Why does profitable UA cut to bone, while AA adds??
 

It is a disturbing trend that needs to be addressed: UA is enjoying consecutive profitable quarters, however is continuing to cut its onboard services rather significantly--all while its major competitors (mainly AA) are adding to its onboard products. For example, the temporary cut of C appetizers on IAD-Europe flights, the removal of Y snacks on flights 2 hours or less, the removal of fruit plates in C on some Asian flights, the introduction of expiration dates on 1K drink chits, among others. On the flipside, AA has continually added to its on-board service in recent months, as part of its Invest to Impress plan (including a hot breakfast in C from the US to Europe, new C entrees, savory mints, new cocktail snacks, pre-arrival sparkling water with fruit garnish, Ghirardelli chocolates, among others).

One would think that during profitable times, UA would be doing the opposite and adding new amenities and small touches to grab market share, while continuing to satisfying its legion of frequent fliers.

Why is UA so desperate to further cut costs while it's in the black, at the expense of alienating its premium customer base?

We all want to see more amenities, but two quarters does not necessarily mean the company's out of the woods. In general, it's not a good idea to spend money as soon as you make it, either as an individual or a company. It's a quick way to get yourself (back) in debt.

The real issue is whether they are cutting so much that people will start to go to other airlines. If passengers do not leave, then UA is doing the right thing for its shareholders. If passengers start to leave, then I am sure they will reverse their thinking.

UA is by no means out of the woods yet. Their cost structure (mostly salaries) remains a bit high.

Not making excuses for UA, but they are prepping to refit 97 aircraft with new First and Business class seating. That requires a few nickels.

This is what rumors are made of!!!
 

Maybe what they are really doing is preparing to complete the 2000 - 2001 merger plan with US!!!!! They are downgrading their services to match that of their merger partner!!!! hehehehe :p :p :p :p :p (I am being sarcistic here!!!) :D :D :D :D :D

The continued cutbacks in amenities is disheartening, but it really must be a short-lived trend. I'm certain that UA will rise to the challenges laid down by its competitors. A year from now, we'll be complaining that the new nut mix has too many cashews in it, the expanded dinner menu has too many choices, and the 15-inch video screen in International First Class isn't big enough. ;)

Nah... Doug Parker will be the new CEO and you will be taking orders from the Sandcastle in Tempe, AZ via US/HP, but no inflight drink service from New Mexico airports.:p :p :p :p :p :p

There is NO such thing as too many cashews. My complaint will be that the nuts are too small. Jumbo cashews... mmm.

Remember, the rumor mill says the new UA slogan will be, Fly with US on the new United.:D :D :D :D :D

They are still in debt, aren't they? (not that all debt is necessarily a bad thing and avoidable)

White Castle?

I dont think Doug Parker will be thinking about UA. He will be too busy foucusing on his recent DUI arrest:
http://www.eastvalleytribune.com/ind...dest=STY-83778

I agree...
 

That is also a concern of mine and you see it all the time on the flights. The new outfitting of the seats isn't doesn't necessarily mean United must come up with the cash up-front. There are so many deals made. Just like when people complained about the repainting of the United livery, when they were in bankruptcy.

They planes had to be repainted, only they were repainted to be cheaper. If you look at the new "First" suite, the actual seats look like the old ones, don't they? I'm nervous they are going to use the old seats and put new cushion on them....

UG

Are we talking about Sliders on midcons O/D'ing from ORD...??? Well now, I'll believe this rumor! :D

Sliders will only be available on transatlantics. First class gets 4 plated on china, business gets 2 served on stoneware, and economy can purchase each one for $5 (wrapped in foil, exact change is appreciated).