On Sunday, May 2, 2010, the Boards of Directors at Continental Airlines and UAL Corp. approved a stock-swap deal that would combine them into the world's largest airline in revenue passenger miles and second largest in fleet size and destinations after Delta Air Lines. The new airline will take on the United Airlines name, Continental's logo and be based in United's hometown of Chicago. The parent company of the new carrier will be called United Continental Holdings, Inc. The new United will be run by Continental's CEO, Jeffery Smisek, along with United Airline's CEO, Glenn Tilton, serving as non-executive Chairman of the board until his retirement two years hence. United's pilots union announced that they "are fully prepared to protect and defend the interests of all United pilots."
On August 27, 2010, the U.S. Department of Justice approved the US$3 billion merger.Share holders of both companies approved the deal on September 17, 2010. The transaction was completed on October 1, 2010.
History
Beginnings
United Airlines traces its claim to be the oldest commercial airline in the United States to the Varney Airlines air mail service of Walter Varney, who also founded Continental Airlines. It was founded in Boise, Idaho. Varney's chief pilot, Leon D. "Lee" Cuddeback, flew the first Contract Air Mail flight in a Swallow biplane from Varney's headquarters in Boise, Idaho, to the railroad mail hub at Pasco, Washington, on April 6, 1926, and returned the following day with 200 pounds of mail. April 6 is regarded in the United Airlines company history as both its own birthday and the date on which "true" airline service—operating on fixed routes and fixed schedules—began in the United States. Varney Airlines' original 1925 hangar served as a portion of the terminal building for the Boise Airport until 2003, when the structure was replaced.
A United 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, Boeing merged his company with Pratt & Whitney to form United Aircraft and Transport Corporation (UATC).
In 1930, as the capacity of airplanes proved sufficient to carry not only mail but also passengers, Boeing Air Transport hired a registered nurse, Ellen Church, to assist passengers. United claims Church as the first airline stewardess. On May 7, 1930, UATC completed the acquisition of National Air Transport Inc, a large carrier based in Chicago. On March 28, 1931, UATC formed the corporation United Air Lines, Inc. to manage its airline subsidiaries.
Following the Air Mail scandal of 1930, the Air Mail Act of 1934 banned the common ownership of manufacturers and airlines. UATC's President Philip G. Johnson was forced to resign and moved to Trans-Canada Airlines, the future Air Canada. William Boeing's company was broken into three separate companies. UATC's manufacturing interests east of the Mississippi River became United Aircraft (the future United Technologies), while its manufacturing interests west of the Mississippi became Boeing Airplane Company. The airline interests became United Air Lines. The airline company's new president, hired to make a fresh start as airmail contracts were re-awarded in 1934, was William A. Patterson, who remained as president of United Airlines until 1963.
Expansion into a national carrier
An early United 727 hanging overhead 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 people 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.
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| United Air Lines route map, 1940 |
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| A United DC-6, parked on the northwest maintenance ramp of Stapleton Airport, September 1966 |
During World War II, United-trained ground crews modified airplanes for use as bombers, and transported mail, material, and passengers in support of the war effort. Post-war United benefited from both the wartime development of new airplane technologies (like the pressurized cabin which permitted planes to fly above the weather) and a boom in customer demand for air travel. This was also the period in which Pan American Airways established a Tokyo hub and revived its Pacific route system that would later be acquired by United.
On November 1, 1955, United Airlines Flight 629, which was flying from Stapleton Airport in Denver to Portland, Oregon, was bombed, killing everyone on board the Douglas DC-6B aircraft. The bomb was planted by Jack Graham who placed the device in his mother's luggage with the intent of collecting on her life insurance policy. Graham was arrested, tried, and was executed a year after the explosion.
United merged with Capital Airlines on June 1, 1961 and displaced American 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.
United Airlines has the distinction of being the only commercial airline to have operated Executive One, the designation given to a civilian flight which the U.S. President is aboard. On December 23, 1973, then President Richard Nixon flew as a passenger aboard a United DC-10 flight from Washington Dulles to Los Angeles. White House staff explained that this was done to conserve fuel by not having to fly the usual Boeing 707 Air Force aircraft. In keeping with the common practice of having two aircraft immediately available at all times during Presidential travel, an Air Force aircraft flew behind in case of an emergency.
