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united airlines

united airlines

United Airlines
IATA
UA
ICAO
UAL
Callsign
United
Founded 1926 (as Boeing Air Transport)
Hubs O'Hare International Airport
Denver International Airport
San Francisco Int'l Airport
Washington Dulles Int'l Airport
Los Angeles Int'l Airport
Focus cities / secondary hubs Narita International Airport
Frequent flyer program Mileage Plus
Member lounge Red Carpet Club
Alliance Star Alliance
Fleet size 461
Destinations 209
Parent company United Air Lines, Inc.
Headquarters Elk Grove Village, Illinois (current)
Chicago, Illinois (1Q2007)[1]
Key people Glenn Tilton (CEO), Jake Brace (CFO)
Website: http://www.united.com/

United's logo as seen at United hub Denver International Airport.

United Airlines (NASDAQ: UAUA), the primary subsidiary of the UAL Corporation, is a major airline of the United States headquartered in unincorporated Elk Grove Township, Illinois, near Chicago's O'Hare International Airport, the airline's largest traffic hub, with 650 daily departures. Starting in early 2007, United Airlines will move its headquarters to downtown Chicago.

As of July 31, 2006, United was the world's second-largest airline in terms of revenue-passenger-kilometers (behind American Airlines), fourth-largest in terms of total operating revenues (behind Air France-KLM, American Airlines, and Delta Air Lines), and fourth-largest airline in terms of total passengers transported (behind American Airlines, Delta Air Lines and Southwest Airlines). United has roughly 54,000 employees and operates approximately 460 aircraft.

On February 1, 2006, United emerged from Chapter 11 bankruptcy protection under which it had operated since December 9, 2002, the largest and longest airline bankruptcy case in history.

Contents

  • 1 Destinations
    • 1.1 Routes
    • 1.2 New Routes
  • 2 Fleet
  • 3 Travel Classes
  • 4 Alliances and partners
    • 4.1 United Express
    • 4.2 Star Alliance
  • 5 History
    • 5.1 Early beginnings
    • 5.2 Expansion into a national carrier
    • 5.3 Deregulation
    • 5.4 Strike of 1985
    • 5.5 Employee Stock Ownership Plan
    • 5.6 Turn of the century developments
    • 5.7 Operation Bojinka and September 11th
    • 5.8 Bankruptcy and reorganization
  • 6 Incidents and accidents
  • 7 Record-setting flight—Friendship One
  • 8 Brand
  • 9 See also
  • 10 References
  • 11 External links
    • 11.1 Official sites
    • 11.2 Marketing
    • 11.3 Employees
    • 11.4 Route maps
    • 11.5 Credit risk
    • 11.6 History
    • 11.7 Customer relations
    • 11.8 Frequent flyer miles
    • 11.9 Virtual airlines
    • 11.10 Fleet information

Destinations

United Airlines operates 3,700+ flights a day to 210+ destinations in 29 countries from hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C.

Further information: United Airlines destinations
Further information: Previous United Airlines destinations

Routes

United operates an extensive domestic route network concentrated in the Midwestern and Western United States. United is also prominent in transcontinental, transatlantic, and transpacific service. It is by far the leading US carrier to Hawaii and Asia, flying 25,821,884 transpacific RPMs in 2005 or 300 weekly departures; from July 2005-June 2006, United carried 3.5 million passengers to/from the Hawaiian Islands. It is also one of only two US carriers permitted to fly to London Heathrow Airport under the Bermuda II agreement, and the only US carrier which operates its own aircraft from the mainland US to Australia (Hawaiian Airlines flies from Honolulu to Sydney and Continental Airlines maintains a route from Guam to Cairns). United Airlines is (or will be) the only US carrier to serve Vietnam and Kuwait.

United operates a low-cost leisure airline called Ted. The name is taken from the last three letters of its parent United. Ted serves leisure destinations within the United States, Mexico, and Canada with 240 daily flights utilizing 56 aircraft. Ted was created to compete with other low-cost airlines like Frontier and Southwest Airlines.

United has focused for the last several years on its international presence, notably in the People's Republic of China (with nonstop flights to Beijing and Shanghai from its hubs in Chicago and San Francisco). The airline also hopes to begin flying to Guangzhou from San Francisco in the near future [1]. These routes offer a higher proportion of premium fare passengers while being relatively insulated from the cutthroat competition in the domestic market, especially from low-cost carriers. United has also focused more on Latin America, a region from which it had largely retreated in the last decade, and added new destinations and frequencies to Mexico and the Caribbean and will continue to do so into the next decade.

