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UA biggest corporate accounts out of SFO (leaked data)

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UA biggest corporate accounts out of SFO (leaked data)

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Old Jan 11, 2019, 10:46 pm
  #46  
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Originally Posted by John Aldeborgh

Senior management and board members don’t like this type of publicity. Anything that has the slightest hint of scandal or political incorrectness is a big issue. Apple loves publicity about it products, not about the inner workings of the company. There’s no upside for Apple (or others listed) with this going viral on the internet.
It isn't a reach to assume the ONLY people on the planet who are discussing those statistics right now are right here in this thread. I doubt anyone else cares, whether they see the post or not.
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Old Jan 11, 2019, 11:20 pm
  #47  
 
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Originally Posted by John Aldeborgh
UA is about to get a lot of very angry letters and maybe about to lose a few large customers. If I were Tim Cook, I would be wild and making a change to the Apple travel policy, today.
If you think corporations are so fickle as to let a minor loss of data like this change a relationship that is clearly very valuable to both parties, I don't think you really understand the market.

Unless there is a large amount of underlying tension and this is the straw that broke it, this may warrant a meeting but it wouldn't fundamentally change much.

Relationships of this size are deeper than a standard corporate travel relationship and quite frankly, bigger data breaches happen all the time with low consequences. A total travel budget that may or may not be in one market isn't exactly the Coke formula.
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Old Jan 11, 2019, 11:27 pm
  #48  
 
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Out of curiosity, would all of this data be widely known to DL and AA?
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Old Jan 11, 2019, 11:27 pm
  #49  
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Originally Posted by cricketer
The issue is more that there are now people out there thinking "50 people a day fly in the fancy business class seats to Shanghai and that's another reason why my iPhone costs $1,000. #BoycottApple "
I really doubt most people who buy Apple products care.

Originally Posted by GYEWorldTraveler
Most interesting thing in my opinion is how UA is extremely exposed in China if this trade war continues. Would have to imagine it has the potential to have a rather significant impact on SFO-PVG if the US/China relationship doesn’t improve.

This also illustrates the gold mine UA has with its SFO hub to Asia and why they have such large premium cabins compared to AA/DL from LAX/SEA-Asia.
This is why I'm sure someone's head is going to roll over this.. it's a lot of valuable insight into their strategic position. I don't know what they were thinking printing it on a giant poster.
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Old Jan 11, 2019, 11:29 pm
  #50  
 
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Originally Posted by FlyingHoustonian
I agree on CA and that is exactly what I was saying; Chevron also generates huge travel dollars out of IAH too, but makes the SFO list due to the HQs. Other cities have companies that top those numbers; I know NOV has been spending well over 13,000,000$ a year for example. So Cali $ generation is on that list, but other cities have big hitters too - Chicago, New York, Houston obviously have heavy hitters.

As for Apple, they are certainly not "only" spending money on UA so I am sure that number goes well north of 200mil
https://www.businesstravelnews.com/C...ravel-100/2018
$275 million
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Old Jan 11, 2019, 11:34 pm
  #51  
 
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Surprised Salesforce wasn't on the list
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Old Jan 11, 2019, 11:53 pm
  #52  
 
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Originally Posted by east_west
Out of curiosity, would all of this data be widely known to DL and AA?
Honestly, if this was so sensitive, there is no way it would have been printed like this.
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Old Jan 11, 2019, 11:56 pm
  #53  
 
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I've never seen a corp publishing confidential internal information on big and colorful banners that scream "photograph me".

It's almost like someone wanted this to get leaked.
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Old Jan 12, 2019, 2:09 am
  #54  
 
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I work in the hi tech industry and know for sure that Intel refuses to do customer references. So they’ll be fuming at this leak.

Also, given Apple’s profit warning due to poor revenue from China, that poster may not go down well with the analysts on Wall Street. “Oscar, your biggest corporate client is Apple who are in trouble. How will this affect United’s corporate $150m corporate contract, especially re China?”

