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Hoover's Profile: UAL Corporation
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(NASDAQ (GS):UAUA)
Company Financials
Income Statement
Balance Sheet
Cash Flow Statement

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UAL Corporation
77 W. Wacker Dr.
Chicago, IL 60601
IL Tel. 312-997-8000

Type: Public
On the web: http://www.united.com
 Employees: 50,000
Employee growth: (9.1%)

Airline operator UAL unites people and cities around the globe through its main subsidiary, United Airlines, one of the world's leading passenger and cargo carriers. United Airlines also provides regional feeder service in the US via United Express, which is operated by independent contractors. Overall, United serves more than 200 destinations in about 30 countries worldwide from hubs in Chicago, Denver, Los Angeles, San Francisco, and Washington, DC. Its mainline fleet includes about 460 jets; United Express partners operate about 280 aircraft.

Key numbers for fiscal year ending December, 2008:
Sales: $20,194.0M
One year growth: 0.3%
Net income: ($5,348.0)M

Officers:
Chairman, President, and CEO: Glenn F. Tilton
EVP and CFO: Kathryn A. Mikells
SVP and CIO, United Airlines: R. Keith Halbert

Competitors:
AMR Corp.
Delta Air Lines
Northwest Airlines

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Company History: UAL Corporation
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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


Britannica Concise Encyclopedia: United Airlines
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U.S. international airline. It began as United Aircraft and Transport Corp., which first operated transcontinental passenger flights in 1929. It was the first airline to introduce stewardesses, in 1930. United Airlines, Inc., was established in Chicago in 1931 as a holding company for the corporation's four constituent airlines. United expanded rapidly after World War II and became the largest air carrier in the Western world when it merged with Capital Airlines in 1961. United acquired Pan American World Airways' transpacific routes in 1986 and its Latin American and Caribbean routes in 1991. The parent company took the name UAL Corp. in 1988. When United employees held a controlling share of the airline company (1994 – 2003), UAL was the largest employee-owned company in the U.S.

For more information on United Airlines, visit Britannica.com.

Wikipedia: United Airlines
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United Airlines
United Airlines.svg
IATA
UA		 ICAO
UAL		 Callsign
UNITED
Founded 1926 (as Boeing Air Transport), became United Air Lines in 1934
AOC # UALA011A[1]
Hubs
Frequent flyer program Mileage Plus
Member lounge Red Carpet Club
Alliance Star Alliance
Fleet size 360
Destinations 114 excl.code-share
Company slogan It's Time to Fly
Parent company UAL Corporation
Headquarters Chicago, Illinois
Key people Glenn F. Tilton (Chairman, CEO)
John P. Tague (President)
Kathryn Mikells (CFO)
Alexandria Marren (SVP)
Website www.united.com
UAL Corporation World Headquarters, 77 West Wacker Drive in the Chicago Loop.

United Air Lines, Inc., trading as United Airlines (NASDAQ: UAUA), is a major airline of the United States.[2] 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. [3] 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.[4]

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[4] and operates 360 aircraft.

Contents

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.[5] April 6 is regarded in the United Airlines company history as both its own birthday[6] 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.

Boeing 767-300

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.[citation needed] On May 7, 1930, UATC completed the acquisition of National Air Transport Inc, a large carrier based in Chicago.[7] On March 28, 1931, UATC formed the corporation United Air Lines, Inc. to manage the UATC airline subsidiaries.[8]

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.[citation needed]

Expansion into a national carrier

An early United 727, on display at the Museum of Science and Industry in Chicago.

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.[9]

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.[10] 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

Boeing 737-522 at San Jose, California.

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.[11] American Airlines already had a non-merging B-scale for its pilots.[12] 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.[13]

A United Boeing 747-100 in the "Rainbow Scheme", designed by Saul Bass. Used from 1974-1993.

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.[14] 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.[15][16]

Mr. Ferris changed United's parent company's name from UAL Corporation to Allegis in February, 1987 but the name change was short lived.[17][18] Following Ferris' termination by the board, Allegis divested its non-airline properties in 1987 and reverted to the name UAL Corp. in May 1988.[17]

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.[19]

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.[citation needed] 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.[citation needed] 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.[citation needed]

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 Airlines Boeing 777-200 taking off at Amsterdam Airport Schiphol in the 1993-2004 livery which is being phased out in favor of a new white and blue scheme.