United is a founding member of the Capital-to-Capital Coalition, a Washington-DC based group dedicated to establishing non-stop service between Washington Dulles International Airport and Beijing, China.

New Routes

  • United added 21 weekly flights between the mainland and Hawaii in June 2006 for a total of 227 weekly flights. United will launch new weekend San Diego-Honolulu and Seattle-Honolulu service, and add three daily flights departing from Los Angeles with service to Lihue, Kona, and Maui to complement its five-times-a-day service from Los Angeles and San Francisco to Honolulu, and four-times-a-day service from Los Angeles and San Francisco to Maui.
  • United will inaugurate new daily San Francisco-Toronto-Pearson and Washington Dulles-Albuquerque service on Airbus A319 aircraft starting September 2006.
  • United is planning to inaugurate nonstop Washington Dulles-Kuwait service at the end of October 2006 pending Kuwaiti government approval. It will operate three flights a week, departing Washington on Tuesdays, Thursdays, and Saturdays, and departing Kuwait on Mondays, Thursdays, and Saturdays with Boeing 777-200 aircraft.
  • United is planning to discontinue its daily New York JFK-London Heathrow flight and shift its New York JFK-Tokyo Narita flight to its hub at Washington Dulles; United will also be allocating additional capacity to the Asia-Pacific region with resuming nonstop San Francisco-Taipei-Taiwan Taoyuan flights, as well as increased service to Incheon (will now be year round), and Hong Kong.
  • United has recently applied to fly a nonstop service between Washington Dulles and Beijing Capital Airport in Beijing, using a Boeing 747-400 aircraft, complementing its current 28 weekly flights to China. The route is pending government approval.

Fleet

Boeing 777-200 in United's current livery, being phased in starting in 2004

As of December 31, 2005, United operates 460 aircraft (230 owned, 230 leased) with a weighted average fleet age of 10.7 years.

United is one of the last two US major carriers (American Airlines being the other) to operate three-class service, mostly on international and high-revenue domestic routes. Most flights within North America and to Hawaii utilize two-class aircraft, while all Ted aircraft are one-class. United brands its classes as UnitedFirst, UnitedBusiness, and UnitedEconomy. As with most airlines, actual service levels vary with route, flight, and aircraft configuration.


United Airlines Fleet
Type Number United Airlines Type Type Number Seats Seats/Class Orders/
Options
Notes
First Business Economy
Airbus 319-100 55 N/A N/A 120 8 0 112 23 Domestic/short-haul, used on some transcontinental routes
Airbus 320-200 98 Mainline 41 138 12 0 126 18 on deferred order Domestic/short-haul, used on some transcontinental routes
Ted 56 156 0 0 156
Boeing 737-300 64 Standard Unk 120 8 0 112 No Domestic/short-haul
Former Shuttle Unk 128 8 0 120
Boeing 737-500 30 Standard Unk 104 8 0 96 No Domestic/short-haul
Former Shuttle Unk 110 8 0 102
Boeing 747-400 30 N/A N/A 347 14 73 260 No Used on Trans-Pacific, IAD-FRA route
Boeing 757-200 97 Standard 84 182 24 0 158 No Used on transcontinental, Hawaii, Latin America routes
p.s service 13 110 12 26 72
Boeing 767-300ER 35 Domestic 14 244 34 0 210 No Used on transcontinental, transatlantic, interhub, Hawaii, Latin America routes
International 21 193 10 32 151
Boeing 777-200/200ER 52 Domestic 6 348 36 0 312 No Launch customer and primary design partner.
Used on transatlantic, transpacific, transcontinental, interhub, Hawaii routes
Transatlantic/pacific 46 258 12 49 197
Transpacific 253 10 45 198

Several aircraft types have common type ratings; flight crews are certified to operate either aircraft without any additional training. The Boeing 767 and 757 have a common type rating; crews trained to operate the Boeing 767 can operate the Boeing 757 and vice versa. Additionally the A320 and A319 have a common type rating as do the 737-300 and 737-500. The A320 and A319, and to a lesser extent the two 737 types, are so commonly substituted for one another that economy row numbers have been synchronized between the two.

