Tag Archives for scott kirby.
On CNBC this morning United Airlines CEO Scott Kirby said he likes that pilot wages are going up, which is really saying he likes pilot shortages, because of what that does to competitors. Low cost carriers can’t hire pilots cheap, eroding their relative cost advantage against United.
He also revealed something interesting about business travel: it’s not continuing its recovery, and specifically that it has “plateaued”.
In a leaked video, United Airlines CEO Scott Kirby told employees that they need to lay the groundwork for future government bailouts.
An airline’s CEO gets unlimited free travel, naturally. But United Airlines CEO Scott Kirby is unique. He and his family don’t just get to fly United for free. They can fly as much as they want on American Airlines, any flight in any class of service, as well.
That’s because Kirby was let go as President of American Airlines and immediately became President of United – in a move I hoped at the time would make both airlines better (it’s benefited United). This paved the way for Kirby to become CEO at United.
United Airlines didn’t just announce a major aircraft order today, they pitched a plan to offer a more premium flight experience. A symbol of that plan is to offer seat back entertainment screens to all passengers, not just on new planes but retrofitting the existing fleet as well.
CEO Scott Kirby isn’t just arguing that these are important to passengers. He isn’t just saying that he’s had a change of heart, covering not just United’s opportunities going forward but at his previous airlines that haven’t made similar investments. He is throwing shade at other airlines, saying he’s always been a proponent of seat back entertainment but has been stymied. That’s not even close to true.
United Airlines CEO Scott Kirby, speaking at the Alliance Bernstein 37th Annual Strategic Decisions Conference on Thursday, explained his cost-cutting vision as eliminating fat from management and unnecessary processes without touching product investment.
He offered that they will “save $2 billion in expense, not a single penny is going to come from customer product, in fact we’re going to spend more on those things” and noted upcoming product announcements will be coming. And he declared a goal of doubling MileagePlus revenue in four years.
United Airlines CEO Scott Kirby shared that in 1998 he was a Vice President at America West and a single conversation changed his view about change fees, and he’s wanted to eliminate them ever since. It took until August 2020 to do it and then American, Delta, Alaska and JetBlue all followed.
The interesting part of the story isn’t the golf game that game him the epiphany, it’s why it took 22 years for this change to happen.
I’ve been told by more than one person that in an internal call United Airlines CEO Scott Kirby told managers that American Airlines is dumping capacity at low fares, and he says that United won’t follow.
United is selling some cheap tickets, but nothing like what I’m seeing from American right now – like $49 roundtrips on major routes.
United Airlines CEO Scott Kirby spoke at the Bernstein Strategic Decisions Conference and spoke confidently about shedding costs and preparing for a rebound in air travel. He offered that bankruptcy isn’t a strategic option, that airlines are foolish to retire fleets too quickly, and that MileagePlus is going to be a great source of cash – whether by selling a ton of miles or borrowing against the program.
Overall (9) claims Kirby made seemed both new, compared to previous statements, and struck me as noteworthy.
A new SEC filing has details on the most recent United Airlines corporate executive compensation. United’s CEO Oscar Munoz will take $0 in base salary until June 30. Incoming CEO Scott Kirby will do the same. But how much of a cut is that, really?
Executive compensation is unpopular during tough times for a company. Of course if United makes it through to the other side of COVID-19 Kirby may earn his pay more than ever before.
Right now United isn’t thinking about the long run, they’re preparing to survive the short run. Scott Kirby made clear everything else comes later.
Expect to see other airlines shift into that mode – hopefully seeing customers as partners rather than as potential marks for cash.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
