UA Aims For $2B in Cost Cuts

Discussion in 'United Airlines | MileagePlus' started by Captain Oveur, Nov 19, 2013.  |  Print Topic

  1. Captain Oveur
    Original Member

    Captain Oveur Gold Member

    Messages:
    7,243
    Likes Received:
    14,058
    Status Points:
    12,520
    Kind of funny how they say it doesn't involve any employee furloughs. Even though they outsourced the staff at six stations last week.

    "Make workers more productive" -- if that doesn't sound ominous, I don't know what does.

    I'd say get ready for more "enhancements."
     
    flyforawg and MX like this.
  2. edcho

    edcho Silver Member

    Messages:
    636
    Likes Received:
    1,082
    Status Points:
    870
    Posted OTOB but here's the breakdown:

    * 1B from Fuel Consumption
    Benefit from new aircraft and winglets that are 10-20% more efficient.
    * 100M from Maintenance
    Realign work with core competencies and implement lean practices.
    * 500M from Productivity
    Improve efficiency and deploy self-service technology.
    * 150M from Sourcing
    Reducing sourcing costs through total cost of ownership.
    * 100M from Distribution
    Shift traffic mix towards optimal distribution channels.
     
    skyhook likes this.
  3. HaveMilesWillTravel
    Original Member

    HaveMilesWillTravel Gold Member

    Messages:
    12,504
    Likes Received:
    20,199
    Status Points:
    16,520
    Bingo!
     
  4. Captain Oveur
    Original Member

    Captain Oveur Gold Member

    Messages:
    7,243
    Likes Received:
    14,058
    Status Points:
    12,520

    "Realign work with core competencies and implement lean practices."
    "Improve efficiency and deploy self-service technology."
    Translation: We're going to lay off more employees.

    "Shift traffic mix towards optimal distribution channels"
    Translation: More RJs
     
    flyforawg, MX and Misplaced Texan like this.
  5. HaveMilesWillTravel
    Original Member

    HaveMilesWillTravel Gold Member

    Messages:
    12,504
    Likes Received:
    20,199
    Status Points:
    16,520
    They can expect to cut about $7k in revenue from me and my wife traveling. It won't go to zero since I'll have six GPUs, but with MM status immanent and the devaluation of miles accelerating across the board I will be looking to award bookings in many cases where revenue tickets for status acquisition would have been my first thought in past years.
     
  6. redtailshark

    redtailshark Silver Member

    Messages:
    1,041
    Likes Received:
    875
    Status Points:
    895
    I'm not close enough to MM on UA to do that quite yet and for the moment, MM is still worth pursuing. Not like over on DL where I have such "status" and it incentivizes nothing at all. But there's no guarantee I can make it before rescission, I know.
     
  7. Weatherboy

    Weatherboy Gold Member

    Messages:
    4,208
    Likes Received:
    7,459
    Status Points:
    5,245
    When will airlines eliminate complimentary elite upgrades and simply replace them with instruments, award redemptions, or auction/by-on-demand?
     
  8. Captain Oveur
    Original Member

    Captain Oveur Gold Member

    Messages:
    7,243
    Likes Received:
    14,058
    Status Points:
    12,520
    Given how things are going, I'd say UA would be the first to go back to that model.
     
  9. Misplaced Texan
    Original Member

    Misplaced Texan Gold Member

    Messages:
    16,874
    Likes Received:
    26,170
    Status Points:
    20,020
    I doubt they'll ever "eliminate" them. But they might very well de-prioritize them behind those other methods.

    Sent from a place using a fruit thing.
     
  10. Wandering Aramean
    Original Member

    Wandering Aramean Gold Member

    Messages:
    28,224
    Likes Received:
    61,772
    Status Points:
    20,020
    Nope...it means push more customers to direct booking channels versus GDS.
     
  11. HaveMilesWillTravel
    Original Member

    HaveMilesWillTravel Gold Member

    Messages:
    12,504
    Likes Received:
    20,199
    Status Points:
    16,520
    Perhaps by reducing/eliminating PQM or PQD earned via GDS bookings?
     