Oops.
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Old Jan 12, 2019, 3:54 am
  #55  
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Originally Posted by John Aldeborgh
UA is about to get a lot of very angry letters and maybe about to lose a few large customers. If I were Tim Cook, I would be wild and making a change to the Apple travel policy, today.
Why? This is not exactly top secret information.
Originally Posted by John Aldeborgh

Senior management and board members don’t like this type of publicity. Anything that has the slightest hint of scandal or political incorrectness is a big issue. Apple loves publicity about it products, not about the inner workings of the company. There’s no upside for Apple (or others listed) with this going viral on the internet.
What’s the big deal? Apple is headquartered near SAN Francisco and has a lot of business in China. So a lot of people commute back and forth. It doesn’t take a genius to figure out how much likely business there is for UA. These data are widely known to many people, and as far as those banners go, even the guy in the printshop saw how much revenue was coming from these companies. Big deal.

I used to work for one of the biggest investment banks in London. This company’s HQ was in NY. We had a corporate agreement with AA and another with BA. The travel policy was issued to all bankers and spelled out exactly how you were allowed to travel and who needed to approve what. At one point I was given another little guide that told me that, for LHR to JFK, AA was to be preferred at the company had a $900 J agreement on this route, with space available upgrades to F. BA was approved if AA was full or otherwise less desirable (pretty easy to do what you wanted, in other words.). On the next page of this guide it spelled out the total value of the AA relationship, as well as the money spent on transatlantic travel with the different airlines for the prior three years.

Last edited by WineCountryUA; Jan 12, 2019 at 11:29 am Reason: m
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Old Jan 12, 2019, 5:51 am
  #56  
 
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Originally Posted by LondonElite
I used to work for one of the biggest investment banks in London. This company’s HQ was in NY. We had a corporate agreement with AA and another with BA. The travel policy was issued to all bankers and spelled out exactly how you were allowed to travel and who needed to approve what. At one point I was given another little guide that told me that, for LHR to JFK, AA was to be preferred at the company had a $900 J agreement on this route, with space available upgrades to F. BA was approved if AA was full or otherwise less desirable (pretty easy to do what you wanted, in other words.). On the next page of this guide it spelled out the total value of the AA relationship, as well as the money spent on transatlantic travel with the different airlines for the prior three years.
If UA had wanted to include this information in a small packet, I highly doubt the numbers get leaked. Printing it on a giant banner? That's asking for trouble.
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Old Jan 12, 2019, 6:25 am
  #57  
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Originally Posted by usbusinesstraveller
Also, given Apple’s profit warning due to poor revenue from China, that poster may not go down well with the analysts on Wall Street. “Oscar, your biggest corporate client is Apple who are in trouble. How will this affect United’s corporate $150m corporate contract, especially re China?”

Oops.
It's not like Apple is going to relocate production of 200,000,000 iPhones a year to Singapore or San Diego. Apple will still be traveling to China. Do the ratios: Total UA revenue > Apple air travel spend on UA > UA Apple China travel spend at risk. It's meaningful on one or several routes but it doesn't break UA.
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Old Jan 12, 2019, 7:32 am
  #58  
 
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Originally Posted by PsiFighter37
Printing it on a giant banner? That's asking for trouble.
I agree. It also seems many here miss the finer nuances with regards to the exact timing that this picture was leaked. It would have a lot less impact if it was leaked merely a few months ago when AAPL stock wasn't sliding, AAPL's problems in China were less apparent and the trade war was less high on the nation's agenda.

The picture may have leaked yesterday, but is there any clue to when it was taken or when this banner was created? Many here seem the point the finger at UA, but without more information about the circumstances, I will refrain from doing that. Note when I said above that "it's almost like someone wanted this to get leaked," I don't necessarily mean that someone is inside UA.
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Old Jan 12, 2019, 8:06 am
  #59  
 
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UA is stupid for even putting this type of info on a banner period. They will likely pay the price for that mistake.
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Old Jan 12, 2019, 9:00 am
  #60  
 
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Originally Posted by John Aldeborgh

Senior management and board members don’t like this type of publicity. Anything that has the slightest hint of scandal or political incorrectness is a big issue. Apple loves publicity about it products, not about the inner workings of the company. There’s no upside for Apple (or others listed) with this going viral on the internet.
Business class for travel to Asia by policy is effectively part of people's comp package (and a pre-tax business expense for Apple). There's no way this has any impact whatsoever on Apple's travel policy. It's trivial to justify: "we want to attract and retain the best people." No different than fancy corporate cafeterias and all manner of other perks.

Now, on UA management being upset about these numbers going public—that's a different matter entirely, but I don't think it's anything more than a tactical blip.
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