United Air Lines, Inc.,
trading as United Airlines ( ), is a major airline of the United States
. It is a subsidiary of UAL Corporation with corporate offices in
Chicago
at 77 West Wacker Drive
in the Chicago Loop
. United's largest hub is O'Hare International Airport
, where it has more than 550 daily
departures. United also has hubs in Denver
International Airport
, Washington Dulles International
Airport
, San Francisco International
Airport
, and Los Angeles International
Airport
. United's route network spans the globe with
route authorities in North America,
Europe, Asia, Austraila, the Middle
East, Latin America, the Caribbean
, and beginning in May of 2010, United will begin
service from Washington
D.C.
to Accra & Lagos, making it the second US
carrier to serve Africa and one of the few
airlines in the world serving all 6 continents except Antarctica
. A founding member of the
Star Alliance, the largest airline alliance in
the world, United offers connections to over 1,000 destinations in
over 170 countries worldwide.
United's largest maintenance hub is the Maintenance Operations Center at San Francisco International Airport
. United's parent company UAL Corporation announced that it will move its operational base from Elk Grove Township, Illinois
to the Willis Tower
(formerly Sears Tower) in downtown Chicago in 2010.
As of July
31, 2006, United was the world's third largest airline by
revenue-passenger-miles (behind Delta
Air Lines and American
Airlines), third-largest by total operating revenues (behind
Air France-KLM and American Airlines), and fourth-largest by
total passengers transported (behind Delta Air Lines, American Airlines and Southwest
Airlines
). United has 48,000 employees and operates
360
aircraft.
History
Beginnings
United Airlines traces its claim to be the oldest commercial
airline in the United States to the
Varney Airlines air mail service of
Walter Varney, who also founded
Continental Airlines.
It was founded in
Boise,
Idaho
. 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 at
Pasco,
Washington
on April 6, 1926, and returned the following day
with 200 pounds of mail. April 6 is regarded in the United
Airlines company history as both its own birthday and the date on
which "true" airline service—operating on fixed routes and fixed
schedules—began in the United States.
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 began buying other airmail carriers,
including Varney's. Within four years, Boeing's holdings grew to
include airlines, airplane and parts manufacturing companies, and
several airports. In 1929, the company changed its name to United
Aircraft and Transport Corp. (UATC).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. On May 7, 1930, UATC completed the
acquisition of
National Air
Transport Inc, a large carrier based in Chicago. On March 28,
1931, UATC formed the corporation
United Air Lines,
Inc. to manage the UATC airline subsidiaries.
Following the
Air Mail scandal of
1930, the Air Mail Act of 1934 banned the common ownership of
manufacturers and airlines. UATC's President
Philip G. Johnson was forced to resign and moved 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 the United Air Lines airline group. 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
early route system, formed by connecting U.S. air mail routes,
operated east-to-west along a transcontinental route from New York City
via Chicago
and Salt Lake
City
to San
Francisco
, as well as
north-and-south along the West Coast.
The early
interconnections during this era became the basis of major United
hubs in Chicago and San Francisco,
followed later by additional hubs in Denver
and Washington,
D.C.
These four cities remain United's principal
hubs to this day.
On the
night of October 11, 1933, a United Boeing
247 exploded in mid-air and crashed near Chesterton,
Indiana
, killing all seven aboard. Investigation
revealed that the explosion was caused by a
nitroglycerin bomb placed in the baggage hold.
The
United Airlines
Chesterton Crash is believed to be the first proven case of air
sabotage in commercial aviation history. No
suspects or motives were ever discovered.

United Air Lines route map, 1940

A United DC-6, parked on the northwest
maintenance ramp of Stapleton Airport, September 1966.
During
World War II, United-trained
ground crews modified airplanes for use as bombers, and transported
mail, material, and passengers in support of the war effort.
Post-war United benefited 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 Douglas DC-6B
aircraft. The bomb was planted by
Jack Graham who placed the device in his
mother's luggage with the intent of collecting on her life
insurance policy. Graham was arrested, tried, and was executed a
year after the explosion.
United 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.
United Airlines has the distinction of being the only commercial
airline to have operated
Executive
One, the designation given to a civilian flight which the U.S.
President is aboard. On December 23, 1973, then President
Richard Nixon flew as a passenger aboard a
United DC-10 flight from Washington Dulles to Los Angeles. White
House staff explained that this was done to conserve fuel by not
having to fly the usual
Boeing 707 Air
Force aircraft. In keeping with the common practice of having two
aircraft immediately available at all times during Presidential
travel, an Air Force aircraft flew behind in case of an
emergency.
De-regulation
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
from
Portland
and Seattle
. In 1985, United agreed to purchase Pan
American World Airways' entire Pacific Division, Boeing 747SPs, and
L-1011-500s for $750 million. By the end of 1986, United operated
flights to 13 Pacific destinations, most of which were purchased
from the ailing
Pan American
World Airways.
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 rival
American Airlines launched
AAdvantage, the first modern
frequent flyer program, United
launched its Mileage Plus.
In 1982, United became the launch carrier for the
Boeing 767, taking its first delivery of 767-200s
on August 19.
In 1984,
United became the first airline to serve all 50 states when it
introduced service to Atlanta
, Nashville
, Memphis
, Little Rock
, Fargo
, Casper
, Jackson
, and Charleston
.