  12. Black Cloud
    Original Member

    Black Cloud Gold Member

    Messages:
    4,895
    Likes Received:
    21,505
    Status Points:
    10,720
    No.

    CO experimented with that and backtracked when they realized their inability to keep some corp customers sticky.
     
  13. HaveMilesWillTravel
    Original Member

    HaveMilesWillTravel Gold Member

    Messages:
    12,504
    Likes Received:
    20,199
    Status Points:
    16,520
    Well, going by FT conventional wisdom, they have found other ways to drive those away since then :)

    The easiest way to get me to use united.com would be a site that works well. The PQM I earn from Chase won't be a factor anymore next year.
     
  14. Wandering Aramean
    Original Member

    Wandering Aramean Gold Member

    Messages:
    28,224
    Likes Received:
    61,772
    Status Points:
    20,020
    And they believe that the new site will do that. We'll all see soon enough.
     
  15. edcho

    edcho Silver Member

    Messages:
    636
    Likes Received:
    1,082
    Status Points:
    870
    I'm wondering when -- I thought they would implement it before the new year, but with the recent PQD code into the current website, i'm now not so sure.
     
  16. Wandering Aramean
    Original Member

    Wandering Aramean Gold Member

    Messages:
    28,224
    Likes Received:
    61,772
    Status Points:
    20,020
    "Early next year" is now the target date. It is about a year behind schedule.
     
  17. Misplaced Texan
    Original Member

    Misplaced Texan Gold Member

    Messages:
    16,874
    Likes Received:
    26,170
    Status Points:
    20,020
    Which is better than where the pmUA maintenance was on most of their plane. ;)

    Sent from a place using a fruit thing.
     
    Gtitan likes this.
  18. HeathrowGuy
    Original Member

    HeathrowGuy Gold Member

    Messages:
    7,131
    Likes Received:
    10,591
    Status Points:
    12,520
    United is already starting to realize financial gains under Jeff Jong-Un's jackboot approach. The United GlobalSatellite has already resulted in a gain of approximately $100 million by terminating select customer refund calls, which shortens average call and hold times, and efficiently frees up agents to collect more money from new ticket buyers.
     
    rggale, genemk2 and traveltoomuch like this.
  19. TRAVELSIG
    Original Member

    TRAVELSIG Gold Member

    Messages:
    3,942
    Likes Received:
    5,509
    Status Points:
    4,145
    This does indeed not sound particularly good for the passenger.
     
  20. Zomby Woof

    Zomby Woof Silver Member

    Messages:
    332
    Likes Received:
    338
    Status Points:
    545
  21. Rob
    Original Member

    Rob Gold Member

    Messages:
    10,389
    Likes Received:
    14,166
    Status Points:
    16,520
    I guess they consider asking sUA Flight Attendants to take voluntary furloughs not part of the plan, since it's an "ongoing overstaffing situation" (http://www.unitedafa.org/news/details.aspx?id=8270). Sure seems included in the plan to me.

    Also, Buy-On-Board (BOB) to Central and parts of South America (complimentary still to Caracas, Argentina, Brazil, and Peru).
     
    Misplaced Texan likes this.
  22. Captain Oveur
    Original Member

    Captain Oveur Gold Member

    Messages:
    7,243
    Likes Received:
    14,058
    Status Points:
    12,520
    I don't get how UA can tout or promote a "Working Together Culture" (as seen in the UA Investor Day Presentation) when they don't even have labor harmony among the in-flight crew.
     
    Flyer1976 and goalie like this.
  23. Captain Oveur
    Original Member

    Captain Oveur Gold Member

    Messages:
    7,243
    Likes Received:
    14,058
    Status Points:
    12,520
    And the hits just keep on coming....
    Source
     
  24. KenInEscazu

    KenInEscazu Gold Member

    Messages:
    1,548
    Likes Received:
    1,935
    Status Points:
    1,120
    My guess is the people working at CLE would be somewhat confused about it as well.
     

Share This Page