United was the launch customer for a number of aircraft types, including the Douglas DC-10 (with American Airlines) and several Boeing aircraft: the 727 (with Eastern Air Lines), the 737-200, the 767, and the 777.

Travel Classes

United offers three different classes of travel: UnitedFirst, UnitedBusiness, and UnitedEconomy/UnitedEconomy Plus.

The UnitedFirst suite, offered on international Boeing 777-200s and all Boeing 747-400s, features a 78 inch pitch flat-bed seat that reclines to 180 degrees. UnitedFirst passengers check in at special desks and receive an invitation to the United First International Lounge or United Red Carpet Club. Passengers are given priority boarding and priority baggage. On board, passengers enjoy pre-takeoff beverages, table linens and lead-crystal glasses in order to savor the five course meal, and a personal entertainment unit featuring nine channels of video as well as an additional fourteen feature film titles. Also, passengers have access to personal phones and laptop power ports, as well noice-canceling headsets and comfy pillows and duvets. On Boeing 767-300 aircraft, UnitedFirst consists of a cradle seat offering 64 inches of pitch, although all other features (such as the entertainment) and services remain the same.

Domestic UnitedFirst is offered on all two-class Boeing 777-200 and Boeing 767-300 aircraft as well as all shorthaul aircraft, except the p.s. Boeing 757-200s, which offer a better product. Domestic UnitedFirst includes a cradle seat similar to the international UnitedBusiness seat without the personal reading lamps, leg/foot rests, and personal entertainment units. A 38 inch pitch is offered, along with priority boarding and baggage, pre-departure beverages, complimentary meals, an invitation to the Red Carpet Club, and separate check-in desks.

UnitedBusiness* is offered on all international Boeing 767-300s and Boeing 777-200s as well as all Boeing 747-400s. These cradle seats consist of a 55 inch pitch and 150 degree recline, as well personal phones and laptop power ports. Inflight service includes pre-departure beverages, table linens and lead-crystal glasses, and three course meals. Passengers are also treated to priority boarding and baggage, and an invitation to the United Red Carpet Club. Each seat includes an individual entertainment system offering nine channels of movies and noise-reducing headsets.

UnitedEconomy is offered on all planes and offers a 31 inch pitch, adjustable headrests, and on longhaul flights, a complimentary meal. On other flights, food is offered for sale onboard. On internationally configured Boeing 777-200 and Boeing 767-300 aircraft, personal entertainment units are featured in the seatback of the preceding row, and nine channels of entertainment are offered, along with audio channels. On Boeing 747-400 aircraft, no indidivual entertainment is offered. Instead, movies are played on projector screens at the front of the economy cabin as well as on overhead monitors. Shorthaul aircraft also feature overhead monitors, except the Boeing 737 aircraft, which only has audio entertainment.

United's mainline fleet features Economy Plus, a forward section in the economy cabin that offers an additional 5 to 6 inches (127 to 152 mm) of space although cabin service is the same. Seats in this section are reserved for passengers on certain high-fare tickets, for Premier members of United's frequent flyer program, and elite-level members of Star Alliance frequent flyer programs. As of August 2005, Economy Plus access was also available to non-elites through an annual subscription fee or a per-flight upgrade fee.


p.s. Product

United offers its Premium Service (p.s.) product on its New York JFK-Los Angeles and New York JFK-San Francisco routes. The product is offered on Boeing 757-200 aircraft and offers three classes of travel: UnitedFirst, UnitedBusiness, and UnitedEconomy Plus.

UnitedFirst offers twelve lie-flat, leather-trimmed, seats, with a 68 inch pitch, along with an individual handheld DVD player offering ten entertainment choices through noise-reducing headsets. Passengers enjoy new menus offering full meals, chocolates, and signature champagne cocktails, as well as an invitation to Red Carpet Clubs and United International First Lounges. Seats include personal reading lights, privacy screens, laptop power ports, and personal phones.

UnitedBusiness offers twenty-six spacious leather cradle-seats with a 54 inch pitch, individual handheld DVD players offering ten entertainment choices through noise-reducing headsets, new menus including chocolates and champagne cocktails, as well as personal phones, reading lights, and laptop power ports.

United Economy Plus offers seventy-two seats offering a 34 inch pitch and laptop and phone access from every seat.

