This document provides an overview of United Airlines, including its history, headquarters and mergers, fleet, financial performance, marketing, and code sharing relationships. Some key points:
- United was formed in 1927 and has gone through several mergers, most notably with Capital Airlines in 1961. It filed for bankruptcy in 2002.
- It is currently headquartered in Chicago and has hubs in major cities like Houston, Denver, San Francisco, and Los Angeles.
- United has a large and diverse fleet of over 800 mainline aircraft and over 200 regional aircraft operated by its regional partners.
- Financially, United has reported both large profits and losses depending on economic conditions. Its best year was 2015 and
United airlines presentation final_may2010Gregory Stamp
United Airlines was established in 1926 and has grown through mergers and acquisitions to become a global airline. It currently operates over 3,300 flights per day and employs around 47,000 people. While United has faced challenges including bankruptcy in 2002, it has also achieved successes such as being a founding member of the Star Alliance network. Looking ahead, United's future challenges include maintaining liquidity amid economic uncertainty and coping with high fuel costs.
United Airlines is a major US airline headquartered in Chicago. It was formed through a 2010 merger between United Airlines and Continental Airlines. United operates flights out of 10 hubs in the US, Guam, and Japan, and employs over 88,500 people. Through its parent company United Continental Holdings, it is publicly traded on the NYSE under the ticker UAL.
Venezuela is country in Latin America. the country has been facing hyperinflation, crimes, starvation, food shortages and severe socioeconomic and political crisis. there is a geopolitical game played by great powers.
Ppt on role of international financial institutionsnainagupta
International financial institutions (IFIs) are established by multiple countries and subject to international law. The three most prominent IFIs are the World Bank Group, International Monetary Fund, and regional development banks. The World Bank Group aims to reduce poverty through sustainable development projects and loans. It consists of 5 organizations focused on development assistance, financing, and dispute settlement. The IMF works to stabilize exchange rates and support global monetary cooperation. Regional development banks like the Asian Development Bank and African Development Bank provide financing to their respective regions.
Kingfisher Airlines was an Indian airline group based in Mumbai that operated from 2005 to 2012. It struggled with major financial issues for several years due to large debts, unpaid salaries, aircraft lease dues, and other factors. In 2012, the airline's license was suspended by the government due to its failure to address issues, and it ultimately ceased all operations.
The document summarizes the merger of Air India and Indian Airlines in 2007 to form National Aviation Company of India. It discusses the reasons for the merger such as declining profits and increasing competition. However, the merger has brought additional problems. Issues included employee opposition, operational differences between the airlines, and incomplete integration of IT systems and infrastructure. As a result, customer service has declined and losses have ballooned. The leadership changes have also exacerbated the challenges of integrating the two airlines.
this chapter we are going to explain key, components of the BoP, and explain how the international flow of funds is influenced by economic factors and other factors
49317076 ppt-on-international-financial-institutionsKIIT University
The document discusses several international financial institutions (IFIs), including the World Bank, IMF, Asian Development Bank, and International Finance Corporation. It provides details on the establishment dates, objectives, membership, sources of funding, and functions of each institution. The World Bank aims to promote global development and reduce poverty. The IMF works to foster global monetary cooperation, secure financial stability, and facilitate international trade. The Asian Development Bank focuses on lending and investment in Asia while the IFC provides private sector financing in developing countries.
United airlines presentation final_may2010Gregory Stamp
United Airlines was established in 1926 and has grown through mergers and acquisitions to become a global airline. It currently operates over 3,300 flights per day and employs around 47,000 people. While United has faced challenges including bankruptcy in 2002, it has also achieved successes such as being a founding member of the Star Alliance network. Looking ahead, United's future challenges include maintaining liquidity amid economic uncertainty and coping with high fuel costs.
United Airlines is a major US airline headquartered in Chicago. It was formed through a 2010 merger between United Airlines and Continental Airlines. United operates flights out of 10 hubs in the US, Guam, and Japan, and employs over 88,500 people. Through its parent company United Continental Holdings, it is publicly traded on the NYSE under the ticker UAL.
Venezuela is country in Latin America. the country has been facing hyperinflation, crimes, starvation, food shortages and severe socioeconomic and political crisis. there is a geopolitical game played by great powers.
Ppt on role of international financial institutionsnainagupta
International financial institutions (IFIs) are established by multiple countries and subject to international law. The three most prominent IFIs are the World Bank Group, International Monetary Fund, and regional development banks. The World Bank Group aims to reduce poverty through sustainable development projects and loans. It consists of 5 organizations focused on development assistance, financing, and dispute settlement. The IMF works to stabilize exchange rates and support global monetary cooperation. Regional development banks like the Asian Development Bank and African Development Bank provide financing to their respective regions.
Kingfisher Airlines was an Indian airline group based in Mumbai that operated from 2005 to 2012. It struggled with major financial issues for several years due to large debts, unpaid salaries, aircraft lease dues, and other factors. In 2012, the airline's license was suspended by the government due to its failure to address issues, and it ultimately ceased all operations.
The document summarizes the merger of Air India and Indian Airlines in 2007 to form National Aviation Company of India. It discusses the reasons for the merger such as declining profits and increasing competition. However, the merger has brought additional problems. Issues included employee opposition, operational differences between the airlines, and incomplete integration of IT systems and infrastructure. As a result, customer service has declined and losses have ballooned. The leadership changes have also exacerbated the challenges of integrating the two airlines.
this chapter we are going to explain key, components of the BoP, and explain how the international flow of funds is influenced by economic factors and other factors
49317076 ppt-on-international-financial-institutionsKIIT University
The document discusses several international financial institutions (IFIs), including the World Bank, IMF, Asian Development Bank, and International Finance Corporation. It provides details on the establishment dates, objectives, membership, sources of funding, and functions of each institution. The World Bank aims to promote global development and reduce poverty. The IMF works to foster global monetary cooperation, secure financial stability, and facilitate international trade. The Asian Development Bank focuses on lending and investment in Asia while the IFC provides private sector financing in developing countries.
The World Bank is an internationally supported bank that provides financial and technical assistance to developing countries for programs to reduce poverty such as infrastructure projects. It is governed by a board of executive directors representing member countries. The United States has veto power due to its large financial contributions. The World Bank funds projects in various sectors and faces criticism for promoting Western interests. The IMF was created in 1944 to stabilize exchange rates and assist in reconstructing international payments after World War II. It is governed by a board and managing director. The IMF aims to facilitate global monetary cooperation and secure financial stability.
The IMF is an organization of 186 countries that works to foster global monetary cooperation and secure financial stability. It provides policy advice and financing to help countries achieve macroeconomic stability. The IMF tracks global economic trends, warns of potential problems, and shares expertise to help countries address economic difficulties. It supports members through policy advice, research, loans, and technical assistance. The IMF aims to ensure the stability of the international monetary system and help members promote growth and alleviate poverty.
The document provides information about the World Bank, including its objectives, organization, and subsidiaries. It discusses the formation of the World Bank at Bretton Woods in 1944 to aid post-war reconstruction. The main subdivisions of the World Bank are described: the International Bank for Reconstruction and Development (IBRD), International Development Association (IDA), International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), and International Centre for Settlement of Investment Disputes (ICSID). Details are given about the purpose and functions of each organization.
1. The 2008 financial crisis was caused by the bursting of the housing bubble in the U.S., also known as the subprime mortgage crisis.
2. Subprime lending involves giving loans to borrowers who may have difficulty maintaining repayments, and are characterized by higher interest rates and poorer terms.
3. The crisis occurred due to a relaxation in lending regulations, poor creditworthiness of borrowers, rising housing prices, and borrowers' inability to pay their mortgages, leading to failures of major banks and financial institutions.
The General Agreement on Tariffs and Trade (GATT) was a multilateral trade agreement regulating international trade from 1948 to 1995. In 1994, 123 nations signed the Uruguay Round Agreements establishing the World Trade Organization (WTO) to replace GATT and incorporate GATT, as well as new agreements on trade in services and intellectual property, into a single organization governing international trade. The WTO commenced January 1, 1995, providing a permanent framework for negotiating trade agreements and resolving disputes.
