Premium Essay

United Airline Case Report

In: Business and Management

Submitted By woshiqr
Words 2149
Pages 9
UA CASE ANALYSIS REPORT
Group 4

2014-12-17

1. Industry Background
1.1. Poor Customer Reputation The US airline industry has been criticized for poor customer services, inefficient operations, and frequent flight delays for quite long time. Poor reputation seems to have been a typical characteristic of the whole industry. According to the customer satisfaction survey conducted by ACSI in 2014, airline industry ranked at the 40th place among all the 43 industries involved, ahead of only Internet service providers, social network corporations, and cable TV operators. 1.2. Intricate Challenges These years, the US airline industry suffered a lot from plenty of problems. The 9.11 attacks had dealt a crushing blow to the whole industry which made the airline lose much money and some of them even filed for bankruptcy. With teleconferences used to substitute for in-person meetings, travel budgets for businesses declined which reduced the airline’ revenues from first-class and business-class passengers and lowered the profit margin. Besides, the Great Recession damaged passengers’ purchasing power as well as their willingness to purchase. Data shows the US domestic average itinerary fare experienced an obvious downward trend from the year 2000. And the skyrocketing oil price increased airline’s cost to a great degree as for every one percent increase of crude oil price, airline’s net profit would decrease by more than two percent. As a response, many airlines reduced scheduled fights, cut employees and reduced wages. Even so, it was hard for airlines to escape from the dark times. 1.3. Significance of customer satisfaction When the airline industry was in the trough, the ability to satisfy customers’ needs and provide them with enjoyable flight experiences meant a lot. Southwest Airline benefited from this competitive advantage. As a low-cost carrier, Southwest…...

Similar Documents

Premium Essay

United Airlines Slept Analysis

...UNITED AIRLINES SLEPT ANALYSIS Q1: What is meant by the external business environment and what are its main components? External environment refers to the environment that has an indirect influence on the business. The factors are uncontrollable by the business. The external environment of an organization is those factors outside the company that affect the company's ability to function. Some external elements can be manipulated by company marketing, while others require the organization to make adjustments. Some main components of external environment are: Customers Government Economy Competition Public Opinion Growing use of internet Law and Order situation Q2: Show how changes in one of these components have had a significant impact on airlines in recent years? A major change in the airline environment since September 11th has been in airport security, as a result of political and legal pressures. Airlines today have to operate in a much more security conscious environment and this has considerable logistical and cost implications for airlines, including the development of much more security conscious booking and baggage handling procedures, the requirement to use security staff on cross Atlantic routes has also added to costs. Q3: How significant is competition in the external environment? Competition is always important in the external business environment. It is particularly important in the airline business where there are a......

Words: 952 - Pages: 4

Premium Essay

Continental Airlines and United Airlines Merger

...Continental Airlines and United Airlines Merger Tony McDougal December 2, 2012 Professor Bates Abstract This paper explains the challenges faced by two major U.S. airlines, United and Continental airlines in an attempt to merge, and form the world's largest airline based in the United States. This consideration is based in relation to the movement of passengers via air traffic. The airline merge occurred in order for each airline to survive and be competitive within the airline industry. The paper explains briefly the reason for this merger, the strategy it used and went through to accomplish the merger. It also explains some pros and cons the merger and management faced. It explains the vision of the newly created company in reference to where they want to be in the future and the profit of revenue they foresee to earn with this merger. This paper outlines the structural change the new United Airlines came up with after the merger took place and how both United and Continental Airlines management, employees, and customers adapted to the merge. Continental Airlines and United Airlines Merger The merger of United and Continental airlines that was under way in 2008 formed the third’s world largest airline. This merge occurred during the decrease of air travel from heightened security measures against terrorism and high fuel costs. During this time, the United States government also tried to help by giving the airline industry......

