united airlines

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Here’s How United Airlines Is Reducing Payroll Expense

by Gary Leff on March 12, 2020

Mar 12 2020

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.

United Airlines Hates Its Customers. For Short-Term Survival That’s a Good Thing.

by Gary Leff on March 11, 2020

Mar 11 2020

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.

Holy Smokes: United Planning For Revenue Down 70%, Domestic Net Bookings Already Down 70%

by Gary Leff on March 10, 2020

Mar 10 2020

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 Slightly Relaxes Its New ‘No Refunds When Schedules Change’ Rule

by Gary Leff on March 9, 2020

Mar 09 2020

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.

United Airlines: Open Your Wallets If You Want Elite Benefits Next Year

by Gary Leff on March 8, 2020

Mar 08 2020

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.

Wow: United Making Refunds Harder To Get Because Of Coronavirus

by Gary Leff on March 7, 2020

Mar 07 2020

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.

Leaked Memo: What United Plans To Do To Reduce Costs As Coronavirus Dries Up Travel

by Gary Leff on March 4, 2020

Mar 04 2020

The aviation world has been rocked by coronavirus, as demand for travel shrinks. Businesses are telling employees not to fly. Discretionary trips are being cancelled. And there’s tremendous uncertainty over the future.

While U.S. airlines have been healthy and better-positioned to handle what is so far a less extreme hit to their business as carriers in China, Hong Kong, and South Korea they’re certainly scrambling to figure out what’s next. United has been proactive communicating with employees, first with a note over the weekend and now with another message outlining drastic steps they’re taking to reduce costs given reductions in revenue.

United Cracking Down On Flight Attendants In Overhead Bins

by Gary Leff on February 29, 2020

Feb 29 2020

United Airlines is cracking down on flight attendants posting photos of themselves online posing inside of overhead bins, known as the “Overhead Bin Challenge.”

It’s understandable that an airline wouldn’t want to have to take a maintenance delay if an overhead bin was damaged. And HR is certainly going to prefer to tell employees not to do it – it’s harder to sue the airline for an injury that way. On the other hand, heaven forbid a United Airlines flight attendant look like they’re having fun at their job… Last summer Southwest Airlines, for their part, backed up their flight attendant’s “brief moment of fun.”

United Airlines Gave Out $100,000 Downgrading Passengers On One Hawaii Flight This Weekend

by Gary Leff on February 23, 2020

Feb 23 2020

United flight 363 from Newark to Honolulu was supposed to be operated by a Boeing 777 on Saturday. The airline swapped the plane for a Boeing 767-300, and that meant fewer business class seats. The airline needed ten volunteers who were willing to downgrade.

These ten passengers each received $10,000 in travel voucher compensation for volunteering, or $100,000 total for the one flight, and they still got to fly in premium economy seats.

Here’s The Only Way The New Chase-United Credit Card Deal Makes Sense