Revenue Passenger-Miles (Millions)
United Capital
1951 1835 604
1955 3968 792
1960 5759 1492
1965 12249 (merged 1961)
1970 23768
1975 26226
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, and flight crew staffs for $750 million. By the end of 1986, United operated flights to 13 Pacific destinations, most of which were purchased from the ailing Pan American World Airways.
Economic turmoil, labor unrest, and the pressures of the 1978 Airline Deregulation Act greatly affected the company, which incurred losses and saw a greatly increased turnover in its senior management through the 1970s and early 1980s.
In May 1981, one week after rival American Airlines launched AAdvantage, the first modern frequent flyer program, United launched its Mileage Plus.
In 1982, United became the launch carrier for the Boeing 767, taking its first delivery of 767-200s on August 19.
In 1984, United became the first airline to serve all 50 states when it introduced service to Atlanta, Nashville, Memphis, Little Rock, Fargo, Casper, Jackson, and Charleston.
Strike of 1985
On May 17, 1985, United's pilots went on a 29-day strike claiming the CEO, Richard Ferris, was trying to "break the unions." They used management's proposed "B-scale" pilot pay rates as proof. American Airlines already had a non-merging B-scale for its pilots. Ferris insisted United had to have pilot costs no higher than American's, so he offered United pilots a "word-for-word" contract to match American's, or the same bottom line numbers. The United ALPA-MEC rejected that offer. The only choice left, to achieve parity with American's pilot costs, was to begin a B-scale for United's new-hire pilots.
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| A United Boeing 747-100 in the "Rainbow Scheme", designed by Saul Bass. Used from 1974 to 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. It appeared that would be resolved too as negotiations continued. ALPA negotiators delivered a new counter-proposal at 12:20 a.m. in an effort to avoid the strike. However, MEC Chairman Roger Hall, who was hosting a national teleconference from the Odeum (a convention center in the Chicago suburbs) with F. Lee Bailey, declared the strike was on at 12:01 a.m., on May 17, without further consulting the negotiators, some of whom believed they could find agreement on all contract terms, if the negotiations were allowed to continue. Moments before the ALPA announced strike deadline, they began a "countdown of the final 30 seconds from Chicago" (the Odeum teleconference). Doing that made it impossible to extend the strike deadline, so that the final issues could be resolved without a strike.
Mr. Ferris changed United's parent company's name from UAL Corporation to Allegis in February 1987 but the name change was short lived. Following Ferris' termination by the board, Allegis divested its non-airline properties in 1987 and reverted to the name UAL Corp. in May 1988.
Record-setting flight
In 1988, using a 747SP-21 purchased from Pan American World Airways, United flew a two-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.
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| 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 |
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. However, the aftermath of the Gulf War and increased competition from low-cost carriers led to losses of USD $332M in 1991 and USD $957M in 1992. In 1992, United purchased now-defunct Pan Am's Latin American and Caribbean routes and Miami gates, but United allowed months to elapse between Pan Am's demise and its launch of service.
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.
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| 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 made substantial use of its employee-ownership in its marketing communications, with slogans such as "the employee-owners of United invite you to come fly the friendly skies," "we don't just work here," and "thank you for calling United Airlines; please hold and one of our owner-representatives will be with you shortly."
The financial outcomes of the ESOP were decidedly uneven for different players. As part of ESOP agreement, United CEO Wolf resigned and took a consulting job with Lazard Freres, the very investment company he had hired to advise United's board during the ESOP buyout process. Stewart Oran, the key legal advisor to the pilots' union, received a $5.5 million package to join the management of the new employee-owned company as legal counsel after the ESOP was formed. United's unions, having larger voice in running the company, later successfully bargained for significant pay increases, but the effect was only short-term. The rank and file employees were locked into their stock, which got wiped out in the eventual bankruptcy. It was around this period (in 1993) that United introduced its grey and blue color scheme. It had been criticized that the color scheme blended with the darkness during nighttime operations.