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.[20] 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.[21]

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's three livery styles seen at San Francisco International Airport, one of its main hubs. United is also one of the founding members of Star Alliance.

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.[22] This scheme allowed members of either frequent flier program to earn miles on both carriers and utilize both carriers' lounges.[22] Delta and United attempted to form an even cozier codeshare relationship, but this was deal was effectively killed by ALPA.[23] 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.

United Airlines Boeing 777-200 landing

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

Airbus A320-200 landing at Norman Y. Mineta San Jose International Airport.

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.[4] 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."[5]

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.[6]

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.[24]

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

A United Boeing 747-400 at San Francisco International Airport

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.

On July 16, 2006, United Airlines announced that it would be moving its headquarters from 1200 East Algonquin Road in suburban Elk Grove Township to 77 West Wacker Drive.[25] 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.[26][27]

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.[28][29] 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.[30][31] 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.[32] On June 14, 2007, CFO Jake Brace said his company is still looking to tie the knot with a suitable merger partner.[33]

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.[34]

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.[35]

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:[36]

  • 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.[37][38][39]

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.[40]

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.[41] 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.[42][43][44]

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.[45] 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.[46]

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.[47] 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.[48] Despite ending merger talks, Continental has announced that it will join United in the Star Alliance[49]

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.[50] United pilots vociferously rejected the proposal and vowed to fight it.[51] Star Alliance co-founder Lufthansa Airlines CEO Wolfgang Mayrhuber threw his support behind a marriage of partner carriers United and US Airways.[52]

On June 4, 2008, United announced it would close its Ted unit.[53] 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.[54]

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.[55] In July 2009, a viral music video, "United Breaks Guitars"[56] 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.[57]

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.[58]

Oil price increases since 2003

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.[59]

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.[60] 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

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.

Further information: United Airlines destinations

Route network

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

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.[citation needed]

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.[citation needed]

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.[61] 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[62]. Services to Africa and Bahrain will be from the airline's hub in Washington D.C.

Former hubs and focus cities

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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:

  • 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.[63]. 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 34 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.[64]

Retired

United Airlines [65]
Aircraft Year Retired Replacement Notes
Lockheed L-1011 TriStar[66] 1989 McDonnell Douglas DC-10 Bought from Pan Am; Sold to Delta
Douglas DC-8 1992 Boeing 757-200 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 (along with American)
Boeing 747-200 2001 Boeing 747-400
Boeing 727-200 2001 Airbus A320 family Launch customer
Boeing 737-200 2001 Airbus A320 family Launch customer
Boeing 767-200 2005 Boeing 767-300ER Launch customer
Boeing 737-500 2009 Airbus A320 family
Boeing 737-300 2009 Airbus A320 family
Boeing 40A
Boeing 80A
Boeing 247
Boeing 377
Boeing 720
Beechcraft 1900
Convair 340
Douglas DC-3
Douglas DC-6
Douglas DC-7
Ford Tri-Motor
Sud Aviation Caravelle Boeing 737-200
British Aircraft Swallow Air Mail
de Havilland Comet Ordered by Capital, never delivered
Vickers Viscount
Curtiss JN-4D (Jenny)

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.[67]

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.[68] 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.[69]

[70]

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.[71] 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 15.4-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.[72]
  • 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.[73] 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

United mileagepluslogo.jpg

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.[74]. 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 Premier Executive members.

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.

Interior of United Red Carpet Club at Orlando International Airport, Florida, USA.

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:[75]


United also has marketing agreements with the following airlines:

Incidents and accidents

See also: Category:United Airlines flights
1930s NC13304
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
1970s Flight 553 Flight 2860 Flight 173
1980s Flight 811 Flight 232
1990s Flight 585 Flight 863
2000s Flight 175 Flight 93

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

A United Boeing 747SP was converted into the Stratospheric Observatory for Infrared Astronomy in 1997.