Alliances and partners

United Express

United Express is United's regional airline feeder operation. United Express is the marketing name for several small airlines that operate under contract to fly passengers from small cities in the U.S. and Canada to United hubs. Although the aircraft are painted in United colors, they are separate companies with different crews and management. United Express operates 292 jet and turboprop aircraft to 150 destinations with over 2,000 daily departures. In 2005, United Express flew a combined total of 17 billion revenue RPM's.

Star Alliance

UA is a founding member of the Star Alliance, through which it is a marketing partner of 16 other international carriers. It has special partnerships with Star members Lufthansa (including profit-sharing on certain transatlantic routes), and with US Airways (featuring closely linked frequent flyer programs.)

Separately, United currently codeshares with SNCF French Rail as United Ground Link to stations in France and has marketing agreements of varying intimacy with Aeromar, Air Dolomiti (a subsidiary company of Deutsche Lufthansa AG), Air China, Aloha Airlines, BWIA, Continental Connection (operated by Gulfstream), Great Lakes Airlines, Emirates, Qatar Airways, Shanghai Airlines, and Virgin Blue.

History

Early beginnings

UAL traces its claim to be the oldest commercial airline in the United States to the Varney Airlines air mail service of Walter Varney. Varney's chief pilot, Leon D. "Lee" Cuddeback, flew the first Contract Air Mail flight in a Swallow biplane from Varney's headquarters in Boise, Idaho to the railroad mail hub of Pasco, Washington on April 6, 1926 and returned the following day with 200 pounds of mail. April 6th is reckoned in the United Airlines company history as both its own birthday and date on which "true" airline transport—operating on fixed routes and fixed schedules—began. Varney Airlines' original 1925 hangar served as a portion of the terminal building for the Boise Airport until 2003, when the structure was replaced.

In 1927, airplane pioneer William Boeing founded his own airline, Boeing Air Transport, and soon began buying other airmail carriers, including Varney's. Within four years, Boeing's holdings would grow to include a number of airlines, airplane and parts manufacturing companies, and several airports. In 1929, the company changed its name to United Aircraft - Transport Corp.

United Airlines Boeing 777 taking off at Schiphol, Amsterdam.

In 1930, as the capacity of airplanes proved sufficient to carry not only mail but also passengers, Boeing Air Transport hired a registered nurse, Ellen Church, to assist passengers. United claims Church as the first airline stewardess.

Following the Air Mail Scandal of 1930, the Air Mail Act of 1934 banned the common ownership of manufacturers and airlines. United Aircraft-Transport's President Philip G. Johnson was forced to resign and went on to Trans-Canada Airlines, the future Air Canada. William Boeing's company was broken into three: a parts supplier (the future United Technologies), an aircraft manufacturer (the Boeing Airplane Company), and an airline group—United Air Lines. The airline company's new president, hired to make a fresh start as airmail contracts were re-awarded in 1934, was William A. Patterson, who remained as president of United Airlines until 1963.

Expansion into a national carrier

United's first 727, on display at the Museum of Science and Industry in Chicago.

United's early route system, formed by connecting air mail routes to one-another, operated essentially north-and-south along the West Coast, and east-to-west along a transcontinental route from San Francisco to the Midwest and Mid-Atlantic states via Denver, Colorado. The early interconnections made at San Francisco and Denver during this early era became the basis of major United hubs in these cities, and still exist today.

During World War II United trained ground crews, modified airplanes for use as bombers, and transported mail, material, and passengers in the war effort. Post-war United benefitted from both the wartime development of new airplane technologies (like the pressurized cabin which permitted planes to fly above the weather) and a boom in customer demand for air travel. This was also the period in which Pan American Airways established a Tokyo hub and revived its Pacific route system that would later be acquired by United.

On November 1, 1955, United Airlines Flight 629, which was flying from Stapleton Airport in Denver to Portland, Oregon, was bombed, killing everyone on board. The bomb was planted by a man named Jack Graham, who was executed a year after the explosion [2].

United was an early customer of the Douglas DC-8, which was released months after the Boeing 707, delaying the airline's entry into the jet.

The company merged with Capital Airlines on June 1, 1961, making it the world's largest commercial airline and giving it a route network covering the entire United States.

In 1968 the company reorganized, creating UAL Corporation, with United Airlines as a wholly owned subsidiary.

Deregulation

The airline lobbied for transpacific routes for over 20 years, but its westernmost destination was Honolulu until 1983. United is now one of the world's largest transpacific carriers.

