This is United's "summer from Hell", paints a recent Bloomberg article. Yet, how is this different from any other summer?
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Labor unrest. Disgruntled United flight attendants staged a worldwide protested at airports July 16.
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In the airlines' race to the bottom, United is winning. Planes are packed, security lines are long and airline seats are shrinking - plus we're shelling out more every year. US airfares are up, averaging nearly $400 last year despite plunging oil prices. If you feel that's skyway robbery, finally the government agrees with you. The Department of Justice announced this earlier month it will investigate airlines for possible anti-competitive price collusion - basically, informing each other on how many flights they're planning, and reducing capacity, resulting in higher ticket prices across the board. Still, the US government allowed these mergers, thereby hurting consumers. The fact iremains, there are not enough seats in the sky to meet demand today.
Then, earlier this month we saw 'The Great Technical Glitch' of July 8 - when a United computer malfunction
grounded all its mainline flights.
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United abandons passengers in Goose Bay, Canada barracks for 24 hours during unscheduled stopover.
Another reason that Montreal Convention compensation info is essential, and airlines should not be permitted to include mechanical breakdowns as Acts of God. We need to feed a drumbeat of these stories to Congress as they happen. -Paul Hudson, president FlyersRights
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The airline's response was a heartfelt 42-second apology on Twitter. Heck, this was the airline's second technology glitch in two weeks.
United dismissed notions that they pin
ched pennies on IT and weren't really to blame for just a 'faulty router'.
Paul Hudson, president of FlyersRights, said, "This shows why we need the reciprocity rule reinstated and require airlines to have reserves and backup equipment like electricity, phone and internet have for reliability."
"Airlines do not have adequate backup or reserves of equipment or personnel so air travel has regular brown outs or black outs delaying travelers many hours to several days in situations.
Passengers who've experienced problems on international trips may be entitled to delay compensation up to $6000. Others can get refunds and rebook on another airline if they do not want to wait for United." said Hudson.
United Becoming A Low-Cost Carrier? If the current trend continues, United may become a glorified low-cost carrier. In many ways they already are. Their product lags that of JetBlue which is moving from low-cost carrier to something less. United could, in theory, make money in that scenario. The question is whether that is who they want to become. Let's look at United's own Preliminary Operational Results for June on-time performance, straight from the horse's mouth, - 66.4%. It means 1 in 3 flights were delayed more than 15 minutes. The numbers don't lie, United is also at the bottom of just about every metric compared to its network peers, both operationally and financially. The carrier seems to have completely thrown out the fundamentals practiced at Continental Airlines following the merger in 2010, which was: Treat your employees well, and they'll work well. Treat the customers well, and it'll be good for the bottom line.
Instead, the airline has closed hubs, outsourced half of the company to the lowest bidder, and threatened the remaining employees that they're next to be outsourced, which shows in their work. Maybe Wall Street folks are finally starting to take notice that United's inflated stock performance is due to the rising tide of reduced competition and lower fuel prices than any concrete actions taken by its management. All international carriers should be invited to fill the void and hold permanent slots on all domestic routes. Free up Americans the right to vote with their dollars. |