If I ran United...

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>> OK Guys  Lets pretend YOU got the job
>> What would you do to turn UAL around and make if profitable
>> We should get some pretty interesting ideas

I think it will take far more that corporate buzzwords and meetings and
management-by-objectives to turn UA around.   I would propose some much
more radical ideas.  Even as CEO I don't know if I could get away with
them, and they will make a lot of people mad - but they might make both
pax and shareholders happy.

1. Retake the #1 position through the acquisition of another major
carrier.  US still makes the most sense, and it should be a lot cheaper
the second time around, but there are other candidates - practically
anyone in the top 10 except AA and DL.

2. Use every bit of regulatory and legislative "juice" to get the
acquisition through.  When consummated, use that #1 position and control
over "the map" to hold the line on fares.

3. Ruthlessly pursue merger-based economies of scale and avoid
duplication, in everything from the fleet to maintenance to IT.   Park
the least efficient aircraft from both fleets.  Continue to drop (and
offer to affilliates) routes that are unprofitable, while competing and
lobbying to open routes that will be the most profitable, including
cabotage and fifth freedoms where possible.

4. Reduce the policy influence of the unions to the maximum extent
possible. Introduce merit systems replacing seniority systems where
possible. Tie employee compensation (at least in managerial positions)
to financial results and customer satisfaction numbers.

5. Avoid branding gimmicks like Shuttle by United, etc. (and the concept
of trying to beat WN at its own game.  Ain't gonna happen.).    Killing
Shuttle is the best thing UA has done in the last couple of years.

--
Michael C. Berch
mcb@postmodern.com

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