NEWSREAL
Dec. 28-31, 2007
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This Week's Operations
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The following is an email sent by EVP and COO Pete McDonald to all
employees on December 28 regarding operations this week:
I want to provide some information and detail about our operational
performance this week, particularly in light of the media coverage
we've received.
Through the month of December, we were affected by significant
irregular operations, particularly at O'Hare, as a result of repeated
weather events, including ice, fog, wind and snow. We also struggled
through snowstorms in Denver. In fact, weather and air traffic
control delays affected United twice as much as the rest of the
industry. The difficult weather and irregular operations impacted our
flight attendant and pilot crew time, as delay minutes climbed 50
percent over last December.
The weekend before Christmas, with high load factors and more weather,
we made the decision to run late to get as many aircraft and customers
in as possible, which put further pressure on our flight crew
availability. All these factors led to our decision to cancel flights
later in the week on lower load factor days. Because fewer people were
flying on Christmas Eve, Christmas Day and Thursday, we could
accommodate those customers on other United or competitor flights
without a lot of inconvenience or serious difficulties at the
airports. Our reservations agents did excellent work reaching out to
our customers to make sure they had the information they needed as we
made new travel arrangements.
While we canceled more flights than we would have liked, which is
unacceptable to us, we focused on our customers, making decisions that
ensured as many people as possible arrived at their destinations in
time for the holiday.
To continue to improve our performance in 2008, we will maintain our
focus on pilot staffing. We have 2 percent more pilots this December
than we did last December, even with 1.5 percent fewer flying hours.
We are currently finalizing pilot staffing levels for 2008. We also
will benefit from the change in the age 60 rule that raises pilot
retirement age to 65.
In addition, the opening of the new runway at O'Hare later in 2008
will give us a significant benefit in the reliability of operations at
our major hub, particularly in bad weather.
Our operations yesterday and today have once again been affected by
weather with snow in Denver and Chicago. We have kept the focus on
our customers, proactively cancelling flights in both locations. We
have offered travel waivers to customers and are actively working to
re-accommodate them. As I write this to you, in Chicago today, we
have cancelled 327 United and UAX flights as a result of the weather
conditions. We will continue to monitor the situation as we go
through the day.
Finally, I want to thank everyone who worked through the last few
weeks -- from all the people in the SOC and crew scheduling who
managed through several very difficult operating days to all of you
working the operations. I very much appreciate your efforts to get
our customers home safely for the holidays.
Good morning.......This is news for Dec. 21-24, 2007
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Today's News:
1. United Names Keith Halbert Chief Information Officer
2. Our Customer Commitment Reviewed and Refreshed for Second Time this Year
3. New ZED Agreements Signed With Four Carriers
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United Names Keith Halbert Chief Information Officer
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United announced on Thursday that Keith Halbert has been named senior vice president and chief information officer. Halbert joins United from Electronic Data Systems (EDS), where he was vice president and CIO. In his new role, Halbert will oversee all aspects of United's information technology functions, including corporate IT strategy, applications development, technical operations, information security and infrastructure planning.
* "Having a proven transformational leader like Keith is critical to successfully executing our five-year plan and ensuring that we have the infrastructure and systems in place to improve our service to customers and provide better support to our employees," says EVP John Tague.
* While at EDS, Halbert led the company's digital transformation efforts and implemented a three-year IT transformation plan that has consistently improved the company's performance and reduced its operating expenses.
* Prior to joining EDS, Halbert served as managing director of knowledge management for The Feld Group, Inc., a privately held technology management consultancy acquired by EDS, where he jointly developed a CIO management system that was deployed in six major companies. While at Feld, Halbert also held several in-house leadership positions, including a three-year role as senior vice president and chief development officer for Delta Airlines.
* "I am thrilled to be joining United at a time when they are focused on strengthening the performance of the company," said Halbert. "I see this as a tremendous opportunity to build on the great work United already has under way to transform the IT organization to support the company's vision to be the global airline of choice for premium customers, employees and investors."
* Halbert will assume his role on Jan. 11, 2008, and will report to Tague.
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Our Customer Commitment Reviewed and Refreshed for Second Time this Year
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Our Customer Commitment, the pledge we have made to improve the overall customer experience, is reviewed semi-annually by United's Performance Council to ensure its ongoing relevance and effectiveness. This month, the commitment is being revised to reflect improved customer service response times and adjusted baggage handling times for international flights.
* Effective immediately, we are committing to resolve inquiries and complaints received by Customer Relations within 30 days. The previous complaint resolution commitment of 45 days was established with the first refresh in September, and since that time we have consistently shown that we can achieve the 30-day commitment with no additional cost to United. This change moves United into the best-in-class category alongside Delta.
* Additionally, we are increasing the amount of time allotted for international baggage delivery from 25 to 35 minutes. Because international flights involve high baggage volumes, widebody containers and customs processes that make baggage delivery more complex and time-consuming, we want to be certain that we can consistently meet the goals that we set for ourselves. Our customers expect consistency, and this adjusted timeframe will help us deliver it.
* Upon the next review of Our Customer Commitment in June 2008, the council will continue to look at all of our service levels and will make adjustments where necessary.
* For more information about Our Customer Commitment, refer to the September 5 EYE-on-UA and the September 7 edition of NewsReal, or visit "Our Customer Commitment" located in SkyNet's "About United" section.
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New ZED Agreements Signed With Four Carriers
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United recently implemented new Zonal Employee Discount (ZED) agreements with four carriers -- Aloha Airlines, Kuwait Airways, Pluna and Era Aviation. These carriers join other airlines we have added to our ZED portfolio in 2007, including Aer Lingus, Air Canada and US Airways.
* "We constantly evaluate the possibility of new partnerships and improvements to existing agreements to ensure our Employee Offline Travel Privilege Program remains competitive and brings value to employees," says Peter Hammer, managing director- Worldwide Sales. "These new agreements enhance the services available to all employees in our already robust program."
* Aloha Airlines offers extensive service within the Hawaiian Islands and between Hawaii and the West Coast of the United States.
* Kuwait Airways is the national airline of Kuwait and operates scheduled international services in Europe, Asia, the Middle East and North America.
* Pluna, based in Uruguay, operated scheduled services within South America and between Uruguay and Madrid.
* Era Aviation is based in Anchorage, Alaska, and serves a network of destinations throughout the state.
* For more information about the new and existing agreements with other airlines, visit the Travel tab on SkyNet's home page and click "Interline Travel Privilege" and the "Individual Carrier Agreements" link. We make updates to the carrier eligibility requirements and restrictions as new agreements are reached.
* The ZED discount is a service-charge structure based on the mileage between a point-to-point origin and destination.
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UAL Corporation's stock (NASDAQ: UAUA) closed Thursday, Dec. 20, 2007, at 35.54, down 0.96, on a volume of 2,010,864 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage.
Dec 20, 2007
Category Daily Goal
On Time +00 35.4% 61.9%
Arrivals OT +14 61.8% 75.7%
Star OT +00 55.9% 79.0%
Completion Rate 98.3% 98.7%
Load Factor 90.3% --
Psgrs. Boarded 210058
Sch. Departures 1560
DEC 14TH 2007
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United and United Express Launch New and Seasonal Services on December 15
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United is launching a new non-stop service from Los Angeles to
Frankfurt on December 15 as well as a number of seasonal services.
* With the introduction of the LAX-FRA service, United will serve
Frankfurt eight times daily from four of our International Gateways,
twice daily from San Francisco and Chicago; and three times daily from
Washington, D.C.
* The Chicago to Jackson Hole, Wyo. service, which has previously been
a summer market for United Express, will operate using mainline
aircraft for the ski season. Additionally, United Express is adding a
new daily service from Chicago to Steamboat Springs, Colo.
* United will resume seasonal service from Chicago to Cozumel, Mexico,
operating one flight a week from December 15 through April 22, 2008.
* Other seasonal routes beginning on December 15 include:
Chicago - Aspen Chicago - Liberia Chicago - Montego Bay Chicago -
Punta Cana Denver - Ixtapa/Zihuatanejo Denver - Maui Washington Dulles
- West Palm Beach Washington Dulles - Montego Bay Washington Dulles -
Punta Cana Los Angeles - Aspen Los Angeles - Ixtapa/Zihuatanejo Los
Angeles - Jackson Hole San Francisco - Aspen
Good morning...This is news for Dec. 7 - Dec. 10, 2007
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Today's News:
1. United Express Expands Dulles Service to Nine Additional East Coast Cities
2. Employees Achieve Departure Completion and On- time Arrival Goals for November; United Express Exceeds Goals in All Categories
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United Express Expands Dulles Service to Nine Additional East Coast Cities
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Beginning in January, United Express regional partner Colgan Air will expand its Washington Dulles service to nine additional east coast cities.
* On January 7, service begins between Dulles and Bradford, Pa.; Jamestown, N.Y.; and Parkersburg, W.Va.
* Service between Dulles and Clarksburg, W.Va. and Morgantown, W.Va. begins January 21; to Altoona, Pa. and Johnstown, Pa. on February 4; and to Beckley, W.Va. and Shenandoah Valley, Va. on February 18. Flights to all cities are now available for sale.
* Colgan, which will serve these new locations with a 34-seat Saab SF-340 aircraft, will provide all flying and ground handling services.
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Employees Achieve Departure Completion and On-time Arrival Goals for November; United Express Exceeds Goals in All Categories
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For November, employees achieved goals in both departure completion and on-time arrivals :14. Mainline struggled with on-time departure :00 and STAR performance, however United Express exceeded goals in all categories.
* Mainline on-time departure :00 performance was 56.6 percent, 5.3 points below goal. Departure completion was precisely at goal at 98.7 percent and on-time arrivals :14 was above goal by 0.1 points at 75.8 percent. STAR on-time departure :00 performance was below goal by 6.9 points at 72.1 percent.
* UAX delivered an on-time departure :00 performance of 68.9 percent, 10.1 points above goal. On-time arrivals :14 was 6.1 points above goal at 78.1 percent. Departure completion was 98 percent, exceeding goal by 0.2 points. UAX STAR on-time departure :00 was above goal by 5.1 points at 80.1 percent.
* Best performing stations in STAR on-time departure :00 for the month follow:
* United mainline: Best hub was Denver at 73.1 percent; best intermediate station was Oakland at 86.7 percent and best small station was Oklahoma City at 100 percent.
