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United Airlines

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on 21 September 2013

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Transcript of United Airlines

Sky High Consultants

Danny Sakelaris
Dianel Yunes
Frederick Mensah
Brian Manzano

September 21, 2013
About United Airlines
Founded 1926

World's largest airline - 705 fleet size & 374 number of destinations

December 2012 - 88,000 employees

2011 Merger with Continental Airlines




United and AQR
Airline Parody
2013 Air Quality Ranking
1. Virgin America
2. Jet Blue
3. AirTran Airlines
4. Delta Air Lines
5. Hawaiian Airlines
6. Alaska Airlines
7. Frontier Airlines
8. Southwest Airlines
9. US Airways
10. American Airlines
11. American Eagle
12. Skywest Airlines
13. Express Jet
14. United Airlines

AQR Comparison
Symptoms of the Problem

Key opportunities for improvement included:
Denied Boardings
Mishandled Bags
Customer Complaints

As a result, customer service, financials and performance suffered



References
http://www.forbes.com/sites/adamhartung/2013/04/11/united-this-is-not-any-way-to-run-an-airline/

http://www.forbes.com/sites/davidewalt/2013/04/08/americas-best-airlines/

http://en.wikipedia.org/wiki/United_Airlines

http://www.latimes.com/business/la-fi-layoffs-ijop3skn,0,5162569.photo

http://blog.apex.aero/ife/united-steps-up-incentives-to-improve-customer-service-ceo-says-inflight-wi-fi-will-ease-stress-of-irregular-operations/
14. United Airlines
On-Time Arrivals: 77.4%
Denied Boardings: 1.83 per 1,000 passengers
Mishandled Baggage: 3.87 per 1,000 passengers
Customer Complaints: 4.24 per 1,000 passengers

1. Virgin America
On-Time Arrivals: 83.5%
Denied Boardings: .007 per 1,000 passengers
Mishandled Baggage: .87 per 1,000 passengers
Customer Complaints: 1.50 per 1,000 passengers

Individual Problems & Solutions
Measuring Success
Summary
Identify the problem

Game Plan - Set Goals

Implement

Re-evaluate

Any Questions?
United Airlines -
Taking Off After Crashing

About SKY HIGH CONSULTANTS
The Airline Quality Rankings Report looks at the 14 largest U.S. airlines and is based on an analysis of U.S. Department of Transportation figures.
Sky High compared the highest rated airline to United:
Individual Problems
Employee Satisfaction Rating is only 2.8 out of 5
1,500 employees were laid off in 2012 and another 1,000 in 2013
Downsizing was due to outsourcing
Employees are dissatisfied with career opportunities
Individual Solutions
Organizational
No accountability
CEO admitted lost focus

Horizontal and vertical communication

Needs better recruitment process
Internal Solutions
Job satisfaction survey

Customer satisfaction survey

2013 AQR Score

Management Development
Develop a Management Trainee Program
Stewardess
Front Line Agents

Create monthly Key Performance Indicators
KPIs will be used for monthly goals
KPIs would be developed by the employees and discussed with management

Mandatory employee seminars to educate employees on customer service

Employee Development
Create a MBO program for H1 and H2 on Commission %
Tier I 25% Bonus (Top 5 AQR)
Tier II 5% Bonus (Top 10 AQR)

Internal Friendly Contest in Customer Service
3 excellent surveys in a month $100 gift card
Mishandled Bag Reporting - Free Day Off
Internal reward point program within company

Employee incentives would also be offered for employees that have met their KPI goals
Employee Incentive

External Solutions
Create value for customers by reinstating AmEx points program (Dropped in 2011)

Drop the bag fees on weekdays - huge incentive for customers and United to fill in seats

Provide flight credit back to customers for mishandled bags

Promote advertising for new improved customer service program
Management
Organizational Problems
Company has nepotism culture

Does not have efficient standards for mergers and acquisitions

Recent issues does not promote a culture of customer satisfaction

Recent changes to improve AQR does not address problems on individual level
Management Problems

Create PIP - Performance Improvement Plan - if scores aren't good

Hold employees accountable on mishandled bags, customer service

Hold regular meetings with employees to brainstorm and discuss any internal / external issues that can be addressed by management
Change the business strategy from biggest to the friendliest

Build career program opportunities for growth

Promote the most qualified candidate not the most senior employee

Create a proper onboarding process for newly acquired company that would allow for the best employees to remain with the company if layoffs are needed
Management Solutions
Evaluating the Problem
United first needs to establish baseline metrics for the organization to evaluate what the problem is and what the key areas of improvement are:
Develop a customer service survey to be distributed to customers in flight
Develop a job satisfaction survey for employees
Develop a performance evaluation for management to evaluate their subordinates
Employee Re-Training
Re-train all employees
Assures that newly merged employees and existing employees have the same knowledge base
Also incorporates best practices from both organization for optimal service
Full transcript