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United Airlines |
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United Continental Holdings, Inc. |
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77 W. Wacker Dr. Chicago, IL 60601 IL Tel. 312-997-8000 |
Type: Public
On the web:
http://www.UnitedContinentalHoldings.com
Employees:
86,000
Employee growth: 83.0%
United Continental Holdings (formerly UAL Corporation) unites cities around the globe through subsidiaries United Air Lines and Continental, titans among passenger and cargo air carriers. While United Air Lines and Continental are its main lines, the company also has regional operations, which are operated under contract by United Express, Continental Express, and Continental Connection. Combined, the company operates about 5,800 flights a day that reach more than 370 domestic and international destinations from hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York, San Francisco, and Washington, DC. UAL Corporation changed its name to United Continental Holdings following a merger deal in 2010.
Key numbers for fiscal year ending December, 2010:
Sales: $23,229.0M
One year growth: 42.2%
Net income: $253.0M
Officers:
Chairman: Glenn F. Tilton
President, CEO, and Director: Jeffery A. (Jeff) Smisek
EVP and COO: Peter D. (Pete) McDonald
Competitors:
AMR Corp.
Delta Air Lines
US Airways
Gale Directory of Company Histories:
UAL Corporation |
Incorporated: 1934 as United Air Lines Transportation Company
NAIC: 481111 Scheduled Passenger Air Transportation; 481112
SIC: 4512 Air Transportation - Scheduled
UAL Corporation is the holding company for United Airlines, Inc., the world's largest airline, which flies 240,000 passengers a day to 26 countries. It is also the largest employee-owned company in the world. Revenues for 1999 surpassed $18 billion. UAL's plans to acquire US Airways, the sixth largest airline, were the subject of much discussion and uncertainty during mid-2000.
United Airlines was created in the early 1930s by Bill Boeing's aeronautic conglomerate in order to exploit demand for air transport and to serve as an immediate market for Boeing aircraft. At first United was similar to a consortium, involving the participation of several independent airline companies. One of those companies was Varney Air Lines, credited with being America's first commercial air transport company. Varney's 460-mile network between Pasco, Washington, and Elko, Nevada, was linked with Boeing Air Transport, which operated an airmail service between Chicago and San Francisco. This route crossed Vernon Gorst's Pacific Air Transport network, which ran mail between Seattle and Los Angeles. The National Air Transport Company, operated by New York financier Clement Keys, connected with Boeing in Chicago, flying mail south to Dallas. Stout Air Services, which had the financial backing of Henry and Edsel Ford, operated an air service between Chicago, Detroit, and Cleveland with Ford tri-motor airplanes. These airline companies cooperated with Boeing, which manufactured aircraft in Seattle, and Pratt & Whitney, an aircraft engine manufacturer in Connecticut operated by Frederick Rentschler. Together they formed a 'vertical' aeronautic monopoly, restricting the delivery of new aircraft to its constituent partners and devoting its resources to eliminating competition on its air services. The airline group became known as United Air Lines in 1931.
Among other things, the group was responsible for introducing air-to-ground radio, which improved communication and safety, and stewardesses, all eight of whom were registered nurses hired to allay passengers' fear of flying. A United executive at the time commented, 'How is a man going to say he's afraid to fly when a woman is working on the plane?'
In 1934 National, Varney, Pacific, and Boeing officially merged under the name United Air Lines Transportation Company. Pat Patterson, a banker and Boeing official, was placed in charge of the airline at the age of 34. That year, however, congressional legislation outlawed the type of monopoly United had formed with Boeing and Pratt & Whitney, and the airline was forced to divorce itself from the conglomerate. It subsequently became an independent company based at Chicago's Old Orchard (now O'Hare) airport.
In 1936 after several airplane accidents, a series of syndicated newspaper stories sensationalized the horror of airplane crashes and incited a virtual state of panic which drove passengers back to railroads by the thousands. The airline industry was so deeply affected that many smaller companies were faced with bankruptcy. United responded by retaining a popular military test pilot named Major R.W. Schroeder to oversee the company's implementation of new safety codes. With this action United helped to rebuild the public's confidence in air travel.
As one of the nation's larger airline companies United maintained a position of leadership in the industry, constantly demanding newer, more advanced aircraft. United funded many of the developmental costs of the Douglas DC-4, the first four-engine passenger plane. However, when the United States became involved in World War II, all DC-4s were devoted to the war effort before ever having carried a commercial passenger. The company's name was shortened to United Air Lines in 1943 and new plans were made for the airline in anticipation of the end of the war. Two years later United redeployed its aircraft and resumed commercial flying.
In 1954 United became the first airline to employ flight simulators as part of its training and pilot testing programs. The following year United placed an order with Douglas Aircraft for DC-8s, the airline's first passenger jetliners. Although Boeing's 707 jetliner actually became available a few months before the DC-8, United preferred the DC-8 because of its seating arrangement and other cost advantages.
In spite of United's favorable position in the industry, its competitors were growing rapidly and in many cases outperforming United, which had entered a brief period of decline. However, when United acquired Capital Airlines in 1961 its network in the eastern United States was strengthened, helping the company to regain its position as the nation's number one airline.
United President Pat Patterson retired in 1966 and was replaced by George Keck, an engineer who rose to the top position from the company's maintenance department. Keck was generally regarded as arrogant and secretive. According to some reports, his abrupt manner and authoritarian personality offended many people within the company and its unions as well as in the Civil Aeronautics Board, which severely limited his effectiveness and ability to manage the airline in many ways. In 1971 Keck was forcibly removed in what was described as a 'corporate coup' instigated by two members of the company's board, Gardner Cowles and Thomas Gleed.