Turn-of-the-century developments
In 1997, United co-founded the Star Alliance with Air Canada, Lufthansa, Scandinavian Airlines 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. This scheme allowed members of either frequent flier program to earn miles on both carriers and utilize both carriers' lounges. Delta and United attempted to form an even cozier codeshare relationship, but this was deal was effectively killed by ALPA. The marketing partnership ended in divorce in 2003, but paved the way for a future alliance with US Airways.
In May 2000, United announced plans to acquire competitor US Airways in a complex deal valued at $11.6 billion. The offer drew immediate scorn from consumer groups and employees of both airlines. By the following year, regulatory sentiment was against the deal, and United withdrew the offer just before the Department of Justice barred the merger on antitrust grounds in July. The two airlines subsequently formed an amicable partnership that led to US Airways' entrance into the Star Alliance.
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| United Airlines Boeing 777-200 landing |
May 2000 also saw a bitter contract dispute between United and its pilots' union, again. The pilots wanted their pay restored to the levels that existed prior to deregulation. 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 attacks , 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
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| 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, possibly due to giving its pilots pay raises of up to 28% in the summer of 2000. Coupled with a battered network, 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 union failed to approve the loan guarantee—while all other unions approved it—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 made several attempts 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".
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.
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, in spite of the fact that all three of its maintenance bases were protected in the mechanic labor agreement, 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, the company reasoning for abandoning the two maintenance bases was based on costs that existed before the company reduced mechanic pay during bankruptcy, thus questioning the original reasoning for abandoning the two bases. 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. In February 2004, the airline introduced the new Blue and White livery with the Blue Tulip on the tail to coincide with a new advertising campaign.
Financial pressure on the airline was heavy. The SARS epidemic in 2003 depressed traffic on United's extensive Pacific network. The soaring cost of jet fuel ate away remaining profits United made. United implemented several fare hikes on overseas routes, citing rising fuel costs, in 2004 and 2005. Two days after its triumphant first flight to Vietnam, United announced that it would cut U.S. flight capacity by 14% after the holidays and add more international flights, which were more profitable.
United took advantage of its Chapter 11 status to negotiate hard-to-cut costs with employees, suppliers, and contractors, including cancellation of feeder contracts with United Express Atlantic Coast Airlines (which became Independence Air) and Air Wisconsin (which became a US Airways Express carrier).
Most controversial of all, however, was the 2005 cancellation of its pension plan, the largest such default in U.S. corporate history. It renegotiated its contracts with the pilots' and mechanics' unions and the Association of Flight Attendants for lower pay. Criticism was also leveled at the CEO, Glenn Tilton, for demanding pay cuts from employees while receiving the highest salary of any major U.S. airline CEO.
Originally slated to exit bankruptcy protection after 2½ years in the third quarter of 2005, United requested yet another extension in light of record-high fuel prices. On August 26, 2005, the bankruptcy court extended the airline's exclusive right to file a reorganization plan to November 1, although it also stated firmly this extension would be the last. United announced at the same time it had raised $3 billion in exit financing and filed its Plan of Reorganization, as announced, on September 7, 2005.
The bankruptcy court approved the restructuring plan on January 20, 2006, clearing the way for United to exit bankruptcy on February 1, 2006, and finally return to normal operations.
Beyond Chapter 11
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| A United Boeing 747-400 at Frankfurt Airport |
On December 9, 2004, the airline made history when UA869 (747–400) landed at Ho Chi Minh City (formerly 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
United's management called for consolidation in the industry and looked for a suitor in 2006. The Wall Street Journal revealed in late 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. In the interim, it increased its ties with British carrier BMI and Aloha Airlines. In April 2007, United and British carrier BMI announced that they would 'effectively merge their trans-Atlantic operations'. The merged operations would have begun in March 2008, however Lufthansa’s takeover of BMI preempted the two carrier’s plans when BMI’s transatlantic flights were terminated. United’s May 2007 acquisition of an equity stake in its longtime partner Aloha Airlines was short-lived as Aloha ceased operations in March 2008. On June 14, 2007, CFO Jake Brace said his company is still looking to tie the knot with a suitable merger partner.