Tata Sons, an Indian conglomerate, acquired Air India from the Government of India for Rs 18,000 crore. As part of the acquisition, Tata Sons will take over Air India's entire debt of Rs 61,562 crore, of which Rs 15,300 crore will be transferred to Tata Sons, while the remaining Rs 46,262 crore will be transferred to the Government. The acquisition will allow Tata Sons to gain control of Air India and its subsidiaries, providing an opportunity to revitalize the struggling national carrier.
The Bretton Woods system established in 1944 aimed to govern international monetary and exchange rate regulations through institutions like the IMF and World Bank. It intended to set a fixed exchange rate between currencies pegged to the U.S. dollar, which was pegged to gold. This was expected to promote international cooperation and financial stability. However, the system broke down in the 1970s as countries could no longer maintain the required exchange rate adjustments due to large balance of payments crises, replacing it with floating exchange rates.
The International Monetary Fund (IMF) & The World Bank GroupAbdul Basit Adeel
This document provides an overview of the International Monetary Fund (IMF) and the World Bank. It discusses their establishment, goals, organizational structures, functions, enforcement mechanisms, and provides a case study on Argentina. The IMF aims to maintain global monetary stability by providing short-term loans to address balance of payment issues. The World Bank provides long-term loans for poverty alleviation and development projects. Both institutions have faced criticism for undermining state sovereignty and representing global economic inequalities.
This document provides an overview of the rise and fall of Jet Airways, one of India's largest airlines. It discusses how Jet Airways was founded in 1991 and grew to become the largest airline in India by 2010, capturing a 22.6% market share. However, Jet Airways then began facing financial troubles as newer budget carriers like IndiGo captured market share. Jet Airways took on significant debt to try and compete but ultimately filed for bankruptcy in 2019 after years of losses. The document examines some of the key reasons for Jet Airways' failure, including high costs from purchasing Air Sahara, underestimating budget carriers, fluctuating fuel prices, and failure to attract new investors or reduce costs under the leadership
Professor Alejandro Diaz-Bautista, Economic Policy, Debt Crisis PresentationEconomist
The document discusses the Latin American debt crisis of the 1980s. It provides background on how Latin American countries took on large debts in the 1970s for development projects. This led their debt levels to quadruple between 1975 and 1983, exceeding their ability to repay. The crisis began in 1982 when Mexico declared it could no longer service its debt, spurring other Latin American countries to face debt repayment issues. Countries had to adopt austerity measures and shift to export-oriented economies over import substitution to address the crisis.
The document discusses key components of the balance of payments including the current account, capital account, and financial account. It explains factors that influence international flows of funds such as economic conditions, government restrictions, exchange rates, and inflation rates in countries. It also summarizes several international organizations that facilitate global trade and financial flows, such as the IMF, World Bank, WTO, and regional development agencies.
- The document is a test bank containing questions pertaining to derivatives.
- Questions follow a numbering system indicating the chapter and question number.
- Quiz and exam questions will be similar in style to those found in the test bank.
- By default, interest rates and dividend yields are assumed to be quoted on a per annum and continuously compounded basis.
Warren Buffett, CEO of Berkshire Hathaway, acquired PacifiCorp, a Western US energy company, through Berkshire's subsidiary MidAmerica Energy Holdings. Buffett focuses on acquiring low-cost companies and increasing shareholder wealth. He was trained by Benjamin Graham and seeks undervalued stocks. While the PacifiCorp acquisition offers lower annual returns than Buffett prefers, it fits Berkshire's strategy of investing in stable, profitable industries like utilities to achieve long-term growth. The all-cash purchase price of $9.4 billion reflected PacifiCorp's current market value.
Jet Airways, once India's second largest airline, suspended all flight operations in April 2019 due to financial problems. It had been struggling for years due to factors such as costly acquisitions, failure to adapt to budget carriers, poor management, fluctuating oil prices, and inability to attract new investors. Jet's losses increased as it took on more debt and failed to address its deteriorating financial situation. After three consecutive quarterly losses, Jet was unable to pay staff salaries and lessors began repossessing aircraft, leaving the airline no choice but to suspend operations.
This document provides an overview of bond evaluation. It defines key bond terms like coupon rate, face value, maturity date, and yield to maturity. It explains how to calculate current yield, spot interest rate, and bond price. Bond risks discussed are default risk and interest rate risk. The document contains examples of how to value a bond and calculate its yield.
The document discusses the spot market for foreign exchange. It provides the following key points:
- The spot market facilitates immediate delivery of currencies, primarily between large banks, with approximately $1.4-1.6 trillion traded daily globally.
- Market quotes include spot and forward rates from publications like the WSJ currency table, using direct and indirect quotes.
- Currencies are considered to appreciate if they gain value against another currency and depreciate if they lose value. Real exchange rates account for relative price changes between countries.
- Bid-ask spreads and cross-rates help determine the costs of transactions and consistency between currency values. Arbitrage ensures cross-rates remain consistent.
This presentation describes the journey of Louis Vuitton in Japan. It highlights the strategies adopted by Louis Vuitton to beat the competition in the fiercely competitive luxury market of Japan
NAFTA was signed in 1993 by the US, Canada, and Mexico to create a free trade area and eliminate tariffs between the countries. It aimed to promote competition, protect property rights, and resolve disputes to strengthen economic cooperation. Most economists agree it benefited the countries by increasing trade and profits, though some argue it led to more US job losses than gains as companies moved factories to Mexico to take advantage of lower wages.
What's Your Employee Ownership Quotient?powerservice
The document discusses strategies for boosting employee "ownership quotient" or "OQ" at organizations. It outlines that employee owners exhibit enthusiasm that infects customers with satisfaction and loyalty. Customer owners in turn promote the organization to others. The document then discusses strategies for inspiring ownership, including selection of employees who fit the culture, onboarding to connect employees to the organization's purpose, coaching and empowering employees, engaging employees in meaningful work and recognition. It concludes by recommending managers try strategies discussed to boost employee ownership.
This document discusses United Airlines commissioning design firm Saul Bass & Associates in the 1970s to develop a new corporate identity program. At the time, United was facing financial troubles and an unclear public image following decades of acquisitions. CEO Edward Carlson initiated reorganization to address internal weaknesses and commissioned Saul Bass, known for innovative design, to help the public clearly perceive United's true personality. The goal was to attract more family vacation travelers and reverse industry trends, coherently signaling United's new partnership with Western Hotels. Saul Bass was renowned for symbolizing companies through careful single images, and United hoped this identity program would unify its fragmented image.
The World Bank is an internationally supported bank that provides financial and technical assistance to developing countries for programs to reduce poverty such as infrastructure projects. It is governed by a board of executive directors representing member countries. The United States has veto power due to its large financial contributions. The World Bank funds projects in various sectors and faces criticism for promoting Western interests. The IMF was created in 1944 to stabilize exchange rates and assist in reconstructing international payments after World War II. It is governed by a board and managing director. The IMF aims to facilitate global monetary cooperation and secure financial stability.
The IMF is an organization of 186 countries that works to foster global monetary cooperation and secure financial stability. It provides policy advice and financing to help countries achieve macroeconomic stability. The IMF tracks global economic trends, warns of potential problems, and shares expertise to help countries address economic difficulties. It supports members through policy advice, research, loans, and technical assistance. The IMF aims to ensure the stability of the international monetary system and help members promote growth and alleviate poverty.
The document provides information about the World Bank, including its objectives, organization, and subsidiaries. It discusses the formation of the World Bank at Bretton Woods in 1944 to aid post-war reconstruction. The main subdivisions of the World Bank are described: the International Bank for Reconstruction and Development (IBRD), International Development Association (IDA), International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), and International Centre for Settlement of Investment Disputes (ICSID). Details are given about the purpose and functions of each organization.
1. The 2008 financial crisis was caused by the bursting of the housing bubble in the U.S., also known as the subprime mortgage crisis.
2. Subprime lending involves giving loans to borrowers who may have difficulty maintaining repayments, and are characterized by higher interest rates and poorer terms.
3. The crisis occurred due to a relaxation in lending regulations, poor creditworthiness of borrowers, rising housing prices, and borrowers' inability to pay their mortgages, leading to failures of major banks and financial institutions.
