United Airlines

PROBLEM DESCRIPTION:

Hearing that one’s flight is delayed is something no traveler wants to hear. Unfortunately, United Airlines has built a reputation for consistently having delays. In this paper, I plan to discuss the causes for these delays and how United Airlines can fix these issues.

FINDINGS:

In 2010, United merged with Continental Airlines. Unfortunately, in 2012, United continued to suffer from multiple issues with integrating the two companies. This has resulted in a lack of communication, poor customer service, unhappy employees and the highest rate of regularly delayed flights in the summer of 2012 (Mouawad, 2012).

In 2012, United Airlines carried more passenger traffic than any other airline. United Airlines’ Operational Performance in July 2013 reports that their consolidated traffic decreased 1.1% as compared to July 2012. United Airlines’ consolidated passenger revenue per available seat mile is reported to have increased about 3.5 to 4.5 percent since July 2012 (United Reports July 2013 Operational Performance, 2013).

DECISION-MAKING RESOURCES:

Due to the recent merger of Continental and United Airlines, the airline needs to ramp up its organizational structure. Mergers require combining different technologies, social and technical procedures, and employees need to adjust to the new systems. This past year, United currently offers financial incentives to employees for on- time performance. This idea of providing a “bonus plan,” in which extra pay is provided to employees for meeting or exceeding certain objectives, is a wonderful way to improve employee efficiency and productivity (Nickels, 2013). In fact, United Airline’s on time performance of scheduled flights that arrive within fourteen minutes of scheduled arrival time was 76.7% in July 2013, as opposed to the 64.1% rate of July 2012.

RECOMMENDATIONS:

Due to the lack of communication and sour relations between employees, as well as poor customer