In the years following United’s exit from bankruptcy, two large financial firms, Bank of America and Fidelity Investments, accumulated shares to become the second largest owner with an 11 percent stake in the company. As mentioned earlier, the industry environment was ripe with pressures to merge and consolidate. Pardus Capital Management LP, a hedge fund that owned 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 but this was short-lived and became moot because Delta wedded Northwest.
The surge in jet fuel prices caused disruption to United’s impending start of non-stop long-haul services. Though the FAA had already awarded the SFO to Guangzhou, China to United, they postposted the launch citing high fuel prices. Other long-haul city pairs, such as its 2009 application to fly between Los Angeles and Shanghai, were denied by the FAA.
During this time of turmoil brought on by external forces, United explored options to reestablish its financial footing and raise capital. These changes included:
Divesting of the Maintenance, Repair and Overhaul operations at SFO.
Spinning off the cargo division.
Spinning off the Mileage Plus frequent flier program.
These spin-offs and divestitures have not come to fruition.
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.
In May 2008, the American Customer Satisfaction Index scored United Airlines second-last among US-based airlines in customer satisfaction with a 21% decrease since the study began in 1994 and a 11% decrease over the previous year.
On June 12, 2008, United announced it would charge $15 for the first checked bag, becoming the second United States airline to do so, the first being American Airlines. The charges, while not affecting every United flight, were created in an effort to offset high fuel prices.
On June 28, 2008, United announced the cessation of several international routes including San Francisco–Nagoya and Chicago – Mexico City.
On September 8, 2008, the price of UAL shares fell by nearly 99% in fifteen minutes to $0.01 US amid rumors of another bankruptcy, before NASDAQ temporarily halted trading. The rumors were traced to an old story on the South Florida Sun-Sentinel website about the 2002 bankruptcy being picked up by Google News and subsequently presented by Bloomberg LP as breaking story. The share price subsequently recovered most of its value. On February 1, 2006, United emerged from Chapter 11 bankruptcy protection under which it had operated since December 9, 2002, the largest and longest airline bankruptcy case in the history of the industry.
On April 27, 2008, it was reported that UAL Corporation and US Airways Group, Inc. were in the advanced stages of merger negotiations as well. Sources stated that a merger was expected to be announced within two weeks of the report. United pilots vociferously rejected the proposal and vowed to fight it. Star Alliance co-founder Lufthansa Airlines CEO Wolfgang Mayrhuber threw his support behind a marriage of partner carriers United and US Airways.
On June 4, 2008, United announced it would close its Ted unit. and reconfigure them for a return to mainline configuration to compensate the removal of United's Boeing 737s that were to be retired. That retirement plan included Boeing 737s and Boeing 747s, reducing the mainline fleet from 460 to 360 aircraft and furthering the airline's goal of cutting domestic capacity by 15 percent. On January 6, 2009, Ted ended operations converting its entire fleet into United mainline fleet. All Ted flights were changed into United mainline flights.
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.
In 2009, United Airlines entered into an extensive partnership with Continental Airlines. This partnership includes codeshare and frequent flyer agreements. As a part of the agreement, Continental left the Delta-led SkyTeam alliance to join United's Star Alliance. Elite members of each airline's frequent flyer program receive benefits on both airlines.
As of May 2009, the U.S. Department of Transportation rated UAL eleventh among 19 US carriers in lost, damaged, delayed or pilfered baggage with 3.67 complaints per 1,000 passengers. In July 2009, a viral music video, "United Breaks Guitars" was released about a disputed damaged baggage claim with the airline. United said it would like to use the video as a staff training tool to help the company improve its internal "corporate culture" relating to its customer relations in that area of its services.
On October 28, 2009, United flew its final Boeing 737 flight, as United Flight 737. The retirement flight flew from Washington-Dulles to San Francisco via Chicago-O'Hare, Denver, and Los Angeles, United's main hubs. United's 737 retirement was particularly significant, as it was the U.S. launch customer of the 737 family in 1967, and operated variants of the type for 42 years. (With the merger complete, United now again flies 737's.)