In 1967, during Keck's first year, United became the first airline to surpass $1 billion in annual revenue. On December 30, 1968 United created a subsidiary called UAL to operate its non-airline businesses, and the following year United Air Lines became a subsidiary of UAL.
Western International Hotels was acquired by the UAL holding company in 1970. Western's name was later changed to the Westin Hotel Company and linked to another UAL subsidiary which arranged travel packages. Westin's operations later grew to represent about one-12th of UAL's total business.
Eddie Carlson, who had a record of success while in charge of the Westin Hotel subsidiary, was named to succeed Keck as UAL's new chief executive officer. Carlson's warm and personable demeanor motivated individuals in every division and level at UAL. He flew 186,000 miles one year inspecting the facilities and terminating the employment of what he regarded as redundant company bureaucrats. Despite his lack of experience in the airline industry, Carlson was successful in reversing the company's discouraging trends. Anticipating his own retirement, Carlson chose Richard Ferris, whom he had promoted from the Westin hotel subsidiary, to succeed him. When Carlson was named chairman of UAL and United, Ferris was made president of the airline; and in 1978 Ferris was promoted to chairman of United and president of UAL. Carlson remained as chairman of UAL until his retirement in 1983.
Notwithstanding efforts to improve the relationship the company had with its unions, which had deteriorated during the leadership of George Keck, United remained on cautious terms with its employee representatives. In 1976 the airline agreed to a million-dollar payback settlement with women and minority employees in an anti-discrimination suit. In 1979 United lost $72 million, largely as the result of a month-long labor strike.
Under the leadership of Richard Ferris the airline reached a compromise with its pilots' union. The agreement guaranteed that layoffs would not be authorized in return for more flexible work rules. The lower operating costs that resulted from the agreement were passed on to the consumer with the formation of a discount air service called 'Friendship Express.' The service was also intended to allow the company to more effectively compete with cut-rate airlines such as People Express and New York Air.
In 1978 and 1979 UAL continued to diversify its operations when it acquired Mauna Kea Properties and the Olohana Corporation in Hawaii for $78 million. As resort developments, these acquisitions allowed UAL to take more advantage of the tourist business in the airline's most popular destination.
Under the Airline Deregulation Act, airline companies were free to enter new passenger markets without prior government approval. United was the first major airline to support deregulation; however, when Congress passed the legislation in 1978 United was forced to scale down its operations in order to compete profitably. Richard Ferris later commented, 'If we did make a mistake, it was in not recognizing the intensity of pricing competition that deregulation would bring, and getting structured to cope with it.' Executives with smaller airline companies expressed their fear that the larger airlines would concentrate their resources on contested markets with the goal of forcing the smaller companies out of business. One executive remarked, 'What Ferris wants is to have us for lunch, and I don't mean at McDonald's.'
In 1985 United acquired Pan Am's Asian traffic rights for $715.5 million. The agreement also included 18 jets, 2,700 Pan Am employees, and all of Pan Am's facilities in Asia. The addition of 65,000 route miles and 30 destinations to United's network made other acquisitions pale in comparison. Ferris said, 'We could spend two or three lifetimes and never get all the traffic [rights] we're buying from Pan Am.'
Ferris joined the board of directors at Procter & Gamble in 1979 with the intention of studying its successful marketing formulas and applying them at UAL. He restructured UAL to reduce costs and improve marketing. After 1982, costs were controlled, productivity rose, and profits were stabilized. Part of the new marketing strategy involved the establishment of additional passenger transfer points, or 'hubs.' In addition to its main facility at Chicago's O'Hare airport, United operated secondary hubs in Denver, San Francisco, and Dulles airport near Washington, D.C.
In 1986 United's purchase of the bankrupt Frontier Airlines unit from People Express was canceled when the United pilots' union failed to reach an agreement with management over the manner in which Frontier pilots were to be absorbed by United. The $146 million acquisition promised to ease competition at Denver's Stapleton airport, where United, Frontier, and Continental were engaged in a costly battle for passengers. People Express closed Frontier in August 1986, declaring it bankrupt; however, less than a month later Frank Lorenzo's Texas Air Corporation acquired People Express and liquidated Frontier. The following February People Express was absorbed into Continental Airlines. Still competing with United in Denver, Texas Air then controlled airlines with 20 percent of the domestic airline market, compared to United's 16 percent share.
United started to replace its fleet of B-727s with newer wide-body B-767s on more heavily traveled routes. Although United was the last major airline company to still operate the DC-8, federal regulations on noise pollution forced the company to replace the engines on its DC-8s with quieter models. In addition to these aircraft, United flew large numbers of B-737s, B-747s, and DC-10s.
Early in 1987, UAL was renamed 'Allegis,' a curious computer-generated choice which combined portions of the words 'allegiance' and 'aegis.' With an airline, a hotel chain, the Hertz rent-a-car company, and the Apollo computerized reservations system to coordinate them all, Allegis had become an integrated full-service travel company. Shortly afterward, Allegis encountered a number of problems with Ferris's strategy to create a travel conglomerate. Several investor groups noted that Allegis's subsidiaries would be worth more as separate companies than as divisions of Allegis. On May 26, Coniston Partners announced that it had acquired a 13 percent share of Allegis stock, and that it would be purchasing more in an attempt to gain control of the board and remove Richard Ferris. The Allegis board initialed an anti-takeover defense in which the Boeing Company was given a 16 percent stake ($700 million) in the company in return for a $2.1 billion aircraft order. The defense failed in June, forcing Ferris and several other board members to resign. The new board appointed Frank A. Olson chairman of Allegis.