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
non-merging 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. The only choice left, to achieve parity with
American's pilot costs, was to begin a B-scale for United's
new-hire pilots.

A United Boeing 747-100 in the
"Rainbow Scheme", designed by Saul Bass.
Ferris wanted that B-scale to merge in the
captain's ranks, which was more generous
than American's B-scale, that never merged at all. But, the ALPA
MEC insisted they merge in the new pilot's sixth-year with the
airline. 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
from the Odeum (a convention center in the Chicago suburbs) with F.
Lee Bailey, declared the strike was on at 12:01 A.M., on May 17,
without further consulting the negotiators, some of whom believed
they could find agreement on all contract terms, if the
negotiations were allowed to continue. Moments before the ALPA
announced strike deadline, they began a "countdown of the final 30
seconds from Chicago" (the Odeum teleconference). Doing that made
it impossible to extend the strike deadline, so that the final
issues could be resolved without a strike.
Mr. Ferris changed United's parent company's name from UAL
Corporation to Allegis in February, 1987 but the name change was
short lived. Following Ferris' termination by the board, Allegis
divested its non-airline properties in 1987 and reverted to the
name UAL Corp. in May 1988.
Record-setting flight
In 1988, using a 747SP-21 purchased from
Pan American World Airways,
United flew a 2-stop around-the-world flight to raise money for the
Friendship Foundation, to which the plane was 'loaned'. The flight
made a very short-lived record for fastest flight around the globe;
within a month, a
Gulfstream IV
business jet had broken
Friendship
One's record.
Employee Stock Ownership Plan
The decline of
Pan American
World Airways continued to offer new opportunities for United.
In 1991
the company expanded dramatically, purchasing Pan Am's routes to
London
Heathrow Airport
. In direct negotiations with the UK
government, United also obtained rights to fly to Heathrow from
Chicago—the only Heathrow rights provided to a US carrier
subsequent to the
Bermuda II Treaty.
However, the aftermath of the
Gulf War and
increased competition from low-cost carriers led to losses of USD
$332M in 1991 and USD$ 957M in 1992. In 1992, United purchased
now-defunct Pan Am's Latin American and Caribbean routes and Miami
gates, but United allowed months to elapse between Pan Am's demise
and its launch of service. During this time, American Airlines
nearly doubled in size in Miami and Latin America, and as a result,
United never saw much success in the region.
In 1994, United's pilots, machinists, bag handlers and non-contract
employees agreed to acquire 55% of company stock in exchange for
15% to 25% salary concessions. The flight attendants voted to not
participate in the deal, and at the beginning some wore buttons
saying "we just work here." The Employee Stock Ownership Plan
(ESOP) made United the largest
employee-owned corporation in the
world. United used the opportunity to create a low-cost subsidiary,
Shuttle by United, in an attempt
to compete with
low-cost carriers.
United made substantial use of its employee-ownership in its
marketing communications, with slogans such as "the employee-owners
of United invite you to come fly the friendly skies," "we don't
just work here," and "thank you for calling United Airlines; please
hold and one of our owner-representatives will be with you
shortly."
The financial outcomes of the ESOP were decidedly uneven for
different players. As part of ESOP agreement, United CEO
Wolf resigned and took 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, received a $5.5 million package to join the management of
the new employee-owned company as legal counsel after the ESOP was
formed. United's unions, having larger voice in running the
company, later successfully bargained for significant pay
increases, but the effect was only short-term. The rank and file
employees were locked into their stock, which got wiped out in the
eventual bankruptcy.It was around this period (in 1993) that United
introduced its grey and blue color scheme. It had been criticized
that the color scheme blended with the darkness during nighttime
operations.
Turn-of-the-Century Developments
In 1997,
United co-founded the Star
Alliance with Air Canada,
Lufthansa
, SAS
and Thai Airways.
That same
year, United opened a major hub at Los Angeles
International Airport
.
United was the 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 1998,
Delta Air Lines and United
introduced a marketing partnership that included a reciprocal
redemption agreement between SkyMiles and Mileage Plus programs and
shared lounges. This scheme allowed members of either frequent
flier program to earn miles on both carriers and utilize both
carriers' lounges. Delta and United attempted to form an even
cozier codeshare relationship, but this was deal was effectively
killed by ALPA. The marketing partnership ended in divorce in 2003,
but paved the way for a future alliance with US Airways.
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 an amicable partnership that led to
US Airways' 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 had 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.
September 11, 2001
As part of the
September 11, 2001
terrorist attacks, two United Airlines planes were hijacked by
terrorists affiliated with
al-Qaeda.
One
aircraft was a Boeing 767-222 (Flight 175) that crashed into the
South Tower of the World Trade Center
in New York
City
and the other was a Boeing
757-222 (Flight 93
) that crashed in rural Pennsylvania.
Flight 93
was suspected to have been directed towards the United
States Capitol
building according to the United States Department of Homeland
Security
.
Bankruptcy and reorganization
With a strong presence on the West coast, United benefited from the
dot-com boom which boosted traffic
(especially premium traffic) to the San Francisco hub. This
increase was only temporary and when the 'bubble' finally burst
United was in a worse position than before because it had failed to
keep costs under control, for example giving its pilots pay raises
of up to 28% in the summer of 2000.