Words: 2940 - Pages: 12

Premium Essay

The Merger Between United and Continental Airline

...research companies on the internet and I ran across the merger between United and Continental airlines. The reason that I choose to do the merger is because I knew that they were going to go through many changes within this merger. Both airline companies have a lot to offer to each other with this merger that they can compete with Delta airlines one of the largest airline in the world. This merger will bring about several changes within both companies. In this paper I will be providing the different changes between both companies with the merger including the culture, systems and unions. Since they were two different companies this will bring on big changes when they finally merger together. History In In the year of 2008 United Airlines CEO Glenn F. Tilton and Continental Airlines, CEO Jeffrey A. Smisek began to talk about merging both company together in order to become the largest merger ever to take place between two airlines. However, once Continental found out about United Airlines declining financial statues they declined their offer. The talk of United negotiating a merger with US Airways stunned the CEO and board members of Continental Airlines. Predictor stated that United Airlines used this tactic to allure Continent Airline to renegotiate the merger that was discussed in 2008. In 2010 a big announcement was presented stating that United and Continental airlines were merging together as one Airline Company. Major of the management team will consist of......

Words: 1688 - Pages: 7

Free Essay

Airline Report

...capabilities to maximize profits in this ever changing world economy. One particular industry that is firm in following such laws will be the aviation and the airline industries. In any airline industry, the safety of the passengers is their top priority. No one will be daring enough to board an airplane if the aviation crew repeatedly failed to search for any fault within the plane before it is ready for flight. Thus, it is up to the crew, consisting of engineers and technicians, to ensure that every plane has to be thoroughly checked, repaired and fueled before any departure happens. Hence, it is their social responsibility to ensure so. Such responsibility may seem too heavy for some employees, including the fact that they are carrying a huge weight on their shoulders. It takes one mistake or negligence and that is sufficient enough to throw thousands of lives in danger. Negligence may happen if the crew does not take external factors into consideration. External factors such as weather plays an important role in the crew’s decision making whether the plane should either be cleared for takeoff or be delayed till further notice.2 Statistics had clearly shown that over a decade (Year 2000-2009), accidents and fatalities that occurred within the world airline industry are extremely high and volatile. Reports had indicated that such frequent occurrence could be due to the pilot’s proficiency and familiarity with the newly improved navigation systems. Therefore,......

Words: 2287 - Pages: 10

Premium Essay

United Airlines

...United Airlines vs. Delta Airlines Ushma S. Patel 3/31/2013 Ushma821@gmail.com Work Cited 1. Introduction 3 2. United Airlines vs Delta Airlines 4 3. The Four-Frame Model 8 4. SWOT Analysis- United Airlines 12 5. SWOT Analysis- Delta Airlines 14 6. Analysis 15 7. Recommedations 16 8. Work Cited 17 INTRODUCTION In evaluating two companies who have had to restructure their business models to evolve to changing times I choose United Airlines and Delta Airlines. Both companies filled for bankruptcy in the early 2000’s and since then have nursed their company back to health and to becoming the industries leaders for airlines. I choose these two airlines because I frequently use them to travel. My family are also huge travelers and I spend a lot of time looking for the best deals for them. United Airlines filed for bankruptcy in 2002 and would become the longest case in the United States lasting until 2006. The airline was able to get their reorganization plan approved by the United States government by restructuring their management plan. In the restructure they also changed how their bonus plan was organized for successful executives. They also had to evaluate their employee’s efficiency while on the clock. They were able to reduce their workforce from 100,000 employees to half of that. Finally the airline had to revaluate the routes they were taking and then see which......

Words: 2958 - Pages: 12

Premium Essay

Case of Airlines

...ORGANIZATIONAL INFORMATION SYSTEMS Case Analysis – Tale of Two Airlines PROBLEM STATEMENT Neglect and inconsistency in applying standard operational strategies and procedures can make a significant difference in meeting the expectations of passengers, affects passenger loyalty and have potential consequences on the ability of an airline to retain existing customers and attract new ones. In the information technology age “technology is only a small enabling piece of a total service concept.” How can an airline cause information technology, operations strategy, management control, empowered/unempowered work force, and service management to come together to produce customer satisfaction and long term customer loyalty?. In analysing the case, let’s examine some of the issues that were encountered during his travel, the reasons for these issues and what could have been done differently to provide a hassle free travel experience. It is a fair expectation and assumption that when a comparison is made with quality services and the impact of the use of information technology in 1985 versus 1995 there should be a distinct difference due to the era and the stages of advancement in information technology. It is therefore assumed that whatever service was provided in the 1980’s would have been improved ten years later. This leads us to examine: * Was the assumption made by Professor McPherson to think that it was possible for the network between airlines to make it......