2009 recession, fuel efficiency issues and new jet orders
In June 2009, United asked manufacturers Boeing and Airbus to submit proposals to sell the airline up to 150 jets in a winner-take-all competition. United is taking advantage of declining sales at both plane makers to reap steep price reductions; the large size of this prospective order will also influence pricing. The Wall Street Journal cited the average ages of four types of jets in United's fleet as follows:
Boeing 747 – 13 years
Boeing 777 – 10 years
Boeing 767 – 14 years
Boeing 757 – 17 years
Company affairs and identity
Headquarters
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| A United Airlines Boeing 767-300ER taking off from London Heathrow Airport, England. (2007) |
Read More: 77 West Wacker Drive
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| United Continental Holdings World Headquarters, 77 West Wacker Drive in the Chicago Loop |
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. Before making its choice, United was considering moving its headquarters to Denver, Colorado, or San Francisco, California. In the Chicago Loop United had considered 115 South LaSalle Street, 190 South LaSalle, and 200 West Madison Street. 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."
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. 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. The move was begun in October with 280 employees and one thousand are expected by the end of 2010.
Fuel burn reduction strategy
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. On December 9, 2009, United officially announced orders for 25 Boeing 787–8 aircraft and 25 Airbus A350-900 XWB aircraft 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 fleet are expected to begin in 2010, with Embraer of Brazil and Bombardier of Canada participating along with Boeing and Airbus.
Brand
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| 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 1973, 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 is Rising" during the late 1990s
"Come fly Chicago's hometown airline. Come fly the friendly skies."
"Feel United ... Be United ... Worlds United ... Stay United ... United" (the late 1990s)
"It's important for the human race to stay United"
"Life is a journey – travel it well; United"
"We Are United" following the September 11 incident
"Relax, Stretch Out" with the rollout of EconomyPlus
"It's time to fly" for the animated commercials (voiced over by Robert Redford), banners, and magazine advertisements of the campaign first unveiled during Super Bowl XXXVIII. (2004 – present). The campaign was reintroduced in August 2008 when United premiered five new TV commercials during the 2008 Summer Olympic Games.
United's theme song is George Gershwin's 1924 "Rhapsody in Blue", which it licensed from Gershwin's estate for $500,000 in 1976. "Rhapsody" would have entered the public domain in 2000, but the Sonny Bono Copyright Term Extension Act of 1998 extended its copyright another 20 years.
United is a sponsor of five of six of Chicago's major professional sports teams—the Bears, Blackhawks, Bulls, Cubs and White Sox – only the Fire are unaffiliated. The Blackhawks and Bulls play their games in the United Center, which the airline holds the naming rights to until 2014. The Cubs use a United 757 as their charter jet for transport between games, and the White Sox, similarly, use an Airbus 320 as their charter operating under flight number UAL9904.
Destinations
United Airlines mainline flies to 73 domestic destinations and 41 international destinations in 25 countries across Asia, Americas, Europe, Oceania, and Africa not including cities only served by United Express.
Further information: United Airlines destinations
Route network
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| 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. United also is the leading carrier in transpacific flights.
In 1988, the bilateral (though not reciprocal) treaty with Japan was amended to allow additional routes between the two countries. United's application to fly from Chicago to Tokyo, a significant gap in its routes previously, was approved.
United is focusing on its international presence, notably in the People's Republic of China, with nonstop flights to Beijing and Shanghai, as well as the former British territory of Hong Kong from its hubs in Chicago, San Francisco and Washington, D.C. In September 2007 United was granted a route from San Francisco to Guangzhou.These routes offer a higher proportion of premium fare passengers while being relatively insulated from the cut-throat competition in the domestic market, especially from low-cost carriers. United competes vigorously with discount carriers on about 70 percent of its domestic market. United has also focused more on Latin America, a region from which it had largely retreated in the last decade, and added new destinations and frequencies to Mexico and the Caribbean. The airline was granted service from Los Angeles to Shanghai to tentatively begin on May 20, 2011.
United began service to Bahrain on April 18, 2010. 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, making it the carrier's second African destination. Services to Bahrain, Accra, and Lagos are served from the airline's Washington-Dulles hub.
