Fortune article on Oscar, UA changes over last year
Nov 18, 2016, 1:26 pm
#1
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Fortune article on Oscar, UA changes over last year
In depth article on Oscar's year at United, personal and professional - good read if you're into the business side of the airline
http://fortune.com/united-airlines-ceo-oscar-munoz/
- Heart attack itself was worse than just the attack, he broke his nose in a fall trying to open the door for paramedics
- Oscar insisted Bethune couldn't be chairman because it would flare up old rivalries
- He thinks all the amenities are the same, airlines always leapfrog, so people are the difference
- UA board had started a search for a new CEO after the investigation into NJ issues picked up, but hadn't found anyone and Oscar was in the right place
- Kirby was pushed aside by AA two weeks before UA picked him up (AA had told him Isom got promoted). UA got wind of it and made him the offer.
http://fortune.com/united-airlines-ceo-oscar-munoz/
- Heart attack itself was worse than just the attack, he broke his nose in a fall trying to open the door for paramedics
- Oscar insisted Bethune couldn't be chairman because it would flare up old rivalries
- He thinks all the amenities are the same, airlines always leapfrog, so people are the difference
- UA board had started a search for a new CEO after the investigation into NJ issues picked up, but hadn't found anyone and Oscar was in the right place
- Kirby was pushed aside by AA two weeks before UA picked him up (AA had told him Isom got promoted). UA got wind of it and made him the offer.
Nov 18, 2016, 3:07 pm
#2
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Thanks for sharing. While the article may be a little gratuitous, it really does seem like Oscar is the rare type of leader who knows how to reach into the soul of a company and manage effectively to the benefit of everyone involved. It's interesting too to read that the board knew that they had to get rid of Smisek fast. That really shows how much of a disaster his tenure and legacy were.
Nov 18, 2016, 6:47 pm
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Having been a loyal customer - and a United "enthusiast" since I was a kid living blocks away from United's MDW headquarters, I am delighted that after many, many years, United has a management that believes it can run a successful and profitable airline while providing friendly customer service.
My hat is off to Oscar. At least he is trying! He and the whole United family have come a long way in a year. It will be interesting to see how much better United can become.
My hat is off to Oscar. At least he is trying! He and the whole United family have come a long way in a year. It will be interesting to see how much better United can become.
Nov 19, 2016, 12:59 am
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I think we can all agree that United is fortunate to have such a thoughtful, caring leader.
At the same time, changes that are painful to customers and don't necessarily increase the bottom line (e.g. stranding United Club members behind security when meeting frail relatives or the whole basic economy thing) make me contemplate pivoting to another airline.
At the same time, changes that are painful to customers and don't necessarily increase the bottom line (e.g. stranding United Club members behind security when meeting frail relatives or the whole basic economy thing) make me contemplate pivoting to another airline.
Nov 19, 2016, 2:47 am
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I think we can all agree that United is fortunate to have such a thoughtful, caring leader.
At the same time, changes that are painful to customers and don't necessarily increase the bottom line (e.g. stranding United Club members behind security when meeting frail relatives or the whole basic economy thing) make me contemplate pivoting to another airline.
At the same time, changes that are painful to customers and don't necessarily increase the bottom line (e.g. stranding United Club members behind security when meeting frail relatives or the whole basic economy thing) make me contemplate pivoting to another airline.
Nov 19, 2016, 7:25 am
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They didn't say it directly, but they made like nothing was done to improve on time performance other than boosting morale. This aligns with what we saw anecdotally, that on time improved immediately on Smisek's departure.