The unfortunate Allegis name was retired in June 1988. After a brief transition period, the UAL board named Stephen M. Wolf, an airline veteran with executive experience at American, Pan Am, and Continental airlines, as CEO of United. Wolf inherited numerous business troubles, including a contract dispute over company ownership with United's three major employee unions which went unresolved until 1990.
As the U.S. economy weakened going into the 1990s, United began to feel the effects of recession, which reduced the amount of passenger traffic, and fuel prices, which rose in the late 1980s and jumped sharply during the 1990-91 Persian Gulf War. These factors cut into the earnings of all carriers, and in 1991, UAL Corporation suffered a net loss of $331.9 million. United's losses, as well as those of other major U.S. carriers, were exacerbated by recurrent 'fare wars,' often launched by bankrupt airlines, such as TWA and Continental, whose Chapter 11 protection exempted them--unlike relatively well-off airlines--from paying interest on the debt that they incurred as a result of their sharp promotional price cuts. In 1992, United followed the lead of American Airlines in adopting a four-tiered fare-simplification program in an attempt to eliminate these restricted fares. However, both carriers scrapped this within a few months as budget carriers undercut them in droves.
Nonetheless, United treated the industry's lean period as an opportune time to expand. Such financially troubled airlines as Pan Am and TWA began in the late 1980s to sell routes to raise funds, and governments became increasingly willing to allow foreign carriers air rights within their countries; these two factors prompted United to embark on a strategy of 'globalization.' United's 1985 purchase, for $750 million, of Pan Am's routes to Asia left the airline well-poised to enter what many industry analysts have described as a transition toward a global free market in transportation. Even American Airlines' Robert Crandall, who rejected the Pan Am Asian routes as too expensive, later conceded that the purchase was an excellent move. In 1990 United placed a record $22 billion order for new airplanes. In 1991 the company purchased six Pan Am routes to London for $400 million, and late that same year finalized a $135 million deal to take over a portion of Pan Am's Latin American operations.
Wolf resigned in July 1994 and was replaced by Gerald Greenwald. Later that month, United management and employees reached a historic agreement designed to stave off competition from low-cost, low-wage carriers. In exchange for pay cuts totaling $5 billion and more flexible work rules, employees received a 55 percent stake in UAL Corporation. This made UAL one of the world's largest employee-owned companies. Significantly, the 20,000 flight attendants chose not to participate in the buyout.
In October, the company launched a 'shuttle' service to compete in the California Corridor in particular. It mimicked the low-cost, low-fare ways of Southwest Airlines but kept traditional major airline amenities such as assigned seating, a first class section, and a frequent flier club with global travel rewards. However, the pilots' union was skeptical of the lower paying 'Shuttle by United' and contractually limited the operation's scope.
After losing more than a billion dollars between 1991 and 1993, UAL posted a profit of $51 million in 1994. It had invested heavily in information technology, and was a pioneer in the use of paperless tickets. The company even sold its proprietary E-Ticket software to other international airlines.
United began flying dedicated cargo aircraft again in 1997 after a 13-year lapse. The DC-10 freighters operated exclusively on Pacific routes. Its charter membership in the Star Alliance with Lufthansa and SAS helped open hundreds of new markets. It upgraded in-flight amenities to recapture high-yield business travelers. It provided electrical outlets for laptop computers, in-flight entertainment systems, and, of course, bigger seats. These factors helped UAL outperform the industry.
The carrier controversially cut travel agency commissions in September 1997. Bookings from online brokers cost airlines an average $10, versus $50 each for traditional travel agents. With the proliferation of online travel sites such as Expedia, Travelocity, Cheap Tickets, and, later, Priceline, UAL began offering the chance to reserve seats on other airlines at its own web site. The strategy sought to appeal directly to the online bargain hunter.
In January 1999, UAL increased its flight frequencies to match moves by US Airways. It had previously boosted operations at its San Francisco, Denver, and Chicago hubs and created a new hub in Los Angeles. United added a daily nonstop flight from LAX to Paris's Charles de Gaulle International Airport in April 2000, connecting the City of Angels directly 'to all four corners of the globe.' To retain frequent flier and full-fare economy class patrons, United installed roomier Economy Plus seating for them.
James E. Goodwin followed Greenwald as chairman and CEO in July 1999. Both were known for their relatively good relationship with labor. Goodwin had already been with United for 32 years.
Later in the year, United launched an ad campaign in gay newspapers in order to woo gay and lesbian travelers back onto its planes. Proclivity to travel, especially overseas, made gays an attractive demographic target, and American Airlines, Delta, and US Airways also initiated domestic partner benefits. The carrier's protest of a San Francisco ordinance mandating domestic partner health insurance benefits had resulted in a two-year boycott. American Airlines had created a 'Rainbow TeAAM' to market to the gay community.
A major announcement came in May 2000, when UAL shared its plans to acquire competitor US Airways Group, Inc. Numerous questions about the proposed $4.3 billion merger remained, including antitrust and union objections, as well as whether US Airways might be the target of a separate offer from another industry heavyweight. If the merger did go through, further consolidation by other carriers, in the interests of staying competitive, could be expected.
Principal Subsidiaries
Air Wis Services, Inc.; Four Star Insurance Company, Ltd. (Bermuda); Four Star Leasing, Inc.; UAL Benefits Management, Inc.; United Airlines, Inc.
Principal Divisions
North America; Pacific; Atlantic; Latin America.