United had begun to seek overseas routes in the 1960s, but the Transpacific Route Case (1969) denied them this expansion. It did not gain an overseas route until 1983, when they began flights to Tokyo. By the end of that year, United had flights to 13 Pacific destinations, many of which were with route contracts purchased from the ailing Pan Am.

Economic turmoil, labor unrest, and the pressures of the 1978 Airline Deregulation Act greatly affected the company, which incurred losses and saw a greatly increased turnover in its senior management through the 1970s and early 1980s.

In May 1981, one week after archrival American Airlines launched AAdvantage, the first frequent flyer program, United launched its Mileage Plus. The Wall Street Journal mistakenly reported United's program to be the first.

In 1982, United became the launch customer for the Boeing 767, taking its first delivery of 767-200s on August 19th.

Strike of 1985

On May 17, 1985 United's pilots went on a 29-day strike claiming the CEO, Richard Ferris, was trying to "break the unions." They used management's proposed "B-scale" pilot pay rates as proof. American Airlines already had a B-scale for its pilots. Ferris insisted United had to have pilot costs no higher than American's, so he offered United pilots a "word-for-word" contract to match American's, or the same bottom line numbers. The United ALPA-MEC rejected that offer because it meant they would not get their deferred pay raise. The only choice left, to achieve parity with American's pilot costs, was to begin a B-scale for United's new-hire pilots. Ferris wanted that B-scale to merge in the captain's ranks, which was more generous than American's B-scale, which never merged at all. In the final hours before the strike, nearly all issues had been resolved, except for the time length of the B-scale. It appeared that would be resolved too as negotiations continued. ALPA negotiators delivered a new counter-proposal at 12:20 A.M. in an effort to avoid the strike. However, MEC Chairman Roger Hall, who was hosting a national teleconference with F. Lee Bailey, declared the strike was on at 12:01 A.M., on May 17, without consulting the negotiators, who believed they were about to agree on all contract terms with United's management negotiators.

That struggle cost the airline $1 billion, and provoked a long period of labor unrest and financial deterioration that culminated in bankruptcy nearly 20 years later. Following Ferris' termination by the board, Allegis divested its non-airline properties in 1987 and reverted to the name UAL Corp. That helped clear the path for the United Pilots to do an ESOP takeover of United, which eventually did happen in 1994.

Employee Stock Ownership Plan

The fall of Pan Am offered new opportunities for United. In 1991 the company initially expanded dramatically, purchasing Pan Am's former routes at London Heathrow Airport and paving the way for the company's first transatlantic flights. Also, the purchasing of Pan Am's Asia-Pacific routes and its eleven Boeing 747SP-21s also made United expand dramatically. However, the aftermath of the Gulf War and increased competition led to losses of $332m in 1991 and $957m in 1992.

In 1994, 55% of company stock was given to employees in exchange for salary concessions from its unions. The Employee Stock Ownership Plan (ESOP) made United the largest employee-owned corporation in the world. It used the opportunity to create a low-cost subsidiary, Shuttle by United, in an attempt to compete with low-cost carriers.

There were three previous attempts to form an ESOP at United, in 1987, 1989, and 1990. Fees paid to advisors on both sides totaled $145 million for all four ESOP plans. An internal pilots' union report by Thomas Sullivan (U.S. Attorney for northern Illinois), revealed that "pilot union leaders made secret agreements in 1989 and 1994 to pay millions of dollars in fees to lawyers already on the union's staff or on retainer. They did not disclose these fees to the rank and file."

That Sullivan report said that Roger Hall, the United-ALPA-MEC chairman, had authorized a payment of $2 million to Charles Goldstein, who was the union's own staff lawyer, but he did not reveal that to his board. The report also concluded that Hall and Goldstein had violated union rules, and many of United's pilots openly complained that the advice from Goldstein could hardly have been objective if he knew the ESOP had to be successful in order to receive that $2 million fee. Union leaders agreed to let Goldstein keep $750,000 of that $2 million, after he threatened a lawsuit. Hall's predecessor, Frederick Dubinsky, also did not reveal to the rank and file that he had authorized a payment of $375,000 to Goldstein after the failed ESOP attempt of 1989. Both Hall and Dubinsky denied they ever did anything wrong, but Hall did resign upon request of the pilot union board.