* United Express: Best large station (with five or more daily departures) was Indianapolis, at 95.3 percent; best mid-sized station (with 3-4 daily departures) was Milwaukee, at 95.5 percent; and best small stations (with 1-2 daily departures) were Akron-Canton, Cincinnati, Jackson Hole, Oakland, Rockford, and Rochester, each at 100 percent.
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UAL Corporation's stock (NASDAQ: UAUA) closed Monday, Dec. 6, 2007, at 40.63, up 0.50, on a volume of 2,164,112 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage.
Dec 7, 2007
Category Daly Goal
On Time +00 47.3% 61.9%
Arrivals OT +14 62.8% 75.7%
Star OT +00 70.2% 79.0%
Completion Rate 98.8% 98.7%
Load Factor 70.6% --
Psgrs. Boarded 158017
Sch. Departures 1485
Good morning...This is news for Nov. 27 - 29, 2007
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Today's News:
1. Mechanics and the Smithsonian Institution Work Together to Restore a Piece of Aviation History
2. United Improves September Performance in Most Categories Compared to August
3. United Teams with the American Cancer Society to Deliver Great, Big Bear Hugs
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Mechanics and the Smithsonian Institution Work Together to Restore a Piece of Aviation History
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A small group of United line mechanics from Washington Dulles recently volunteered their time and expertise to restore the Smithsonian Institution Udvar-Hazy Center's trans-Atlantic Lockheed Super Constellation "Connie." The Connie will be revealed to the public as a permanent walk-through exhibit at the center on November 28.
* Over the last six months, United line mechanics Gary Berrian, Ed Archer, David Burrell, Sr., David Crosby and Jon White spent more than 40 days and 1,500 hours at the Smithsonian's Paul E. Garber Restoration Center preparing for Wednesday's unveiling ceremony.
* "United has long been a recognized resource for aircraft and aviation expertise by government agencies such as the Smithsonian," says Bill Norman, senior vice president-United Services. "The Connie Restoration project reflects the dedication and passion our employees have for an important part of aviation history."
* The Udvar-Hazy Center will host a ceremony on November 28 where the newly restored Connie will be revealed to the public. Additionally, on January 8, the Smithsonian will host a luncheon to honor the United mechanics for their hard work and dedication to the project. A plaque will be mounted at the exhibit with the names of each of the mechanics.
* Be sure to look on SkyNet for photos following Wednesday's event.
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United Improves September Performance in Most Categories Compared to August
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Showing recovery from recent weather challenges, our September performance showed slight improvements in most categories, including on-time arrival :14, cancellations and complaint rates, according to the U.S. Department of Transportation.
* United's on-time departure :00 performance again ranked fifth among the six network U.S. carriers at 64.8 percent, up 13.2 points from August.
* Our on-time arrival :14 performance of 78.2 was up a full 12 points over August (66.2). We achieved a fifth place ranking, up one slot from August's sixth place.
* With 80.8 percent of flights scheduled to depart before 9:00 a.m. leaving on time in September, United ranked fifth in STAR on-time :00 departures. While this represents an 8.7 percent increase over August (72.1), our ranking slipped from fourth to fifth place.
* United's complaint rate was 1.75 per 100,000 customers, a 1.12 point improvement over August. We ranked in fourth place among the six major U.S. carriers in this category, up from fifth place last month.
* In September's least mishandled baggage category we achieved a rate of 3.99 mishandled bags per 1,000 customers, down 1.43 points from August (5.42). Although our performance improved, our ranking slipped from first to third place this month.
* United also moved up to fifth place from sixth in cancellations, with a rate of 1.7 percent of flights cancelled in September. This represents a 1.1 percent improvement over August (2.8 percent).
* Our third quarter involuntary denied boarding rate of .75 was down .25 points over last quarter (1.0). While we rank third this quarter, we rank first in overall year-to-date performance in this category, as we did throughout 2006.
DOT September 2007 Report for United
(Among Six Major U.S. Carriers)
September August September
2007 2007 2006
Scheduled departures 80.8 72.1 81.4
before 9:00 a.m. (5th) (4th) (2nd)
on-time :00(STAR)
(Percent)
Arrival on-time :14 78.2 66.2 75.6
(5th) (6th) (4th)
On-time Departure :00 64.8 51.6 64.7
(Percent) (5th) (5th) (4th)
Mishandled baggage rate 3.99 5.42 7.87
(per 1,000 customers) (3rd) (1st) (4th)
Complaint rate 1.75 2.87 1.34
(per 100,000 customers) (4th) (5th) (6th)
Canceled flights 1.7 2.8 1.7
(Percent) (5th) (6th) (3rd)
Note: United reviews its performance relative to five other major network carriers, each of which accounts for more than five percent of U.S. domestic airline capacity. Those carriers include American, Continental, Delta, Northwest and US Airways.
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United Teams with the American Cancer Society to Deliver Great, Big Bear Hugs
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United and the American Cancer Society are inviting individuals across the United States to send GUND(R) teddy bears to kids undergoing cancer treatment. To donate the 17-inch stuffed animal Kenny Hugyou (can- he-hug-you) to a child with cancer, Mileage Plus members can contribute a minimum of 7,500 Mileage Plus miles to the American Cancer Society. In addition, anyone, regardless of Mileage Plus membership, can make a tax-deductible minimum contribution of 50 dollars to send a bear.
* Customers can visit www.united.com/bearhug beginning Tuesday to send bears to kids undergoing treatment.
* "Cancer is an important issue to our customers and employees, and we know it touches everyone in some way," says Sonya Jackson, president of the United Airlines Foundation. "We are looking forward to delivering Kenny Hugyou and smiles to kids across the country."
* Funds and Mileage Plus miles raised by Kenny Hugyou will support the American Cancer Society's efforts to eliminate cancer as a life-threatening disease, educate individuals about cancer prevention, support those with the disease, and fund research to find new and better treatments.
* Contributions are being accepted through December, and bears are scheduled to be delivered in February 2008. Individuals contributing a minimum of 250 dollars to the American Cancer Society through this initiative will receive a Kenny Hugyou of their own in addition to sending one to a child undergoing cancer treatment.
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UAL Corporation's stock (NASDAQ: UAUA) closed Monday, Nov. 26, 2007, at 39.78, down 0.45, on a volume of 4,620,410 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage.
Nov 26, 2007
Category Daily Goal
On Time +00 45.3% 61.9%
Arrivals OT +14 67.4% 75.7%
Star OT +00 59.6% 79.0%
Completion Rate 99.1% 98.7%
Load Factor 86.2% --
Psgrs. Boarded 213512
Sch. Departures 1550
NEWSREAL
Good morning...This is news for Nov. 16 - 19, 2007
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Today's News:
1. United Further Increases Fuel Efficiency with B757 Winglets
2. United Track -- Gathering and Reporting Better Information, Faster
3. Employees Advised to Check Paycheck Stubs for Correct Contact Information in Preparation for 2007 W-2s
4. Reminder: Annual Enrollment for 2008 Continues Through November 20
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United Further Increases Fuel Efficiency with B757 Winglets
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United's first B757 aircraft modified with winglets to improve fuel efficiency took flight recently, when United p.s.(R) Flight 25 departed JFK for LAX. The aircraft is performing well, and two more are scheduled for completion by the end of December.
* Winglets, which are already in place on our B747-400 and Airbus aircraft, will be retrofitted on the B757 fleet over a two-year period. Most of the installations will occur during regularly-scheduled heavy maintenance, in order to reduce the amount of aircraft downtime. Winglets will be installed on 29 aircraft used for p.s.(R) and ETOPS (Extended Twin- Engine Overwater Operations) flights.
* Wingleted p.s.(R) and ETOPS sub-fleets will reduce fuel consumption by an average of 4.3 percent over unmodified aircraft. The winglets, also called wing tip fences, help conserve fuel by smoothing out airflow around the wing, increasing lift and decreasing drag. Because most of the benefit occurs during the cruise portion of the flight, we will see the greatest benefit on our long-haul aircraft.
* The modifications, scheduled for completion by October of 2009, are being performed by our heavy maintenance vendor Timco, which has performed most of the industry's winglet installations.
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United Track -- Gathering and Reporting Better Information, Faster
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United Track, our online tool for collecting and reporting customer feedback, has replaced MarkeTrak, our former paper-based customer satisfaction survey. Now, when customers want to tell us about their travel experience, it's as simple as visiting www.ualsurvey.com, entering their flight information, and answering some brief questions. We use the resulting information not only to calculate our United Promoters scores, but also to evaluate individual drivers affecting the score by identifying which areas of our service are most important to our customers, and where we can improve them.
* Our customer satisfaction survey is a prime source of information as we seek to improve every interaction with our customers. It asks passengers detailed questions about every aspect of their travel experience, from making a reservation to retrieving their luggage. The final question, which asks whether the customer would recommend United to a friend or acquaintance based upon that specific flight segment, is the measure by which we calculate our United Promoters score.
* Now, instead of taking the time to complete a paper survey, our customers have the opportunity to contemplate their travel experience, visit the Internet at their convenience within seven days after their flight, and provide us with information that can help us improve their next travel experience.
* With United Track, we are collecting more information. The survey currently receives approximately 3,500 hits per day, and customers on every flight can participate. By contrast, only about 500 customers per day completed the old MarkeTrak version, which surveyed only 1 percent of domestic and seven percent of international flights. And five to seven times more customers are using United Track because of its simplicity and convenience.
* United Track also provides us with better information. The survey is tailored to the customer's experience, so if a passenger did not check luggage, for example, the questions in that category do not appear. Also, because customers have up to seven days to complete the survey and they are able do so from any place where they have Internet access, they have the opportunity to provide complete, thoughtful responses in a relaxed environment.
* Twenty percent of customers who complete the survey are invited to complete a longer survey, which allows us to glean even more detail about their experience.
* Finally, United Track relays information to us faster. Once a survey is completed, we have immediate access to the data and can report it on a daily basis on SkyNet, and can compile detailed, up- to-date reports for managers and supervisors.
* In addition to English, as of October 29, United Track is available in Spanish, Portuguese, German, French, Dutch, Japanese, Chinese and Korean.
* Visit SkyNet/Quick Hits/United Promoters for more information about how United measures customer satisfaction.
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Employees Advised to Check Paycheck Stubs for Correct Contact Information in Preparation for 2007 W-2s
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This January, all 2007 W-2 wage and tax statements will be issued to U.S.-based United employees. By Dec. 14, 2007 these employees will need to confirm that the information displayed on their paycheck stubs is correct.