Words: 3174 - Pages: 13

Free Essay

United Airlines Flight 173 Case Analysis

...Case Analysis Term Paper United Airlines Flight 173 Embry-Riddle Aeronautical University SFTY 320 I. Summary On December 28, 1978, United Airlines flight 173, a McDonnell-Douglas DC-8-61 was a scheduled flight from John F. Kennedy International Airport, New York, to Portland International Airport in Oregon, with an en route stop at Denver, Colorado. When the DC-8 was descending through about 8,000 ft on its way to Portland, the first officer, who was flying the aircraft, requested the wing flaps be extended to 15 degrees, then asked that the landing gear be lowered. As the landing gear extended, an unusual sound was heard and the aircraft yawed. Upon request, Portland approach then vectored the aircraft in a holding pattern southeast of the airport. After about an hour and a half of circling southeast of the airfield while the flight crew coped with the landing gear malfunction and prepared the passengers for a possible emergency landing, the captain finally decided to begin the approach to runway 28L. The plane crashed during the approach about 6 nautical miles southeast of the airport in a wooded populated of suburban Portland due to fuel exhaustion. The aircraft was destroyed and thankfully because there was no fuel in the fuel tanks, there was no fire. Of the 181 passengers and 8 crewmembers aboard, 8 passengers, the flight engineer, and a flight attendant were killed and 21 passengers and 2 crewmembers were seriously injured (National Transportation Safety......

Words: 3138 - Pages: 13

Premium Essay

Analyzing Managerial Decision: United Airlines

...Managerial Decision: United Airlines by Ronald J. Sanders HCM-540, MBOL5, Health Care Organization Instructor: Wenyuan Teng Saint Leo University Distance Learning November 10, 2013 Abstract United Airlines is one of many airlines that look to capitalize on it’s ability to provide air service to the consumer. Like other airlines, it is challenged to be creative and profitable in a changing market. The creativity may involve creating flights or analyzing the cost associated with providing a service. This paper offers some insight on the case study of United Airlines and provides some analysis on the managerial decisions within the company. The scenario given in the case study speaks about a situation of declining profits and the costs of operating were growing. A dialogue of cost and market organization will be noted and the recommended managerial decision of; whether the airline should run a specific flight or not.   Introduction When making a business decision, many factors should be considered. The market structures in the economy are important in seeking whether the company is reasonable to continue to operate or not. The structure of the market or characteristics of the market environment that United Airline operates in is competitive market. Competition market is an economics term that refers to firms that have no influence on market price and take it as given. (Brickley Smith & Zimmerman, 2009). For United Airlines to operate involves......

Words: 848 - Pages: 4

Premium Essay

Airlines Report

...A Financial Analysis of Southwest Airlines Co. Accounting for Financial Decisions BA812 Professor Wayne Drake May 20, 1998 Gillian Ainsworth Jennifer Goidell Christine Ledoux Tarak Modi Gerald Owens Robin Walters Southwest Airlines: Twenty-Six Years of “LUV” Twenty-six years ago, Rollin W. King scribbled three lines on a cocktail napkin, leaned across the table, and muttered to his longtime friend: “Herb, lets start our own airline”. Herbert D. Kelleher loosened his tie and knitted his brow before replying: “Rollin, you’ crazy.” He then paused, grinned, and added, re “Lets do it!” 1They founded Air Southwest Company in 1967. The company incorporated as Southwest Airlines in Texas, and commenced customer service on June 18, 1971. They began with three Boeing 737 aircraft serving three Texas cities – Dallas, Houston, and San Antonio. Today, Southwest Airlines operates more than 243 Boeing aircraft and provides service to more than 50 airports located in 49 cities in more than 24 states. Southwest Airlines offers approximately 2200 low fare, short-to-medium range flights throughout the United States.2 Their stock-exchange symbol “LUV” symbolizes their home at Dallas Love Field, as well as the theme of their customer relationships. Today, Southwest is the nation’ low fare, high customer satisfaction airline. Southwest has literally s written the book on low fares. The airline has never pretended to be anything more than a bus service. With an average flight distance...