The Sullivan report also uncovered a $4.12 million "success" fee to be paid to Cohen, Weiss & Simon, which had been receiving hourly billing payments from the union for its work on the ESOP buyout. Again, that fee wasn't common knownledge until after the ESOP was completed. Once that became known, Cohen, Weiss & Simon agreed to return the entire $4.12 million.

United CEO Wolf got a consulting job with Lazard Freres, the very investment company he had hired to advise United's board during the ESOP buyout process. Stewart Oran, the key legal advisor to the pilots' union during all 4 ESOP plans, received a $5.5 million package to join United's management as legal counsel after the ESOP was formed. Meanwhile, all employees who participated in the ESOP took pay cuts ranging from 15 to 25%. They did that in return for the ESOP stock that they received, which eventually became worthless, when United was forced into bankruptcy. [USA Today, "Workers took pay cut while others got rich," July 12, 1995]

In 1995, Roger Hall and Frederick Dubinsky filed a lawsuit against their own MEC, ALPA National, and named numerous ALPA individuals, including Randolph Babbit, the President of ALPA. They alleged that they were libeled and defamed and that their privacy was invaded as a result of an August 1994 letter that alleged they had been guilty of criminal conduct in relation to the ESOP buyouts. The trial court dismissed 15 of the 18 counts in the complaint, but did sustain 3 counts. Both sides appealed and the appellate court reversed the dismissal of 4 of the 15 counts and sent the case back to the trial court for further proceedings. [Chicago Daily Law Bulletin 7/9/99]

Turn of the century developments

In 1997, United founded the Star Alliance with Air Canada, Lufthansa, SAS and Thai Airways.

United was a launch customer of the Boeing 777 and had significant input on its design. It was also the first airline to introduce the twin-jet in commercial service.

In May 2000, United announced plans to acquire competitor US Airways in a complex deal valued at $11.6 billion. The offer drew immediate scorn from consumer groups and employees of both airlines. By the following year, regulatory sentiment was against the deal, and United withdrew the offer just before the Department of Justice barred the merger on antitrust grounds in July. The two airlines subsequently formed a partnership that led to US Airways's entrance into the Star Alliance.

May 2000 also saw a bitter contract dispute between United and its pilots' union. Planning for the busy summer season, United had counted on its pilots flying overtime. However, the pilots could not be forced to work overtime, and most pilots refused to fly the extra hours. Although United knew they would have to cancel numerous flights if this were to happen, they did not hire new pilots to make up for the potential shortage. Over the summer, United ended up having to cancel a large portion of its schedule at its major hubs. Eventually, CEO Jim Goodwin and the rest of the management had to get the pilots back in the cockpits and quickly offered the pilots a 48% increase over four years with up to 28% upfront. The large increase in pay and the loss of many of its frequent fliers, especially business travelers, started United on the road to bankruptcy. Coupled with the terrorist attacks of September 11th, 2001 and the resulting economic and tourism downturn, United's economic woes went from bad to worse.

Operation Bojinka and September 11th

Operation Bojinka, Ramzi Yousef and Khalid Sheik Mohammed's plot against a large number of airliners targeted eight United aircraft flying transpacific routes on January 21, 1995. While this attack was prevented by an apartment fire in Manila, a "descendant" of the project perfected by Sheik Mohammed would cause death on United aircraft six years later.

As part of the September 11, 2001 Terrorist Attack, two United Airlines planes were hijacked, a Boeing 767-222 (Flight 175) that crashed into the South Tower of the World Trade Center in New York City, and a Boeing 757-222 (Flight 93) that crashed in rural Pennsylvania. The latter was suspected to have been directed towards either the White House or the United States Capitol building.

Bankruptcy and reorganization

United, with a strong presence on the West coast, benefited from the dot-com boom, which boosted traffic (especially premium traffic) to its San Francisco hub. This increase was only temporary unfortunately and when the 'bubble' finally burst United was in a worse position before because it had failed to keep its costs under control. Coupled with a battered network (after the dot-com bust) and the September 11 attacks, the company lost $2.14 billion in 2001 on revenues of $16.14 billion. In the same year United applied for a $1.5 billion loan guarantee from the federal Air Transportation Stabilization Board established in the wake of the September 11 attacks. When the application was rejected in late 2002, the company was forced to seek debtor-in-possession financing from commercial sources to cover the expected future losses.