[5794] Coupled with a battered network (after
the dot-com bust), the
September 11
attacks, and skyrocketing oil prices, 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 IAM (a union comprised of ground service workers and mechanics)
failed to approve the loan guarantee (while all other unions
approved the loan guarantee), the application was rejected in late
2002 and the company was forced to seek
debtor-in-possession financing from
commercial sources to cover the expected future losses. United
tried several times to obtain the government loans, even enlisting
several congressmen and senators for help. The government rejected
the application claiming United "could probably obtain the $2
billion in financing it needs to emerge from protection without a
federal loan guarantee."
[5795]
Unable to secure additional capital, UAL Corporation filed for
chapter 11
bankruptcy protection in December 2002.
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, coupled
with the economic slowdown that was underway.
[5796]
United continued operations during its bankruptcy, but was forced
to cut its costs drastically. Tens of thousands of workers were
furloughed, and all city ticket offices in
the US closed.
The airline canceled several existing and
planned routes, and eliminated its entire Latin American gateway and flight crew base at
Miami
International Airport
after March 1, 2004. In 2003, United
abandoned its maintenance hubs in Oakland and Indianapolis, even
though maintenance was less expensive in Indianapolis, and
transferred work to its San Francisco Maintenance Operations
Center. Furthermore, they reduced their
mainline fleet from 557 (before 9/11) to
460 aircraft.
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.
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.
United implemented several fare hikes on overseas routes, citing
rising fuel costs, in 2004 and 2005.
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 and the Association of Flight Attendants for
lower pay. 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.
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.
Beyond Chapter 11
On
December 9, 2004, the airline made history when UA869 (747-400)
landed at Ho Chi Minh
City
(Saigon), Vietnam
. The scheduled flight from San Francisco
via Hong
Kong
(SFO
-HKG
-SGN
) 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 in
1975
In 2006
United Airlines announced that it would be moving its headquarters
and its 350 top executives from 1200 East Algonquin Road in
suburban Elk Grove
Township
to 77 West Wacker Drive
in the Chicago Loop
. Before making its choice, United was
considering moving its headquarters to Denver, Colorado
or San Francisco, California
. In the Chicago Loop United had
considered 115 South LaSalle Street, 190 South LaSalle, and 200
West Madison Street.
The Top 350 Executives were moved in the first half of 2007 to 77
West Wacker. The Elk Grove Village campus was renamed an Operations
Center.
On August 4, 2006, United Airlines formally ended free meals served
in the economy cabin on domestic flights. The change came after
scaling back the amenity over several years since 2001, until it
was finally eliminated when the airline cut it from
United p.s. flights.
United's management have called for consolidation in the industry.
The Wall Street
Journal revealed on December 12, 2006, that
Continental Airlines was in merger
discussions with United. A deal was not "certain or imminent," with
the talks being in a preliminary state. On April 4, 2007, United
and British carrier
BMI announced that
they would 'effectively merge their trans-Atlantic operations',
which would involve strengthening their alliance to a level far
more intimate than its current code-share alliance. The merged
operations would begin in March 2008, if approved. On May 3, 2007,
United acquired an equity stake in its longtime partner
Aloha Airlines. On June 14, 2007, CFO Jake
Brace said his company is still looking to tie the knot with a
suitable merger partner.
On June 19, 2008, United Airlines announced an extensive
partnership with
Continental
Airlines. This partnership will include
codeshare and
frequent
flyer agreements. Also, Continental has decided to leave
SkyTeam to join the
Star Alliance and streamline the new
agreements with United. However, before any partnerships can go
into effect, Continental must receive regulatory approval, and
until any approval has been given, it will be
business-as-usual.
Recent news
As of September 2007, United's largest owner was
Bank of America, and
Fidelity Investments became the second
largest owner by acquiring an 11 percent stake in the
company.
On September 25, 2007, United received permission from the FAA for
non-stop service from SFO to Guangzhou, China starting in April
2008.
Its
application to fly between Los Angeles
and Shanghai in 2009 was
denied. Due to the impact of higher fuel costs it was
announced on April 14, 2008, that this route would be delayed for
one year.
United has been investigating significant potential changes to its
corporate structure. The initiatives under consideration include:
- Divesting of the Maintenance, Repair and
Overhaul operations at SFO
.
- Spinning off the cargo division.
- Spinning off the Mileage Plus frequent flier program.
On November 14, 2007,
Pardus Capital Management LP, a
hedge fund that owns 7 million shares of
Delta and 5.6 million shares of United,
called for the two carriers to merge. This action sent shares of
both airlines up. However, the two airlines quickly denied official
talks of any merger.
On February 19, 2008,
Westin Hotels &
Resorts announced a refreshed partnership with United where
Westin will provide products from their Heavenly Bed line on p.s.
routes later this year.
In May 2008, the
American Customer
Satisfaction Index scored United Airlines second-last among
US-based airlines in customer satisfaction with a 21% decrease
since the study began in 1994 and a 11% decrease over the previous
year.
On June 12, 2008, United announced it would charge $15 for the
first checked bag, becoming the second United States airline to do
so, the first being
American
Airlines. The charges, while not affecting every United flight,
were created in an effort to offset high fuel prices.