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"[76] (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.[77] "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

References

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  2. ^ Federal Aviation Administration – Airline Certificate Information – Detail View
  3. ^ http://ir.united.com/phoenix.zhtml?c=83680&p=irol-homeProfile
  4. ^ a b United Airlines press releaseAugust 6, 2009.
  5. ^ History of Flight in the US Seventy-Five Years United
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  7. ^ Davies, R.E.G., Airlines of the United States since 1914, 1998, Smithsonian Institution Press, p. 75.
  8. ^ United Airlines - Timeline (entry for March 28, 1931)
  9. ^ Sabotage: The downing of Flight 629 – The Crime Library – The Crime library
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  11. ^ "Pilot Labor History-1985" ALPA. [1]
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  13. ^ "Hard Landing" 1995, by Thomas Petzinger, Chapter 10
  14. ^ "ALPA-MEC letter 5-17-85" Letter to all UAL pilots, explaining the remaining issues when the strike was called
  15. ^ "UAL letter, 5-21-85" Letter to all UAL pilots, explaining the remaining issues when the strike was called
  16. ^ "Airline Pilot Magazine, July 1985" Standing United, pages 8-15
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  18. ^ "United Once More." TIME. 2
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  28. ^ "UAL, Continental Discuss Merger As AirTran Presses Bid for Midwest." Carey, S.; Trottman, M.; Berman, D. K. The Wall Street Journal. December 13, 2006.
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  30. ^ United-BMI pact would 'effectively merge their trans-Atlantic operations' – Today In the Sky – USATODAY.com
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  32. ^ United Airlines Takes Minority Stake in Aloha Airlinesnow in bankruptcy (Star Bulletin: May 4, 2007)
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  34. ^ United and Continental To Form Extensive Partnership/Continental To Leave SkyTeam For Star Alliance (Official Press Release: June 19, 2008)
  35. ^ Fidelity parent triples stake in United – The Denver Post
  36. ^ United Chief Chases Change , Chicago Tribune, October 19, 2007.
  37. ^ Hedge fund calls for Delta-United merger – South Florida Business Journal:
  38. ^ http://www.ajc.com/business/content/business/delta/stories/2007/11/14/delta_1115.html
  39. ^ Delta Air, at heart of airline merger buzz, denies United talks – MarketWatch
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  41. ^ TheStar.com Business | UAL includes Canada in fee to check 1 bag
  42. ^ United jettisons DIA route to London - The Denver Post
  43. ^ Bloomberg.com: Japan
  44. ^ US Airways Terminates Skycaps AHN | August 8, 2008
  45. ^ Ovide, Shira (2008-09-12). "Single Web Hit Led to UAL Glitch, Tribune Says". Wall Street Journal. http://online.wsj.com/article/SB122109238502221651.html?mod=googlenews_wsj. Retrieved 2008-09-11. 
  46. ^ USATODAY.com – United's bankruptcy tab: $335 million-plus in fees
  47. ^ United stands ready to merge – chicagotribune.com
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  49. ^ [www.continental.com/web/en-US/content/news/alliance.aspx]
  50. ^ Report: United, US Airways in 'Advanced Talks' to Merge - FOXBusiness.com
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  53. ^ Bloomberg.com: Worldwide
  54. ^ http://www.usatoday.com/travel/flights/2009-01-23-united-aer-lingus_N.htm
  55. ^ Air Travel Consumer Report Office of Aviation Enforcement and Proceedings, Aviation Consumer Protection Division, U.S. Department of Transportation, July 2009.
  56. ^ Band takes United Airlines baggage handling to task on YouTube The Chicago Tribune, July 11, 2009.
  57. ^ Singer's revenge on United: A hit song United Press International July 9, 2009.
  58. ^ 'http://www.msnbc.msn.com/id/24352806/'
  59. ^ Johnsson, Julie (2008-06-20). ""United, Continental join forces"". Chicago Tribune. http://www.chicagotribune.com/business/chi-fri-united-alliance-uaua-caljun20,0,3619794.story. Retrieved 2008-06-20. 
  60. ^ United Plans Huge Jet Order, Wall Street Journal, June 4, 2009, p. 1.
  61. ^ united.com – Speech detail
  62. ^ http://www.united.com/press/detail/0,7056,61241,00.html
  63. ^ http://www.airfleets.net/flottecie/United%20Airlines.htm
  64. ^ http://www.flightglobal.com/articles/2009/06/04/327424/united-confirms-aircraft-order-talks-with-airbus-and.html
  65. ^ [2]Retired fleet
  66. ^ AirFleets.net United Airlines
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  68. ^ United Air Grounds 777 Fleet for Fire-Safety Checks
  69. ^ [3]
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  72. ^ United Airlines Unveils New Business Class
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  74. ^ Conor's Web Log of Esoterica: United's Global Services
  75. ^ Codeshare agreements
  76. ^ YouTube - United Airlines TV CM 2000 Theme
  77. ^ United Airlines "Rhapsody in Blue" Theme Song Information

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