Old UCAL CA

(Lewis Lazare, Chicago Tribune 11/10/2015)

The "Oscar effect" looks to be taking hold at United Airlines. Big time.

Though newly-anointed United CEO Oscar Munoz was sidelined by a sudden heart attack in mid-October, his karma — coupled with at least one big operational shift now happening — looks to be working wonders at the carrier plagued for so many years by a variety of issues.

United is a unit of Chicago-based United Continental Holdings (NYSE: UAL).

United said it completed 87.6 percent of its mainline flights on time in October, a huge jump of 10.2 percentage points from the 77.4 percent that arrived on time in October of last year. Per the United States Department of Transportation, a flight is on time when it arrives at the gate within 14 minutes of its scheduled arrival time.

With its mainline operations showing significant on-time arrival improvement, United sources said the carrier is moving to decrease the number of United Express flights in its schedule and expand mainline operations in hopes that will improve the overall on-time arrival results even more. United Express flights operated by third-party carriers in recent times often have been a drag on United's overall on-time arrival performance.

Indeed, United's October operations report released late yesterday show its regional flight capacity dropped 6.4 percent year over year for the month, while mainline capacity increased 2.6 percent year over year. Also the number of passengers boarded on Express flights dropped 3.8 percent year over year in October, while passengers boarded on mainline flights jumped 10 percent year over year.

Separately, the carrier confirmed internally today that thousands of United frontline employees qualified for a trifecta of bonuses totaling $125 in October. The airline finished October with an internal customer satisfaction score of 30.8, more than a point above the carrier's internal goal of 29.5. United also met its internal goals for flights arriving exactly at their scheduled arrival time, known as "A:00," and for flights departing exactly on time, "D:00."

Additionally, the carrier informed employees that through Nov. 8 of the current month, 72.5 percent of United mainline flights arrived exactly on time. That was one percentage point ahead of Delta Air Lines' (NYSE: DAL) comparable result so far in November, and approximately seven percentage points ahead of both Southwest Airlines (NYSE: LUV) and American Airlines (NASDAQ: AAL).

No doubt, wherever Munoz may be at the moment, he is smiling about United's encouraging news.

Shrek

Proof is in the pudding...... Ask the mechanics and flight attendants how their Oscar effect is coming along?

No early section 6 for us but an "extension" to an agreement that isn't even fully implemented. I consider accurate pay statements as basic and necessary before we talk "extension" OR section 6.

But hey, that's just me.

Old UCAL CA

I've been retired now for several months but still do my best to read and stay in touch internally.

What you are describing does not appear to be of a sufficient frequency to translate to operational difficulties. One active source went so far as to describe it as, "the ship finally appears to be sailing."

I only know what I read and hear. From my own perspective while active a few months ago, I could sense some of the "old baggage" and issues start to fall away, due in part likely from the massive retirement and EO turnover in personnel at various op divisions. This article seems to reinforce the change in ops to a certain degree...it probably accelerated with the Munoz hiring.

Old UCAL CA

I do know it's pretty compelling watching the excitement on all the new hire threads...I remember it well. They, and hiring in other divisions, will be the "heartbeat" of this company in just a few short years. I, and others close in age, are disappearing quickly.

I think that may be a big part of the ops improvement.

AllenAllert

It's more of Jeff is gone effect than a Munos effect. Munos has done nothing other than promise things will change. Where are the changes?? Temp guy hasn't made any big moves to improve the airline.

OCC, you are right about time passing and it's time for new blood to take the lead.

gettinbumped

The changes are a TA for the mechanics, profit sharing for the LCAL FA's, an offer of an extension to the pilots to include raises and new mainline growth, a promise to stop outsourcing CSR positions until 2019 and a 1 year early contract opener, and full page public apologies to our customers for our lousy performance integrating the two airlines.

Not bad for a couple months on the job if you ask me, even if the labor agreements don't get accepted or voted in. More than Jeff did in 5 years. I agree that the temp guy has been VERY quiet. And I wasn't terribly impressed when he did talk.

AllenAllert

What ever you say, Marvin! I'm surprised the other shills haven't shown up.

gettinbumped

As expected from you. You ask a question and I post a polite and logical answer. Your response speaks for itself.

SpecialTracking

Were the LCAL FA's supposed to get profit sharing in their contract or is it something the company gave them because it's the "right" thing to do? If the latter is true, did the company offer a commensurate amount to the LUAL FA's?

APC225

Exactly right. I don't think anyone fully understood the depressive effect of the CEO saying at the outset that "labor is not needed" to be successful.