Principal Operating Units
United Shuttle; United Cargo; E-commerce.
Principal Competitors
AMR Corporation; British Airways plc; Delta Air Lines Inc.; US Airways Group Inc.; Northwest Airlines Corporation; Trans World Airlines, Inc.; Southwest Airlines Co.
Further Reading
Biederman, Paul, The U.S. Airline Industry: End of an Era, Praeger, 1982.
Carey, Susan, 'UAL to Increase Flights from Hub at Dulles Airport,' Wall Street Journal, p. A10.
------, 'UAL Names Goodwin Chairman, CEO; Strong Support from Unions Helped,' Wall Street Journal, March 26, 1999, p. B9.
Flint, Petty, 'United in Battle,' Air Transport World, October 1994, pp. 28ff.
Harrar, George, 'United's Soft Landing,' Forbes, December 4, 1995, pp. 104f.
Irvine, Martha, 'United Airlines Trying to Boost Image with Gay, Lesbian Travelers,' San Francisco Examiner, March 16, 2000.
Laibich, Kenneth, 'Winners in the Air Wars,' Fortune, May 11, 1987.
Lee, Connie J., 'Airline Stocks Advance on Cut in Commissions--Analysts Say Lower Fees for Agents to Aid UAL, But Fallout Is a Concern,' Wall Street Journal, September 22, 1997, p. B18.
Nelms, Douglas W., 'Giant Step in a Small Way,' Air Transport World, June 1997, pp. 125-27.
Oneal, Michael, 'Dogfight! United and American Battle for Global Supremacy,' Business Week, January 21, 1991.
Ott, James, 'United Remakes Itself for Global Competition,' Aviation Week & Space Technology, July 7, 1997, pp. 54f.
Petzinger, Thomas, Jr., Hard Landing: The Epic Contest for Power and Profits That Plunged the Airlines into Chaos, New York: Times Business, 1995.
Smith, Timothy K., 'Why Air Travel Doesn't Work,' Fortune, April 3, 1995, pp. 42ff.
Warner, Bernhard, 'Prepare for Takeoff,' Brandweek, January 19, 1998, pp. 38-40.
— John Simley and James Poniewozik; Updated by Frederick C. Ingram
Wikipedia on Answers.com:
United Airlines |
United Air Lines, Inc., (NYSE: UAL) is a major American airline and the world's largest airline with 86,852 employees[10] and second-largest with 702 aircraft.[11] It is a subsidiary of United Continental Holdings, Inc. formerly, UAL Corporation, with corporate headquarters in Chicago. United's largest hub is George Bush Intercontinental Airport in Houston. United also has hubs at O'Hare International Airport in Chicago, Washington Dulles International Airport, Denver International Airport, San Francisco International Airport, Los Angeles International Airport, Narita International Airport near Tokyo, Newark Liberty International Airport, Cleveland Hopkins International Airport and Antonio B. Won Pat International Airport in Guam.[12] United is a founding member of the Star Alliance, the largest airline alliance in the world, and offers connections to over 1,000 destinations in over 170 countries worldwide.[13] The airline's regional service is United Express.
As of November 30, 2011, United Airlines was issued a single operating certificate with the former Continental Airlines, meaning both airlines are now technically one airline and thereby marking the end of Continental Airlines. While United and Continental now have a single operating certificate, some parts of both airlines, such as check-in and frequent-flier programs, will not be fully merged until early in 2012.[14]
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Contents
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United Airlines originated from the Varney Air Lines air mail service of Walter Varney, who also founded Varney Speed Lines which later became Continental Airlines. Founded in Boise, Idaho in 1926, the carrier flew the first Contract Air Mail flight in the U.S. on April 5, 1926, marking the first scheduled airline service in the country's history.[15] In 1927, airplane pioneer William Boeing founded his own airline, Boeing Air Transport, and began buying other airmail carriers including Varney Airlines. In 1929, Boeing merged his company with Pratt & Whitney to form the United Aircraft and Transport Corporation (UATC).
In 1933, United began operating the Boeing 247, which enabled passengers to fly across the US without an overnight stop or changing planes. After passage of the Air Mail Act in 1934, UATC separated into United Aircraft (the future United Technologies), the Boeing Airplane Company and United Air Lines. 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.
After the war, United gained from a boom in customer demand for air travel, with its revenue passenger-miles jumping five-fold in the 1950s, and continued growth occurring through the next two decades.[16]
In 1954 United Airlines became the first airline to purchase modern flight simulators which had visual, sound and motion cues for training pilots. Purchased for US$3 million (1954) from Curtiss-Wright, these were the first of today's modern flight simulators for training of commercial passenger aircraft pilots.[17]
United merged with Capital Airlines on June 1, 1961 and displaced American Airlines as the world's second largest airline, after Aeroflot. In 1968 the company reorganized, creating UAL Corporation, with United Airlines as a wholly owned subsidiary. The 1970s saw economic turmoil, resulting in "stagflation" and labor unrest. The 1978 Airline Deregulation Act, resulting in industry shakeups, further added to the carrier's difficulties in a loss-making period.