On June
28, 2008, United announced the cessation of several international
routes including San
Francisco
-Nagoya and Chicago
-Mexico City
.
On September 8, 2008, the price of UAL shares fell by nearly 99% in
fifteen minutes to $0.01 US amid rumors of another bankruptcy,
before
NASDAQ temporarily halted trading. The
rumors were traced to an old story on the
South Florida Sun-Sentinel
website about the 2002 bankruptcy being picked up by
Google News and subsequently presented by
Bloomberg LP as breaking story. The
share price subsequently recovered most of its value.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 the history of the industry.
In February 2008,
UAL Corporation
and
Continental Airlines began
advanced stages of merger negotiations and were expected to
announce their decision in the immediate aftermath of a definitive
merger agreement between rival
Delta Air
Lines and
Northwest Airlines.
The timing of the events was notable because Northwest's
golden shares in Continental (that gave
Northwest veto authority against any merger involving Continental)
could be redeemed, freeing Continental to pursue a marriage with
United. On April 27, 2008, Continental broke off merger
negotiations with United and stated it was going to stand alone.
Despite ending merger talks, Continental has announced that it will
join United in the
Star Alliance
On April 27, 2008, it was reported that
UAL Corporation and
US Airways Group, Inc. were in the advanced
stages of merger negotiations as well. Sources stated that a merger
was expected to be announced within two weeks of the report. United
pilots vociferously rejected the proposal and vowed to fight it.
Star
Alliance co-founder Lufthansa Airlines
CEO Wolfgang Mayrhuber threw his support behind a
marriage of partner carriers United and US Airways.
On June 4, 2008, United announced it would close its
Ted unit. The ex-Ted Airbus aircraft will be
reconfigured and returned to
mainline configuration; to compensate the
removal of United's
Boeing 737s that are
set to be retired, reducing the mainline fleet from 460 to 360
aircraft and furthering the airline's goal of cutting domestic
capacity by 15 percent.
In January 2009, United announced a code-sharing agreement with Aer
Lingus for flights between Washington Dulles International Airport
and Madrid, Spain. Aer Lingus will operate the service, which is
permitted under recent open skies agreements between the US and
EU.
On January 6, 2009,
Ted ended
operations converting its entire fleet into United mainline fleet.
All Ted flights were changed into United mainline flights. The
interior and exterior aircraft conversion from Ted configuration to
mainline configuration continues.
As of May 2009, the U.S. Department of Transportation rated UAL
eleventh among 19 US carriers in lost, damaged, delayed or pilfered
baggage with 3.67 complaints per 1,000 passengers. In July 2009, a
viral music video, "
United Breaks Guitars" was released
about a disputed damaged baggage claim with the airline. United
said it would like to use the video as a staff training tool to
help the company improve its internal "corporate culture" relating
to its customer relations in that area of its services.
On October 28, 2009, United flew its final Boeing 737 flight, as
United Flight 737. The retirement flight flew from
Washington-Dulles to San Francisco via Chicago-O'Hare, Denver, and
Los Angeles, United's main hubs. United's 737 retirement was
particularly significant, as it was the U.S. launch customer of the
737 family in 1967, and operated variants of the type for 42
years.
Merger discussions with Continental and US Airways
On April 28, 2008, United and
US Airways
reportedly were in advanced merger talks following the announcement
that the board of
Continental
Airlines, another prospective merger partner, had voted not to
pursue a merger with United.
On June 19, 2008,
CEOs of both United Airlines
and
Continental Airlines signed
a pact which possibly could eventually lead to a merger between the
two airlines. The alliance is an agreement to link international
networks and share technology and passenger perks. This agreement
is basically a "virtual merger" that will include many of the
benefits of a merger without the actual costs and restructuring
involved. The alliance will take effect in about a year after
Delta Air Lines and
Northwest Airlines complete their merger,
as that will release Continental from the
SkyTeam contract and allow for the required
nine-month notice. Additionally, Continental has declared that they
will join the
Star Alliance, once
Delta and Northwest merge.
2009 recession and new jet orders
In June 2009, United asked manufacturers Boeing and Airbus to
submit proposals to sell the airline up to 150 jets in a
winner-take-all competition. United is taking advantage of
declining sales at both plane makers to reap steep price
reductions; the large size of this prospective order will also
influence pricing. The Wall Street Journal cited the average ages
of four types of jets in United's fleet as follows:
- Boeing 747 – 13 years
- Boeing 777 – 10 years
- Boeing 767 – 14 years
- Boeing 757 – 17 years
On November 19th, 2009, the
Chicago
Tribune reported that United is very close to making a decision
on a widebody order by the end of 2009. Another competition for
narrowbody orders will commence separately in early 2010.
Destinations
United Airlines flies to 73 domestic destinations and 41
international destinations in 25 countries across
Asia,
Americas,
Europe,
Africa (from 2010), and
Oceania, not including cities only served by
United Express.
Route network
United operates an extensive domestic route network concentrated in
the Midwest and western United States.
United is also
prominent in transcontinental, transatlantic
, and transpacific
service. It is the leading US carrier to Hawaii
and
largest to Asia and Australia, flying 26.15 billion transpacific
revenue passenger miles in 2006 on 306 weekly departures.