Nov 19, 2016, 1:09 pm
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Apparently a long piece on Oscar in Fortune. He gives some opinions on running an airline and on hiring Kirby:
In a long piece from Fortune on Oscar Munoz’s tenure at United we learn that Munoz:
- doesn’t think airline product improvements matter, every airline matches with the same - product and then outdoes the other
- union employees have to be paid what their peers at other airlines are paid, so you just do copycat agreements to get a contract or else you have bad service and bad operations
We also get this explanation about Scott Kirby’s move from American to United,
The story of how American’s president landed at United is a closely guarded secret, but Fortune has learned that Munoz and the board heard Kirby would be leaving American about two weeks before his departure. In a surprise move, American’s board had decided to promote its COO, Robert Isom, to president—tabbing Isom as the heir apparent to CEO Doug Parker rather than Kirby, and forcing Kirby’s departure. United got a big break because Kirby wasn’t restricted by a noncompetition agreement that would have prevented him from joining another airline for an extended period. “I jumped on it right away,” says Munoz.
- doesn’t think airline product improvements matter, every airline matches with the same - product and then outdoes the other
- union employees have to be paid what their peers at other airlines are paid, so you just do copycat agreements to get a contract or else you have bad service and bad operations
We also get this explanation about Scott Kirby’s move from American to United,
The story of how American’s president landed at United is a closely guarded secret, but Fortune has learned that Munoz and the board heard Kirby would be leaving American about two weeks before his departure. In a surprise move, American’s board had decided to promote its COO, Robert Isom, to president—tabbing Isom as the heir apparent to CEO Doug Parker rather than Kirby, and forcing Kirby’s departure. United got a big break because Kirby wasn’t restricted by a noncompetition agreement that would have prevented him from joining another airline for an extended period. “I jumped on it right away,” says Munoz.
Last edited by WineCountryUA; Nov 19, 2016 at 1:29 pm Reason: Quote is from Fortune article
Nov 19, 2016, 2:31 pm
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Of course, YMMV...for me, I don't care as much about how much people smile at me; as long as the service is competent, that's what I care about. The customer service for Premier customers for things like changing flights is far more important.
Nov 19, 2016, 3:18 pm
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I don't think it was a matter of product doesn't matter - it is just that it is a continual evolution, so that is never going to be 'perfect'. Frankly, it is the service / soft product that is more likely to make people come back over time.
Of course, YMMV...for me, I don't care as much about how much people smile at me; as long as the service is competent, that's what I care about. The customer service for Premier customers for things like changing flights is far more important.
Of course, YMMV...for me, I don't care as much about how much people smile at me; as long as the service is competent, that's what I care about. The customer service for Premier customers for things like changing flights is far more important.
Last edited by milepig; Nov 19, 2016 at 7:18 pm
Nov 19, 2016, 5:07 pm
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Interesting read. If smisek was around any longer i would have left for AA already but there has been some slight improvement sonve oscar took over like snack boxes for 1ks in the back of the plane. Better morale from customer service on the phone and at the airport. Gives me hope. But it still seems like ua implementing all the cuts other airlines are trying still.
Apr 10, 2017, 11:11 pm
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Oscar's statements today were incredibly disappointing. He has already done more for this airline than his predecessor did in five years. After his whole push to focus on people and realize that his airline is a *personal* issue for everyone involved, I'm shocked at the statement he wrote to the press and the email he sent to staff. Not sure if he should lose his job over it, and I think there's a lot of blame to go around for all parties involved, but it's astounding at how UA hasn't gotten any better at PR than that time in the Smisek era when they had a whole 763 full of people sleep in military barracks in Goose Bay because of mx and they barely said a word about it to the public.
Apr 11, 2017, 3:54 am
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focus on "people", I'm guessing that means "united people", not "pay customers people"?
United will single handedly get overbooking rules changed by Fed with this horrific situation.
I heard its already a big news in China, b/c the pax is an Asian (perhaps Chinese). What are the chances Chinese government demands revoking or reduction of UAL's direct flights to China? How much would that worth?
United will single handedly get overbooking rules changed by Fed with this horrific situation.
I heard its already a big news in China, b/c the pax is an Asian (perhaps Chinese). What are the chances Chinese government demands revoking or reduction of UAL's direct flights to China? How much would that worth?
Last edited by chrislevin; Apr 11, 2017 at 4:36 am