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Doomed United Is Textbook of Biz Don'ts

By Harry Kimball, Newser Staff

Posted Jul 27, 2009 4:20 PM CDT

(Newser) – United Airlines’ dismal service and financial stature may soon send it to Chapter 11, but that doesn’t mean it isn’t a “teachable moment,” Shaun Rein writes in Forbes. Herewith, three lessons:

Loyal customers return: "Consumers are more price sensitive in this economy, and they are trading down, but it's still a great time to capture loyalty," Rein writes. "People don't want to waste money on brands that fail to meet their expectations."

Sell dreams: United could take a page from the likes of Disneyland, which hawks more than a product. "What United fails to get is that it is selling dreams, not just a form of transportation. Few United employees take pride in their jobs, and it shows."
Build morale: No airline can build loyalty or sell a special experience if the rank and file are demoralized by poor conditions and sky-high executive pay. "The troops look to senior management for direction. If those troops see the top brass caring for itself at the expense of others, the spirit of the entire organization erodes."

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A United Airlines jet takes off from Seattle-Tacoma International Airport. (AP Photo)

United Airlines passengers check in at San Francisco International Airport. (AP Photo)

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Miffed musician Dave Carroll wrote a song called "United Breaks Guitars." (EurovisionSweden)

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COMMENTS

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Showing 3 of 7 comments

Spudsy

Jul 28, 2009 3:40 AM CDT

Airlines are run by idiot flyboys who know nothing about business. Here's a clue. If it costs you 100 dollars to fly a person from Chi to NY, then you have to charge 100.01 to turn a profit and stay in business. This simple accounting fact has eluded the airline business for years.

Doctor-Zaius

Jul 28, 2009 2:59 AM CDT

I was a 1k (100,000 mile flier) with united for five years. I hated flying them so much I moved to a different city just to avoid them. The counter people routinely treated me like shit even after knowing my status. The phone people were worse. Even the 1K line. At the end I cashed out all my miles for a Plasma tv and a wine fridge. You couldn't get me to fly United again without holding a gun to my head.

coco-jin

Jul 28, 2009 2:52 AM CDT

You can say that again...except call a spade a spade: Northworst.

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bankruptcy • airline industry • United Airlines • transportation • air travel • customer service • employees • morale • brand loyalty

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