Between September 2006 and August 2007, United carried 3.3 million
passengers to/from the Hawaiian Islands.
In 1988, the bilateral (though not reciprocal) treaty with Japan
was amended to allow additional routes between the two countries.
United's application to fly from Chicago to Tokyo, a significant
gap in its routes previously, was approved..
United is
focusing on its international presence, notably in the People's
Republic of China
, with nonstop flights to Beijing, Shanghai, and
Hong
Kong
from its hubs in Chicago, San Francisco and
Washington, D.C. In September 2007 United was granted a
route from San Francisco to Guangzhou. These routes offer a higher
proportion of premium fare passengers while being relatively
insulated from the
cut-throat
competition in the domestic market, especially from low-cost
carriers. United competes vigorously with discount carriers on
about 70 percent of its domestic market. 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.
United
will also begin service to Ghana
and
Nigeria
in Africa and to Bahrain
in 2010. It will be the second US carrier after
Delta to fly to that continent and
it will become the first and only US carrier to serve Bahrain
. Services to Africa and
Bahrain
will be from the airline's hub in Washington
D.C.
Former hubs and focus cities
United's route network has been trimmed and streamlined to a few
central hubs, resulting in the closure of these former hubs or
de-listing as focus cities:
- Cleveland
(Focus city, traffic moved to Dulles, its east
coast hub)
- Miami
(Latin hub, dismantled due to competition with
American Airlines)
- New
York-JFK
(Focus city, dismantled after 9/11)
- Portland
(Focus city, traffic moved to San Francisco
International Airport)
- Seattle
(Focus city, dismantled due to competition with
Alaska Airlines and West coast consolidation to San Francisco and
Los Angeles)
- Tokyo-Narita
(Focus city)
Fleet
Passenger
As of October 31, 2009, United operated 360 aircraft with average
fleet age of 13.5 years. United's Boeing Customer Number is "22".
For example, a Boeing 747-400 built for United is designated a
747-422.. United is also the only major US carrier to offer In
flight entertainment on all of its mainline fleet.
United Airlines Fleet
| Aircraft |
In Service |
Passengers
(First/Business/Economy Plus/Economy)
|
Routes |
IFE |
Notes |
| Airbus A319 |
55 |
120 (8/0/40/72) |
Domestic, Canada, Mexico, Caribbean |
Overhead LCDs, Audio |
|
| Airbus A320 |
97 |
138 (12/0/36/90)
144 (12/0/42/90)
Ted Configuration
156 (0/0/66/90)
|
Domestic, Canada, Mexico, Caribbean |
Overhead LCDs, Audio |
36 Ted planes have been converted
featuring leather seats |
| Boeing 747-400 |
25 |
347 (14/73/88/172)
New configuration
374 (12/52/70/240)
|
International |
Overhead monitors, Audio, AVOD |
AVOD in First / Business class. |
| Boeing 757-200 |
96 |
p.s. 110 (12/26/72/0)
182 (24/0/50/108)
|
Domestic, Canada and the Caribbean |
Overhead monitors, Audio |
p.s. flights feature handheld media players in United First and
United Business |
| Boeing 767-300ER |
35 |
183 (6/26/71/80)
244 (34/0/64/146)
|
3-class: Transatl/ Lat Am
2-class: Dom/ Hawaii
|
PTVs, AVOD |
|
| Boeing 777-200 |
19 |
348 (36/0/89/223)
258 (12/49/77/120)
|
3-class: Transatlantic, Latin America,
Transpacific
2-class: Domestic, Hawaii
|
PTVs, Audio |
New configuration 777-222s to receive larger LCD screens and
new seats in all classes. |
| Boeing 777-200ER |
33 |
253 (10/45/84/114)
258 (12/49/77/120)
|
Intercontinental (Europe, Asia, Middle East) |
PTVs, Audio |
New configuration 777-200/ERs to receive larger LCD screens and
new seats in all classes. |
| Total |
360 |
|
|
|
|
Business class available on three-class
configurations.
United is in talks with Airbus and Boeing about a possible fourth
quarter order for up to 150 airplanes to update its widebody fleet
and replace its 757s.
Retired
United was the launch customer for a number of aircraft types,
including the
McDonnell Douglas
DC-10 and several Boeing aircraft: the
Boeing 727 the
Boeing 737-200, the
Boeing 767, and the
Boeing
777. Although not a launch customer, jet aircraft operated by
United has included the Lockheed L-1011 (received in the Pan Am
Pacific Route purchase, later traded with
Delta Air Lines for the DC-10 aircraft Delta
received in their merger with
Western
Airlines), Douglas (later McDonnell Douglas) DC-8, and Sud
(later Aerospatiale) Caravelle. In 1965, United placed an order for
six BAC/Sud (now BAe and Aerospatiale) Concordes but the order was
later canceled.
