Although United and Continental officially merged on paper in 2010, full integration has drawn out over the years thanks to complications with IT structures and latent outstanding contracts with a handful of unions. New contracts from the flight attendant’s and mechanic’s unions forged last week, however, pave the road to a fully integrated and fluid carrier.
According to a release from United, the contract with the flight attendant’s union, which was the most contentious, passed by a narrow 3% margin and gives crew a raise of up to 31% while securing employee retirement and healthcare.
From an operations standpoint, the contract should also unify the team under one banner; until now, respective crews were only allowed to work on the same legacy team operating legacy aircraft. Now, former Continental crew can mix with United crew and operate any aircraft in the fleet, making easier for the airline to schedule staff.
Separately, a contract with the International Brotherhood of Teamsters was also reached last Friday, though the union has yet to vote on its ratification.
With union contracts now in place, United management can now better-focus on the airline’s turnaround plan spearheaded by CEO Oscar Munoz. Already, that effort has resulted in better relations between the airline and passengers. In the last six months, United has kicked off a catering overhaul, brought back snacks to the economy cabin, remodeled several of its airport lounges, opened up in flight entertainment for free and relaunced its business class.
Despite those improvements, there’s much more work to be done. United has chronically suffered from poor on time performance behind American and Delta as operational constrictions often prevent aircraft — particularly in hub airports such as San Francisco and Chicago — from arriving on time and at the right gate. In May, according the Bureau of Transportation Statistics, United was able to deliver 83.73% of flights on time compared to the industry-leading Delta at 88.63%.
Still, with recent improvements among management, passengers and employees and across the product and operations the airline is on a path to creating a better-run package. Supporting new product improvements with happy and under-contract flight crew will only ensure that the airline has its best foot forward.
By: Grant Martin (Forbes).
Photo: The Motley Fool.
Review: Emerging Market Formulations & Research Unit, FLAGSHIP RECORDS.
For The #FacebookTeam
Separately, a contract with the International Brotherhood of Teamsters was also reached last Friday, though the union has yet to vote on its ratification.
With union contracts now in place, United management can now better-focus on the airline’s turnaround plan spearheaded by CEO Oscar Munoz. Already, that effort has resulted in better relations between the airline and passengers. In the last six months, United has kicked off a catering overhaul, brought back snacks to the economy cabin, remodeled several of its airport lounges, opened up in flight entertainment for free and relaunced its business class.
Despite those improvements, there’s much more work to be done. United has chronically suffered from poor on time performance behind American and Delta as operational constrictions often prevent aircraft — particularly in hub airports such as San Francisco and Chicago — from arriving on time and at the right gate. In May, according the Bureau of Transportation Statistics, United was able to deliver 83.73% of flights on time compared to the industry-leading Delta at 88.63%.
Still, with recent improvements among management, passengers and employees and across the product and operations the airline is on a path to creating a better-run package. Supporting new product improvements with happy and under-contract flight crew will only ensure that the airline has its best foot forward.
By: Grant Martin (Forbes).
Photo: The Motley Fool.
Review: Emerging Market Formulations & Research Unit, FLAGSHIP RECORDS.
For The #FacebookTeam