* If you are based in the U.S., please be sure to verify that your company address code, home address and state in which your taxes are withheld is correctly listed on your paycheck stub.
* Your tax withholding location can be found in the body of your paycheck stub under "Deductions." For example, "IL ST TAX" indicates that your taxes are being withheld in the state of Illinois.
* If the information on your paycheck stub is incorrect, you will need to take the following steps:
For company address correction: contact your supervisor For state tax withholding correction: contact the Payroll Care Center at 866-825-7297 For home address correction: input the correct address into your personal profile in the Employee Services/PeopleNet section of SkyNet
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Reminder: Annual Enrollment for 2008 Continues Through November 20
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If you want to change your benefit elections or enrollment status within United's benefit plans, you must do so before November 20. Be sure to carefully read the materials that were mailed to your home.
* Employees can enroll in the company's medical, dental and vision plans during the enrollment period, and also can elect to open a 2008 Flexible Spending Account.
* Employees can enroll or make changes online at www.ualbenefits.com to avoid long wait times. Those who prefer to enroll by phone can call 888-825-0188 to speak with a United benefits service representative.
* Flexible Spending Accounts do not automatically roll over to the next year. Even if you enrolled in a Flexible Spending Account in 2007, you will need to re-enroll during the annual enrollment period if you want to participate in the coming year.
* Employees who wish to maintain their current coverage do not need to participate in the annual enrollment process.
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UAL Corporation's stock (NASDAQ: UAUA) closed Monday, Nov. 15, 2007 at 43.26, down 2.06, on a volume of 4,180,382 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage.
Nov 15, 2007
Category Daily Goal
On Time +00 53.3% 61.9%
Arrivals OT +14 73.4% 75.7%
Star OT +00 71.8% 79.0%
Completion Rate 99.3% 98.7%
Load Factor 81.3% --
Psgrs. Boarded 192061
Sch. Departures 1515
Good morning...This is news for Nov. 13 - 15, 2007
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Today's News:
1. Employees Can Now Use 20 Percent Discount to Book and Ticket Revenue Travel on 1-800-UAL-LIST
2. United Supports the Troops with Holiday Giving
3. United Named Official Airline Provider for 2008 Democratic National Convention
4. October's Mainline United Promoters Score Falls Short of Quarterly Goal, UAX Remains Strong
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Employees Can Now Use 20 Percent Discount to Book and Ticket Revenue Travel on 1-800-UAL-LIST
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Using the Interactive Voice Response (IVR) employee travel telephone line, 1-800-UAL-LIST, employees can now purchase revenue tickets on United and Ted using the 20 percent employee discount. When you use the system to book travel, an electronic ticket and a receipt are automatically generated. The system also accepts your Mileage Plus number. The fully automated process does require a credit card for payment.
* Through IVR employees can request fare information based on price or schedule, in order to receive the lowest discounted fare. Employees can either ticket immediately or place the reservation on hold for ticketing within the designated time limit.
* "We are delighted to offer employees this new option for purchasing revenue tickets with their 20 percent discount," says Todd Arkenberg, vice president - Employee Experience. "This added convenience represents the continuous effort we are making to help employees make the most of their travel privileges."
* The Information Services Division and the Contact Center Strategy Group collaborated on the enhancement. They will introduce further improvements in 2008, including speech recognition upgrades and reductions in background noise sensitivity.
* Employees can access IVR using a file number and a personal identification number. Following the prompts, employees can request the twenty percent discount, list for flights, check load status and modify or cancel reservations. Calls made from within the U.S. are toll-free; however, international direct dialing rates apply to calls originating outside of the U.S.
* We encourage employees who are new to IVR to call 1-800-UAL-LIST to list for space available travel, to book positive space travel and to list companions.
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United Supports the Troops with Holiday Giving
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Beginning this Veteran's Day, November 12, United kicks off a week-long drive to collect items for care packages to be sent to service men and women in Iraq and Afghanistan.
* Non-perishable items, such as shampoo, soap, sunscreen, deodorant, toothpaste, powder and cash donations to purchase phone cards will be accepted.
* Employees also can submit the name of a family member or friend stationed in Iraq or Afghanistan to receive a United care package.
* The collection period runs from November 12-19. For information on collection sites or to submit the name of a loved one, please contact Corporate Social Investment at corporatesocialinvestment@united.com.
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United Named Official Airline Provider for 2008 Democratic National Convention
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The Democratic National Convention Committee (DNCC) on Thursday named United as the official airline provider for the 35,000 delegates, media and guests flying to Denver, Colo., for the 2008 Democratic National Convention. This marks the fourth consecutive time United has been selected as the official airline provider for a Democratic National Convention.
* Held from Aug. 25-28, 2008, the Convention is expected to pump an estimated 160 million dollars into the Denver area's economy and draw approximately 35,000 visitors to the region.
* As the official airline provider, United is offering discounted fares to delegates and DNCC officials and staff as they travel to and from Denver.
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October's Mainline United Promoters Score Falls Short of Quarterly Goal, UAX Remains Strong
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The October results for United Promoters (UP), the metric we use to measure satisfaction among our premium customers, are trending below target for reaching our fourth quarter (Q4) goal, although UAX is continuing its strong performance and is on target to achieve Q4 goals.
* Domestic mainline achieved a United Promoters score of 26.2 percent for the month, 9.4 points below our 35.6 percent Q4 goal. UAX recorded a 26.4 percent score for the month, which is 5.8 points above its Q4 goal of 20.6 percent.
* Our system-wide UP score for October closed at 23.6 percent, 8.1 points below our Q4 goal of 31.7 percent.
* For more information about how we create United Promoters, see the November 9 NewsReal or visit "United Promoters" in SkyNet's Quick Hits section.
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UAL Corporation's stock (NASDAQ: UAUA) closed Monday, Nov. 12, 2007 at 41.02, up 0.71, on a volume of 2,112,517 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage.
Nov 12, 2007
Category Daily Goal
On Time +00 60.2% 61.9%
Arrivals OT +14 80.3% 75.7%
Star OT +00 73.2% 79.0%
Completion Rate 99.2% 98.7%
Load Factor 86.1% --
Psgrs. Boarded 204673
Sch. Departures 1520
Good morning...This is news for Nov. 2 - 5, 2007
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Today's News:
1. United Strengthens Service from Los Angeles, Denver and Washington Dulles Hubs
2. IAM District 141 and United Win Award for Outstanding Labor/Management EAP Program
3. Daylight Saving Time Follow-up: Clocks Fall Back One Hour on November 4
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United Strengthens Service from Los Angeles, Denver and Washington Dulles Hubs
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This fall and winter United strengthens its service from three of our hubs Los Angeles, Denver and Washington Dulles.
* On October 24, United announced new service between Los Angeles and Des Moines, Iowa, and Austin, Texas. The new daily roundtrip flights will begin Feb. 1, 2008, and will be served by explus, which offers United First(R) and Economy Plus(R) seating on UAX Flights.
* The Des Moines and Austin flights will give United customers in these regions more opportunities for convenient travel to the West Coast as well as to Hawaii and Asia.
* United further enhanced our international schedule on October 28 by reinstating nonstop service between Los Angeles and Hong Kong. The daily flights are served by Boeing 747-400 aircraft and strengthen the LAX hub as an international gateway to the Pacific. This is in addition to the Los Angeles to Frankfurt route beginning December 15.
* October 28 also marked the start of seasonal service between Washington Dulles and Rio de Janeiro. Daily service on a Boeing 767-300 will run through the U.S. winter travel season.
* On November 1, United announced passenger and cargo service between Denver International Airport and London Heathrow. The service is now open for sale and the first flight will depart on March 30, 2008. This is a significant route for the United network, as Denver is the only hub that currently does not offer flights to Heathrow or other trans- oceanic destinations.
* The Denver - London service strengthens United s international network and creates new revenue opportunities, as well as provides our Denver customers with nonstop service to Europe. The service is also noteworthy because it is the first United route that resulted from this year s Open Skies Agreement between the United States and the European Union - benefiting our customers on both sides of the Atlantic.
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IAM District 141 and United Win Award for Outstanding Labor/Management EAP Program
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The IAM District 141 and United won the Ross Von Weigand Award from the Employee Assistance Professionals Association (EAPA) this week for the most outstanding labor/management employee assistance program. The award recognizes the achievements of organizations that have distinguished themselves in the employee assistance profession. EAPA Labor Director Michael Blackburn presented the award to District 141 EAP Chairperson Al Abromitis and United's Los Angeles EAP Representative Bob Kovalesky at the annual World EAPA conference in San Diego.
The IAM and United's EAP work closely together to assist IAM members in resolving psychological or emotional problems, addictions, family disputes, marital discord and parenting issues, among others.
"IAM began its peer assistance program more than 30 years ago," says Ken Fox, United's manager of EAP programs. "It was one of the first employee assistance programs anywhere. Not long after, United decided to create a program within the company to complement the IAM's peer program and provide additional, professional help when needed."
Peer assistance provided by the IAM is what makes the joint program work, according to Fox. "That relationship is what convinces employees to take advantage of services and get help. People feel less awkward because it's easier to go to someone you know with a problem."
Rudy Asuncion, the national director of the IAM EAP and a Chicago-based United employee, says there's no ego involved when it comes to which group provides help to employees in need. "We believe the power is in the partnership -- for EAP, it really does work. There's a lot of consulting and training we do together. United EAP reps help train shop stewards and IAM/EAP coordinators. It's one of those programs that works on both sides of the fence and is good for everyone involved."
"Peer assistance really makes our job so much easier because of their support," agrees Fox. "We couldn't do as good a job without the IAM's efforts."
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Daylight Saving Time Follow-up: Clocks Fall Back One Hour on November 4
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November 4 marks the end of 2007 Daylight Saving Time. Automated clocks are scheduled to fall back one hour at 2:00 a.m. local time on November 4.
* The potential exists for a small percentage of computers in United's system to fail to adjust backward by one hour. ISD recommends that you check your computer on November 4 (or the next working day) to ensure the clock is accurate.
* If your computer clock or an airport display clock (a monitor or gate backdrop) is inaccurate, please call United's Service Desk at Unitel 700-5800 immediately.
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UAL Corporation's stock (NASDAQ: UAUA) closed Thursday, Nov. 1, 2007 at 47.08, down 0.82, on a volume of 2,764,430 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage.