United is the only major US airline to not have any orders placed
with any aircraft manufacturer. United has stated it would rather
wait until the next generation of narrow-body aircraft arrive as
they will be able to replace their A319-100, A320-200, and 757-200
fleets at the same time. To cut down on money going out of the
franchise, United is retiring its entire
Boeing 737 fleet. For the long-haul network,
United is a possible candidate to order the
Boeing 747-8 Intercontinental
and the
Boeing 777-300ER. On June
3, 2009, United announced they have submitted proposals to both
Boeing and Airbus for an order for up to 150 new aircraft. The
order is expected to include new widebody aircraft to supplement or
replace the current fleet and new narrow-bodies to replace some of
United's 97 strong 757-200 fleet. The airline could place an order
as early as this fall.
On April 2, 2008, United Airlines temporarily withdrew its entire
fleet of 19
Boeing 777-200 and 33
Boeing 777-200ER aircraft until
functional testing of the fire suppression system could be
completed. The move was the latest in a series of temporary
groundings by U.S. airlines in late March 2008 following a Federal
Aviation Administration (FAA) review of compliance with
airworthiness directives. Although United has shown no interest in
purchasing the
Boeing 787
Dreamliner, they have expressed interest in becoming the sole
GoldCare maintenance, repair, and overhaul
provider for the aircraft.
Cabin

United's current livery, introduced in
2004, on a Boeing 777-200.
United offers in-flight entertainment on all mainline aircraft.
Audio programming is provided by
XM
Satellite Radio. The entire fleet features "From the
Flightdeck" on channel 9. This program allows passengers to listen
to live radio communications between the cockpit and Air Traffic
Control. "From the Flightdeck" can be disabled at the pilot's
discretion. United also has partnerships with various television
networks who provide programming for video-equipped aircraft. The
most prominent of these programming partners was NBC, which
provided branded "NBC on United" programming. This long-standing
partnership ended in early 2009, when NBC signed a two-year deal
with American Airlines. Despite the loss of this partnership,
United's television entertainment continues to include several
prime time NBC programs.
United First
- United First Suite is offered on Boeing 747-400 and international-configured
Boeing 777-200/200ER aircraft and
features 78 inch-pitch flat-bed seats which recline to 180
degrees. United First passengers check in at separate counters and
receive an invitation to the United International First Class
Lounge or United Red Carpet Club. Passengers are given priority
when boarding, enjoy priority baggage handling and, where
available, can use premier security lines. On board, passengers
receive a pre-flight beverage service and a five course meal on
linen-dressed tray tables during the flight. Each seat has a
personal video screen featuring nine channels of video (seven films
and two short subjects). Passengers can select a movie from a
collection of compact videocassettes. Passengers have access to
personal satellite phones, laptop power ports, noise-canceling headsets, pillows and
blankets.
- An upgraded United First Suite is offered on
all internationally configured Boeing
747-400 and all Boeing
767-300ER aircraft. United plans to retrofit this new seat on
its entire international fleet of Boeing 747-400, Boeing 767-300ER
and Boeing 777-200/200ER aircraft. The new First Suite consists of
a six foot-six inch lie-flat bed and a 15.4 inch personal LCD
television with full Audio/Video-on-Demand (AVoD). The B767-300
international continues to have the original (smaller) overhead
bins.
- United First (Domestic) is offered on all
domestically configured United aircraft. Domestic United First
includes a cradle seat similar to the international United Business
seat, but without the personal reading lamps or personal
entertainment units. The seats have a 38 inch pitch, and
passengers receive priority boarding and baggage handling,
pre-departure beverages, free meals and separate check-in
desks.
- United First (p.s.) is offered on all flights
between JFK and either SFO or LAX. and has twelve slanted-flat,
leather-trimmed seats, with a 68-inch pitch, along with individual
portable digital media players offering a wide selection of movies,
TV shows, music and games through noise-reducing headsets.
Passengers receive full meals, chocolates and signature champagne
cocktails, as well as an invitation to the Red Carpet Clubs. Seats
include personal reading lights, privacy screens, laptop power
ports and personal satellite phones.
United Business
- United Business is offered on all
internationally configured aircraft and on a few select domestic
flights. In-flight service includes pre-departure beverages, table
linens and (on international flight segments only) three course
meals designed by chef Charlie Trotter. Passengers are also treated
to priority boarding, baggage handling, and access to the Red
Carpet Club on day of departure. UA is well along in its programme
to upgrade all international-configuration aircraft to the new
United Business Suite (180-degree horizontal flat-bed seats).
However, these interior upgrades will not start until February 2010
for UA's 777-200 aircraft.
- (Old) United Business Seats These recliner
seats a pitch of 55 inches and 150 degree recline. The seat
also features laptop power ports which require EmPower adapters.
Each seat includes an individual entertainment system offering nine
channels of video (seven films and two short-subjects) and
noise-reducing headsets. As of October 2009, all UA Boeing 777-200 aircraft have this seat
type.
- United Business Suite is offered now on all
international Boeing 747-400 aircraft
and on all international Boeing
767-300ER aircraft. The B767-300 international continues to use
the original (i.e. small) overhead bins in first and business
class. All seats are 6 feet-4 inches long and have 180 degrees
of recline, creating a fully-flat bed. United Business Suite is the
first flat-bed business seat to be offered by a U.S. airline. All
seats are equipped with a personal 15-inch screen personal LCD
television, an adjustable headrest, lumbar support, a USB power
port, an Apple iPod adapter (to play audio or video through),
XM Satellite Radio, a US-style
120V/60Hz power outlet, a reading light, noise-cancelling
headphones and a large tray table.