In 1982, United became the first carrier to operate the Boeing 767, taking its first delivery of 767-200s on August 19. In May 1985, the airline underwent a 29-day pilot strike over management's proposed "B-scale" pilot pay rates. Then-company CEO Richard Ferris changed United's parent company's name from UAL Corporation to Allegis in February 1987, but following his termination, the company reverted to the name UAL Corp. in May 1988 and divested non-airline properties.[18][19]
In 1985, United expanded dramatically by purchasing Pan Am's entire Pacific Division, giving it a hub at Tokyo's Narita International Airport, and in 1991 purchased routes to London Heathrow Airport from ailing Pan Am, making it one of two US carriers permitted exclusive access to Heathrow under Bermuda II until "open skies" took effect in 2008 (American Airlines being the other, after purchasing TWA's Heathrow landing slots). The aftermath of the Gulf War and increased competition from low-cost carriers led to losses in 1991 and 1992.[20] In 1994, United's pilots, machinists, bag handlers and non-contract employees agreed to an Employee Stock Ownership Plan (ESOP), acquiring 55% of company stock in exchange for 15% to 25% salary concessions, making the carrier the largest employee-owned corporation in the world. The carrier also launched a low-cost subsidiary in 1994, Shuttle by United, in an attempt to compete with low-cost carriers; the subsidiary remained in operation until 2001.
In 1995, United became the first airline to introduce the Boeing 777 in commercial service. In 1997, United co-founded the Star Alliance airline partnership. In May 2000, United announced a planned $11.6 billion acquisition of US Airways, but withdrew the offer in July 2001 before the United States Department of Justice barred the merger on antitrust grounds. May 2000 also saw a bitter contract dispute between United and its pilots' union over pay cuts and concessions to fund the ESOP and overtime work, causing summer flight cancellations until a salary increase was agreed upon.
During the September 11, 2001 terrorist attacks, two of the four airplanes hijacked and crashed by al-Qaeda terrorists were United Airlines aircraft. An airline industry downturn resulted, and coupled with economic difficulties, skyrocketing oil prices, and higher labor costs, the company lost $2.14 billion in 2001. 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. After attempts to secure additional capital failed, UAL Corporation filed for Chapter 11 bankruptcy protection in December 2002 and the ESOP was terminated.
United's bankruptcy operations resulted in furloughing thousands of workers, closing all U.S. city ticket offices, cancelling several existing and planned routes, downsizing its Miami operations, closing maintenance bases, and fleet reductions. The carrier also negotiated cost cuts with employees, suppliers, and contractors, and terminated feeder contracts with United Express carriers Atlantic Coast Airlines and Air Wisconsin. The carrier launched a new low-cost carrier named Ted in 2003, and a luxury "p.s." (for "premium service") coast-to-coast service on re-configured 757s in 2004. In 2005, United cancelled its pension plan in the largest such default in U.S. corporate history.
In 2005, United announced it had raised $3 billion in financing to exit bankruptcy and filed its Plan of Reorganization, as announced, on September 7, 2005. In late 2006, Continental Airlines participated in preliminary merger discussions with United.[21][22] On June 4, 2008, United announced it would close its Ted unit[23] and reconfigure the subsidiary's aircraft for a return to mainline configuration.
On April 16, 2010, United resumed merger talks with Continental Airlines. The board of directors of both Continental and UAL Corporation's United Airlines reached an agreement to combine operations on May 2, 2010. The combined carrier would retain the United Airlines name, but use Continental's logo and livery, and Continental's CEO Jeff Smisek would head the new company.[24] The merger was contingent upon shareholder and regulatory approval.
The Continental–United merger was approved by the European Union in July 2010.[25] On August 27, 2010, the US Justice Department approved the Continental–United Merger.[26] On September 17, 2010, United shareholders approved the merger deal with Continental Airlines.[27] Both carriers planned to begin merging operations in 2011 to form the world's biggest carrier.[28]
On October 1, 2010, UAL Corporation completed its acquisition of Continental Airlines and changed its name to United Continental Holdings, Inc. The airline received a single operating certificate from the FAA on November 30, 2011.[29]
United Airlines has its corporate headquarters in 77 West Wacker in the Chicago Loop, Chicago, United States.
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.[30][31] Before making its choice, United was considering moving its headquarters to Denver, Colorado, or San Francisco.[32] In the Chicago Loop United had considered 115 South LaSalle Street, 190 South LaSalle, and 200 West Madison Street.[30] Douglas F. Beaver of the Los Angeles Times described the United Airlines operational center in Elk Grove Township as "sprawling for acres over the northwest Chicago suburbs."[33]
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, and United Airlines consolidated several of its offices in the suburbs of Chicago into the Elk Grove Village campus.[34] After the City of Chicago submitted a $35 million incentive, including $10 million in grants for United to move its remaining employees to Chicago, United proceeded to schedule a move of about 2,500 employees out of the former Elk Grove Township headquarters into the Willis Tower (Sears Tower) in Chicago in fall 2010. Monica Davey of The New York Times said that the move may have contributed to United's decision to base the new merged airline out of Chicago instead of Houston.[35] The move was begun in October with 280 employees and one thousand are expected by the end of 2010.