Nov 2, 2007
Category Daily Goal
On Time +00 69.6% 61.9%
Arrivals OT +14 84.4% 75.7%
Star OT +00 80.3% 79.0%
Completion Rate 98.9% 98.7%
Load Factor 79.1% --
Psgrs. Boarded 181618
Sch. Departures 1521
Good morning... This is news for Oct. 26-29, 2007
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Today's News:
1. California Wildfires Affect Millions, United Employees Among Them
2. Success Sharing Results for Third Quarter 2007
3. Daylight Saving Time Follow-up: Check Computer Clocks on October 28
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California Wildfires Affect Millions, United Employees Among Them
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Pete McDonald, executive vice president and chief operating officer, shared the following update with all employees regarding how our local employees are affected by the southern California wildfires, and ongoing efforts to assist them.
Dear fellow employee:
The destruction caused by wildfires in California has been a major event in the U.S. this week. More than a million people were asked to evacuate their homes. Some of our own people were among them, mainly in the San Diego area.
Thankfully, we have no reports of harm to any of our nearly 4,000 United employees or their families based in southern California. There appears to be only a small number who have suffered damage to their homes. Others were impacted by difficulties in getting to airports in the region, and I'm sure that everyone will be glad to see the wildfires extinguished, so they can resume their normal lives.
Employees who had difficulties getting to their designated airports are working with their managers and supervisors to make arrangements for time off. We are working with employees who were subject to mandatory evacuation to provide appropriate pay protection. For those who lost their homes, we are providing two weeks of initial pay protection. We'll continue to stay in touch with our local management teams to ensure that we're providing the appropriate support in the days and weeks ahead.
Not surprisingly, our people rose to the occasion to address the challenges caused by the wildfires. Employees opened their homes to each other and their families, picked up trips for colleagues who couldn't make their scheduled flights and offered other forms of assistance. Stations offered help to each other with manpower support. Al Turner, SAN station manager, even reported that some employees slept over at the station on Monday evening to ensure that the operation was covered on Tuesday. Scott Dolan, senior vice president of Airport Operations, was in SAN on Tuesday and said that the team was doing a great job in the face of adversity.
From an operational perspective, the impact has been minimal. And that's important because, as an airline, we play an important role in areas affected by natural disasters and events such as hurricanes, floods, earthquakes and, of course, wildfires. We provide transportation back home, or to friends and family or to other destinations out of harm's way. Our customers depend on us. Without the dedication and commitment of our people, we wouldn't be able to do so.
I thought it was important to let the organization know that the majority of our people and their property are safe, and we are helping those who need assistance. I want to thank everyone for their role in enabling us to continue to serve our customers and support our colleagues.
Sincerely,
Pete McDonald
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Success Sharing Results for Third Quarter 2007
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Employees faced a challenging travel season in the third quarter, with record loads and issues caused by weather and air traffic congestion. As a result, our reliability and customer satisfaction results fell short of our goals:
* Reliability (or on-time departure :00) was 57.2 percent, 4.4 points below goal, but 0.6 points above threshold.
* As a result of meeting the reliability threshold, eligible employees will receive a pay-out over the 50 percent threshold level for the reliability metric.
* Customer satisfaction (our United Promoters score) was 22.4 percent, 8.5 points below goal, and 5.9 points below threshold. Therefore, there will be no Success Sharing award for our customer satisfaction goal this quarter.
* Taken together, these two results equate to an overall payout of 18.6 percent of target for the third quarter. Success Sharing award checks will be dated November 7.
* In addition, STAR on-time departure :00 performance for the second quarter was 2.9 points below goal at 75.1 percent. As a result, there will be no allocation of service charge-waived flight segments for third quarter.
* The on-time goal for the 4th quarter is 61.9 percent, similar to Q4 last year. The STAR goal for the fourth quarter is 79 percent on-time for all flights prior to 09:00 to achieve eight passes; 78 percent for six passes; and 77 percent for four passes. These passes now have a two-year expiration date.
* For more information on Success Sharing, including 2007 goals and results to date, go to "Success Sharing" under SkyNet's "Quick Hits."
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Daylight Saving Time Follow-up: Check Computer Clocks on October 28
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Due to the shift this year in the Daylight Saving Time schedule, United's Information Services Division (ISD) warns there are a small percentage of computers in United's system that may move their internal clocks back one hour on Sunday, October 28, at 2 a.m.
* ISD recommends that you check your computer on October 28 (or the next working day) to ensure the clock is accurate.
* If your computer clock or an airport display clock (a monitor or gate backdrop) is inaccurate, please call United's Service Desk at Unitel 700-5800 immediately.
* While the actual time change occurs on November 4, 2007, system errors could occur as early as October 28, due to the extended Daylight Saving Time period.
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UAL Corporation's stock (NASDAQ: UAUA) closed Thursday, Oct. 25, 2007 at 48.61, down 1.66, on a volume of 2,517,566 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage.
Oct 25, 2007
Category Daily Goal
On Time +00 55.9% 61.9%
Arrivals OT +14 71.6% 75.7%
Star OT +00 72.9% 79.0%
Completion Rate 98.3% 98.7%
Load Factor 78.5% --
Psgrs. Boarded 193902
Sch. Departures 1552
NEWSREAL
SPECIAL NEWSREAL
Please Post Promptly Tuesday, October 23, 2007 and keep posted through 10/25
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Today's Special News:
1. UAL Corporation Reports Third Quarter Earnings; Profit Sharing Program Expected to Pay Out After Year-End
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UAL Corporation Reports Third Quarter Earnings; Profit Sharing Program Expected to Pay Out After Year-End
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UAL Corporation, the holding company whose primary subsidiary is United Airlines, reported pre-tax income of 565 million dollars for the third quarter ended Sept. 30, 2007. Pre-tax income, excluding special items, was 498 million dollars, 279 million dollars or 127 percent higher than the same period in 2006.
With this performance, the company has earned approximately 700 million dollars in pre-tax profits to date this year. That means that, through the third quarter, we've earned more than 100 million dollars for our Profit Sharing program. More than 99 percent of that money will go to employees other than senior management. Our full-year results, including our fourth-quarter performance, will determine the amount of the actual payout. A loss in the fourth quarter could lessen the amount of the payout.
In the third quarter, the company:
* Increased year-over-year mainline passenger unit revenue by 10.6 percent and by 9.7 percent excluding special items through its capacity discipline and aggressive revenue management.
* Continued its focus on controlling costs, with operating expenses increasing only 0.6 percent versus the prior year.
* Generated operating cash flow of 342 million dollars, a 161 percent year-over-year improvement. Maintained a cash and short-term investments balance of 5.0 billion dollars at Sept. 30, 2007, including
788 million dollars of restricted cash, despite debt reductions during the quarter.
* Strengthened its balance sheet by reducing total debt by 210 million dollars during the quarter.
* Reported basic and diluted earnings per share (EPS) of 2 dollars 82 cents and 2 dollars 21 cents, respectively. Excluding special items, basic and diluted EPS were 2 dollars 49 cents and 1 dollar 96 cents, respectively. Diluted EPS excluding special items increased 75 percent versus last year.
* Was awarded a new direct route to China, making United the first U.S. carrier to offer daily, nonstop service between San Francisco and Guangzhou.
The company's strong third quarter earnings improvement was fueled by passenger unit revenue growth that was among the best in the industry. UAL generated operating earnings, excluding special items, of 589 million dollars, a year-over-year improvement of 93 percent, resulting in an operating margin of 10.7 percent.
The company's pre-tax income, excluding special items, of 498 million dollars, resulted in a pre-tax margin of 9.0 percent for the third quarter of 2007, more than double the margin in the comparable period last year. Net income for the third quarter of 2007, again excluding special items, increased by 132 million dollars or 81 percent to 295 million dollars.
Oct 22, 2007
Category Daily Goal
On Time +00 48.9% 61.9%
Arrivals OT +14 68.4% 75.7%
Star OT +00 62.7% 79.0%
Completion Rate 98.5% 98.7%
Load Factor 85.7% --
Psgrs. Boarded 209328
Sch. Departures 1559
Good morning... This is news for Oct. 5-8, 2007
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Today's News:
1. Important Update on Eligibility Verification Dates
2. Friends Plus Discount Promotion Extends through October 2008
3. Service Desk Online is Now Available on SkyNet
4. Employees Exceed Several Operational Goals in September
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Important Update on Eligibility Verification Dates
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As noted in a recent NewsReal, you will need to update your records this fall to ensure your dependents and travel eligibles receive the benefits they are entitled to, and that those who are not eligible do not receive them.
In response to requests from numerous employees, United has extended the grace period and deadline for submitting documentation to provide you additional time to acquire and submit the supporting documents.
Please make note of the new dates:
Dec. 14, 2007: Grace Period Ends. Completed validation form for ineligible dependents/travel eligibles due
Jan. 31, 2008: Completed validation form and all supporting documentation due
Feb. 1, 2008: If documents are incomplete or not received by January 31, individuals listed as travel eligibles and/or dependents will no longer receive benefits and/or travel privileges effective Feb. 1, 2008.
A toll-free Eligibility Verification Help Line is available at 1-800-899-0572 from 7 a.m. to 7 p.m. CT, Monday through Friday.
For callers outside the U.S. or Canada, United has arranged for international calls to be connected, free of charge. Simply follow the steps listed in the Q&A available from the Department News section of SkyNet.
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Friends Plus Discount Promotion Extends through October 2008
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Friends Plus - the promotion that offers a 10 percent discount on select United Economy fares for your friends and family members - is being extended through October 2008.
* The promotion is available on United, United Express and Ted and applies to bookings made between Oct. 4, 2007 and Oct. 31, 2008 for travel between Nov. 1, 2007 and Oct. 31, 2008.
* Each employee is assigned an e-cert number that can be forwarded to five separate individuals. Each recipient may apply the discount to fares for up to four passengers (traveling on the same itinerary). To locate your e-certificate numbers, and for booking instructions, terms and conditions, visit the "My Coupons" section of SkyNet/Weblist.
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Service Desk Support is Now Available on SkyNet
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A new Service Desk Online tool is now available to submit non-critical technology problems via SkyNet (our United Express partners can access it through ExpressNet) by clicking on a link under "More business tools" called "Service Desk Online."
* You may also monitor the progress of open tickets, regardless of whether you created them online or by calling the Service Desk at Unitel (or 847) 700-5800.