Words: 5151 - Pages: 21

Premium Essay

United Airline

...EDF Case Study: United Airlines United Airlines filed the largest airline bankruptcy in history and was also one of the top 10 largest bankruptcies ever as measured by assets. Vertical scale is logarithmic • Seemingly small movements for high-risk companies can be very substantial. • EDF credit measures are actual probabilities, not credit scores. A company with a current EDF credit measure of 2% has a 2% probability of defaulting within the next twelve months. That is, out of 100 companies with a 2% EDF credit measure, we would expect, on average, that 2 would default over the next twelve months. Also, a company with a 2% EDF credit measure is 10 times more likely to default than a firm with a 0.20% EDF credit measure. Letter ratings are for comparison purposes only--a point of reference to improve interpretation of default probabilities. • EDF credit measures range from a low of 0.02% to a high of 20% in one basis-point increments. A basis point = 1/100 of a percentage point. July 2001 July 2002 UAL posts a $341 million second-quarter loss. • • • UAL and US Airways call off merger after U.S. Justice Department says it would block merger on antitrust issues. S&P rating is BB+; Moody's rating is Ba2 EDF Credit Measure is 1.67%, equivalent to BB rating • • Within the past month, market cap falls by almost half to $332 • million while liabilities remain at about $22.5 billion • Market leverage rises to 90% • EDF Credit Measure rises to 20.00%, the......

Words: 844 - Pages: 4

Premium Essay

Classic Airlines Case Study

...Case Study Report: Classic Airlines 1 A Case Study Report on Classic Airlines: Marketing Solutions Anthony Almanzar, Northeastern University Abstract The airlines industry has grown incredibly over the years. The rapid growth may limits the availability to stay competitive. Air carriers must use all possible resources to maximize growth and boots profits. Classic Airlines has the opportunity to develop a new strategic marketing plan that will make them succeed in today's competitive world. Introduction Classic Airlines Classic Airlines is experiencing several organizational issues due to the fact that their long-term marketing objectives are not being met. Customers are not satisfied with their services and they are considering services provided by other airlines that meet their expectations. Sales revenues, profits and stock prices are declining. A new marketing strategic plan is required in order to attract and retain costumers while boosting sales and profits. "Marketing looks at consumer needs and the company's ability to satisfy them." (Kotler et al., 1991, p.37). Therefore, Classic Airlines must stress on creating a new plan that will help them meet their long-term marketing objectives. Case Study Report: Classic Airlines 2 The Current Situation Classic Airlines is facing numerous challenges "because of rising costs and lack of innovation" (Tokhi., 2009, p.1). Internal disagreements between managers have arisen. "Employee morale is low as due to finger......

Words: 1284 - Pages: 6

Premium Essay

Video Business Case Report United Airline

...This report aim to address the public relationship outfall of United Airline by considering the issues and causes and choosing a recommended solution on the base of decision criteria. Methods used in this report include empirical and theoretical analysis. In aviation industry, airlines experienced a cost pressure and that is the main reason that they cut cost wherever possible. Ethical issues and stakeholders’ benefit would be considered and play key roles in decision criteria to value the solution. United Airline would be suggested to establish a temporary team to solve the short-term crisis and invest in customer service departments to prevent similar issues in the future. The balance between cost and profit would be achieved to save the reputation and earn the profit, which would maximize the stakeholders’ value. Limitation of this report could be found in the scope of decision criteria. Some main points are covered and other attributes are not. Introduction The purpose of this report is to deal with the customer service issues facing United Airline. The causes would be discussed and the decision criteria would be considered to measure the alternatives which could be taken to address these issues. Moreover, recommended solution would be derived as the best of the alternatives with supported reasons. Finally, suggestions would be provided on how to implement the solution as well as the related implications. Issues United Airline......

