United CEO Scott Kirby dreams of United Airlines emerging from the pandemic as the #1 airline in the USA. To that end, United will resume investment in its onboard and ground product, restarting pre-pandemic investments in all cabins.
United Promises Investment In Onboard Product
Kirby sees United in an “intermediate” phase. With positive news on a vaccine, there is light at the end of the tunnel. At the same time, airlines face a dark winter and questions remain over the efficacy and delivery of the vaccine.
In a video address to employees reviewed by Live and Let’s Fly, Kirby laid out three pillars that will guide United’s direction over the coming months. I want to focus on the final pillar.
Number one is testing, testing, testing…
The second pillar is getting back to cash flow positive…
And then finally the third pillar is innovating for the customer.
Kirby, known as a micromanager and bean counter, has at least given lip service to the notion that if United wants to be a premium airline, it must offer premium service (it could learn a lot from JetBlue, though).
Beyond eliminating change fees and making elite status easier to obtain in 2021, I am happy to see that Kirby is thinking about the hard and soft product onboard. He told employees:
“We’ve done an amazing job as we’ve gone through the crisis of starting to change how people feel about United Airlines, but now it’s time to get back on track for the important things that we were working on before the crisis.
“And there’s really two big ones, the growth plan and innovating for the customer. And so we’ve restarted investing for the fleet to get our feet ready, to go back to a hundred percent, to have all of our aircraft ready to fly in 2022. And we’re also restarting the customer investments. We put all that on hold at the beginning of the pandemic when we were burning a hundred million dollars a day, but now is the time to get ready to lead for the future and start with the Polaris investments, the larger bins on board airplanes, the clubs, et cetera.”
Time will tell if this is indeed just lip service or a call to action. As demand returns, United needs to re-open its Polaris lounges and re-introduce more food offerings onboard…that will be a huge step. Over time, United must update its internet onboard (at this point, to match American and Delta, not even outshine them) and continue to invest in its already-superb mobile app.
Ultimately, whether United becomes a leading airline of the world will depend upon whether Kirby can inspire flight attendants and ground staff to offer world class service on a consistent basis, but resuming investments will further that goal by removing stress points between passengers and flight crews.
CONCLUSION
Kirby claims United will be innovating, with focus on its Polaris product, airport lounges, and more overhead bin space. This is a chance for United to distinguish itself from others and it can do so now. As a frequent customer, I hope Kirby follows through on his plan. But even if you’re not a United customer, such moves spur others to match and thus should also be celebrated.
Matthew, have you reviewed the new mobile app? (if so I missed it.) In my opinion they’ve taken 10 steps backwards on award search. The last version was so easy to use in terms of calendar (although not always accurate especially on partner awards), clearly showing points required, seeing connections, color differentiation with green for premium, easily bringing up seat maps, etc.
Now when you search for award travel, even when you select “Business”, results will show economy prices most of the time, occassionaly it will show business fares. Click on “Show all cabins” and business class rates now show in tiny print underneath the economy price, and everything is in blue. No color to show premium class. Open the award calendar and it’s all economy fares. You have to select a flight to look at the seat map. If a trip includes a leg in economy you can’t tell it does until you get to the “review itinerary screen”.
Maybe the rest of the app is good, but the book award part has me going back to the website.
I see you did review the mobile app. Take a look at the booking part and you might change your mind.
Will check it out in more depth, but I have used it…I liked the green boxes we had before, but don’t think the new format is too bad.
Look forward to your review!
Notice there’s little reference to soft product, which Kirby doesn’t believe drives spend. And the use of “etc” is highly suggestive that the particulars don’t matter much to him.
Larger overhead bins are about operational performance (D0), since customers find bin space faster and there’s less time spent dealing with gate check bags or bags coming out of the cabin to be checked. The motivator here isn’t customer experience.
I know actions speak louder than words, but I feel like he is not continuing to stress the customer experience just to hear himself speak. Even during the pandemic, United has accelerated the 787-8/9 Polaris retrofits, and is bringing back more soft product items (improving pre-arrival service) next month. Maybe internet upgrades don’t make sense, but United is already improving meals (while AA moved in the opposite direction and won’t even serve a meal in a 77W first class from Miami to LA).
You’re right, while I don’t really care for the snack boxes and the dry sandwiches they have now…it’s still miles better than anything AA and DL have in domestic non-transcontinental first.
All that sounds good. But there’s a real problem with customers and flight crew. Stress is not good on anyone. But, the pandemic has a lot to do with it
Laying off, retirees, furlough no
paycheck whoa. I flew regional for UA. Kirby did the flight attendants and retirees unfair for Express Jet employees. Flying for them as United Express. He threw us out of the airline business. He took away our flying benefits and etc. I want be flying with them on my dime. I wish the company more so my flight brothers and sisters good luck. All in Solidarity
Indeed we remember the focus on “capex” that doesn’t hit EBITDA margins
Don’t forget soft product
Spend the extra $.25/can for AB InBev-owned craft beer again and then we can talk
Soft product is not as important as hard product, but it builds your brand and can be a tie-breaker. I think introducing Polaris was a recognition that UA was pretty far behind on it. As we emerge from COVID, it may be important to not remain behind. Particularly since most flyers will not be driven by status or loyalty. Most of us are starting from a slate wiped clean.