Tag Archives for united airlines.
United has revised their refund policy for reservations where they impose a schedule change three times in the past week. They are more draconian than competitors, and the changes to published rules apply even to tickets purchased prior to the changes. This points to how United is viewing holding on to customer cash in the short run – over taking care of their customers in the long run.
United Airlines has to be the one of the most remote work-averse employers in the country, at least based on this e-mail from Kate Gebo, Executive Vice President Human Resources and Labor Relations at United Airlines, that was sent at the end of the week.
Effective today United Airlines plans to stop offering some seats that used to be available for upgrade to members of their MileagePlus program, holding those back to sell to infrequent customers at check-in instead. This helps the airline generate extra short term cash now as they prepare for a drop in revenue of as much as 70%.
In light of the U.S. government’s limits on travel by non-U.S. citizens that have been to Europe within the past 14 days, in addition to reduction in travel broadly in reaction to the novel coronavirus, United has announced that it will only fly it’s current schedule through Thursday, March 19. That gives people time to get home, and to bring employees home.
Here’s what Europe should look like after that for United.
United is farthest ahead preparing for the worst as a business. They are cutting capital spending, slashing flying, and eliminating discretionary expenses. They have raised additional cash and assume that their revenue is down 70% in April and May and not fully recovering this year. We don’t know yet if things will be even worse than this, and more drastic measures will need to be taken.
For now there aren’t any layoffs, but United is trying to reduce personnel spending and they’ve imposed a hiring freeze so that retirements will reduce their head count. Here’s the detail of the United Airlines voluntary leave plan.
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.
United Airlines President and soon-to-be CEO Scott Kirby keynoted the J.P. Morgan 2020 Industrials Conference today. He took a far more aggressive stance on how deep to cut, how bad things can get, than other airline executives. And he was more willing to share specific data on how bad things already are.
United has slightly walked back its crazy policy published this weekend not to provide refunds to customers in the event of a schedule change less than 25 hours.
After a swift backlash in social media, United will now let customers cancel and retain a travel credit without a change fee in the event United changes flight schedules 2 or more hours. They’re still applying new rules retroactively to already-purchased tickets.
There’s a theme developing at United: all your money belongs to us. Customers exist to serve the airline, the airline doesn’t exist to serve customers. From refusing refunds to customers even when flights don’t operate the same day, to telling customers they’ll still have to spend as much money on the airline this year if they want elite benefits next year the message is clear: loyalty is one way.
United is already taking significant steps to reduce spending in the face of coronavirus. They’ve instituted a hiring freeze, they’re delaying raises for non-union employees, and they’re reducing their flight schedules.
Now they’re refusing to give customers refunds even if they change schedules so the flights you buy operate on a different day.
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 »
