close access to the bridge when they don't like the mayor, ask an airline to start a route for him...The total disregard for law and ethics. Imagine how many little unethical things they probably have done that we don't know about.
CEOs of major companies making or encouraging sweetheart deals for governmental/quasi-governmental authorities is "business as usual" in the country; and lawyers are often the ones guiding the so-called government relationship activities. Just look at the waiver and favor units airlines have set up for our federal officials.
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Old Sep 9, 2015, 3:12 am
  #453  
 
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Yeah, so lots of thoughts here. First of all, ever since I was a little kid, I was a UA loyalist, eventually becoming an elite and multi-year 1K with pmUA. But when it became obviously apparent that UA no longer wanted my HVF business, I took pmAA up on their generous status match offer, and haven't looked back. In fact, I just got done booking a paid J TATL ticket with AA -- something that used to go to UA. With the superior hard product on the 77W (thanks, Tom Horton -- miss ya!), as compared to the pmCO product, this was a no-brainer!

Based on where I am based (Colorado) UA makes much more sense for me to fly. But with their sub-par FF program, disdain for elites, and SMI/J at the helm beating the pmCO is WAY better than everything pmUA mentality I've been giving all of my business to pmAA for the last several years.

PLEASE, Oscar, give me a reason/reasons to come back to UA. With Discount Dougie at the helm at USdbaAA, the timing couldn't be better...
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Old Sep 9, 2015, 3:45 am
  #454  
 
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Right now I'm sitting in the Asiana lounge between SFO-ICN and ICN-HKG flights.

A year ago the UA non-stop would have been my default, but the RDM changes are a forcing function that ensures I try our lovely Star Alliance partners for international. Aside from SAS, they consistently offer a better product.

UA already has the best alliance. My challenge to the new leadership is to outcompete Delta in quality, and American in FFP.
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Old Sep 9, 2015, 4:58 am
  #455  
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Originally Posted by mike1968
Bloomberg seems to be tacking over toward your hypothesis that corruption probe plus growing list of underperformance issues 4 years after the merger.

http://www.bloomberg.com/news/articl...rruption-probe
Excellent summary from Bloomberg:

But cracks began to appear quickly, even though United’s network was superior in many respects to those of rivals Delta and American. Delta managed its integration with Northwest with more aplomb and began delivering greater reliability for travelers and more robust financial returns for shareholders, alongside fat profit-sharing checks for employees. American filed for bankruptcy and then merged with US Airways, in an ongoing integration that was heavily informed by executives who observed what worked for Delta and what failed at United.

To the puzzlement of many, including former colleagues of Smisek at Continental who now work at other airlines, the well-regarded management team from Houston struggled after the merger. Revenue performance at United has lagged smaller rivals, and customer service marks have slipped. Flight delays reached a nadir in June, heralding a summer of trouble. Several top United executives quit, most recently CFO John Rainey, who left on Aug. 4 to assume the same position at PayPal.
I'm betting the Board was looking for the first chance it got to dump Smisek, and the Feds gave it to them.

Originally Posted by spin88
Yes, United was fixated on the CO/UA politics, but whose fault was that? Anderson certainly has not let similar issues develop at DL... The tone was set by Jeff and some of his ill advised comments at the start of the merger gave the impression that where you were from was more important than doing a good job.

What you then had at UA under Jeff was classic group think, group think that was limited in its vision to running a fortress hub airline ex-IAH and EWR, without bothering to understand any other markets.
People here like to say leadership doesn't matter, but it does. My brother is a DL 767 captain, and during the bad years at DL, he refused to work O/T primarily because he was angry at DL's senior management. He said many pilots did the same, which was a stark difference from the DL whose employees once bought their airline an airplane. Now, under Anderson? He's back volunteering to work extra hours when necessary, because he trusts where management is taking them.

Originally Posted by ND76
My big question about Mr. Munoz is: why would he leave CSX, which appears to be a bigger corporation (market cap around $26 bn) with less competition, for UACO (market cap $21.4 bn), in a true dog eat dog industry?
Maybe he relishes a challenge. And in replacing Smisek, he doesn't have to do much to be regarded as a success.
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Old Sep 9, 2015, 5:36 am
  #456  
 
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I usually hate reading very, very long threads, but I enjoyed taking the time to read through every post in THIS thread.

Let me add my satisfaction at this important change at United.

Being realistic, I know that all change (while it may be welcomed at first) usually brings its fair share of concern and uncertainty.

I know that the "glory days" of the old UA and CO will not return. Seats and pitch will not get bigger; food and coffee will be so/so; upgrades will still be impossible to get; ,etc.