United owns a crew training center in Denver, Colorado with 36 flight simulators and 90 computer-based training stations. Its primary maintenance base is at San Francisco International Airport and has nine hangar bays and 2.9 million square feet of floor space. United also owns a hotel in Honolulu, Hawaii which is used by its flight crews.[36]
Despite a pursuit to cut fuel burn and reduce carbon output, United was one of the last US based carriers to pursue blended winglet additions to their 757 aircraft certified for the fuel saving installation and has been slow to implement similar improvements on 767 aircraft. This while Continental has made every certified retrofit to its fleet to boost efficiency and has commenced biofuel flight testing. On December 9, 2009, United officially announced orders for 25 Boeing 787–8 aircraft and 25 Airbus A350-900 XWB aircraft[37] The orders are worth $4 billion and $6 billion, respectively, at list prices. United's purpose is to reduce fuel burn on typical flights by up to one-third, saving 175 million gallons of fuel per year, and to simplify maintenance by reducing the number of classes of aircraft used on United's network. The 787 will replace the 767; the larger variant of the A350 will replace the 747. Ultimately, United intends to fly only three types of widebody aircraft: The 777, 787, and the A350. Narrow body replacement bids for the 737-300/-500 fleet are expected to begin in 2010, with Embraer of Brazil and Bombardier of Canada participating along with Boeing and Airbus.[38] On November 7, 2011, United Airlines flew the world's first commercial aviation flight on a microbially-derived biofuel using Solajet™, Solazyme's algae-derived renewable jet fuel. The Eco-skies Boeing 737-800 plane was fueled with 40 percent Solajet and 60 percent petroleum-derived jet fuel. The commercial Eco-skies flight 1403 departed from Houston's IAH airport at 10:30AM and landed at Chicago's ORD airport at 1:03PM.[39]
United and Continental pilots have differing “scope clauses” that enforce different capacity constraints on regional jet service. Relatively speaking, United has a more relaxed scope clause that allows regional carriers to operate jets with up to 70 seats, whereas, Continental has a more restrictive clause of 50 seats. This remains an obstacle for a single pilot contract.[40]
The post-merger United Airlines logo retains the United name and uses the former Continental Airlines "globe" identity and livery, designed in 1991 by the Lippincott company.[41] The "United" typeface was updated in August 2010, resembling more like the most recent United typeface, rather than the same font that was used to write "Continental Airlines". Currently, over 450 planes have been painted in the "new" livery,[citation needed] which features a white and gray fuselage with a thin gold stripe and blue "globe" tail.
United Airlines has promoted its post-merger logo as reflecting its efforts to attract corporate clients and the airline's worldwide network,[41] but many marketing experts and graphic designers have criticized the logo change, stating that the previous "tulip" logo has stronger brand recognition and is a stronger mark than the Continental globe, while faulting CEO Jeff Smisek and former United CEO Glenn Tilton for devising the "new" brand and livery between the two of them with no outside input.[41] After the new United announced its new logo, supporters of the previous United logo started a Facebook group called "Save the United Airlines Tulip" in order to convince the airline to change its logo to the old United logo.
The pre-merger "tulip" logo was developed in 1973 after the airline commissioned designer Saul Bass to develop a new brand image.[41] It replaced the original United red, white and blue shield logo, adopted in 1936. The "tulip" logo of colored stripes representing overlapping letter "U"s remained in use until the Continental merger with only slight modification. The "Rainbow" (or "Saul Bass") livery, which was the first to feature the "tulip", had a primarily white fuselage, & red, orange, and blue stripes along the "cheatline".
Other "tulip" liveries included 1993's CKS Group-designed "Battleship" livery, using a grey and dark blue fuselage, with blue stripes on the tail and a smaller "tulip". The 1997 Pentagram-developed "Blue Tulip" or "Rising Blue" featured a white and lighter blue fuselage, along with cropped version of the tulip on the tail. This livery was used until the merger with Continental.
The current slogan and ad campaign since 2004, is "It's time to fly." United's earliest slogan, "The Main Line Airway," emphasized its signature New York-Chicago-San Francisco route, and was replaced in 1965 with "Fly the Friendly Skies." The "friendly skies" tagline was used until 1996.
United's theme song is George Gershwin's 1924 "Rhapsody in Blue", which it licensed from Gershwin's estate for $500,000 in 1976.[42] "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 announced that they will continue to use the theme song, "Rhapsody in Blue" following the merger with Continental.[43]
United is a sponsor of all five of Chicago's major professional sports teams—the Bears, Blackhawks, Bulls, Cubs and White Sox—as well as the U.S. Olympic Team. 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 aircraft for transport between games, and the White Sox, similarly, use an Airbus A320 as their charter aircraft operating under flight number UAL9904. In addition, the luxury seating area directly behind home plate at the White Sox U.S. Cellular Field are the "United Scout Seats."
Through its merger with Continental, United also became the official airline of the New York Giants football team.[44]
United Airlines flies to 73 domestic mainline destinations and 41 international destinations in 25 countries across Asia, Americas, Europe, Oceania, and Africa not including cities only served by United Express. United Airlines, along with British Airways, Delta Air Lines, Emirates, Korean Air, Qantas, Qatar Airways, Singapore Airlines and South African Airways, is one of the few airlines that fly to all six inhabited continents.
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. United also is the leading carrier in transpacific flights.[45]
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.[46]
United is focusing on its international presence, notably in the People's Republic of China, with nonstop flights to Beijing and Shanghai, as well as the former British territory of Hong Kong from its hubs in Chicago, Los Angeles, Newark, San Francisco and Washington, D.C. In September 2007 United was granted a route from San Francisco to Guangzhou.[47] 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. The airline was granted service from Los Angeles to Shanghai that began on May 20, 2011.[48]
United began service to Bahrain on April 18, 2010.[49] United also began service to Accra, Ghana on June 20, 2010 (which was the carrier's first African destination), making it the second-US carrier to fly to all six inhabited continents after Delta Air Lines, which has had that distinction since July 2009. United also began service to Lagos, Nigeria, via Accra on December 12, 2010 with nonstop flights began November 16, 2011; making it the carrier's second African destination. Services to Bahrain and Accra are served from the airline's Washington-Dulles hub. Service to Lagos from Washington-Dulles ended December 18, 2011 which was served via Accra and it is now strictly a Dulles-Accra route (vice-versa). The airline will continue to serve Lagos from the airline's biggest hub at Houston. United will also begin service to Doha, Qatar with a stop over in Dubai on May 1, 2012. The route will be served from the Washington-Dulles hub.[50]
In addition to its Star Alliance and United Express partnerships, United codeshares and/or marketing agreements with the following airlines as of January 2010:
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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:
United Airlines operates 702 aircraft with 78% Boeing and 22% Airbus equipment, with an average fleet age of 14 years.[53]
The Boeing customer code for United Airlines is 22, yielding a model number such as 747–422.[54] Aircraft acquired from Continental Airlines still have an 24 code, yielding a model number such as 737–724.