Unable to secure additional capital, UAL Corporation filed for chapter 11 bankruptcy protection in December. The ESOP was terminated, although by then its shares had become virtually worthless. Blame for the bankruptcy has fallen on the events of September 11, which triggered financial crisis in all the major North American airlines. However, the rise of low-cost carriers, labor disputes, and problems within the management structure of the company also contributed significantly.

United continued operations during its bankruptcy, but was forced to cut its costs drastically and under delicate terms. Tens of thousands of workers were furloughed, and all city ticket offices in the US closed. It cancelled several existing and planned routes, and eliminated its entire Latin American gateway and flight crew base at Miami International Airport after March 1, 2004.

At the same time, the airline continued to invest in new projects. On November 12, 2003, it launched a new low-cost carrier, Ted, to compete with other low-cost airlines. In 2004 it launched its luxury "p.s." (for "premium service") service on re-configured 757s from JFK Airport in New York City to Los Angeles and San Francisco. The service was targeted to business customers and high-end leisure customers in the coast-to-coast market.

On December 9, 2004, the airline made history when UA869 (747-400) landed at Ho Chi Minh City, Vietnam. The scheduled flight from San Francisco via Hong Kong was the first by a U.S. airline since the end of the Vietnam War, when Pan Am halted service shortly before the fall of Saigon.

Financial pressure on the airline was heavy. The SARS epidemic in 2003 depressed traffic on United's extensive Pacific network. The soaring cost of jet fuel ate away remaining profits. United made, withdrew, and followed several fare hikes on overseas routes, citing rising fuel costs, in 2004 and 2005. Indeed, two days after its triumphant first flight to Vietnam, United announced that it would cut U.S. flight capacity by 14% after the holidays and add more international flights, which were more profitable.

United took advantage of its Chapter 11 status to negotiate hard-to-cut costs with employees, suppliers, and contractors, including cancellation of feeder contracts with United Express Atlantic Coast Airlines (which became Independence Air) and Air Wisconsin (which became a US Airways Express carrier).

Most controversial of all, however, was the 2005 cancellation of its pension plan, the largest such default in U.S. corporate history. It renegotiated its contracts with the pilots' and mechanics' unions for lower pay; however, the Association of Flight Attendants resisted until the bankruptcy court ruled in United's favor. Criticism was also leveled at the CEO, Glenn Tilton, for demanding pay cuts from employees while receiving the highest salary of any major U.S. airline CEO [3]. Although Tilton's salary was the highest in the industry, his pay mix did not include the level of stock options and bonuses granted to his counterparts.

Originally slated to exit bankruptcy protection after 2½ years in the third quarter of 2005, United requested yet another extension in light of record-high fuel prices. On August 26, 2005, the bankruptcy court extended the airline's exclusive right to file a reorganization plan to November 1, although it also stated firmly this extension would be the last. United announced at the same time it had raised $3 billion in exit financing and filed its Plan of Reorganization, as announced, on September 7, 2005.

The bankruptcy court approved the restructuring plan on January 20, 2006, clearing the way for United to exit bankruptcy on February 1, 2006, and finally return to normal operations. Its emergence as a smaller, much more efficient carrier has in turn put additional pressure on its competitors to reduce costs and capacity.

On July 16th, 2006, United Airlines announced after months of speculation that it would be moving its headquarters from suburban Elk Grove Village to the Chicago Loop. The Top 350 Executives will be moving to 77 Wacker Drive. The Elk Grove Village campus will be known as the Operations Center.

Incidents and accidents

  • FAA registration NC13304 (no flight number) 10 October 1933
  • Flight 610 (30 June 1951)
  • Flight 615 (24 August 1951)
  • Flight 409 (6 October 1955)
  • Flight 629 (1 November 1955)
  • Flight 718 (30 June 1956 - Grand Canyon mid-air collision)
  • Flight 826 (16 December 1960 - mid-air collision)
  • Flight 859 (11 July 1961)
  • Flight 297 (23 November 1962)
  • Flight 823 (9 July 1964)
  • Flight 389 (16 August 1965)
  • Flight 227 (11 November 1965)
  • Flight 266 (18 January 1969)
  • Flight 553 (8 December 1972)
  • Flight 173 (28 December 1978)
  • Flight 811 (24 February 1989)
  • Flight 232 (19 July 1989)
  • Flight 585 (3 March 1991)
  • Flight 826 (28 December 1997 - Clear-Air Turbulence)
  • Flight 175 (11 September 2001 - terrorist attacks)
  • Flight 93 (11 September 2001 - terrorist attacks)

Record-setting flight—Friendship One

In 1988, using a 747SP-21 purchased from Pan Am, United flew this 2-stop around-the-world flight in order to raise money for the Friendship Foundation, which the plane was 'loaned' to. The flight made a very short-lived record; within a month, a Gulfstream IV business jet had broken Friendship One's record.