* A link on Service Desk Online called "Severity Definitions" allows you to quickly determine whether your issue requires a call or can simply be submitted electronically.
* Examples of non-critical issues that can be reported online include jammed or malfunctioning printers, sticking keyboards, and how-to questions about Microsoft Outlook or other applications.
* A complete, step-by-step user guide is available for your reference on the Service Desk Online landing page, along with quick tips and hints.
* For more information about how United's ISD team and its partner EDS are enhancing the company's technology infrastructure and support, see the June 15 NewsReal.
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Employees Exceed Several Operational Goals in September
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September 2007 operations results improved significantly over August with employees exceeding goals in most categories. On-time departure :00 category boasts the greatest improvement for both mainline and United Express(UAX).
* Mainline on-time departure :00 performance was 64.7 percent, 3.1 points above goal. Departure completion was 98.5 percent, 0.2 points below goal and on-time arrivals :14 was above goal by 2.6 points at 78.3 percent. STAR on-time departure :00 performance exceeded goal by 2.4 points at 80.4 percent.
* UAX delivered an on-time departure :00 performance of 72.3 percent, 13.5 points above goal. On-time arrivals :14 was 9.9 points above goal at 81.9 percent. Departure completion was 98.7 percent, exceeding goal by 0.9 points. UAX STAR on-time departure :00 was above goal by 8.3 points at 83.3 percent.
* Best performing stations in STAR on-time departure :00 for the month follow:
United mainline: Best hub was Denver at 78.6 percent; best intermediate station was Reno at 93.2 percent and best small station was Tulsa at 100 percent.
United Express: Best large station (with five or more daily departures) was Denver, at 88.3 percent; best mid-sized station (with 3-4 daily departures) was San Antonio, at 94.6 percent; and best small stations (with 1-2 daily departures) were Scranton/Wilkes-Barre, Pa.; Rockford, Ill. and San Jose, Calif., each at 100 percent.
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UAL Corporation's stock (NASDAQ: UAUA) closed Thursday, Oct. 4, 2007, at 47.14, down 1.12, on a volume of 1,704,180 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage.
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Oct 4, 2007
Category Daily Goal
On Time +00 60.6% 61.9%
Arrivals OT +14 78.3% 75.7%
Star OT +00 82.4% 79.0%
Completion Rate 98.8% 98.7%
Load Factor 80.2% --
Psgrs. Boarded 196001
Sch. Departures 1547
Good morning... This is news for Oct. 2-4, 2007
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Today's News:
1. With New Premium International Seats Ready, First B767 Enters Modification in Greensboro, N.C.
2. Crew's Concern Takes Edge Off Summer Travel Delay
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With New Premium International Seats Ready, First B767 Enters Modification in Greensboro, N.C.
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United's first international widebody aircraft is midway through the modification process in preparation for the launch of our international premium travel experience scheduled for this fall from Washington Dulles to Frankfurt.
* Earlier this month four London-based employees toured the seat manufacturer, BE Aerospace, to see the new seats in person and learn more about the design and manufacturing process. Mechanic Eddie Bou-Sreih, Flight Attendants Paul Davies and Helen Sommerville and Customer Service Representative Pam Kaur Gill visited BE Aerospace in Kilkeel, Northern Ireland, and were impressed with what they saw.
* "Having seen and experienced this product first hand, I know that it will be a hit with our customers," says Gill. "I look forward to talking about the new seat to customers flying from London Heathrow."
* A core team of about five United Services employees are working closely with TIMCO in Greensboro, N.C., to manage the modification process on the first Boeing 767 aircraft to undergo the conversion. Project managers for the B747 and B777 fleets are observing this modification to become familiar with the demands of the work. They are working closely with representatives from Customer Experience, Onboard Service, Flight Operations and the Air Line Pilots Association, among others.
* "We have completed all of the interior cabin removals and are completing wiring runs now to pave the way for installation of the digital inflight entertainment system," says Project Manager Bob Loess of United Services. "Over the next several days, the cabin work will start to come together and the empty cabin will start to look like an airplane again, as we install our new lie-flat premium seats, interior decor enhancements and new closets, dividers, and refreshed overhead bins in the premium cabins.
"Our Project Engineer Leo Tenorio is responsible for coordinating the engineering activities for this modification with the other project engineers," says Loess. "He's leading a dedicated team that is working round the clock seven days a week to ensure we deliver the best product for United's customers."
* In addition to installing new seats in United First and United Business class, and a reliable digital inflight entertainment system, the modification involves refreshing the premium cabin restrooms, and, in the economy cabin, adding new seat cushions, replacing the carpeting, and refreshing existing customer-facing items, including overhead bins, side walls and cabin lighting. We will finish the cabin with an interior deep clean to restore the interior to a like-new condition.
* Following the initial B767 will be a B747 and a B777. After these three aircraft are modified, the rollout schedule will accelerate and run in parallel by aircraft type through fall 2009, with approximately one reconfigured aircraft per week joining the fleet.
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Crew's Concern Takes Edge Off Summer Travel Delay
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One of United's best customers, 1K Ari Stone, sent Customer Relations a letter and photos about excellent service he received from United this summer:
"I was a passenger in first class on United Flight 1291 from Austin to Denver. As we approached DIA, the airport ceased runway operations due to wind shear and bad weather. Our captain informed the passengers of the situation and kept us abreast of developments every 5-10 minutes."
"After about 30 minutes, our pilot requested an alternate landing in Cheyenne, Wyo., as we were running low on fuel and there was no ETA as to when DIA would reopen or we'd be able to land. Upon landing in Cheyenne, the flight attendants immediately put in a movie when news from Denver came back that we could be on the ground for more than an hour. At the same time, the pilot said he had just ordered pizzas for the entire plane.
"Well, after about 45 minutes, we had not been cleared for takeoff, but, sure enough, about 30 Dominos pizzas were delivered to the tarmac and carried onto our plane, which flight attendants began distributing to all of the passengers. My fellow passengers and I took pictures and marveled at what was going on.
"I have been a 1K flier now for about 8 years and I have never heard of something like this happening on a delayed or re-routed flight for any airline. We ended up taking off shortly after eating our delicious pizza and arrived in Denver two-and-a-half hours late. Many of the passengers had missed their connections and probably had to stay the night in Denver, but they walked off the plane with smiles on their faces and hugging and thanking the flight crew of Captain Charlie Dadoun, First Officer John Kane and Flight Attendants Cathleen Cooney, Lance Jones and Nancy Aguirre.
"My assumption is this act of graciousness cost United a couple hundred dollars, but based on comments from my fellow passengers, it may have helped earn some customers for life. I and the other two 1K passengers sitting next to me were all quite impressed. Again, thank you to the crew of United Flight 1291."
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UAL Corporation's stock (NASDAQ: UAUA) closed Monday, Oct. 1, 2007, at 47.78, up 1.25, on a volume of 2,367,973 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage.
Oct 1, 2007
Category Daily Goal
On Time +00 58.0% 61.9%
Arrivals OT +14 76.9% 75.7%
Star OT +00 71.2% 79.0%
Completion Rate 98.0% 98.7%
Load Factor 81.9% --
Psgrs. Boarded 194198
Sch. Departures 1556
--~--~---------~--~----~------------~-------~--~----~
Good morning.....This is news for Sept. 21-24, 2007
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Today's News:
1. United Updates Records to Confirm Eligibility of Dependents and Travel Eligibles
2. Year-Round Mainline Service Returns to Jacksonville; United to Resume Ground Handling Flights
3. United Ranks Best Among Network Carriers in Baggage Handling, Remains at the Top in STAR On-time Departures in DOT's July Report
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United Updates Records to Confirm Eligibility of Dependents and Travel Eligibles
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Employees will need to update their records to ensure that their dependents and travel eligibles receive the benefits they are entitled to, and that those who are not eligible do not receive them. It is important to take the time to send in your information so that your dependents and travel eligibles can receive the benefits and travel privileges they deserve, and to ensure that any errors in your records are corrected.
* We re updating records for dependents receiving U.S. health and welfare benefits and for all eligibles worldwide receiving travel privileges. Individual packets with detailed information to help guide you through this process will be mailed to your home address over the next two weeks. A call center established specifically for this process will begin operating on September 25 to answer your questions.
* During a confidential process that runs through Nov. 1, 2007, there will be no issues associated with removing ineligible individuals from your records.
* The objective is to ensure that your records are up-to-date by the end of the year. The time period for updating your records and providing supporting documents runs through Dec. 14, 2007. If the documents are incomplete or not received by December
14, individuals listed as travel eligibles and/or dependents will no longer receive benefits and/or travel privileges effective Jan. 1, 2008.
* We will send reminders to you through NewsReal and other communications vehicles. We will keep you updated throughout the process.
* Keeping dependent records current and accurate is a common best practice, and United now joins other U.S. carriers that have undertaken such efforts, including American and Delta, and large corporations such as Ford Motor Company and Caterpillar.
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Year-Round Mainline Service Returns to Jacksonville; United to Resume Ground Handling Flights
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With year-round mainline service between Jacksonville, Fla. (JAX) and Chicago (ORD) beginning October 28, United will resume ground handling of all JAX flights in late November. As a result, United will end its contract relationship with Delta Global Services (DGS) in JAX, and will offer recall to furloughed JAX employees over the next few months.
* JAX customers have been served exclusively by United Express since July 2001. With the addition of three flights from JAX to ORD in October, JAX will begin offering mainline service year-round. Resuming ground handling will help us more fully serve these flights.
* This most recent conversion to year-round mainline service further demonstrates how United Express service can increase a market's demand for mainline flights over time.
* We are delighted to welcome United employees back to Jacksonville, the third station in as many months that we have converted back to year-round mainline service, says Jeff Helfrick, regional manager Airport Operations and Cargo. We look forward to once again meeting the air and cargo needs of our Jacksonville customers.
* Over the next few months, United will conduct the recall process to fill available ground handling positions at JAX. United and the IAM will work together throughout the recall process. Employees should contact their supervisor or IAM representative with any questions regarding the recall process or their eligibility.
* DGS employees will be welcome to view and apply for open JAX positions once the recall process is complete.
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United Ranks Best Among Network Carriers in Baggage Handling, Remains at the Top in STAR On-time Departures in DOT's July Report
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We achieved a first-place ranking in baggage handling, ranked second in performance in on-time arrivals (although officially we ranked in second), and earned the first-place ranking for STAR on-time departures :00 for the third consecutive month, according to the Department of Transportation's July report.