Codeshare agreements
In addition to its Star Alliance and United Express partnerships, United codeshares and/or marketing agreements with the following airlines as of January 2010:
Aer Lingus
Air Dolomiti
Ethiopian Airlines
Gulfstream International Airlines
operated for Continental Connection
Great Lakes Aviation
Hawaiian Airlines
Island Air
Jet Airways
Qatar Airways
SkyWest Airlines
TACA Airlines
Hub information
Current hubs and focus cities
O'Hare International Airport, Chicago, Illinois
Denver International Airport, Denver, Colorado
Washington Dulles International Airport, Washington, DC
San Francisco International Airport, San Francisco, California
Los Angeles International Airport, Los Angeles, California
Narita International Airport, Tokyo, Japan
Former hubs, maintenance bases, and focus cities
United's route network has been trimmed and streamlined to a few central hubs, resulting in the closure of these former hubs or de-listing as focus cities:
Miami (Latin gateway) – purchased from Pan Am, dismantled in 2004 due to retrenchment and competition with American Airlines
Seattle (Focus city) – some destinations downgauged to United Express, due to consolidation to SFO and LAX
Oakland (Maintenance base) – Oakland Maintenance Center (OMC)
Indianapolis (Maintenance base) – Indianapolis Maintenance Center (IMC)
Fleet
Current
United Airlines operates 360 aircraft with an average fleet age of 13.5 years (at January 11, 2010). United also contracts (but does not own or operate) 292 regional jet aircraft, including 38 Embraer EMB 170s, and 100 Bombardier CRJ700s, bringing the total number of aircraft for in operation for United parent UAL Corporation to 652 aircraft. The Boeing customer codes for United Airlines is 7x7-x22. (i.e. 747–422)
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. 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.
In December 2009, United announced it would to split a 50-aircraft order between upcoming Airbus A350 and Boeing 787 Dreamliner aircraft. The Airbus A350 will replace the Boeing 747-400 while the Boeing 787 Dreamliner will replace the Boeing 767-300ER, with both of the new airliners due to begin delivery from 2016.
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. United has expressed interest in becoming the sole GoldCare maintenance, repair, and overhaul provider for the Boeing 787.
United Airlines will take the Continental Airlines globe, and color scheme for all aircraft. The "Continental" title will be replaced with "UNITED" printed across each aircraft.
Cabin
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| 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 Zune.The entire fleet features "From the Flightdeck" on channel 9. This program allows passengers to listen to live radio communications between the cockpit and Air Traffic Control. "From the Flightdeck" can be disabled at the pilot's discretion. United also has partnerships with various television networks who provide programming for video-equipped aircraft. The most prominent of these programming partners was NBC, which provided branded "NBC on United" programming. This long-standing partnership ended in early 2009, when NBC signed a two-year deal with American Airlines. Despite the loss of this partnership, United's television entertainment continues to include several prime time NBC programs.
United First
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| Business Class Seats on the Upper Deck of a United Airlines Boeing 747-400 in 2005. |
United First is offered on all flights. 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).
(Old) United First Suites are offered on internationally configured Boeing 777-200/200ER aircraft and feature 78 inch-pitch flat-bed seats which recline to 180 degrees. Each seat has a personal video screen with a collection of compact videocassettes. Passengers have access to personal satellite phones, laptop power ports, noise-canceling headsets, pillows and blankets.
(New) United First Suites are offered on all Boeing 747-400, all internationally configured Boeing 767-300ER, and eight Boeing 777-200/200ER aircraft. United has begun retrofitting this new seat on its entire international fleet. The new First Suite is 6 feet-6 inches long and has 180 degrees of recline, creating a fully flat bed. All seats are equipped with a personal 15.4-inch screen personal LCD television with Audio-Video-on-Demand (AVoD), 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/60 Hz power outlet, a reading light, noise-cancelling headphones and a large tray table. The 767–300 international continues to use 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 old international United Business seat, but without the personal reading lamps, legrests, 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 is in the process of upgrading these seats with leather seat covers. Occasionally, 3 class widebodies will fly between hubs and Domestic First Class will feature the Suites (old and new). However, in a 3 class plane swap, most First Class passengers will get downgraded to Business Class unless they were flying on a 3 Cabin First Class fare basis.