The General Agreement on Tariffs and Trade (GATT) was a multilateral trade agreement regulating international trade from 1948 to 1995. In 1994, 123 nations signed the Uruguay Round Agreements establishing the World Trade Organization (WTO) to replace GATT and incorporate GATT, as well as new agreements on trade in services and intellectual property, into a single organization governing international trade. The WTO commenced January 1, 1995, providing a permanent framework for negotiating trade agreements and resolving disputes.
Tata Sons, an Indian conglomerate, acquired Air India from the Government of India for Rs 18,000 crore. As part of the acquisition, Tata Sons will take over Air India's entire debt of Rs 61,562 crore, of which Rs 15,300 crore will be transferred to Tata Sons, while the remaining Rs 46,262 crore will be transferred to the Government. The acquisition will allow Tata Sons to gain control of Air India and its subsidiaries, providing an opportunity to revitalize the struggling national carrier.
The Bretton Woods system established in 1944 aimed to govern international monetary and exchange rate regulations through institutions like the IMF and World Bank. It intended to set a fixed exchange rate between currencies pegged to the U.S. dollar, which was pegged to gold. This was expected to promote international cooperation and financial stability. However, the system broke down in the 1970s as countries could no longer maintain the required exchange rate adjustments due to large balance of payments crises, replacing it with floating exchange rates.
The International Monetary Fund (IMF) & The World Bank GroupAbdul Basit Adeel
This document provides an overview of the International Monetary Fund (IMF) and the World Bank. It discusses their establishment, goals, organizational structures, functions, enforcement mechanisms, and provides a case study on Argentina. The IMF aims to maintain global monetary stability by providing short-term loans to address balance of payment issues. The World Bank provides long-term loans for poverty alleviation and development projects. Both institutions have faced criticism for undermining state sovereignty and representing global economic inequalities.
This document provides an overview of the rise and fall of Jet Airways, one of India's largest airlines. It discusses how Jet Airways was founded in 1991 and grew to become the largest airline in India by 2010, capturing a 22.6% market share. However, Jet Airways then began facing financial troubles as newer budget carriers like IndiGo captured market share. Jet Airways took on significant debt to try and compete but ultimately filed for bankruptcy in 2019 after years of losses. The document examines some of the key reasons for Jet Airways' failure, including high costs from purchasing Air Sahara, underestimating budget carriers, fluctuating fuel prices, and failure to attract new investors or reduce costs under the leadership
Professor Alejandro Diaz-Bautista, Economic Policy, Debt Crisis PresentationEconomist
The document discusses the Latin American debt crisis of the 1980s. It provides background on how Latin American countries took on large debts in the 1970s for development projects. This led their debt levels to quadruple between 1975 and 1983, exceeding their ability to repay. The crisis began in 1982 when Mexico declared it could no longer service its debt, spurring other Latin American countries to face debt repayment issues. Countries had to adopt austerity measures and shift to export-oriented economies over import substitution to address the crisis.
The document discusses key components of the balance of payments including the current account, capital account, and financial account. It explains factors that influence international flows of funds such as economic conditions, government restrictions, exchange rates, and inflation rates in countries. It also summarizes several international organizations that facilitate global trade and financial flows, such as the IMF, World Bank, WTO, and regional development agencies.
- The document is a test bank containing questions pertaining to derivatives.
- Questions follow a numbering system indicating the chapter and question number.
- Quiz and exam questions will be similar in style to those found in the test bank.
- By default, interest rates and dividend yields are assumed to be quoted on a per annum and continuously compounded basis.
Warren Buffett, CEO of Berkshire Hathaway, acquired PacifiCorp, a Western US energy company, through Berkshire's subsidiary MidAmerica Energy Holdings. Buffett focuses on acquiring low-cost companies and increasing shareholder wealth. He was trained by Benjamin Graham and seeks undervalued stocks. While the PacifiCorp acquisition offers lower annual returns than Buffett prefers, it fits Berkshire's strategy of investing in stable, profitable industries like utilities to achieve long-term growth. The all-cash purchase price of $9.4 billion reflected PacifiCorp's current market value.
Jet Airways, once India's second largest airline, suspended all flight operations in April 2019 due to financial problems. It had been struggling for years due to factors such as costly acquisitions, failure to adapt to budget carriers, poor management, fluctuating oil prices, and inability to attract new investors. Jet's losses increased as it took on more debt and failed to address its deteriorating financial situation. After three consecutive quarterly losses, Jet was unable to pay staff salaries and lessors began repossessing aircraft, leaving the airline no choice but to suspend operations.
This document provides an overview of bond evaluation. It defines key bond terms like coupon rate, face value, maturity date, and yield to maturity. It explains how to calculate current yield, spot interest rate, and bond price. Bond risks discussed are default risk and interest rate risk. The document contains examples of how to value a bond and calculate its yield.
The document discusses the spot market for foreign exchange. It provides the following key points:
- The spot market facilitates immediate delivery of currencies, primarily between large banks, with approximately $1.4-1.6 trillion traded daily globally.
- Market quotes include spot and forward rates from publications like the WSJ currency table, using direct and indirect quotes.
- Currencies are considered to appreciate if they gain value against another currency and depreciate if they lose value. Real exchange rates account for relative price changes between countries.
- Bid-ask spreads and cross-rates help determine the costs of transactions and consistency between currency values. Arbitrage ensures cross-rates remain consistent.
This presentation describes the journey of Louis Vuitton in Japan. It highlights the strategies adopted by Louis Vuitton to beat the competition in the fiercely competitive luxury market of Japan
NAFTA was signed in 1993 by the US, Canada, and Mexico to create a free trade area and eliminate tariffs between the countries. It aimed to promote competition, protect property rights, and resolve disputes to strengthen economic cooperation. Most economists agree it benefited the countries by increasing trade and profits, though some argue it led to more US job losses than gains as companies moved factories to Mexico to take advantage of lower wages.
What's Your Employee Ownership Quotient?powerservice
The document discusses strategies for boosting employee "ownership quotient" or "OQ" at organizations. It outlines that employee owners exhibit enthusiasm that infects customers with satisfaction and loyalty. Customer owners in turn promote the organization to others. The document then discusses strategies for inspiring ownership, including selection of employees who fit the culture, onboarding to connect employees to the organization's purpose, coaching and empowering employees, engaging employees in meaningful work and recognition. It concludes by recommending managers try strategies discussed to boost employee ownership.
This document discusses United Airlines commissioning design firm Saul Bass & Associates in the 1970s to develop a new corporate identity program. At the time, United was facing financial troubles and an unclear public image following decades of acquisitions. CEO Edward Carlson initiated reorganization to address internal weaknesses and commissioned Saul Bass, known for innovative design, to help the public clearly perceive United's true personality. The goal was to attract more family vacation travelers and reverse industry trends, coherently signaling United's new partnership with Western Hotels. Saul Bass was renowned for symbolizing companies through careful single images, and United hoped this identity program would unify its fragmented image.
The document discusses layoffs, which refer to the temporary or permanent termination of employment for business reasons like positions being eliminated or a slowdown. Layoffs focus on positions, not individuals. They are used to cut costs due to lack of funds, lack of work, organizational changes, or economic slowdowns. Employers should inform staff why layoffs are necessary to avoid panic, consider seniority, exceptions for special skills, and provide severance packages. Alternatives to layoffs mentioned include leave without pay, employee shuffling between departments, enhanced severance packages, moving to a four-day workweek, and seeking voluntary resignations.
This presentation provides an overview of the change management work completed in support of United Business Transformmation Office. I served as the BTO\'s change communications lead for all operational changes.
United Airlines faced significant financial challenges in 2008, posting a record loss of $5.3 billion. The summary analyzes United's external environment, including increased competition from low-cost carriers and volatility in fuel prices. Internally, United had strengths in its operational network and employee productivity, but also had weaknesses in its financial performance and reliance on third-party providers. Strategic options discussed include pursuing a merger to achieve scale advantages and reducing costs through fleet harmonization.