* Our mishandled baggage rate held July's first place ranking, with 5.60 mishandled bags per 1,000 customers, and was 0.22 percentage points lower than June s second-place ranking (5.82).
* We achieved a close second-place ranking with an on-time arrival :14 performance of 70.1 percent. (Northwest achieved the same percentage.) This figure represents a 4.1-point increase over June, where we ranked third at 66.0 percent.
* Our on-time departure :00 percentage of 55.3 percent was up 4.9 points from June, and we held our second-place ranking.
* United's complaint rate was 2.96 per 100,000 customers, a 0.77 point increase over June (2.19). We held our fifth-place ranking among the six major U.S. carriers in this category.
* United's July cancellations also ranked fifth, with 2.1 percent of flights cancelled. Although the percentage remained the same, our ranking slipped from June's third-place.
* "While we have more opportunity to reduce customer complaints, overall these competitive results highlight the strong baggage and reliability performance that our frontline employees delivered in July," said Pete McDonald, United's executive vice president and chief operating officer. "Congratulations to the teams for stepping up to the summer challenges of high load factors and increased air traffic to better meet our customers' expectations."
DOT July 2007 Report for United
(Among Six Major U.S. Carriers)
July June July
2007 2007 2006
STAR on-time 75.1 72.6 73.7
Departure :00 (1st) (1st) (3rd)
Arrival on-time :14 70.1 66.0 72.7
(2nd) (3rd) (4th)
Mishandled baggage rate 5.60 5.82 5.40
(per 1,000 customers) (1st) (2nd) (3rd)
On-time :00 departures 55.3 50.4 56.6
(2nd) (2nd) (4th)
Complaint rate 2.96 2.19 1.71
(per 100,000 customers) (5th) (5th) (5th)
Canceled flights 2.1 2.1 2.2
(Percent) (5th) (3rd) (6th)
Note: United reviews its performance relative to five other major network carriers, each of which accounts for more than five percent of U.S. domestic airline capacity. Those carriers include American, Continental, Delta, Northwest and US Airways.
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UAL Corporation's stock (NASDAQ: UAUA) closed Thursday, September 20, 2007, at 46.83, down 0.96, on a volume of 1,732,176 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage.
Sept 20, 2007
Category Daily Goal
On Time +00 64.2% 61.6%
Arrivals OT +14 79.8% 75.7%
Star OT +00 78.7% 78.0%
Completion Rate 97.9% 98.7%
Load Factor 83.1% --
Psgrs. Boarded 196367
Sch. Departures 1544
Good morning.....This is news for Sept. 14-17, 2007
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Today's News:
1. Employees Work Through Adverse Weather and Record Load Factors in August 2007
2. Passenger Incident Review Committee to Begin Operating Saturday
3. United Announces New Service between Los Angeles and Frankfurt
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Employees Work Through Adverse Weather and Record Load Factors in August 2007
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For August 2007, employees contended with all-time high load factors as well as thunderstorms in the Eastern and Midwestern United States.
It was a challenging summer for the industry and at United we had our fair share of weather and air traffic congestion to contend with which caused an increase in these types of delays and cancellations, especially in Chicago, says Pete McDonald, executive vice president and chief operating officer. As the busy summer travel season winds to a close, we would especially like to thank our frontline teams for taking care of our customers during this peak season. For the fall, we will continue to make changes to improve upon our ability to execute, including more ground time in the schedule and better flight crew coverage to further enhance our reliability and service."
* Given the difficulties, system on-time departure :00 performance was 52.1 percent, 9.5 points below goal. Departure completion was 97.5 percent, 1.2 points below goal; and on-time arrivals :14 was below goal by 8.6 points at 67.1 percent. STAR on- time departure :00 performance missed goal by 6.5 points at 71.5 percent.
* United Express delivered an on-time departure :00 performance of 60.5 percent, 1.7 points above goal. On-time arrivals :14 was 0.5 points below goal at 71.5 percent. Departure completion was 96.7 percent, below goal by 1.1 points. UAX STAR on-time departure :00 was above goal by 0.5 points at 75.5 percent.
* Best performing stations in STAR on-time departure :00 for the month follow.
United mainline: Best hub was San Francisco at 75.4 percent; best intermediate station was Reno at 91.4 percent; and best small station was Ho Chi Minh City at 93.6 percent.
United Express: Best large station (with five or more daily departures) was Tucson, at 87.1 percent; best mid-sized station (with 3-4 daily departures) was Portland, at 90.6 percent; and best small stations (with 1-2 daily departures) were Bismarck, and Oakland, both at 96.8 percent.
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United s Passenger Incident Review Committee to Begin Operating Saturday
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United has developed a Passenger Incident Review Committee (PIRC), set to launch Sept. 15, 2007, which provides a post-incident process to address incidents of physically abusive behavior by passengers against United employees.
* The PIRC process was developed to provide a more consistent, robust system for analyzing and investigating incidents in which a passenger engages in physically abusive or physically threatening behavior against any United employee and presents an ongoing safety risk. It also determines the appropriate corporate response to the passenger, and provides post-incident legal and emotional support for the affected employee.
* PIRC was established by a team composed of representatives from the Association of Flight Attendants (AFA), the Air Line Pilots Association (ALPA) and United representatives from Onboard Service, Legal, Corporate Security and Customer Service over the past two years. The AFA was instrumental in addressing the need for United to review its post-incident processes.
* PIRC investigations will involve representatives from Corporate Security, Legal and the involved employee s division.
* Managers, supervisors, flight attendants, customer service representatives and pilots currently are receiving information about the process and their roles.
* For more information about PIRC, including frequently asked questions, visit the PIRC Website, which can be found under More Business Tools on the SkyNet home page.
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United Announces New Service between Los Angeles and Frankfurt
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In response to increased customer demand for more frequent flights to Europe, and supporting our goal of strengthening our international network, United Airlines today announced that we will offer new daily passenger and cargo service between Los Angeles (LAX) and Frankfurt (FRA).
* Service to FRA will begin on December 15, 2007 and service from FRA on December 16, 2007. Flights opened for sale Wednesday.
* This addition represents our eighth daily flight to FRA, and the new service from LAX means we now serve Frankfurt from all four of our international gateways.
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UAL Corporation's stock (NASDAQ: UAUA) closed Thursday, September 13, 2007, at 45.02, up 0.82, on a volume of 948,981 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage.
Sept 13, 2007
Category Daily Goal
On Time +00 72.0% 61.6%
Arrivals OT +14 83.4% 75.7%
Star OT +00 89.2% 78.0%
Completion Rate 98.9% 98.7%
Load Factor 78.9% --
Psgrs. Boarded 188100
Sch. Departures 1546
From: Skynet United News
This is Monday, August 27, 2007 2:56:49 PM
Dale T
United Announces Enhancements to Pleasure Travel/NRSA Policy
United is enhancing its pleasure travel policy for United, United Express and Mileage Plus travel-eligible employees, retirees and travel-eligible family members.
Several changes will take effect Nov. 1, 2007:
* First, we will no longer assess service charges for U.S. domestic and international flights in United Economy on United and Ted. We will continue to waive service charges for travel in United Economy on United Express. Applicable transportation taxes and fees will continue to apply.
* Second, Performance Incentive service charge-waived flight segments, which are provided when we meet our reliability and customer goals, will have their usage period lengthen from one year to two years. This will give employees more time to take advantage of the awards. Any Performance Incentive segments that remain in your "bank" as of Nov. 1, 2007, will expire two years after the date of issuance. You can see how many segments you have by visiting WebList and clicking "My Coupons."
* Employees who list themselves in United First or United Business using Performance Incentive segments but who are ultimately seated in service charge-waived United Economy will have their Performance Incentive segments returned to their "bank" of unused segments.
* Next, we're simplifying the way pleasure travel service charges for United First and United Business are calculated that, in many cases, will reduce the cost. Premium cabin travel prices will be based on a new zonal fee structure, matching the Zonal Employee Discount (ZED) service charge structure currently used on some interline carriers. ZED pricing is based on the mileage between a point-to-point origin and destination.
* Premium cabin prices will be discounted 65 percent off ZED fares for U.S. domestic travel and discounted 50 percent off ZED fares for international travel.
* The cost for travel to Hawaii, which we've traditionally priced separately from other U.S. domestic travel, will be calculated in the same way as mainland domestic.
* To assist employees in determining cabin pricing, the calculator on WebList will soon be updated so you can quickly and easily see the new pricing.
* To make premium cabin pricing more consistent between mainline and United Express, we will be introducing the discounted ZED service charges for travel in the United First cabin on United Express.
* Finally, in the first quarter of 2008, United employees, retirees and travel-eligible individuals will board United Express flights based on company hire date or years and months of service, according to United's travel policy. This will replace the current boarding at BP-8C, same day, time of check-in policy.
* As always, United Express employees will board first on their own carrier, before other non-revenue, space-available travelers. For example, when the aircraft is operated by SkyWest, the boarding priority would be the SkyWest traveler, the United traveler, and then other United Express partner travelers.
* Separately, we are reviewing our companion travel policy and will keep you posted if we make any changes to this travel privilege.
"We are pleased to introduce these enhancements to our travel policy," says Pete McDonald, executive vice president and chief operating officer. "The changes are an acknowledgement of the value we place on our employees and our commitment to improving the employee experience, while making our travel policy more consistent across the company and more competitive within the industry."
A letter that details these changes will be mailed to employees and retirees in the near future.
NEWSREAL
Aug. 24 - 27, 2007
1. United Services Charts a New Strategic Direction
2. Update on Business Education
3. Severe Weather Challenges Operations, Employees Work Through Delays and Cancellations
4. United Announces New ZED Agreement with US Airways
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United Services Charts a New Strategic Direction
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United Services, the company's maintenance division, has been conducting a strategic review of its business to identify opportunities to improve cost and revenue performance, as well as operating efficiency.
The review identified areas where the division can focus its efforts: materials supply costs, the parts supply chain, a basic IT infrastructure to support the MRO business and the continuing roll-out of LEAN across the organization.
According to Bill Norman, senior vice president- United Services, work is underway now to address a number of these areas. "We are creating action plans now to improve our fuel burn, to increase the efficiency of our engines and our processes in the engine shop and to expand LEAN beyond the shop floor. But we can't address some of the fundamental infrastructure challenges we face without some third-party investment in our business."