United First (p.s.) is offered on all flights from JFK to SFO and LAX and features 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 United International First Class Lounge (on a domestic flight). Seats include personal reading lights, privacy screens and laptop power ports.
United Business
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 Red Carpet Club (on international and p.s. flights only).
(Old) United Business Seats are offered on internationally configured Boeing 777-200/200ER aircraft and feature recliner-type seats with 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.
(New) United Business Suites are offered on all Boeing 747-400, all internationally configured Boeing 767-300ER, and eight Boeing 777-200/200ER aircraft. United has begun retrofitting this new seat on its entire international fleet. The seats alternate between front-facing and rear-facing. All seats are 6 feet-4 inches long and have 180 degrees of recline, creating a fully flat bed. United Business Suite was the first flat-bed business seat to be offered by a U.S. airline; Delta, US Airways and Continental now have at least some flat-bed seating in business class. All seats are equipped with a personal 15-inch screen personal LCD television with Audio-Video-on-Demand (AVoD), an adjustable headrest, lumbar support, a USB power port, an Apple iPod adapter (through which to play audio or video), XM Satellite Radio, a US-style 120V/60 Hz power outlet, a reading light, noise-cancelling headphones and a large tray table.[104] The 767–300 international continues to use the original (smaller) overhead bins.
There are eight (8) of these Suites in each row on the main deck of the 747–400. This means that two of the seats in each row are middle seats, which is highly unusual for a business-class seat. The window Suites do not have direct aisle access either, and while that is relatively common, there are competitors such as Delta Air Lines which give all business-class seats direct aisle access.
United Business (p.s.) is offered on all flights from JFK to SFO and LAX and features twenty-six leather recliner seats with 54 inch pitch, 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 cocktails as well as an invitation to the United Red Carpet Club. Seats include personal reading lights and laptop power ports.
United Business (Domestic) is offered on select domestic flights between hubs when 3 class international widebodies are being repositioned between international flights. There is never any guarantee of which routes these planes will appear on as schedules will change according to United's international needs. Aside from the superior International Business Class seats, service is a noticeable step down from Domestic First Class. Usually, only a single meal choice is offered though the much nicer seats compensate enough for the lack of service. Note that Rows 13 and 14 on the 767's receive Business Class service despite being sold as economy seats as they are physically located within the Business cabin.
United Economy
United Economy (Domestic) is available on all domestically configured aircraft in United's 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, and domestic-configured 767-300ER and 777-200/200ER aircraft feature adjustable headrests. United offers a buy on board program. On United flights between three and five hours in duration, snackboxes are available for a fee. On United flights of five or more hours, fresh sandwiches, salads and snackbox options are also available for a fee. Water, soft drinks, and coffee are complimentary on all flights. Alcoholic beverages are available for a fee on most flights. All aircraft feature overhead television screens. Short subject television program is shown on flights between 1.5 and 2.5 hours and feature-length films are shown on flights over three 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 Elite members. It can also be purchased at 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. Economy Plus is not a seperate class of service and therefore cannot be labeled as a premium economy cabin.
Mileage Plus
Frequent flier programs started in their current form in 1979 at Texas International Airlines. Two years later, American Airlines launched their AAdvantage program. United began their Mileage Plus program one week after AAdvantage launched.
Airlines who are part of the Star Alliance and others participate in a program enabling passengers on these airlines to receive Mileage Plus credits. Although Mileage Plus credits are received for all booking classes on United flights, many booking classes on partners are excluded from receiving credit. Exclusions for booking class credits vary for each partner airline.
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. Beginning in 2010 Premier, Premier Executive and 1K members have access to unlimited domestic upgrades on a space-available basis.
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, complimentary 500-mile e-upgrades and a 25% mileage bonus on flown miles. In 2005, 535,000 members of Mileage Plus qualified for Premier status.