- United Business (p.s.) offers twenty-six
leather recliner seats with 54 inch pitch, individual portable
digital media players with a wide selection of video choices and
noise-reducing headsets, menus including chocolates and champagne, cocktails, reading lights and
laptop power ports. The p.s. service is only offered on
selected flights between New York and either Los Angeles (LAX) or
San Francisco (SFO).
United Economy
- United Economy (International) is available on
all internationally configured aircraft in United's fleet. Seats
range from 17 to 18 inches wide, and have 31 inches of
pitch. All United Economy seats on Boeing 767-300ER and
777-200/200ER aircraft feature an adjustable headrest and personal
LCD television in the seatback. Boeing 747-400s do not feature
seatback television. United Economy's in-flight entertainment
system features nine channels of entertainment, and will be updated
in the future to an audio visual on demand system (AVOD). The
Boeing 747-400 features overhead LCD's throughout the aircraft and
bigger LCD screens on the bulkheads. United serves free meals on
international flights between the US, South America, Europe, the
South Pacific and Asia. Shortly after takeoff, passengers are
served cocktail snacks and free non-alcoholic drinks. On flights
with meals, the main meal consists of a salad, an appetizer, a
choice of hot entrées and dessert. On longer flights, United also
offers a light pre-arrival meal.
- United Economy (Domestic) is available on all
aircraft in United's mainline fleet. Seats range from 17 to
18 inches wide, and have between 31 and 32 inches of
pitch. Economy seats on all A319-100, A320-200, 757-200, 767-300ER,
and 777-200/200ER aircraft feature adjustable headrests. All 737
aircraft feature last-generation seats lacking headrests. United
offers a buy on board program. On
United flights between 3 and 5 hours in duration, snackboxes are
available for a fee. On United flights of 5 or more hours, fresh
sandwiches, salads and snackbox options are also available for a
fee. Water, soft drinks, and coffee are complimentary on all
flights. Alcoholic beverages are available for a fee on most
flights. All A319-100, A320-200, 757-200, 767-300ER, and
777-200/200ER aircraft feature overhead television screens. Short
subject television program is shown on flights between 1.5 and 2.5
hours and films are shown on flights over 3 hours.
- Economy Plus is available on all aircraft in
the domestic and international fleet. Economy Plus seats are
located in the front 6-12 rows of the economy cabin and feature up
to 6 inches of additional legroom. Economy Plus is available
for free to all Mileage Plus Premier members. It can also be
purchased at booking or check-in depending upon availability. All
seats in economy on the P.S flights from JFK to LAX and SFO are
configured into Economy Plus.
Mileage Plus
Frequent flier programs started in their current form in 1981.
United began one week after American Airlines started the first
program. United's program is called Mileage Plus.
Airlines who are part of the
Star
Alliance and others participate in a program enabling
passengers on these airlines to receive Mileage Plus credits.
United Airlines has been criticized recently for so called Starnet
blocking. United admitted in a Washington Post article that it
prevents its Mileage Plus members, regardless of tier, from
redeeming rewards on all Star Alliance flights. United Airlines is
currently the only known Star Alliance member to restrict access to
reward flights.
Miles earned do not expire, provided that any miles are earned or
redeemed at least once every 18 months.
Elite level membership, which has added benefits over the standard
level membership, is a feature that was not initially part of the
program.
Premier Associate (3P) is a new elite level
created in 2006 that can be gifted by elite members as a reward for
reaching certain plateaus. Privileges are much like Premier members
and get access to Economy Plus seating, but does not include the
500-mile e-upgrades or the 25% mileage bonus on flown miles.
Premier (2P) members, who accumulate at least
25,000 Elite Qualifying Miles (EQM) or fly 30 segments, are offered
priority boarding, free access to Economy Plus seating, upgrade
privileges from any fare, complementary 500-mile e-upgrades and a
25% mileage bonus on flown miles. In 2005, 535,000 members of
Mileage Plus qualified for Premier status.
Premier Executive (1P) members fly at least 50,000
EQM or 60 segments, and receive all Premier benefits plus a 100%
mileage bonus, higher upgrade priority, access to exit row seating
in advance of flight, and lounge access when traveling
internationally on any Star Alliance member airline the same day.
In 2005, 239,000 members of Mileage Plus qualified for Premier
Executive status.
1K (also known as Premier Executive 1K) members
fly at least 100,000 EQMs or 100 segments, and receive all Premier
Executive benefits plus six free System-wide Upgrades good for a
one-class upgrade anywhere United flies, along with the ability to
earn confirmed regional upgrades valid across United's North and
Latin American route system. 1K passengers are sometimes granted
accommodations and meals during flight delays and irregular
operations caused by weather or air traffic control. In 2005,
46,000 members of Mileage Plus qualified for 1K status.
Global Services, while not officially part of the
Mileage Plus program, is an invitation-only program to recognize
United's most valued high-yield customers. Full invitation criteria
are not made public by United; re-qualification for current UGS
members could be attained by flying 50,000 full-fare miles in a
calendar year, according to company letter to members.. Benefits
complement and expand upon those offered to 1K passengers,
including: higher priority for upgrades and front-of-line access in
premium security lines. Global Services members are able to upgrade
award flights using miles, system-wide upgrades, confirmed regional
upgrades and 500 mile upgrade certificates. In 2005, 18,000 members
of Mileage Plus qualified for Global Services membership.