American Airlines Business Model Analysis PresentationBrandon Thomson
The document analyzes American Airlines' business model by evaluating its value proposition, target customer segment, competitors, value chain and costs, revenue model, and critical success factors. It finds that American Airlines' value proposition includes its vast flight network and loyalty program, but it has struggled financially in recent years. However, a merger with U.S. Airways was finalized in December 2013 and aimed to make the combined company the largest airline in the world by addressing American Airlines' financial challenges.
In the first module I choose to discuss the airline industry.docxjaggernaoma
In the first module I choose to discuss the airline industry. This has been something that I am passionate about as well as have studied for the last 5 years. Using firsthand experience, management guidance and research on the web, I will continue this paper for the external environmental scan. As a potential future leader of the company, it is important to evaluate many factors of business to remain successful. Economic, geographical, technological, social, and political trends are all a concern when a leader of a successful business. This will be imperative to profiting from an industry that already has very low profit margins. Let’s get started.
First we are going to look at the current economic trends of the airlines as a whole. Reading the last document, we have established that the airlines are the first to show recession and the last the recover. Since the tragic day of September 11th the economic factors of the airlines has decided. Since then the aviation market has returned to a profitable business. There has been a 20% increase in domestic flight traffic since 2010. With over 87,000 flights a day air travel is the way to go. Although less than half of those fights are commercial, that equates to 1.73 million passengers a day. The economic trends have continued to claim and over the next 5 years aviation is projected an additional 27% increase. (Notis, 2015)
Political factors affect every profession. In the airlines it has been a problem. The biggest political issue that is facing the airlines today is Federal Aviation Regulation. In 2009 Colgan Air 3407 crashed killing all 50 people on board. The National Transportation Safety Board released a statement stated that it was pilot error due to inexperience. The FAA then changed pilot regulation from pilots needing 495 Hours of total flight time to 1500 hours to get in entry level position in the airlines. This has created a problem because 4 year graduating pilots only have about 300 hours. Every position requires more hours which makes it difficult for young pilots to join the airlines. With an increase in air travel and decrease in pilots due t regulation it has created a pilot shortage. Since September 11th there as been a further decrease in pilots as they were furloughed and found other positions. With changing politics and pilots from dessert storm ready to retire, political trends have created a major shortage over the next 5 years.
Currently regulation and political factors drive part of the societal trends. Do to the recession and change in regulation. There have been political changes. Due to low profit margins the attacks on the twin towers put commercial aviation into a tailspin. Not only has that but more recently, the Malaysia Airlines effected how people see air travel. Airlines have been merging to stay profitable and it really takes a huge toll of customer relations. The top 5 U.S. carriers are under the top 40 and the world. This is because most of the U.S. carrie.
OUTLINETOPIC ANIMAL TESTING ARGUMENT CON AGAINST You w.docxkarlhennesey
OUTLINE
TOPIC : ANIMAL TESTING
ARGUMENT: CON/ AGAINST
You will use library databases to research your side of the argument. You will then create an outline of your argument of the controversial topic ANIMAL TESTING.
1. Find two to four resources from the library that supports your argument. (CON/AGAINST ARGUMENT )
2. Construct an outline of the main points important to your side of the controversy.
3. Your outline must include a reference page in correct APA format.
Term Project
Comparative Financial Statement Analysis of Spirit Airlines and Jet Blue, 2015-2017
ACC 770- Managerial Accounting
I. Introduction
II. Business History and Future
a. Industry
b. Spirit Airline
c. JetBlue
III. Financial Analysis
a. Ratio analysis explanation
i. Liquidity ratios
ii. Activity Ratio
iii. Solvency Ratio
iv. Profitability Ratio
b. Horizontal and Vertical Analysis
i. Overview
ii. Complementary application
IV. Liquidity Analysis
a. Industry
b. Spirit Airlines
c. JetBlue
V. Activity Analysis
a. Industry
b. Spirit Airlines
c. JetBlue
VI. Solvency Analysis
a. Industry
b. Spirit Airlines
c. JetBlue
VII. Profitability Analysis
a. Industry
b. Spirit Airlines
c. JetBlue
VIII. Horizontal and Vertical Analysis
IX. Comparative Analysis
a. Creditworthiness analysis
i. Short-term
ii. Long-term
b. Investment attractiveness
c. Recommendations
X. Summary and conclusions
XI. References/ Bibliography
XI. Appendices
Introduction:The report is the partial requirement of Managerial Accounting course. The objective is analyzing and comparing two companies of same industry for the purpose of forming sensible decision bases on financial statements, historical data and market news about its standing.The report has analyzed and compared Spirit airline and JetBlue Airline. The scope of the report is to see the trends of industry thereby, analyze companies position in terms of industry. Moreover, past analysis also provide an assistance in forming recommendations and insight of the particular company.The methodology of entire report is mainly on ratio calculations and its interpretations. Then it provides brief summary of evaluating short term and long term creditworthiness along with the investment attractiveness.The future of airline industry is slightly unpredictable for the perspective of investment, because demand for air tickets is increasing but demand for stocks has decreased overtime. Business History, Overview and FutureIndustry History and Overview:
Since the birth of flight in 1903, air travel has emerged as a crucial means of transportation for people, products and animals. The hundred-plus years following the invention of the first aircraft have brought about a revolution in the way people travel. The airline business is a major industry, relied upon by millions not only for transportation but also as a way of making a living.
In early years, flying was considered a risk endeavor. In 1925, a development of an act “Air Mail ...
OUTLINETOPIC ANIMAL TESTING ARGUMENT CON AGAINST You w.docxaman341480
OUTLINE
TOPIC : ANIMAL TESTING
ARGUMENT: CON/ AGAINST
You will use library databases to research your side of the argument. You will then create an outline of your argument of the controversial topic ANIMAL TESTING.
1. Find two to four resources from the library that supports your argument. (CON/AGAINST ARGUMENT )
2. Construct an outline of the main points important to your side of the controversy.
3. Your outline must include a reference page in correct APA format.
Term Project
Comparative Financial Statement Analysis of Spirit Airlines and Jet Blue, 2015-2017
ACC 770- Managerial Accounting
I. Introduction
II. Business History and Future
a. Industry
b. Spirit Airline
c. JetBlue
III. Financial Analysis
a. Ratio analysis explanation
i. Liquidity ratios
ii. Activity Ratio
iii. Solvency Ratio
iv. Profitability Ratio
b. Horizontal and Vertical Analysis
i. Overview
ii. Complementary application
IV. Liquidity Analysis
a. Industry
b. Spirit Airlines
c. JetBlue
V. Activity Analysis
a. Industry
b. Spirit Airlines
c. JetBlue
VI. Solvency Analysis
a. Industry
b. Spirit Airlines
c. JetBlue
VII. Profitability Analysis
a. Industry
b. Spirit Airlines
c. JetBlue
VIII. Horizontal and Vertical Analysis
IX. Comparative Analysis
a. Creditworthiness analysis
i. Short-term
ii. Long-term
b. Investment attractiveness
c. Recommendations
X. Summary and conclusions
XI. References/ Bibliography
XI. Appendices
Introduction:The report is the partial requirement of Managerial Accounting course. The objective is analyzing and comparing two companies of same industry for the purpose of forming sensible decision bases on financial statements, historical data and market news about its standing.The report has analyzed and compared Spirit airline and JetBlue Airline. The scope of the report is to see the trends of industry thereby, analyze companies position in terms of industry. Moreover, past analysis also provide an assistance in forming recommendations and insight of the particular company.The methodology of entire report is mainly on ratio calculations and its interpretations. Then it provides brief summary of evaluating short term and long term creditworthiness along with the investment attractiveness.The future of airline industry is slightly unpredictable for the perspective of investment, because demand for air tickets is increasing but demand for stocks has decreased overtime. Business History, Overview and FutureIndustry History and Overview:
Since the birth of flight in 1903, air travel has emerged as a crucial means of transportation for people, products and animals. The hundred-plus years following the invention of the first aircraft have brought about a revolution in the way people travel. The airline business is a major industry, relied upon by millions not only for transportation but also as a way of making a living.
In early years, flying was considered a risk endeavor. In 1925, a development of an act “Air Mail .