I do hope that, even with cost cutting, this change at the top will inspire everyone at United to improve customer service - in the day-to -day running of the airline and especially in times when weather or events force changes.

Treating me as a loyal paying customer will go a long way to making me a happy return customer - even as I endure the bus-like atmosphere that flying these days has become.

Let's hope!
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Old Sep 9, 2015, 5:38 am
  #457  
 
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Originally Posted by halls120
I'm betting the Board was looking for the first chance it got to dump Smisek, and the Feds gave it to them.
I couldn't agree more! I also believe that there may be more going on here since there are several investigations into UA (as well as other airlines). Maybe worse to come?

The fact that a replacement CEO was ready to go suggests that they knew this would happen for some time but to avoid a complete collapse they needed a successor and plan in place.

Originally Posted by halls120
Maybe he relishes a challenge. And in replacing Smisek, he doesn't have to do much to be regarded as a success.
My concern with guy from CSX is that you get a CEO from another highly regulated and rather non-competitive business. Yes it's in the transportation sector but if UA really wanted to shake things up I would find someone from an industry that really needs to compete. I think this is just evidence that the airline industry is no longer really competitive and they believe minor changes will help them perform better instead of true innovation.
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Old Sep 9, 2015, 5:40 am
  #458  
 
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What about the future of the UNITED FF program?

Does this change affect the UNITED FF program?

I understand that the company wants to profit. But encouraging people riding other airlines doesn't sound profitable.

If we do the math, in most cases, we get more miles flying SWISS on the same route than flying UNITED, even when the prices are the same.

Plus, there are very few reasons to keep United club membership if one also keeps the gold status of any star airlines.

Not to mention it is much easier to get and retain gold status on almost all other star airlines than UNITED.

Something is wrong here.
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Old Sep 9, 2015, 5:43 am
  #459  
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The greatest thing about all this is Oscar's statement:

At United, I will dedicate myself to making our airline flyer-friendly.
If that's not a frank admission that currently the airline is not flyer-friendly, I don't know what is.
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Old Sep 9, 2015, 5:45 am
  #460  
 
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Lots of comments about the "new leadership team." What new leadership team? These are the same go along/get along Board members that gave Jeff full rein over the last few years. I'm not optimistic that we'll see any changes of the type we like with the new "leaders."
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Old Sep 9, 2015, 6:06 am
  #461  
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Originally Posted by ND76
My big question about Mr. Munoz is: why would he leave CSX, which appears to be a bigger corporation (market cap around $26 bn) with less competition, for UACO (market cap $21.4 bn), in a true dog eat dog industry?
Here's an article that claims to answer that question:

Jacksonville Business Journal: Here's why Oscar Munoz made the surprising move from CSX to United Airlines
(Sept 8, 2015)


An excerpt:
"It was an incredibly difficult decision," Munoz responded to the question. "I loved my time at CSX, and accomplished many things, but I took this job because I'm truly excited for the things we can do together."......Munoz, who had served on United's board before being named CEO, said he plans to focus on innovation, earnings growth and most important an improved customer experience, and cited his consumer-based background as helpful for those changes.

Munoz also said that his railroad background would be helpful in improving United's returns. As COO at CSX, he said he was able to generate top line revenue, utilize technology to generate substantial earnings, and return the earnings to stakeholders. He added that airlines have been doing a good job at mimicking what railroads like his had been doing, and they are starting to yield returns to stakeholders on a more consistent basis.
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Old Sep 9, 2015, 6:11 am
  #462  
 
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Originally Posted by halls120
Excellent summary from Bloomberg
Indeed. It somewhat reads like a fair obituary of a long gone giant.
I'm betting the Board was looking for the first chance it got to dump Smisek, and the Feds gave it to them.
This board here too. But we were and are a powerless ghost.
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Old Sep 9, 2015, 6:12 am
  #463  
 
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No one knows what the future holds for UA, its employees, its FF. But as long as Jeffie was at the helm ... because leadership DOES matter ... we knew we were in for more of the same, nothing was going to get better on so many levels.

Now we have hope things will get better, at least on some levels
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Old Sep 9, 2015, 6:12 am
  #464  
 
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I'm remaining optimistic, but the fact the board hired a guy with expertise in transporting cattle and other livestock isn't inspiring confidence .
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Old Sep 9, 2015, 6:14 am
  #465  
 
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Hooray. Not sure I'll ever leave DL as my primary at this point, and Munoz certainly doesn;t have a clue what kind f airline CO used to be - let alone much customer service experience coming from the RR industry. But, UA was sinking and needed desparate change.
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