UA biggest corporate accounts out of SFO (leaked data)
#76
Join Date: Jun 2016
Location: SNA; LAX; KUL
Posts: 433
Surprised to see TPE is #3 on Apple's list. What is Apple doing in Taiwan? They don't make iPhone there.
And this must be the reason why United puts 77W on TPE route, although people keep saying TPE is a low-yield market.
And this must be the reason why United puts 77W on TPE route, although people keep saying TPE is a low-yield market.
That said, majority of the silicon work is done in Austin, i'm guessing alot of folks would go from AUS-SFO and then tag onto Asia for a factory visit.
#77
Join Date: Apr 2015
Programs: United Global Services, Amtrak Select Executive
Posts: 4,098
My suspicion is that this "leak" (if real) was strategic. If UA wanted to keep this information secret, why on earth would they have printed it on posters covered in UA branding elements? This is what you'd do if you wanted to guarantee photos of them ended up on social media.
#78
Join Date: May 2008
Location: Bay Area
Programs: UA 1k now; AA (no status); HY Diamond; SPG Platinum
Posts: 707
I'm going to guess the "50 seats" number is actually for both SFO-PVG and PVG-SFO, so it's really 25 return seats/day.
If you presume that route is 100% business for Apple, then...
$35 million in revenue, divided by 365 days, gives $100k/day.
$100k/day, divided by 50 seats gives $2k/seat
If that's really 50 seats in each direction then that's $1k/passenger/flight.
Whilst I'm sure Apple gets good discounts, I can't see them paying $1k for a 6000 mile business class flight...
However with 25 passengers in each direction that comes out to $2k/passenger/flight, or $4k/round trip.
(If they do have non-business class travelers on that route then the $ numbers are even lower)
At the very bottom of the posters it says "fly California's global airline", so my guess would be CA revenue only.
If you presume that route is 100% business for Apple, then...
$35 million in revenue, divided by 365 days, gives $100k/day.
$100k/day, divided by 50 seats gives $2k/seat
If that's really 50 seats in each direction then that's $1k/passenger/flight.
Whilst I'm sure Apple gets good discounts, I can't see them paying $1k for a 6000 mile business class flight...
However with 25 passengers in each direction that comes out to $2k/passenger/flight, or $4k/round trip.
(If they do have non-business class travelers on that route then the $ numbers are even lower)
At the very bottom of the posters it says "fly California's global airline", so my guess would be CA revenue only.
Apple buys tons of ticket on UA. But majority of employees (current/ex- including me) hates UA. So a beginning of the year travel desk doesn’t really enforce the UA policy. But around August time frame- travel desk will force us to suffer UA. During those time period, even though UA fare may look much higher than for example SQ to HKG. Travel desk will say that is not true price paid and I will be stuck on HKG.
857/869/871/837...... chances are 1/4 of J cabin are occupied by my colleagues. But give how silo Apple is internally chances are even you are working on same product- you won’t know what other guys is doing. You get to see more as you advance in career.
Surprised to see TPE is #3 on Apple's list. What is Apple doing in Taiwan? They don't make iPhone there.
And this must be the reason why United puts 77W on TPE route, although people keep saying TPE is a low-yield market.
And this must be the reason why United puts 77W on TPE route, although people keep saying TPE is a low-yield market.
They’re getting a huge deal. More important than price is the flexibility that these corporate deals entail (e.g., discounts or flat rates on last seat availability.)
A lot of travel, especially in the manufacturing space, is booked at the last minute. Heck, I know people who were in meetings, a problem came up, and their boss asked them to get on the next flight (in a couple hours) to go visit a manufacturer. Being guaranteed a seat on an airline with an international route network as extensive as UA’s is not something that can be discounted.
I have done same day turn around in SFO. Litterally landed and got my bagge then went upstairs and checked back in.
I also had UA pull another passenger off HND to SFO for me as my NRT-SFO flight was cancelled.
Corporare contract and being GS does have its merit and benefit.
CTU- for example
Last edited by J.Edward; Jan 12, 2019 at 5:36 pm Reason: Merge consecutive posts by same member.
#79
Join Date: Nov 2006
Location: DSM, BKK or anywhere with an airport
Programs: UA 2P, HH Gold
Posts: 1,018
Doesn't sound like this was posted at some event. Someone with a handle "Ima Pilot" posted the following on the twitter feed: This was taken in SFO flight ops in the pilot flight planning area. So there is good chance security video will have evidence of whoever released this.
#80
Join Date: Jul 2012
Posts: 1,115
Doesn't sound like this was posted at some event. Someone with a handle "Ima Pilot" posted the following on the twitter feed: This was taken in SFO flight ops in the pilot flight planning area. So there is good chance security video will have evidence of whoever released this.
I've seen similar "pat ourselves on the back"-banners in other corps, but none would go that specific and include several statistics and numbers.
Anyway, if the person who took the pic had something to lose, he or she probably waited long enough for the video evidence to expire before sharing it to the world. With a little social engineering, it's usually not hard to find out video retention policies.
#82
FlyerTalk Evangelist
Join Date: Jan 2007
Location: BOS/UTH
Programs: AA LT PLT; QR GLD; Bonvoy LT TIT
Posts: 12,753
#83
Suspended
Join Date: Mar 2002
Location: Canada, USA, Europe
Programs: UA 1K
Posts: 31,452
Headline revenue numbers, and to companies in general. I’m still not understanding the big deal here. These are rough revenue numbers, not profitability, so information content is minimal.