A Study on Aviation Industry (InterGlobe Aviation Ltd & Spicejet Ltd)Anant Kumar Behera
This document is a project report on a study of the aviation industry in India, focusing on InterGlobe Aviation Ltd and SpiceJet Ltd. It includes an overview of the global and Indian aviation industries, profiles of the two companies, data analysis and interpretation of their performance, and conclusions and recommendations from the study.
This document provides an overview of American Airlines and discusses various forms of government intervention the airline faces in operating internationally. It begins with a brief history of American Airlines and its growth into an international carrier. It then examines deregulation in 1978 that reduced government control over pricing and competition. It also discusses international open skies agreements and post-9/11 security interventions like the TSA. Specific issues American Airlines faces related to government intervention are airport security rules, overflight fees, emissions regulations, and volatile fuel prices. The airline must balance safety, profitability and environmental goals with complying with changing regulations.
This paper will illustrate the issue of bankruptcy that bombarded the Delta Airlines in description of the situation and how it came to take place and how it affected the economy globally, will be discussed in the paper. So visit here http://www.mbadissertation.org/sample-paper-on-organizational-behaviour/
Capstone Experience in Integration & Strategy B6028-T A02 M2 A.docxwendolynhalbert
Capstone Experience in Integration & Strategy | B6028-T A02 | M2 A2 | Eric Speechley
In the first module I choose to discuss the airline industry. This has been something that I am passionate about as well as have studied for the last 5 years. Using firsthand experience, management guidance and research on the web, I will continue this paper for the external environmental scan. As a potential future leader of the company, it is important to evaluate many factors of business to remain successful. Economic, geographical, technological, social, and political trends are all a concern when a leader of a successful business. This will be imperative to profiting from an industry that already has very low profit margins. Let’s get started.
First we are going to look at the current economic trends of the airlines as a whole. Reading the last document, we have established that the airlines are the first to show recession and the last the recover. Since the tragic day of September 11th the economic factors of the airlines has decided. Since then the aviation market has returned to a profitable business. There has been a 20% increase in domestic flight traffic since 2010. With over 87,000 flights a day air travel is the way to go. Although less than half of those fights are commercial, that equates to 1.73 million passengers a day. The economic trends have continued to claim and over the next 5 years aviation is projected an additional 27% increase. (Notis, 2015)
Political factors affect every profession. In the airlines it has been a problem. The biggest political issue that is facing the airlines today is Federal Aviation Regulation. In 2009 Colgan Air 3407 crashed killing all 50 people on board. The National Transportation Safety Board released a statement stated that it was pilot error due to inexperience. The FAA then changed pilot regulation from pilots needing 495 Hours of total flight time to 1500 hours to get in entry level position in the airlines. This has created a problem because 4 year graduating pilots only have about 300 hours. Every position requires more hours which makes it difficult for young pilots to join the airlines. With an increase in air travel and decrease in pilots due t regulation it has created a pilot shortage. Since September 11th there as been a further decrease in pilots as they were furloughed and found other positions. With changing politics and pilots from dessert storm ready to retire, political trends have created a major shortage over the next 5 years.
Currently regulation and political factors drive part of the societal trends. Do to the recession and change in regulation. There have been political changes. Due to low profit margins the attacks on the twin towers put commercial aviation into a tailspin. Not only has that but more recently, the Malaysia Airlines effected how people see air travel. Airlines have been merging to stay profitable and it really takes a huge toll of customer relations. The top 5 U.S. ...
Term ProjectComparative Financial Statement Analysis of Spir.docxbradburgess22840
Term Project
Comparative Financial Statement Analysis of Spirit Airlines and Jet Blue, 2015-2017
ACC 770- Managerial Accounting
I. Introduction
II. Business History and Future
a. Industry
b. Spirit Airline
c. JetBlue
III. Financial Analysis
a. Ratio analysis explanation
i. Liquidity ratios
ii. Activity Ratio
iii. Solvency Ratio
iv. Profitability Ratio
b. Horizontal and Vertical Analysis
i. Overview
ii. Complementary application
IV. Liquidity Analysis
a. Industry
b. Spirit Airlines
c. JetBlue
V. Activity Analysis
a. Industry
b. Spirit Airlines
c. JetBlue
VI. Solvency Analysis
a. Industry
b. Spirit Airlines
c. JetBlue
VII. Profitability Analysis
a. Industry
b. Spirit Airlines
c. JetBlue
VIII. Horizontal and Vertical Analysis
IX. Comparative Analysis
a. Creditworthiness analysis
i. Short-term
ii. Long-term
b. Investment attractiveness
c. Recommendations
X. Summary and conclusions
XI. References/ Bibliography
XI. Appendices
Introduction:The report is the partial requirement of Managerial Accounting course. The objective is analyzing and comparing two companies of same industry for the purpose of forming sensible decision bases on financial statements, historical data and market news about its standing.The report has analyzed and compared Spirit airline and JetBlue Airline. The scope of the report is to see the trends of industry thereby, analyze companies position in terms of industry. Moreover, past analysis also provide an assistance in forming recommendations and insight of the particular company.The methodology of entire report is mainly on ratio calculations and its interpretations. Then it provides brief summary of evaluating short term and long term creditworthiness along with the investment attractiveness.The future of airline industry is slightly unpredictable for the perspective of investment, because demand for air tickets is increasing but demand for stocks has decreased overtime. Business History, Overview and FutureIndustry History and Overview:
Since the birth of flight in 1903, air travel has emerged as a crucial means of transportation for people, products and animals. The hundred-plus years following the invention of the first aircraft have brought about a revolution in the way people travel. The airline business is a major industry, relied upon by millions not only for transportation but also as a way of making a living.
In early years, flying was considered a risk endeavor. In 1925, a development of an act “Air Mail Act” bring much revolution in airline industry by allowing the postmaster to contract with private airlines to deliver mail. Shortly thereafter, the Air Commerce Act gave the Secretary of Commerce power to establish airways, certify aircraft, license pilots, and issue and enforce air traffic regulations. The first commercial airlines included Pan American, Western Air Express and Ford Transport Service. Within 10 years, many modern-day airlines, had emerged as major players.
In 1938, Civi.
This document provides a strategic analysis of American Airlines. It discusses the company's decline due to factors like rising fuel costs, economic downturns, and terrorist attacks. Currently, American Airlines faces high labor costs and competition from low-cost carriers.
The document analyzes American Airlines using Porter's Five Forces, PEST analysis, and a SWOT analysis. It identifies addressing high labor costs and pursuing strategic alliances as potential strategic options. Specifically, it recommends reducing labor costs through negotiations and maintaining outsourcing. It also suggests partnering with low-cost carriers to feed more international travel. Overall, the document strategizes how American Airlines can improve its competitive position in the airline industry.
British Airways is the largest international airline in the world based in London. It was formed through the merger of multiple smaller airlines starting in the early 20th century. British Airways' earliest predecessor was founded in 1916 and inaugurated the world's first international air service in 1919. Through further mergers and reorganizations, British Overseas Airways Corporation (BOAC) was formed in 1939. BOAC served as Britain's national carrier for overseas routes.
STANFORD GRADUATE SCHOOL OF BUSINESS JETBLUE AIRWAYS .docxwhitneyleman54422
- An ice storm in February 2007 severely disrupted JetBlue's operations at JFK airport, cancelling 261 flights and costing $41 million. This was in stark contrast to their handling of a similar storm in 2010, where they cancelled flights early and resumed operations smoothly.
- JetBlue underwent a company-wide effort called "IROP Integrity" to transform how they addressed disruptive events. This involved over 200 employees across all departments and resulted in a dramatic turnaround in their ability to manage irregular operations.