By bringing in a partner, United Services can benefit from investment in building an MRO IT infrastructure that does not compete for resources with the passenger airline. Partners can also provide access to integrated repair and supply chains, ensuring that we have parts when and where we need them, and access to the growing MRO market that we do not have today.
Says Pete McDonald, executive vice president and chief operating officer, "By bringing in third-party investment, we will be able to continue to provide the highest quality maintenance to United and our customers and participate in the growing MRO market. We are communicating regularly with our labor groups to ensure that any arrangement would be for the long term with a partner that creates value for our employees, customers and investors.
"We recognize this work creates a lot of questions and concerns, and we can't answer all of them today. We are aware of our maintenance employees' concerns and, as we think through any third-party investments, we are all committed to enhancing employees' long-term security, welfare and job growth."
Employees within our maintenance group are having conversations with division leaders on our strategic direction, and Bill Norman and his leaders will work hard in the coming months to keep employees informed as we consider the opportunities ahead for United Services.
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Update on Business Education
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Thirteen thousand employees have participated in Business Education training in the first half of the year, and officers of the company joined the sessions to talk about United and where we're headed.
* During these candid conversations with employees, we gained constructive feedback on many topics. Employees stated that United needs to be focused on improving the employee experience and creating a work environment that enables employees to successfully perform their jobs. We also received feedback about our goals for the Business Education program, the material and course structure, so we are responding with several changes:
* We will conduct sessions for international employees and regional flight attendants from October through the end of 2007. This will include changes designed to address the differing challenges faced by employees based outside the United States. We will also conduct a second day of customer service training for our international customer service representatives (CSRs) and reservations sales and service representatives (RSSRs).
* For U.S.-based employees, we will revise the overall curriculum to support the Employee Experience strategy. We will continue to listen to employees as we develop new material and will test these ideas with cross-functional groups. We plan to introduce a new program for U.S. employees, including internationally based flight attendants, in early 2008.
* Working with the Airport Operations, Reservations and Onboard Service divisions, we will make revisions to the customer service day, the portion of the two-day session that allows us to provide training designed specifically for each work group. With these revisions, we will beta test the revised U.S.-based service training for CSRs in late 2007 and for flight attendants and RSSRs in 2008.
* To address issues and questions that arose in our initial sessions, we have created a SkyNet site to continue the dialogue. Click on the link under "Business Education" located under "Quick Hits."
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Severe Weather Challenges Operations, Employees Work Through Delays and Cancellations
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Severe weather across the U.S., along with high load factors, presented employees with challenges Aug. 1- 21. Thunderstorms, low ceilings and heavy rain at many stations led to delays and significant cancellations across the system.
* For Aug. 1-21, United's on-time departure :00 performance was 49.5 percent, 12.1 points below goal. Departure completion was 98 percent, 0.7 points below goal, and on-time arrivals :14 was 65.7 percent, 10 points below goal. STAR on-time departure :00 performance was 70.1 percent, 7.9 points below goal.
* For the same period, United Express (UAX) delivered an on-time departure :00 performance of 57.8 percent, 1 point below goal. UAX STAR on-time departure :00 performance was 74.1 percent, 0.9 points below goal. Departure completion was 96.8 percent, 1 point below goal; and on-time arrivals :14 was 69.2 percent, 2.8 points below goal.
* For the week of Aug. 15-21, mainline stations that achieved a STAR performance of 100 percent were Buffalo, Des Moines, Eagle County, Ho Chi Minh City, San Juan and Tulsa. Twenty-three UAX stations achieved 100 percent STAR performance during the same week.
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United Announces New ZED Agreement with US Airways
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Beginning Aug. 27, United employees and retirees can take advantage of expanded interline travel privileges with US Airways, the fifth largest airline in the United States.
* A member of Star Alliance, US Airways connects to 240 destinations in North America, Central America, the Caribbean, Hawaii and Europe.
* For more information about the new and existing fare agreements between United and other worldwide carriers, visit SkyNet at Travel, Interline Travel Privilege, Individual Carrier Agreements. Carrier eligibility requirements and restrictions are continually updated.
* United is continuously working toward additional arrangements with carriers to offer employees and retirees additional interline travel privileges. Discussions with other carriers are currently underway and other announcements will be forthcoming.
* Note: For all interline space-available travel, tickets should be obtained as far in advance as possible. Also, employees and theirtravel eligible passengers are required to follow each airline's policies regarding dress code, minimum check-in time and baggage limits.
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Good morning.....This is news for Aug. 17 - 20, 2007
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Today's News:
1. Austin General Manager's Detective Work Reunites Customer With His Belongings
2. Seaside Hotel to Charge 45 Dollars Per Night Business Travel Rate
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Austin General Manager's Detective Work Reunites Customer With His Belongings
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Austin General Manager Debbie DiMeo showed a single- minded focus on service recently, aiding a premium customer who disembarked in Chicago during a ground stop -- only to discover when he returned to the gate that his flight had departed without him, with his personal carry-on items on board.
Here's how DiMeo helped retrieve his carry-on bag, along with its irreplaceable contents -- a cell phone, military papers and 150 business cards from contacts he recently made at two trade shows:
* Customers on Flight 357 from Chicago to Dallas- Fort Worth were told they could deplane during a ground stop. For reasons that are still not clear, one guest returned in what he believed to be time for the scheduled departure, only to find that the aircraft had already departed, separating him from his bags.
* Customer service representatives (CSRs) in Chicago re-routed the customer to Austin, asking Dallas-Fort Worth CSRs to forward his checked bags and carry-on bag to College Station on American Eagle, the closest airport to his home.
* When the customer's carry-on bag did not arrive with his checked bags as scheduled, DiMeo began her detective work.
* DiMeo followed up with customer service agents in Chicago, where the customer's flight departed from; Dallas-Fort Worth, where we he was scheduled to arrive; and College Station, where his checked luggage was scheduled to be sent.
* DiMeo also attempted to follow up with onboard supervisors to try to contact the pursers on both the original Chicago-Dallas flight and the continuing flight from Dallas to Los Angeles.
* After reaching out to Austin, Dallas and Chicago employees, DiMeo also spoke with Los Angeles' Global Services desk to ensure the bag was not in L.A.
* DiMeo provided him with her personal cell phone number and planned a meeting with the customer and a supervisor in Dallas to visually search for the bag.
* After the customer's wife received a call from Chicago notifying them that the carry-on bag was there, DiMeo arranged for the bag to be returned to them in Texas.
"It required a huge amount of focus and follow- through to get our guest's personal belongings back, and Debbie did so in spite of the fact that her station had no involvement with the guest's original itinerary," says Barbara Higgins, vice president of Customer Experience. "On the occasions when our communication processes and standard procedures break down, passionate guest service is the best way to rebuild our customers' faith in us. I spoke at length with this guest about his experience, and Debbie's efforts are a prime example of what great service looks like."
* DiMeo notes that several of her team members in Austin provided invaluable help: CSRs Iysha O'Hare- Mack and Sue Gaido, as well as Supervisor Rachel Coffman.
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Seaside Hotel to Charge 45 Dollars Per Night Business Travel Rate
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As of Sept. 1, the Seaside hotel in Honolulu will charge a nominal rate of 45 dollars per night for all business travelers. The rate will remain in effect through 2007.
* Reservations are made through the corporate travel Web site, and a copy of the Web site confirmation page should be attached to an expense report. If the Seaside does not have available rooms, the next available, lowest cost hotels are listed by room rate.
* To book United business travel, hotels and car rentals, visit www.unitedbusinesstravel.com or click SkyNet's Travel tab, United Business Travel.
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EYE-ON-UA
December 13, 2007 – Strengthening Star Alliance
Hi, it's Glenn... It's Thursday, the 13th of December, and I'm calling today from Beijing, China.
Just five weeks ago, I spoke to you from Shanghai at the end of a 10-day trip through Asia. This has been a shorter trip – four days this time – but certainly just as important. As I mentioned in our last call, Air China and Shanghai Airlines have met all the requirements for Star Alliance membership and officially joined our alliance this week. So this week celebrations were held in Shanghai and Beijing, culminating in a banquet last night in the Great Hall of the People in Beijing and a meeting today with Chinese Premier Wen Jiabao.
It is difficult to overstate the importance of these two Chinese carriers for United and the continued growth of our services to China. Mike Whitaker is traveling with me this week and will give you an overview of the role these carriers play for us and what it took to get them into the Star Alliance.
Mike Whitaker: Thanks, Glenn.
There has been a lot of work over the years to bring Air China and Shanghai Airlines into Star Alliance. Until 2003, Air China was partnered with Northwest Airlines. It took years of effort, starting in the late 90s, to convince Air China that United Airlines and Star provided a better fit for their network.
Air China is one of three state-owned carriers in China – China Eastern and China Southern being the other two – but Air China is really the flag carrier of China. It is based in Beijing, which geographically has great potential as a connecting hub. A partner in Beijing will be key to the success of our Beijing flights, as the market continues to open and connecting traffic becomes increasingly important to fill those flights.
Shanghai Airlines is a different sort of airline. It is owned in large part by the municipality of Shanghai and has traditionally operated much more as a private, start-up carrier. They've been around only since 1985 and compete very effectively and profitably with China Eastern – the state-owned carrier based in Shanghai. This is an airline with a lot of potential, and we are working very hard to deepen our commercial ties with this company to feed our Shanghai flights and to provide growth potential for our China network.
All of this ceremony this week has received significant media coverage in China, and has been an opportunity for United to really demonstrate our presence and leadership in Star and in the China market. I'll give you two examples. One is that the Star board meeting, during which these carriers were inducted, was chaired by Glenn. Normally the CEO from the home-market airline hosting the meeting chairs the board meeting. In this instance, since no Chinese carrier was yet a member of Star, Glenn was asked to chair the meeting, which effectively allowed United to be the carrier welcoming our Chinese partners into Star.
The second example of our profile in China was the celebration that took place Tuesday at the new terminal facility at Beijing Airport. This new terminal is the largest building in the world and it is truly quite a sight to behold. It will open early next year and will be fully operational for the 2008 Olympics. The festivities in the new terminal began on the tarmac and included a United 747 in the new livery parked in the background as a backdrop for most of the photos from that event. So from United's perspective, we were well situated to show our leadership position in this market.
Glenn: Thanks, Mike.