Brand

A United Boeing 757-222 tailfin in new livery at San Francisco International Airport, with United tailfins in old livery in the background.

United adopted a red, white and blue shield logo in 1936, but its use varied widely and was eventually abandoned altogether in the early 1970s. In 1974, the airline commissioned designer Saul Bass to develop a new logo. The "tulip" logo of colored stripes representing overlapping letter "U"s remains in use today with only slight modification.

The early slogan "The Main Line Airway," emphasizing its signature New York-Chicago-San Francisco route, was replaced in 1965 with "Fly the Friendly Skies." The "friendly skies" tagline was used until 1996. Other United Slogans include:

  • "The Great White Way to New York" (1971-1972)
  • "The Friendly Skies of your land" (a/k/a "Mother Country") (1972-1976)
  • "You're the boss" (1976-1977), "United we fly" (1977-1978)
  • "That's what friendly skies are all about" (1980)
  • "You're not just flying, you're flying the Friendly Skies" (mid 1980's)
  • "United - Rising" during the mid 1990's
  • "We Are United" following the September 11th incident.

Most recently, United started using the tagline "It's time to fly", voiced over by Robert Redford in their famous commercials using their now renowned animations.

United's theme song is George Gershwin's 1924 "Rhapsody in Blue", which it licensed from Gershwin's estate for $500,000 (as noted in Eldred v. Ashcroft 537 U.S. 186 (2003)). "Rhapsody" would have entered the public domain in 2000, but the Sonny Bono Copyright Term Extension Act of 1998 extended its copyright another 20 years.

See also

  • United Center

References

  1. ^ "United Airlines Moves Headquarters to Chicago." Carey, S. The Wall Street Journal. July 15, 2006.

External links

Wikimedia Commons has media related to:
United Airlines

Official sites

  • United Airlines
    • Worldwide sites
  • Ted
  • Star Alliance

Marketing

  • The United Shop, official online retailer for United- and Star Alliance-themed gift merchandise
  • Hemispheres, United's in-flight magazine
  • United Rhapsody, with video clips of commercials featuring the "It's Time To Fly" tagline

Employees

  • Mainliner Clubs, network of non-profit social clubs for United employees
  • A Village United, news site maintained jointly by United's unions

Route maps

  • Current route maps
  • Historical route maps and timetables

Credit risk

  • Moody's KMV Default Case Studies

History

  • A Chicago Tribune Special Report: United's rhapsody of blues
  • Super70s.com: United Airlines

Customer relations

  • United Customer Relations
  • Untied.com, complaint site
  • United Passenger Opinions

Frequent flyer miles

  • Mileage Plus official homepage
  • FlyerTalk.com: United Mileage Plus
  • MileGuide.com Earning miles on United Airlines
  • MileMaven.com United Mileage Plus Bonus Miles Promotions

Virtual airlines

  • United Virtual Airlines - flight sim enthusiasts

Fleet information

  • United Airlines Fleet Age
  • United Airlines Seating Charts


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Search Term: "United_Airlines"
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United Airlines Offers Its Top Three Thanksgiving Travel Tips 

[Press Release] PR Newswire via Yahoo! Finance - Nov 17 7:49 AM
United Airlines is offering customers these top three tips to make their Thanksgiving travel experience easier.

United Airlines Credit-Default Swaps Rise on LBO Speculation 
Bloomberg.com - Nov 14 11:17 AM
Nov. 14 (Bloomberg) -- The perceived risk of owning United Airlines parent UAL Corp.'s debt rose after a report that the company may be the target of a leveraged buyout, according to traders betting on the creditworthiness of companies in the credit-default swap market.

United Airlines Selects Lockheed Martin Team for Key Flight Planner Technology 
SYS-CON Media - Nov 14 10:56 AM
Lockheed Martin will supply United Airlines with advanced flight planning technology designed to optimize flight routes, increase efficiency and generate cost savings. The systems integrator will provide two key technologies through its partner, Flugwerkzuege Aviation Software.

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