- JetBlue was founded in 1999 and grew rapidly, but suffered losses in 2005 due to high fuel costs. They implemented cost cutting and profitability measures while striving to maintain excellent customer service and employee culture
STANFORD GRADUATE SCHOOL OF BUSINESS JETBLUE AIRWAYS .docx
Analysis United Airlines
1. United Airlines 1
Embry-Riddle Aeronautical University
AS 402 – Airline Operations
April 7, 2016
Group J
Produced By: Psotta, Whittmore
2. United Airlines 2
Contents
Abstract.............................................................................................................................................3
History...............................................................................................................................................4
Headquarters & Mergers.....................................................................................................................5
Fleet..................................................................................................................................................7
Current Headlines...............................................................................................................................8
Financial Performance ........................................................................................................................9
Recent Progress..................................................................................................................................9
New Strategy for Profit.....................................................................................................................10
Profit Numbers.................................................................................................................................11
Bankruptcy History...........................................................................................................................12
United Airlines Domestic Route Structure Map...................................................................................13
Code Sharing....................................................................................................................................22
Accidents and Incidents....................................................................................................................23
United Airlines Marketing .................................................................................................................24
United Airlines Logo History..............................................................................................................25
United Livery History ........................................................................................................................28
1974-1993 "Tulip".........................................................................................................................29
2004-2010 "Rising Blue"................................................................................................................30
2010 - Present "Globe"..................................................................................................................31
United Frequent Flyer Program .........................................................................................................32
Classes of Tickets..............................................................................................................................33
United Salaries .................................................................................................................................34
Code Sharing....................................................................................................................................39
Daily International Flights..................................................................................................................39
Passengers per Year..........................................................................................................................39
Global Alliance Partnership ...............................................................................................................41
United Airlines Cargo Operations.......................................................................................................42
International Cargo...........................................................................................................................43
Conclusion .......................................................................................................................................44
Sources............................................................................................................................................45
3. United Airlines 3
Abstract
United Airlines has come a long way from its humble beginning in 1937. It is an
airline embodied with rich history and considered one of the most successful airlines to
date. Like many other airlines, United has gone through arduous changes due to the
ebbs and flows of the economy. However, United has persevered by adapting to the
ever changing oligopoly that exists in the industry today. With both domestic and
international segments, United offers quality services which has contributed to their
success as one of the best legacy carriers to do business with today.
4. United Airlines 4
Statement of Purpose: This paper presents findings and analysis of United Airlines
ranging from inception to fiscal year 2016. Key topics include company history, logos,
livery, financial performance, key mergers, United’s fleet, domestic and international
statistics, code sharing relationships, marketing segments and United’s frequent flyer
program.
History
United Airlines Inc. was first officially formed in 1937 when it became
independent from Boeing Airplane Co. Boeing Airplane Co. was formed to fly mail
routes and commercial services between Chicago and San Francisco in 1927. In 1948
UAL, based in Chicago, established its Denver hub. In 1961 UAL merged with Capital
Airlines which made UAL the world’s largest airline. In the 1980’s UAL added rental car
and hotel chains to its holdings, changing its name to Allegis. A group of investors and
pilots forced Allegis to sell its non-airline businesses and change their name back to
UAL in 1987. In 1991-1993 UAL lost a total of $1.3 billion over three years due to an
economic recession and the Persian Gulf War which ended up cutting demand and
increasing fuel prices. In 1994 the airline’s pilots, mechanics, and other ground workers
created an employee stock-ownership plan (ESOP) because they faced a threat to their
jobs. This turned UAL into the world’s largest employee-owned company. In May 2000,
UAL announced plans to merge with US Airways however United abandoned the
merger in July 2001. This caused UAL to lose $865 million in 12 months due to
insurmountable government antitrust opposition (Reference #1).
5. United Airlines 5
Due to the crashing airline business caused by the 9/11 attacks, UAL ended up
laying off 1,500 employees, cutting 9,000 jobs, eliminating six percent of its 1,800 daily
flights, retiring 49 aircraft, and delaying the purchase of at least 25 others between
October 2002 and November 2002. In December of 2002, the government rejected
UAL’s request for $1.8 billion loan guarantee. All of these events pushed UAL over the
edge and caused them to file for bankruptcy in December 2002. In 2004 UAL launched
a low-cost carrier named Ted from Denver in order to compete with Frontier Airlines.
Headquarters & Mergers
Currently United Airlines Inc. is a major airline with their headquarters in Chicago.
With many carriers finding new ways to diversify, United Airlines, in late 2015, decided
to cut its daily service from Newark to Bermuda due to the slower demand during the
winter months. All of this contributed to strategic management plans to maximize
revenues. In an interview with Aaron Adderley, who is the airport manager at Bermuda
International Airport, he stated only 50-60 percent of seats were being filled to this
destination from Newark (Reference #2). This low percentage deemed not profitable
which is why United made the decision to adjust its winter destination schedule
accordingly. It is also reported United burned through three CEO’s in the past five
months, to search for the newly founded strategy to compete with the market
(Reference #3). However the current CEO, Oscar Munoz, at the end of 2015, suffered
from a heart attack and is currently recovering. In January, Oscar Munoz sent out a
personally written letter to his United Employees updating the masses on his current
health status and provided his vision for the next monumental steps for the company.
He is quoted as saying the following…
6. United Airlines 6
As I thought about my return, I gave careful consideration to what greater things
we can do together, and that has spurred my recovery. We've made a lot of
positive changes these past few months thanks to your efforts. Take pride in
these accomplishments and our success. Remember, even better days lie ahead
if we stay focused on consistently earning our customer's' trust. Keep up the
great work, and I look forward to seeing you soon. (Reference #4).
Brent Bowen, the Dean of the College of Aviation at Embry-Riddle Aeronautical
University located in Prescott, Arizona was interviewed and asked what United is doing
wrong. He simply stated that the carrier is not listening to is customer base and
identifying their key travel destinations. A recent passenger also stated, by his
perception, United is seemingly “tone-deaf” to its customers (Reference #3).
Amidst all these negatives, not all is bad as the merger has proved complicated
for United. Sorting through the old model and incorporating the new changes to adapt to
the merger is still being dealt with today. However, record profits are soaring to an all-
time high. Tweaking smaller aspects of their current management plan is going to prove
to be the key to success for the carrier.
8. United Airlines 8
The United Express Branch Fleet
(Reference #5)
Current Headlines
United’s average annual revenue is 38.9 billion dollars. The best financial year
for UAL was in 2015. In the first two quarters United Airlines was showing the best
profits in the history of the company. In the first quarter of 2015, UAL made a net profit
of 509 million dollars and in the second quarter they made a net profit of 1.2 billion
dollars. The worst financial year for UAL was in 2008. The cause for this was due to the
recession caused by the World Trade Center attacks on the United States. United
9. United Airlines 9
reported negative profits in all four quarters of 2008, losing up to a total of 3.8 billion
dollars.
Financial Performance
UAL’s financial performance from 2007 to 2014 is as follows:
● Made $349 million in 2007
● Lost $3.8 billion in 2008
● Lost $628 million in 2009
● Made $401 million in 2010
● Made $282 million in 2011
● Lost $661 million in 2012
● Made $654 million in 2013
● Made $424 million in 2014 (Reference #10)
Recent Progress
Most of the airlines are mutually dependent of one another. After surviving the
recession of 2008 and the attacks on the World Trade Centers, United as well as every
other carrier recovered. United has made some recent changes which greatly increased
their survivability. Despite struggles, United Airlines was not the only one affected by the
recession. Many other airlines were feeling the ripple effect and United was making
measurable strides to stay in business.
One of the most recent changes United made in late 2015 was shifting
operations from JFK international airport to Newark. This was not an easy task,
10. United Airlines 10
however, as many other carriers were reluctant to allow United a bigger footprint in
Newark. United Airlines in late 2015 had 70% seat share at Newark. Other carriers
wanting to capitalize on Newark were concerned about a greater footprint which already
existed from United Airlines. United strategically made this negotiation, giving up their
position in transcontinental flights to other carriers located in San Francisco and Los
Angeles (Reference #24). This was a great move as United could then strategically
have the biggest footprint in Newark. Delta Airlines, who bought their tarmac spots from
United, was hoping to increase their footprint in JFK as they operated one of the larger
operations there. For both carriers it was a relatively easy decision. In addition, JFK is
very costly for carriers. It is not surprising to see UAL retreat to a more profitable area.
JFK already had 270 United employees with no return on their investment for many
years. Catering and staffing the United Club lounge for the premium passengers with
such few flights proved to be not profitable (Reference #23).