United announced plans to provide Wi-Fi internet service from Panasonic on its 737 and International 757 aircraft beginning in 2012 and plans to have all mainline aircraft equipped with WiFi by 2015.[55]
As of December 2011, United operates the following aircraft:[56]
| Aircraft | In Service | Orders | Options | Passengers | Notes | ||||
|---|---|---|---|---|---|---|---|---|---|
| F | C | Y+ | Y | Total | |||||
| Airbus A319-100 | 55 | — | — | 8 | — | 40 | 72 | 120 | |
| Airbus A320-200 | 97 | — | — | 12 | — | 36 | 90 | 138 | |
| 42 | 144 | ||||||||
| Airbus A350-900 | — | 25 | 50 | TBA | To be delivered between 2016 and 2019; | ||||
| Boeing 737–500 | 25 | — | — | 8 | — | — | 106 | 114 | Retired in 2009 but returned to service following merger with Continental; all have winglets. Retirement: 14 in 2012 |
| Boeing 737–700 | 36 | 46 | — | 12 | — | — | 112 | 124 | Acquired in merger with Continental; Orders can be, and are being, converted to other 737 models |
| Boeing 737–800 | 8 77 45 |
2 | — | 14 16 16 |
— | — — 48 |
141 144 90 |
155 160 154 |
Acquired in merger with Continental |
| Boeing 737–900 | 12 | — | — | 20 | — | — | 153 | 173 | Acquired in merger with Continental |
| Boeing 737-900ER | 34 | 18 | — | 20 | — | — | 153 | 173 | Acquired in merger with Continental; 19 deliveries expected in 2012 |
| Boeing 747–400 | 24 | — | — | 12 | 52 | 70 | 240 | 374 | To receive wireless streaming video |
| Boeing 757–200 | 13[57] | — | — | 12 | 26 | 72 | — | 110 | All to receive winglets 41 acquired in merger with Continental CO frames have been converted to three class interiors 16/45/108 All long-haul international flights refitted with Economy Plus[58] |
| 80 | 24 | — | 50 | 108 | 182 | ||||
| 44 | 118 | 186 | |||||||
| 41 | 16 | — | 45 | 108 | 169 | ||||
| Boeing 757–300 | 21 | — | — | 24 | — | — | 192 | 216 | Largest operator of the Boeing 757–300. Acquired in merger with Continental |
| Boeing 767-200ER | 8 | — | — | 25 | — | — | 149 | 174 | Retired in 2005 but returned to service following merger with Continental. All feature Boeing's signature 777-style interior. |
| Boeing 767-300ER | 35 | — | — | 6 | 26 | 71 | 80 | 183 | 13 domestic/Hawaii 767s to be retrofitted with lie flat seats All to receive winglets starting in early 2012 Exit from service: 2016–2019; to be replaced by Boeing 787-8 |
| 34 | — | 64 | 146 | 244 | |||||
| Boeing 767-400ER | 9 3 4 |
— | — | 35 39 20 |
— | — 70 — |
200 133 236 |
235 242 256 |
Acquired in merger with Continental. 2 aircraft refitted with "Economy Plus" seating.[59] |
| Boeing 777–200 | 19 | — | — | 36 | — | 89 | 223 | 348 | |
| 12 | 49 | 77 | 114 | 252 | |||||
| 8 | 40 | 107 | 269 | ||||||
| Boeing 777-200ER | 55 | — | — | 10 | 45 | 84 | 114 | 253 | 22 acquired in merger with Continental, 2 of which were leased from ILFC |
| 12 | 49 | 77 | 252 | ||||||
| 8 | 40 | 107 | 269 | ||||||
| 50 | — | — | 226 | 276 | |||||
| Boeing 787–8 | — | 36 | 50 | 36 38 |
63 0 |
120 192 |
219[60] 228 |
Entry into service: 2012–2019 Replacing 767-200ER and -300ER[61][62][63] |
|
| Boeing 787–9 | — | 14 | — |
|
Entry into service: 2013 (projected) | ||||
| Total | 701 | 141 | 100 | ||||||
| Aircraft | Year retired | Replacement | Notes |
|---|---|---|---|
| Boeing 80A | 1934 | Launch customer | |
| Boeing 40A | 1937 | Launch customer[65] | |
| Boeing 247 | 1942 | Launch customer, all 59 of the base model were built for United[66] | |
| Ford Tri-Motor | |||
| Laird Swallow J-5 | Single seat biplane used to carry US Air Mail (CAM 5) by predecessor Varney Air Lines. | ||
| Douglas DC-3 | |||
| Boeing 377 | 1954 | ||
| Douglas DC-7 | 1964 | ||
| Convair 340 | 1968 | ||
| Vickers Viscount | 1969 | ||
| Douglas DC-6 | 1970 | ||
| Sud Aviation Caravelle | 1970 | Boeing 737–200 | |
| Lockheed L-1011 TriStar[67] | 1989 | McDonnell Douglas DC-10 | Bought from Pan Am; Sold to Delta |
| Boeing 720 | 1976 | Boeing 727 | Launch Customer |
| Douglas DC-8 | 1992 | Boeing 757–200 | Launch customer,[68] Largest DC-8 operator in the world |
| Boeing 727–100 | 1993 | Boeing 737–500 | Launch customer |
| Boeing 747SP | 1995 | Boeing 747-400 | Bought from Pan Am |
| Boeing 747–100 | 1999 | Boeing 777-200/200ER | |
| McDonnell Douglas DC-10 | 2001 | Boeing 777-200/200ER | Launch Customer |
| Boeing 747–200 | 2000 | Boeing 747-400 | |
| Boeing 727–200 | 2001 | Airbus A320 family | Launch customer |
| Boeing 737–200 | 2001 | Airbus A320 family | Launch customer |
| Boeing 737–300 | 2009 | Some sold to S7 Siberia Airlines. | |
| Boeing 737–500 | 2009 | Some sold to S7 Siberia Airlines. |
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 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 had retired its entire Boeing 737 fleet. United, however, reacquired the Boeing 737 aircraft after its merger with Continental Airlines. 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 the current Boeing 777-200/200ER aircraft and new narrow-bodies to supplement United's 96 strong 757–200 fleet.[69]
