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Niranjana Industrial Report

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42 views7 pages

Niranjana Industrial Report

Uploaded by

Niranjana Dubey
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© © All Rights Reserved
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Introduction of United Airlines:

United Airlines is an American key airline whose headquarters is based in Illinois


Chicago. The United airline operates mainly in the United States and across other
regions such as such as Japan and Guam. The airline handle and average of about
45,000 passengers on daily basis and employs over 88,000 individuals.United
Airlines was the creation of aviation pioneer William Boeing, who started out in
the airplane business in 1916. His Boeing Airplane Company, as it was then called,
achieved the first international postal delivery in 1919, and he went on to establish
United Aircraft Corp. in 1928. It was this UAC that acquired mail and passenger
service operator Pacific Air Transport on January 1, 1928, then renamed Boeing
Aircraft & Transport Co. merged with Pratt & Whitney Aircraft in early 1929 to
form United Aircraft and Transport Corporation (UATC).UATC acquired America's
first scheduled passenger services carrier Stout Air Services on April 29, 1929, the
nation's first scheduled service (mail only) operator Varney Air Lines in early 1930,
and finally National Air Transport (a large Chicago-based mail-only carrier) on May
7, 1930. On March 28, 1931, UATC formed the corporation United Air Lines, Inc. to
manage its airline subsidiaries.Thus, United Airlines makes the claim to be the
oldest commercial airline in the United States by dint of its Varney acquisition.In
1933, United introduced the Boeing 247; for the first time, passengers could fly
across the United States without an overnight stop or changing planes. That
summer, the fastest flight left Newark at noon (probably EST) and arrived at San
Francisco at 6:55 PST after eight stops; the fare was $160 one-way, equal to $2,868
in today's value.
In 1954, United became the first airline with flight simulators that had visual,
sound and motion cues for training pilots. Purchased for US$3 million (1954) from
Curtiss-Wright, these were the first modern simulators for training of commercial
pilots.
n 1989, United ordered the then-new Boeing 747-400. In 1993, United phased out
the Saul Bass livery and introduced the "Battleship Gray" livery to their fleet. In
1995, United became both the launch customer of and the first airline to operate
the Boeing 777, having significant input on its design. In 1997, United co-founded
the Star Alliance with Air Canada, Lufthansa, Scandinavian Airlines, and Thai
Airways. That same year, United opened its southwest US hub at Los Angeles
International Airport.

Ownership/ Major shareholders:


 The Vanguard Group, Inc. 10.09%
 PRIMECAP Management Co. 8.24%
 BlackRock Fund Advisors 4.36%
 SSgA Funds Management, Inc. 3.14%
 US Global Investors, Inc. 2.12%
 Fidelity Management & Research 1.83%
 Geode Capital Management LLC 1.78%
 Susquehanna Financial Group LLLP 1.40%
 PAR Capital Management, Inc. 1.34%
 Newport Trust Co. 1.32%

"Unsatisfactory customer service and its impact on customer


perception about United Airline”

 United doesn’t respond to customer service requests.


 They have the worst on-time status of all the major airlines.
 They lose the most baggeges.
 Their flights cost more than their competitors…but with crappier service!
 They have terrible cabin service.
 Their flights are ugly.
 They break guiatars.
 They cancel or delay flights (with a complete lack of assistance).
These are the review given by the customers who has travellen on United
airline, but after getting these kind of review they have decided to improve and
commit to :
 Limit use of law enforcement to safety and security issues only.
 Not require customers seated on the plane to give up their seat
involuntarily unless safety or security is at risk.
 Increase customer compensation incentives for voluntary denied
boarding up to $10,000.
 Establish a customer solutions team to provide agents with creative
solutions such as using nearby airports, other airlines or ground
transportations to get customers to their final destination.
 Ensure crews are booked onto a flight at least 60 minutes prior to
departure.
 Provide employees with additional annual training.
 Create an automated system for soliciting volunteers to change travel
plans.
 Reduce the amount of overbooking.
 Empower employees to resolve customer service issues in the moment.
 Eliminate the red tape on permanently lost bags by adopting a "no
questions asked" policy on lost luggage.
United is committed to putting health and safety at the forefront of every customer's journey,
with the goal of delivering an industry-leading standard of cleanliness through its United
CleanPlus SM program. United has teamed up with Clorox and Cleveland Clinic to redefine
cleaning and health safety procedures from check-in to landing and has implemented more
than a dozen new policies, protocols and innovations designed with the safety of customers
and employees in mind. To manage entry requirements in different destinations, and find
places to get tests, customer can visit United's Travel Ready Center.

SWOT analysis of United airlines.


United Airlines strengths:
 Strong operational network (more than 5000 flights a day to 360 destinations
across 6 continents).
 One of the largest aircraft fleets.
 Wide serviceability and reach.
 Flexibility in fleet planning.
 Industry leading loyalty program.
 Great customer experience with inflight entertainment and good branding
through extensive advertising.
 Strategic Alliances (Founding member of Star Alliance).
 The company has over 85,000 employees worldwide.
 Relatively high employee productivity.
 Strong brand name and recognition.

United airlines weaknesses:


 Intense competition from other domestic and international airlines
means limited market share growth.
 Heavy dependence on third-party service providers for customer
service, maintenance, fueling operations, etc.

United Airlines Opportunities:


 Growing US airline industry and tourism can help boost the business of
United Airlines in the international & domestic sectors.
 Increasing partnerships with international players, trying to reach to
newer & unexplored destinations.
 Strong US economy will ensure higher purchasing power of people
willing to invest in travel.

United Airlines Threats:


 Intense competition from low cost airlines offering discounted prices
can lead to loss of margins for United Airlines.
 Rising fuel prices is a challenge for the aviation industry as it reduces
the profits.
 Persisting risks of recession and pandemics across the globe can
decline the demand for air travel.
United Airlines Compititors:
 Delta Airlines
 American Airlines
 JetBlue Airways
 Southwest Airlines
 Virgin Atlantic

Conclusion:
While several of these policies are effective immediately, others will be rolled out
through the remainder of the year. The facts of what happened aboard Flight 3411
and a full review of United's changes."United continues to demonstrate our
commitment to Africa, starting three brand new flights to the continent this year
alone including new service to Accra, Ghana; Lagos, Nigeria and Johannesburg,
South Africa," said Patrick Quayle, vice president of international network and
alliances at United. "And now through our codeshare agreement with Airlink -
which is the most expansive partnership in Southern Africa - customers will be able
to easily explore more bucket list destinations across the continent including easy
connections to Zambia, Zimbabwe and more."Oscar Munoz, chief executive officer
of United Airlines, said, "Every customer deserves to be treated with the highest
levels of service and the deepest sense of dignity and respect. Two weeks ago, we
failed to meet that standard and we profoundly apologize. However, actions speak
louder than words. Today, we are taking concrete, meaningful action to make
things right and ensure nothing like this ever happens again."
"Our review shows that many things went wrong that day, but the headline is
clear: our policies got in the way of our values and procedures interfered in doing
what's right. This is a turning point for all of us at United and it signals a culture
shift toward becoming a better, more customer-focused airline. Our customers
should be at the center of everything we do and these changes are just the
beginning of how we will earn back their trust," he added.

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