New Strategy for Profit
The partnership created with Middle Eastern carriers such as Emirates, Etihad,
and Qatar had proved a negative impact for international bookings from domestic
carriers. The partnership for open and fair skies, a coalition that included United
Airlines, American Airlines, Delta Airlines, and a number of labor groups representing
airline workers, released a report expressing Middle East carriers were undercutting
domestic carriers in terms of profitability. The new data unveiled specifically examined
San Francisco, Orlando, and Chicago, where United is headquartered. The analysis
found an 8.8% drop in international bookings from the three U.S. airliners (Reference
11. United Airlines 11
#22). The analysis determined massively subsidized Gulf carriers such as Emirates and
Etihad were damaging the partnership.
As for United’s stance, they are allowing the partnership to do most of the work
and governmental intervention to make improvements to the situation. In terms of
middle-eastern carriers, much of the profits are not equal (Reference #26). Since the
Middle East airlines are threatening domestic airlines with their exceeding profits and
well-funded subsidies, it is making it very difficult for United Airlines to capitalize on
international markets. In time, we shall start to see an evening of this alliance and a
restructuring of the agreement initially proposed.
Profit Numbers
United Airlines reported a full-year net income of 4.5 billion dollars which equates
to 11.88 dollars per diluted share, excluding special items. Including special items, UAL
reported a full-year net income of 7.3 billion dollars. United Airlines also reported fourth-
quarter net income of 934 million dollars, or 2.54 dollars per diluted share, excluding
special items. Including special items, United Airlines reported fourth-quarter net income
of 823 million dollars. In 2016, United Airlines announced they reached an agreement to
acquire 40 new Boeing 737-700 aircraft which will enter the fleet beginning in the mid-
2017s. This will replace a portion of the capacity currently operated by regional
partners. Employees earned a record 698 million dollars in profit sharing for the full year
of 2015 (Reference #25). Chief Executive Officer of UAL was quoted as saying…
12. United Airlines 12
“We improved our operational performance, continue to invest in our products
and services and achieved record financial performance. We have great momentum as
we head into 2016 and are committed to continually earning the trust of our customers
and employees. I am proud of what we will accomplish together, running a reliable
airline in making the right investments to deliver shareholder value. We expect first
quarter pre-tax margin to be between eight to ten percent, excluding special items.”
(Reference #7)
Bankruptcy History
Since deregulation in 1978, it was reported that United Airlines had only filed
bankruptcy one time, which occurred in December 9th of 2002. Statistically this is much
better than many other carriers as some flourished in their attempt to file for bankruptcy
in an attempt to recover (Reference #8). US Airways has reportedly filed for bankruptcy
twice. The first time in August of 2002 and shortly thereafter in September of 2004.
Many other airlines after filing for bankruptcy, seceded to merges or went completely
out of business. United has not. ((Reference #27))
14. United Airlines 14
Chicago International Airport
United Airlines operates from seven hubs in the United States. Chicago O’Hare
International Airport in Chicago, Illinois is their busiest hub with nearly 550 daily flights
out of O’Hare. UAL operates more than 50 of these flights to 40 international
destinations and nearly 500 of these flights to 140 domestic destinations.
15. United Airlines 15
Houston International Airport
Houston George Bush Intercontinental Airport located in Houston, TX is United
Airlines’ second busiest hub with 539 daily flights out of Houston. UAL averages more
16. United Airlines 16
than 100 daily flights to 64 international destinations and approximately 430 daily flights
to more than 155 domestic locations out of Houston.
17. United Airlines 17
Newark International Airport
Newark Liberty International Airport located in Newark, NJ is United Airlines’ third
busiest hub with 400 daily flights out of Newark. UAL operates 79 of these flights to 73
international destinations and approximately 310 of these flights to 85 domestic
destinations.
18. United Airlines 18
Denver International Airport
Denver International Airport located in Denver, CO is United Airlines’ fourth
busiest hub with 367 daily flights out of Denver. UAL operates 17 of these flights to 15
international destinations and more than 350 of these flights to 125 domestic
destinations.
19. United Airlines 19
San Francisco International Airport
San Francisco International Airport located in San Francisco, CA is United
Airlines’ fifth busiest hub with 260 daily flights out of San Francisco. UAL operates 28 of
these flights to 22 international destinations and nearly 235 of these flights to 69
domestic destinations.
20. United Airlines 20
Washington Dulles International Airport
Washington Dulles International Airport located in Dulles, VA is United Airlines
sixth busiest hub with approximately 220 daily flights out of Dulles. UAL operates 31 of
these flights to 30 international destinations and 180 of these flights to 69 domestic
destinations.
21. United Airlines 21
Los Angeles International Airport
Los Angeles International Airport located in Los Angeles, CA is United Airlines
seventh busiest hub with 150 daily flights out of Los Angeles. UAL operates 12 of these
flights to 13 international destinations and 130 of these flights to 45 domestic
destinations (Reference #9)
22. United Airlines 22
Code Sharing
Amongst many airlines, most choose to participate in some type of commercial
code agreement to extend their products and services to many other carriers without the
added cost of operation. United is no exception. Below is a chart indicating the current
code sharing agreements United Airlines has with other carriers in the industry.
Approximately 70% of the awarded code sharing with other airlines is domestic.
However, the remaining 30% of the code sharing is international. In addition to this
being a great way to partner with other companies on an independent basis, the
intertwined nature creates a more stable industry amongst key carriers. United Airlines
has made many strides to attach itself to key carriers to include all of Nippon.
23. United Airlines 23
In terms of city pairs with other companies, the list is as follows for fiscal year 2016.
(Reference #28)
Accidents and Incidents
According to the Bureau of Aircraft Accidents Archives, United Airlines has had
66 total crashes since it became a national career in 1933. The most recent is the
terrorist attacks of September 11th 2001. A total 1,216 people have been killed since
inception. Statistically speaking, for the nature of how long United has been in
existence, those numbers are very low. Computing those casualty figures over 83 years
in business equates to only approximately 15 casualties each year. (Reference #29)
24. United Airlines 24
United Airlines Marketing
When discussing the oligopoly nature of the airline industry today, many carriers
are trying to differentiate themselves amongst their competition. However, in recent
years, United’s marketing strategy has lacked in comparison to Delta, Southwest, and
American Airlines. Competing for customer loyalty through many amenities on board is
one of the strategies United Airlines is incorporating to promote sales. In July of 2015
United launched “This is the Journey Campaign” nationwide on cable and local TV
stations located specifically in key markets such as Chicago, San Francisco, New York
City, and Houston (Reference #31)
One commercial, displayed many common amenities such as power charging
ports, Wi-Fi, roomier economy seating, and the United Mobile App. With the United
Mobile App, passengers have the ability to watch movies on their tablets, computers, or
smartphones while in transit to their destination using the United mobile app. Despite
the introduction of this newly founded strategy, it is pretty evident many other carriers
have been using these “bells and whistles” for quite some time.
Marketing Consulting Agency
United Airlines has reported to have utilized many consulting firms to increase
profitability and customer response. United hired a consulting company by the name of
Prophet. Prophet’s main business model is to grow businesses, transform customer
experiences, and build brand loyalty.
25. United Airlines 25
With United desperately attempting to differentiate themselves from their
competition, Prophet worked in collaboration with United to re- identify key points to
promote profitability. One of the key developments Prophet and United decided upon
was to adopt a unique service philosophy in which loyalty members and regular
customers would feel well respected, relaxed, and rewarded for choosing to do
business with United. After adopting these suggested marketing techniques, it was
reported in 2012, United surpassed American Airlines in terms percentage of Super
Elite customers. They also reported exceeding American and customer experience
reviews (Reference #30).
United Airlines Logo History
United Airlines was founded in Boise, Idaho in 1926 as Varney Air Lines – an air
mail service of Walter Varney who also founded Varney Speed Lines which later
became Continental Airlines. In 1927, Varney Air Lines was renamed Boeing Air
Transport after it was acquired by the aircraft manufacturer.
In 1933, United began operating the Boeing 247. This plane was the first mass
produced, all-metal construction to be utilized in the airline industry. It was also able to
fly transcontinental in 20 hours, which made it significantly faster than its earlier
predecessors.