Words: 2164 - Pages: 9

Premium Essay

Southwest Airlines Case Study

...Southwest Airlines Calsouthern University Introduction “There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else (Sam Walton, 2015).” Millions of people fly everyday. Southwest airlines provide low-fare travel among 58 cities in the United States. Although the airline industry suffered greatly in the aftermath of September 11, Southwest was able to continue to hold strong. Southwest airline continues to maintain steady sales as much of the industry was affected by changes in laws/regulations and competition entering the market. In the following report there is a brief introduction to Southwest Airlines and their strategy and then what, if anything, they need to do or not do to remain at the top and competitive in the airline industry. The Problem The major problem of the company is whether they can continue growing and at the same time keep offering the same services to their clients. To continue growing, Southwest Airlines needs to analyze the external environment in order to ensure their success.  The solutions that will be presented for Southwest airlines have to attack two main issues: 1. How will they be able to keep their “Southwest airlines LUV” 2. How to keep their expansion and not affect the image of the airline. Southwest Airlines has a list of infinite options, many will hinder their image from the inside out (employees to costumers) while providing a set of......

Words: 723 - Pages: 3

Premium Essay

United Breaks Guitar Case

...Assignment Case; United Breaks Guitar Q) Why do you think Dave Carroll's video spread so fast to so many people? Ans) Dave Carroll's video spread so fast to so many people because of the following reasons  First, the video was containing a traveller as well a business storyline. The video simply used singing and irony and hence it was picked up very quickly on YouTube.  Hundreds of media reports repeatedly published the story. CNN urged viewers, “Anyone who’s ever been frustrated with an airline needs to see this video”  Many people who can connect to it or had the similar experience joined the cause and spread it.  Music was catchy and was launched in proper way with already existing audience.  It was something new so people found it entertaining and went viral. Q) How do you evaluate the airline's response? What would you have done different in this position? Ans) Airline’s response was poor as they reacted when things have gone out of their hand and it was too late and it was after seven months that they properly addressed the issue. The airlines company was at fault since beginning. Some such incidents are:      Carroll’s Taylor guitar was witnessed being thrown by United Airlines baggage handlers in Chicago None of the crew members he reported to helped him with the issue The Guitar was found severely damaged The representative he could finally talk to, told him that she was sorry about the damage, but the standard airline policy held that claims be made......

Words: 453 - Pages: 2

Premium Essay

Qantas Airlines Business Report

...Qantas Airlines Business Report Established in 1920, Qantas is the world's 11th largest airline and the 2nd oldest. It was founded in the Queensland outback as the Queensland and Northern territory Aerial Service (QANTAS) Limited, by pioneer aviators Hudson Fysh, Paul McGinness and Fergus McMaster. Qantas was a former government owned business; it did not view profits or efficiency as its prime goal. In 1993 a 25% stake was sold to British Airways. Qantas was privatised in 1995 and has had to adopt management practices to overcome both internal and external influences and had to change its narrow-minded culture. Although Qantas is primarily a passenger airline, air freight is also an integral part of its core business. Other Qantas operations include catering, tourism and E-commerce devoted to transport and air travel. Qantas has undertaken significant changes over the last decade to cope with internal and external factors such as the terrorist attacks on September 11, 2001 which effectively reduced the demand for international travel. Qantas initially reduced its international travel flying capacity by 11%. Fortunately, the collapse of Ansett which halted domestic competition in the Australian aviation industry which had dropped the bidding price war for consumer finances, softened the blow on September 12, 2001. The source of change: The factors that had caused Qantas to change were that Qantas had to become: • A more competitive, efficient and profitable business with...

Words: 1716 - Pages: 7

Mononoke-hime | Kaguya-sama wa Kokurasetai - Tensai-tachi no Renai Zunousen - Raw Chap 27 | 1x902 Acacias 38