In December 2009, United announced it would split a 50-aircraft order between upcoming Airbus A350 and Boeing 787 Dreamliner aircraft.[70]
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.[71] United has expressed interest in becoming the sole GoldCare maintenance, repair, and overhaul provider for the Boeing 787.[72][73]
United Airlines has taken the Continental Airlines globe and color scheme for all aircraft. The "Continental" title is slowly being replaced with "UNITED" printed across each aircraft.[citation needed]
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United offers in-flight entertainment on all mainline aircraft, the only mainline legacy carrier to do so. Audio programming is provided by Zune.[74] 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.[75] Despite the loss of this partnership, United's television entertainment continues to include several prime time NBC programs.
"United First" is offered on all flights.[citation needed] United First passengers check in at separate counters and can use priority security screening where available. On board, passengers receive a pre-flight beverage service, table linens (on mainline flights) and (on international flight segments only) a five course meal. Passengers are also given priority when boarding, priority baggage handling and access to the International First Class Lounge (on international and p.s. flights only). United kept its First Class seating after the merger with Continental.[76]
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. Seven lounges are currently operated in seven different airports worldwide, including Chicago-O'Hare, Hong Kong, Los Angeles, New York-JFK, San Francisco, Tokyo-Narita, and Washington-Dulles.[78]
United also offers United Arrivals Suite service which has shower facilities and complimentary breakfast. Access is restricted to international United First and full-fare United Business customers. There are presently four Arrival Suite locations including London, San Francisco, Chicago, and São Paulo.[79]
"United Business" is offered on all internationally configured aircraft and on a few select domestic flights. United Business passengers check in at separate counters and can use priority security screening where available. 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 given priority when boarding, priority baggage handling and access to the United Club (on international and p.s. flights only).
MileagePlus is United Airlines' frequent flyer program. United announced that its MileagePlus program will be retained after the merger.[83] The revised Mileage Plus program for the merged United Airlines will become effective on March 3, 2012.
From its inception until June 29, 2011, United's frequent flier program was known as Mileage Plus. Following United's merger with Continental Airlines, United retained Mileage Plus as the frequent flier program of the new United and, subsequently, renamed the program MileagePlus.
Tom Stuker became the first United flyer to reach 10 million miles flown since the introduction of Mileage Plus; the milestone was celebrated at a reception at Chicago's O'Hare airport on July 9, 2011, where a United Boeing 747-400 (N127UA) was named in his honor.[84]
The United Club is the airline lounge associated with United Airlines and United Express carriers.
| 1930s | NC13304 | Flight 6 | NC13317[85] | NC13323[86] | NC13355[87] | ||||
| 1940s | Flight 14 | Flight 28 | Flight 404 | Flight 521 | Flight 608 | Flight 624 | |||
| 1950s | Flight 129 | Flight 610 | Flight 615 | Flight 7030 | Flight 16 | Flight 409 | Flight 629 | Flight 718 | Flight 736 |
| 1960s | Flight 826 | Flight 859 | Flight 297 | Flight 823 | Flight 389 | Flight 227 | Flight 266 | Flight 14 | |
| 1970s | Flight 611 | Flight 553 | Flight 2860 | Flight 173 | |||||
| 1980s | Flight 2885 | Flight 811 | Flight 232 | ||||||
| 1990s | Flight 585 | Flight 863 | Flight 826 | ||||||
| 2000s | Flight 175 | Flight 93 | Flight 955 | ||||||
| 2010s | Flight 663 | Flight 497 |
Airline Quality Rating 2011, rated the AQR Score as a -1.31. This rating scored United Airlines as the "Worst Major Carrier." [88] USNEWS ranked United based on the AQR as the "Worst Major Carrier" in a story titled America's Meanest Airlines:2011"[89] In 2009 United AQR Score was: -1.43 which had them ranked as the #2 meanest airlines [90] For the year 2010-2011 Business Insider Ranked United as the #2 of the 18 Worst Companies in America. Saying the most complaints are "more long tarmac delay than any airline in June"[91]
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|title= specified when using {{Cite web}}". http://travel.usnews.com. http://travel.usnews.com/features/Americas_Meanest_Airlines/. Retrieved February 6, 2012.| Wikimedia Commons has media related to: United Airlines |
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