Premier Executive (1P) members fly at least 50,000 EQM or 60 segments, and receive all Premier benefits plus a 100% mileage bonus, higher upgrade priority, access to exit row seating in advance of flight, and lounge access when traveling internationally on any Star Alliance member airline the same day. In 2005, 239,000 members of Mileage Plus qualified for Premier Executive status.
1K (also known as Premier Executive 1K) members fly at least 100,000 EQMs or 100 segments, and receive all Premier Executive benefits plus six free System-wide Upgrades good for a one-class upgrade anywhere United flies, along with the ability to earn confirmed regional upgrades valid across United's North and Latin American route system. 1K passengers are sometimes granted accommodations and meals during flight delays and irregular operations caused by weather or air traffic control. In 2005, 46,000 members of Mileage Plus qualified for 1K status.
Global Services, while not officially part of the Mileage Plus program, is an invitation-only program to recognize United's most valued high-yield customers. Full invitation criteria are not made public by United; re-qualification for current UGS members could be attained by flying 50,000 full-fare miles in a calendar year, according to company letter to members. Benefits complement and expand upon those offered to 1K passengers, including: higher priority for upgrades and front-of-line access in premium security lines. Global Services members are able to upgrade award flights using miles, system-wide upgrades, confirmed regional upgrades and 500 mile upgrade certificates. In 2005, 18,000 members of Mileage Plus qualified for Global Services membership.
Million Miles and Beyond is a program offered to Mileage Plus members who have flown one million miles or more on United Airlines during their lifetime. These customers permanently receive the benefits of lifetime Premier Executive membership.
2 Million Miles and Beyond is a program offered to Mileage Plus members who have flown two million miles or more on United Airlines during their lifetime. These customers permanently receive the benefits of lifetime Premier Executive membership plus lifetime Red Carpet Club membership.
3 Million Miles and Beyond is a program offered to Mileage Plus members who have flown three million miles or more on United Airlines during their lifetime. These customers permanently receive the benefits of lifetime 1K membership plus lifetime Red Carpet Club membership.
500-mile e-upgrades were recently discontinued, in favor of UDUs, Unlimited Domestic Upgrades. Elite members may now get complimentary upgrades on all domestic flight segments (to also include Canada, Mexico, Caribbean, Puerto Rico & St Thomas), based on their elite status, which mirrors the upgrade progression of the former 500-mile e-upgrades. Global Services may get upgraded 120 hours in advance of the departure time of their respective flights. 1Ks at 100 hours; Premier Executives at 72 hours; Premiers at 48 hours. If an upgrade is not actually being offered at that time, the guest will be placed on an upgrade waitlist within those parameters. A UDU is also offered to one traveling companion on the same booking as the elite member (maximum party of two).
Red Carpet Club
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| Part of the United Airlines Red Carpet Club in Sydney, Australia (2005). |
The Red Carpet Club is United Airlines' airport lounge. It operates 34 lounges in 27 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. The Red Carpet Club features a variety of snacks and drinks.
Beginning in mid-2011, as part of the merger with Continental Airlines, United will rebrand all "Red Carpet Club" locations "United Club". Continental will do the same and rebrand their "Presidents Club" locations into "United Club".
United 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. Seven lounges are currently operated in seven different airports worldwide. In late 2010, it was announced the name "United International First Lounge" would be retained after the merger with Continental Airlines.
United Arrivals Suite
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.
Incidents and accidents
1930s NC13304 Flight 6 NC13317 NC13323 NC13355
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 Flight 955
2010s Flight 663
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."
The Crosby, Stills, and Nash ballad "Just a Song Before I Go," released in 1977, features the lyrics: "Driving me to the airport / And to the friendly skies." It reached number seven on the Billboard singles charts, the band's greatest hit.
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.
In 2008, Canadian musician David Carroll had his guitar damaged by United's baggage handlers, and United refused to repair it. He and his band Sons of Maxwell wrote and performed a song about this incident, "United Breaks Guitars", and posted it on Youtube. The video was a big hit on YouTube and has reached more than nine million views; United thereafter compensated Dave Carroll.
Brett Ratner's Rush Hour film series features 3 United Airlines Boeing 747-400.
(source:wikipedia)
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