26. United Airlines 26
United Airlines first logo included an outline of the U.S. map. Note: In the picture
below there is the use of the term “Air Lines” versus what the airline industry uses
today- “Airlines”:
After passage of the Air Mail Act in 1934, United became an independent
company again and their logo remained this way until 1939:
27. United Airlines 27
Through the 1930s and 1940s, the United Airlines logo took on the look of a
badge or shield. They also added the U.S. map to demonstrate coast to coast service
and later deleted it again:
In the mid-1950s through the 1960s, the shield theme held, but it was slanted:
In the 1970s, United’s logo took on the tulip shape. In addition, the ‘U’ shape
effect continued through 2010. I was here that the term “Airlines” became a single word:
28. United Airlines 28
In 2010, United acquired Continental Airlines in a merge. This was a strange
twist of fate considering both were started from the same guy, Walter Varney. The two
logos were merged as well (Reference #32)
United Livery History
1936-1973
While United didn't have a uniform livery until Saul Bass came in, they did generally
used a white livery with blue and red stripes. Notice that they have not yet adopted the
iconic tulip yet.
29. United Airlines 29
1974-1993 "Tulip"
In 1973, United commissioned Saul Bass creating the iconic tulip livery. While the
fuselage was kept similar, the colors of the stripes were switched to a simple blue and
red to a tricolor orange, red and blue. This was also the time they modernized their font.
30. United Airlines 30
2004-2010 "Rising Blue"
To reflect their emergence from bankruptcy, United debuted the "Rising Blue" livery with
a white upper fuselage and blue on the bottom which assisted in rebranding UAL’s
image.
31. United Airlines 31
2010 - Present "Globe"
After merging with Continental, United adopted the old Continental "Globe" livery to
reflect the image of how UCL was less a takeover and more a merger of two equal
brands. Slight irony in the fact that Continental doesn't exist anymore, but more planes
fly in its colors than ever before (Reference #32).
32. United Airlines 32
United Frequent Flyer Program
United Airlines’ frequent flyer program is coined MileagePlus. There are various
ways to earn miles. The most straightforward way to earn miles is to fly with United or
United Express. However, you can earn points flying with United’s other carrier
partners. In addition, customers may earn miles by staying at select hotels such as
Marriott, Hilton, IHG, and many more. The same goes with earning miles by renting cars
from Hertz, Dollar and Thrifty, or other ground transportation and parking partners.
Earning miles by traveling on Amtrak rail service is also possible.
Transferring / Donating Miles
UAL allows members of the MileagePlus program to buy, transfer, and donate
miles. If a customer is short on miles for an awarded trip or an upgrade, they can elect
to buy the extra miles they need, saving on the cost of travels.
Prices rates are as follows:
$35 / 1000 miles (Minimum purchase > 2000 miles)
Transfer 500 miles > 25,000 miles to another person
Transfer $7.50 / 500 miles (Plus $30 transaction fee)
Reinstatement program for expired miles > 18 months ($50 fee)
Purchase miles for as gift for another member
There are a few other ways to earn miles with the MileagePlus program as well
through various everyday activities. Members can earn miles with the MileagePlus Visa
Explorer card from Chase and other credit card partners. Rewards points are offered
33. United Airlines 33
through online shopping incentives which match dollar for dollar spending to
MileagePlus rewards. Lastly, you can earn miles through spending on home, auto, and
energy as well as business-related activities ((Reference #34).
Classes of Tickets
Classes of tickets are as follows in order of most expensive:
1. First Class
2. Business
3. Economy or Coach
Within these classes there are other various fare types based on what time
period the passenger purchased for the ticket and whether or not any upgraded
amenities were selected for additional cost. If customers are MileagePlus members, all
rewards will be accrued from the purchase. There are 17 different fare types for coach,
17 different fare types for business, and 4 different fare types for first class.
United Airlines has 82,000 employees as of 2015 (Reference #16). The
breakdown is as follows:
12,505 are pilots (Reference #14)
The pilots at United joined the Air Line Pilots Association in 1932
(Reference #15)
15,000 flight attendants are represented by the United Association of Flight
Attendants at United Airlines (Reference #17)
The current contract agreement between the Association of Flight Attendants-
CWA and United Airlines is for the years 2012-2016 (Reference #17)
34. United Airlines 34
There are 10,638 mechanics at United (Reference #19)
They are Represented by the Teamsters Airline Division (Reference #18)
United Salaries
Pilot salaries / statistics:
Starting Salaries: $48,026
Top Salaries: $206,229 (Reference #20)
Ratio to Aircraft: The pilot to aircraft ratio is 17:1
Amount hired per month: 50 pilots / month (Reference #14)
In 1995, United introduced an employee ownership program. During this year the
new ESOP owned 55% of the company. However, in 2000, the program was
disbanded. It is speculated the fall of the ESOP program can be traced back to
excessive union control (Reference #21). However, United has claimed to have good
relations with their employees. They are open to negotiations from several union groups
including ALPA, AFA, and Teamsters (Reference #15). United also has various
employee benefits available such as free travel, bonuses, and paid time off.
35. United Airlines 35
International Hubs
As previously mentioned United does not have a huge international presence
and maintains a relatively small footprint. Currently United Airlines has only 4
international hubs which are as follows:
Frankfurt, Germany
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Code Sharing
Excluding United operated hubs, United also has Star Alliance partners which
have locations in many other countries. With code sharing, United is able to have its
imprint in international markets with the less hassle of high operational costs.
Daily International Flights
United serves more than 50 flights to more than 40 international destinations
from Chicago International Airport each day. Below is an illustrated breakdown of these
flights:
9 daily flights to 10 cities in Europe
4 daily flights to 4 cities in Asia
11 daily flights to 20 destinations across Latin America and the Caribbean
27 daily flights to 9 destinations in Canada
United operates nearly 550 daily flights just out of Chicago O’Hare alone. In
addition, United also has more than 50 daily flight to more than 40 international
destinations from Chicago International Airport (ORD). Chicago being one of the biggest
hubs within United, 500 flights to 140 airports across the United States depart out of
ORD every day (Reference #36).
Passengers per Year
Annually United transports 15.7 million passengers per year. Daily, this figure equates
to 42,900 passengers.
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Annual RPM RPK
A review of United’s 2014 annual financial report states the following in terms of RPM
and RPK:
2014 – FinancialReport
(Reference #37)
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Global Alliance Partnership
United is part of the Star Alliance which United uses to code share with other
carriers as mentioned previously. Here is a graphic displaying the Star Alliance carrier
grouping:
(Reference #11)
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United Airlines Cargo Operations
United Airlines has cargo operations; the segment of the company is called
United Cargo. The carrier offers the following package and specifications are as follows:
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As United’s footprint in the cargo business is small, with much of the market
share taken up by FedEx and USPS, United keeps its focus on a smaller convenient
point-to-point (or airport to airport shipping). United also accepts live animals with the
confines of the animal being in a shipping approved container (Reference #12)
International Cargo
United Airlines does travel to international destinations mostly departing out of
Washington, DC. From DC, United transports cargo to the following locations:
Amsterdam
Sao Paulo
Paris
Geneva
Tokyo
Beijing
Rome
Frankfort
**Brussels**
** Note: As of 03/25/16 United tightened its restrictions going into Brussels and limited
what types of cargo they received due to the airport bombing attack. ** (Reference #13).
Future International Plans
Currently United does not have plans to expand its international market for cargo
operations. United manly is focusing on international markets with its passenger sector
as previously mentioned.
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Conclusion
This paper presented findings and analysis of United Airlines ranging from
inception to fiscal year 2016. Key topics included company history, logos, livery,
financial performance, key mergers, United’s fleet, domestic and international statistics,
code sharing relationships, marketing segments and United’s frequent flyer program. In
conclusion, United Airlines has come a long way since the beginning in 1937. It is an
airline embodied with rich history and considered one of the most successful airlines to
date. Like many other airlines, United has gone through arduous changes due to the
ebbs and flows of the economy. However, United has persevered by adapting to the
ever changing oligopoly that exists in the industry today. With both domestic and
international segments, United offers quality services which has contributed to their
success as one of the best legacy carriers to do business with today.