#84
Join Date: Jan 2017
Posts: 352
Only Apple travel desk know how much the tickets really is.
Apple buys tons of ticket on UA. But majority of employees (current/ex- including me) hates UA. So a beginning of the year travel desk doesn’t really enforce the UA policy. But around August time frame- travel desk will force us to suffer UA. During those time period, even though UA fare may look much higher than for example SQ to HKG. Travel desk will say that is not true price paid and I will be stuck on HKG.
857/869/871/837...... chances are 1/4 of J cabin are occupied by my colleagues. But give how silo Apple is internally chances are even you are working on same product- you won’t know what other guys is doing. You get to see more as you advance in career.
I was told the actual cost paid was significantly less- in ball park around $2k once by travel desk- because I had wanted to take SQ1/2
Apple CM are HQ in taiwan. Why would this be surprising???
I always have a suit case in my trunk. 7 pairs of socks, 7 underwear, 7 to shirts, 3 khakis, one pair of tennis shoe. You just never know when u will leave.
I have done same day turn around in SFO. Litterally landed and got my bagge then went upstairs and checked back in.
I also had UA pull another passenger off HND to SFO for me as my NRT-SFO flight was cancelled.
Corporare contract and being GS does have its merit and benefit.
I am sure a lot of people will be happy that travel policy changes.
CTU- for example
And HPQ/HPE don't have $10M on UA.
It's not just Foxconn, Apple (and Google, Facebook, and the others) have tons of suppliers in Taiwan, including TSMC, ASE, Largan, GSEO, Pegatron, Inventec, Wistron, Compal, Delta, etc, etc.
The difference with PVG is that UA has real competition on the TPE-SFO route with BR/CI.
My suspicion is that this "leak" (if real) was strategic. If UA wanted to keep this information secret, why on earth would they have printed it on posters covered in UA branding elements? This is what you'd do if you wanted to guarantee photos of them ended up on social media.
Last edited by WineCountryUA; Jan 13, 2019 at 12:58 pm Reason: merging consecutive posts by same member
#85
Join Date: Mar 2015
Location: NYC (Primarily EWR)
Programs: UA 1K / *G, Marriott Bonvoy Gold; Avis PC
Posts: 9,005
#86
Join Date: Dec 2005
Location: Japan
Posts: 5,577
I work for one of the companies on this list. We have a status match / status fast track "perk" with UA, but when you contact United about it they will only match status with American or Delta, and will only offer fast track status to employees who are ordinarily resident in the US.
So being based in Germany, I don't get anything out of the UA relationship
So being based in Germany, I don't get anything out of the UA relationship
#87
Join Date: Feb 2002
Location: NYC: UA 1K, DL Platinum, AAirpass, Avis PC
Posts: 4,599
I guess I'm the only one who is surprised at how small the number is.
UA does $35-$40 billion a year in revenue. Its largest SFO customer is less than one half of one percent of that, at least in terms of committed spend. Maybe actual spend is higher.
Back around 2000 there was some stat that something like 40% or (more?) of UA's revenue was California based, which is what got it pummeled when tech spend declined in 2001 - 2003. Wonder what it is today. Less, clearly.
Also better explains why a former UA CFO got an in at Apple - which landed him a public tech CFO job later with VMWare.
UA does $35-$40 billion a year in revenue. Its largest SFO customer is less than one half of one percent of that, at least in terms of committed spend. Maybe actual spend is higher.
Back around 2000 there was some stat that something like 40% or (more?) of UA's revenue was California based, which is what got it pummeled when tech spend declined in 2001 - 2003. Wonder what it is today. Less, clearly.
Also better explains why a former UA CFO got an in at Apple - which landed him a public tech CFO job later with VMWare.
Last edited by cerealmarketer; Jan 13, 2019 at 10:25 am
#88
Join Date: Jan 2007
Location: Bellingham/Gainesville
Programs: UA-G MM, Priority Club Platinum, Avis First, Hertz 5*, Red Lion
Posts: 2,808
I guess I'm the only one who is surprised at how small the number is.
UA does $35-$40 billion a year in revenue. Its largest SFO customer is less than one half of one percent of that, at least in terms of committed spend. Maybe actual spend is higher.
Back around 2000 there was some stat that something like 40% or (more?) of UA's revenue was California based, which is what got it pummeled when tech spend declined in 2001 - 2003. Wonder what it is today. Less, clearly.
Also better explains why a former UA CFO got an in at Apple - which landed him a public tech CFO job later with VMWare.
UA does $35-$40 billion a year in revenue. Its largest SFO customer is less than one half of one percent of that, at least in terms of committed spend. Maybe actual spend is higher.
Back around 2000 there was some stat that something like 40% or (more?) of UA's revenue was California based, which is what got it pummeled when tech spend declined in 2001 - 2003. Wonder what it is today. Less, clearly.
Also better explains why a former UA CFO got an in at Apple - which landed him a public tech CFO job later with VMWare.
like you said, if they are only getting 150 mil. from apple then they have poor penetration of their global business.
#89
Join Date: Sep 2014
Posts: 2,531
If UA's biggest customer was 10% of their revenue I'd fall out of my chair.
#90
Join Date: Aug 2008
Location: SF Bay Area
Programs: UA 1K, Hyatt Globalist, Virtuoso Travel Agent, Commercial Pilot
Posts: 2,117