As Mike mentioned, in addition to the joining celebration, we also had a full meeting of the Chief Executive Board of Star Alliance. A couple of things struck me during the course of that meeting that I want to share with all of you on the call. These relate back to something I talked about five weeks ago, when I called in from Shanghai and spoke about global competition and the changing competitive landscape.
The first observation I'll make is about the very good work that goes on at the Star Alliance by its CEO, Jaan Albrecht, and his team. With our new Chinese carriers, Star will now have 19 members, and several more in the pipeline to join – Turkish, EgyptAir, and Air India. This growth means that Star Alliance covers the globe more thoroughly than our two competitor alliances – by a very wide margin. This growth creates challenges. But a new management structure was put in place this year that allows strategic direction to be determined by a very small group of carriers, including United. The decisions and initiatives that come out of this strategy committee then get executed by a very capable Star organization. As we reviewed the work of Star for the year, I remarked to my fellow board members that in my five years-plus of attending these meetings, I have never been as impressed with how well Star executes in support of our collective mission.
My second observation is that this is a collection of some of the world's most competitive airlines: Singapore, All Nippon, Lufthansa, among others. These airlines share a remarkably similar view of the changing world as the one we have articulated many times. They recognize the changes that have taken place in the competitive market place, and in many cases these airlines are driving those changes, without looking back and reminiscing about how things used to be. A good example is Singapore Airlines. They are in the process of taking a 25 percent stake in China Eastern, an airline that is in need of Singapore's aviation expertise but also one that potentially offers Singapore Airlines access to the world's fastest growing aviation market. Singapore also owns 49 percent of Virgin Atlantic, by the way, and is positioning itself nicely to be able to enter the United States-Europe market. We've seen a similar attitude from our close partner Lufthansa, who have acquired the former Swiss Air and turned it into a successful foreign subsidiary. So while there has been a lot of talk about consolidation in the U.S., it is actually happening elsewhere in the world.
One of the news stories about the Star joining ceremony noted the similarity of thinking among the global carriers. It was a Reuters story, I think, and in separate interviews with myself, the Singapore CEO and the CEO of Lufthansa, all three mentioned the need to continue the globalization process for the aviation industry by removing regulatory barriers and allowing our businesses to be run . . . like businesses.
That's all for now. I'll be talking to you again soon. In the meantime, best wishes for you and your family over the holiday season, and stay united.
November 7, 2007 – Doing business in the global marketplace: opportunities in Asia
Hi, it's Glenn... it's Thursday, November 8th and I am calling from Shanghai, China.
I'm wrapping up a productive and informative trip to Asia that started on Monday of last week when I spoke at the Nikkei Management Forum conference in Tokyo, Japan. I could not have had a better opportunity to talk about the progress United has made, with our third quarter results announced the week before and our five-year plan now outlining our future.
As I said in my remarks at the conference, our progress as a company has grown out of our acceptance of the reality of doing business in the global marketplace. We're ready to compete in the world as it is, not the world as it was, or the world as we might wish it to be.
As the world gets flatter, industries will continue to be transformed by technology, global mobility and communication. Mature economies, such as the United States, face increasing competition from growth economies and will need to adapt and evolve -- just as industries and companies need to reinvent themselves to stay relevant and compete -- and aviation infrastructure plays a vital role in that success.
At the conclusion of the Nikkei Forum, I met with Chairman Ohashi and Chief Executive Officer Yamamoto of our partner ANA, and we discussed how Asia illustrates better than any region the acknowledged importance of aviation to future growth and prosperity. On this trip, as on every one before, I am impressed with the dynamic business environment at the airports, in the cities and in the business communities that we serve.
In fact, the statistics in China are staggering: Airline passenger traffic last year was estimated at 160 million customers, double the volume from just five years ago, and is expected to continue to grow at a pace of 11 percent per year. At that rate, China is set to become the second largest aviation market to the United States, and our excellent team in China is participating in that expansion.
In addition to our business development meetings these past ten days, we celebrated two new route launches for China and Hong Kong. Our new Hong Kong - Los Angeles route was marked with a Hollywood theme organized by Mark Russell, Michael Stacy and the Hong Kong team.
Then on Tuesday, after receiving the enthusiastic support of the Guangzhou mayor, I announced together with Sidney Kwok the start up of our new nonstop flight from San Francisco beginning the 18th of June. That flight will add 195,000 seats into the market each year, and will provide capacity for approximately 5,500 tons of cargo.
We also spent time in Hanoi and Ho Chi Minh City with new business partners and employees who are now a part of United. The visit marked the success of our first three years into Vietnam, a country that is fast re-inventing itself, with an enthusiasm mirrored by our United team on the ground led by Joe Mannix and Clodelsa Ty.
My trip coincided with U.S. Secretary of Commerce Carlos Gutierrez who was in Vietnam with a business delegation. Tuesday's headline in The Saigon Times read “U.S. Leader says bright future for trade ties” – while an article in the same edition was headed “United Airlines upbeat about Vietnam market growth.”
While in Vietnam, we announced an educational sponsorship that provides training for airline and travel agent staff, created jointly by the Vietnam Aviation Academy and the Trans Viet Training Center, our General Sales Agent. We participated in the graduation ceremony of the first students, all of whom were starting jobs the following day, and were clearly excited about their future.
The economic energy I witnessed throughout the trip was an appropriate backdrop for our discussion of United's five-year plan -- our product and other improvements for our customers, our ongoing work to fundamentally improve the operation of the airline -- in our business meetings in every city: with partners and airport authorities; meetings with government officials; receptions for our customers and with our employees. The conversations, questions and excitement regarding our plans were very similar all across the board.
In our employee meetings in Hong Kong for example, we talked about such issues as our IT investments; inflight entertainment improvements; additional sources of revenue and achieving the 5 year plan in three years... all great points and questions for discussion.
I also dropped in on one of our Business Education sessions at Narita for colleagues from Japan, Korea and Taiwan where the conversations were all about the business and how we can make improvements to benefit our customers and what the future holds for our company.
Being competitive is about making choices. Countries, companies, people -- all can choose to compete. It is clear that in Asia and across the company, we have chosen to compete.
From our many interactions with passenger and cargo customers, it is clear that customers too are making their choices. They're going global -- and at United, we are going to join them.
There is enormous potential for United in the region as Jack Knox, Jim Kyte and their airport teams work to bring new terminals to life in Singapore as well as Beijing and Shanghai. Work on those two terminals is progressing quite well, and we plan to move into them in the first half of 2008, further improving the customer experience in those airports.
In closing, I want to thank Mark Schwab, our leaders and the entire team for their great work as we continue to grow United's presence in Asia.
As I conclude this trip, we look forward to ongoing growth and opportunity for United as we welcome our partners Air China and Shanghai Airlines next month into the Star Alliance, at events in both Shanghai and Beijing.
So that's it for now. I'll be talking to you again soon. Until then, stay focused on our customers, and of course, on one another ... and stay united.
October 23, 2007 – United's Third Quarter Earnings
Good morning, it's Glenn, it's the 23rd of October, and I am calling today from Chicago. Later this morning I'll be joined by Jake Brace, Graham Atkinson, Pete McDonald and John Tague to talk about our third quarter results on a conference call with our investors and the analyst community and journalists that follow this industry.
We've delivered excellent results today driven by fundamental improvements across our core business. Building on the momentum from our second quarter results, it's clear our focus on strengthening United is working; with a pretax profit, excluding special items of $498 million, up $279 million or 127 percent over the same period a year ago.
With fuel at around $75 a barrel and a higher tax rate than last year, we delivered a net income, again excluding special items of $295 million, which is 81 percent higher than the year ago quarter.
Our performance is among the best in the industry across nearly every financial metric: profit, margin, cash flow and revenue.
Driven by our continued discipline in managing capacity, aggressively controlling inventory to improve revenue results, we delivered industry-leading passenger revenue performance; with mainline passenger unit revenue up some 9.7 percent compared with the third quarter last year, excluding special items.
Our second and third quarter performance demonstrates that our decision to reduce capacity in the U.S. is delivering the results we had anticipated — just as we have seen the benefits of our decision, ahead of the industry three years ago, to shift our capacity internationally.
Our operating cash flow, an important measure of our success, was strong at $342 million, $211 million higher than a year ago, enabling us to reinvest in our business and to pay down debt by some $200 million.
Our operating profit, excluding special items, was $589 million, up 93 percent from a year ago, for an operating margin of 10.7 percent, 5 points ahead of the margin we achieved last year.
We continue our focus on controlling cost. Our unit costs were up due to higher year over year maintenance and purchased service expense, a non-cash charge for surplus maintenance inventory and an increased expense for accrual for profit sharing.
That last expense is one that we are pleased to report is increasing because we are achieving our goals, and have the potential for a meaningful payout from our annual profit sharing program. Unlike some of our peers, United's program essentially pays out after the first dollar of pretax profit.
While profit sharing is based on full-year pretax earnings, we've earned approximately $700 million in pretax profits at this point in the year. That means that for our performance through the third quarter, we have earned more than $100 million in profit sharing, and more than 99 percent would go to employees other than senior management. Our full-year results, and importantly, our performance in the fourth quarter, will determine the actual payout.
Our financial performance we reported today is aligned with our operational performance, which is also improving.
As a result of improvements across the system — and despite a challenging summer with weather and Air Traffic Control issues — we outperformed our network peers in on-time arrivals and baggage handling.
Our performance, both financially and operationally, in the air and on the ground, reflects our commitment and the value of our work; focusing on our customers and continuously looking for ways to make our airline more competitive and customer responsive, and I want to thank everyone for their contribution to our results today.
As I mentioned in my last call, and in a combined newly appointed captain and purser seminar, as we will discuss with investors today, we can now plan for our future. Our five-year plan is our road map in which we have $4 billion planned to invest in the business and 250 specific projects that will continue to build on our work to date.
We intend to create an enterprise that can succeed in a world that will continue to change — whether we all like those changes or not. There will be a very different competitive environment for airlines in the United States five years from now — as well as escalating competition in international markets — and we have to be ready to compete successfully in that environment.
We're all building a business that can sustain through the down cycles, offer customers choices and an experience they value, create a return for our shareholders and a future for our people who will share in the upside when we are successful.
It's a simple proposition; we're running this airline like a business. We fully understand the inherent complexities of this industry, and we're focused on moving beyond industry dysfunction to solution.
That's all for now. I'll be talking to you again soon. Until then, stay focused on our customers, and of course, on one another... |
Happy New Year!