Essay Example on the Impact of United Airlines on Airline Industry

Overview and Description

United Airlines is the third largest domestic airline company in the US. It has its headquarters at Chicago, Illinois. The company operates both international and domestic route networks and has an extensive presence in the Asia-Pacific region. In April 2017, a passenger was dragged off an overbooked United flight in an incident that turned out to be a public nightmare for the company. With videos posted on social media depicting a bloodied man being dragged down the aisle, it was perhaps the most embarrassing incident to ever face the company. However, two years down the line, the company has undergone tremendous changes not just to survive but to lead the competition in a fiercely competitive industry.

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In what the company has termed as a "massive backstage for 2019," including new uniforms, new drinks, jet stream system, more comfortable seats in its premium economy section and even a DJ. These among other changes are meant to shake up the industry and attract more customers for the company. The airline industry has suffered recently and a lot of companies have gone under while a host of others are struggling to stay in the business.

The combination of stiff competition reduced profits and the need to adhere to industry regulations has negatively affected a lot of operators in the domestic and international business. However, United Airlines has taken up this challenge and has set out some changes that are geared towards attracting more travelers and bringing more profitability to its business using some value addition tactics and reducing operational costs.

Impact and Analysis

The impact of the company's Economy Plus will have a huge impact on the company's profits. Being able to fly business or first class all the time is often a dream for frequent travelers. For the flyers who are interested in the budget, the company's Economy Plus is a great solution because it acts as a compromise between comfort and budget (Whitmore, 2018). Those who need a little comfort for the long hauls and are careful about the budget will benefit immensely. For instance, those who travel from San Francisco to Singapore, a 17-hour direct flight will offer better seat room than any other flight operating in this route.

Apart from the extra legroom, the space makes it easier for customers to access bags under the front seat. The Economy Plus will come in handy for business travelers who often have some paperwork to do during flights or families that have backpacks for their traveling children among others. In addition, the extra space comes in handy for the passenger sitting next to because one can walk to the restroom without stepping on the next person.

In addition, the company has revamped its entertainment categories with a 10-inch touchscreen at the back of each seat. The touchscreen is equipped with the latest TV show episodes, movie releases, and games (United Airlines, 2019). In particular, the games are a revolutionary strategy for the long-haul customers who have friends or family onboard because the games can be played alone or with the person seated next. Such games can come in handy for the parents traveling with a child or children who may get bored during the long flights.

In addition to the touchscreen, another important feature in the new package is the USB port for charging all types of small portable electronic devices added to the universal plug outlet for the larger devices. These forms of charging devices are essential for business travelers who may be interested in doing some office work during the course of flying. Other features in the entertainment section include entertainment volume, overhead light controls and screen resolution options all which are controlled by the touchscreen. Recent surveys indicate that mist customers flying international flights have welcome the Economy Plus.

However, the upgrade has not been well received or enticing among customers of the short domestic flights. With the upcharge varying between an additional 20 dollars to 200 dollars for the long flights, it is estimated that the upgrade will bring United Airlines millions of dollars of additional revenue (Segan, 2019). The same can be said of the jetstream program that the airline has introduced. The new online portal has been well received by travelers who have cited the simplicity to travel management and the power put in their hands as their reason to adopt the program. With its simplicity, robust functionality and easy-to-use interface, many customers are able to plan for conventions, meeting, and conferences much easier and with an incentive.

Conclusion

The discussion has examined the changes to the airline industry that United Airlines has brought and the impact this will have. With a host of changes meant to bring more customers, the company is expecting to land huge profits in the coming years. Moreover, as revealed, some of the packages especially the economy plus has really been received well by travelers especially those in the long-haul flights. This will bring an additional million dollars each year to a company that is already doing well in the industry. The entertainment package has also met relative success in both domestic and international routes.

References

Segan, S. (2019). Is Economy Plus Really Worth the Price? Frommers. Retrieved from https://www.frommers.com/tips/airfare/is-economy-plus-really-worth-the-price

United Airlines. (2019, Mar11). Meet United Airlines' New Meetings Portal, Available on United Jetstream. PR Newswire.

Whitmore, G. (2018, Aug 17). Review of United's Economy Plus. Forbes.