Million Miles and Beyond is a program offered to
Mileage Plus members who have flown one million miles or more on
United Airlines during their lifetime. These customers permanently
receive the benefits of lifetime Premier Executive
membership.
2 Million Miles and Beyond is a program offered to
Mileage Plus members who have flown two million miles or more on
United Airlines during their lifetime. These customers permanently
receive the benefits of lifetime Premier Executive membership plus
lifetime Red Carpet Club membership.
3 Million Miles and Beyond is a program offered to
Mileage Plus members who have flown three million miles or more on
United Airlines during their lifetime. These customers permanently
receive the benefits of lifetime 1K membership plus lifetime Red
Carpet Club membership.
Red Carpet Club
The
Red Carpet Club is United Airlines' airport
lounge. It includes 35 lounges in 28 major airports around the
world. Club membership is available to the public for an annual
fee, and includes access to all Red Carpet Clubs along with
reciprocal access to US Airways Clubs and most Star Alliance Gold
lounges, excluding some lounges operated by the Lufthansa group,
when traveling on those carriers. Premier, Premier Executive and 1K
members of Mileage Plus are offered discounted membership options.
Despite
being called the Red Carpet Club, the carpet inside the clubs is
not always red, such as the blue carpet used at United's Red Carpet
Club at Orlando International Airport
, pictured below.
Locations
International First Lounge
United also offers an
International First Lounge
which feature snacks and a self-serve bar at several airports.
Access is restricted to customers traveling in long haul
international first class or P.S. first class.
Codeshare agreements
In addition to its Star Alliance and
United Express partnerships, United
codeshares with the following
airlines as of August 2009:
United also has marketing agreements with the following airlines:
Incidents and accidents
In popular culture
- Leanne Scott's country pop tune, "L.A. International Airport," which
became a Top Ten Country hit for
Susan Raye in 1971, refers to the airline
in the closing lyrics, "Captain's voice so loud and clear;
Amplifies into my ear, Assuring me I'm flying friendly skies."
- Tom Hanks' character Viktor Navorski is stuck at New York's JFK
airport in the United terminal in The
Terminal (2004). Viktor flew into JFK on a United 747 and
the woman he falls for played by Catherine Zeta Jones, is a flight
attendant for United.
- The
crash of United Airlines Flight 93
was the focus of the 2006 movie United 93.
Brand
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. United's grey livery featured the words "Worldwide
Service" near the front of the aircraft.
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. The current slogan and
ad campaign since 2004, is "It's time to fly." Other United Slogans
include:
- "The Great White Way to New York" (1971-1972)
- "The Friendly Skies of your land" (also known as "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
1980s)
- "From the ground up, rededicated to giving you the service you
deserve. Come fly the friendly skies" (Late 1980s)
- "Come fly the airline that's uniting the world. Come fly the
Friendly Skies" (late 1980s)
- "Come fly our Friendly Skies" (The early ESOP years)
- "United Rising" during the mid 1990s
- "Come fly Chicago's hometown airline. Come fly the friendly
skies."
- "Feel United ... Be United ... Worlds United ... Stay United
... United" (the late 1990s)
- "It's important for the human race to stay United"
- "Life is a journey travel it well; United"
- "We Are United" following the September 11 incident
- "Relax, Stretch Out" with the rollout of EconomyPlus
- "It's time to fly" for the animated commercials (voiced over by
Robert Redford), banners, and
magazine advertisements of the campaign first unveiled during
Super Bowl XXXVIII. (2004
present). The campaign was reintroduced in August 2008 when United
premiered 5 new TV commercials during the 2008 Summer Olympic Games.
United's theme song is George
Gershwin's 1924 "Rhapsody in
Blue", which it licensed from Gershwin's estate for $500,000 in
1976. "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.
United is a sponsor of five of six of Chicago's major professional
sports teams—the Bears, Blackhawks, Bulls, Cubs and
White Sox - only the Fire are unaffiliated. The Blackhawks and
Bulls play their games in the United Center , which the airline holds the naming rights to until
2014. The Cubs use a United 757
as their charter jet for transport between games, and the White Sox, similarly, use an Airbus 320 as their charter operating under
flight number UAL9904.
See also
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1931)
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Library The Crime library
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at BNET.com
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The Wall Street Journal.
December 13, 2006.
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Merger." Sorkin, A. R. and Bailey, J. The New York
Times. December 12, 2006.
- United-BMI pact would 'effectively merge their
trans-Atlantic operations' Today In the Sky USATODAY.com
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transatlantic alliance MarketWatch
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Airlinesnow in bankruptcy (Star Bulletin: May 4, 2007)
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14, 2007)
- United and Continental To Form Extensive
Partnership/Continental To Leave SkyTeam For Star Alliance
(Official Press Release: June 19, 2008)
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Post
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Florida Business Journal:
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http://www.ajc.com/business/content/business/delta/stories/2007/11/14/delta_1115.html
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United talks MarketWatch
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to check 1 bag
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Post
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2008
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million-plus in fees
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Accessed October 11, 2008.
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Information
External links
|