Case Studies:
United Airlines; A letter from its new Chairman ...
and our response.

Dear Mr. William H Thompson:

As United's new Chairman, President and Chief Executive Officer, I'm proud to be joining this world-class airline. United is a company with tremendous strengths: the world's best route network, one of the youngest fleets in the industry, dedicated, experienced employees and outstanding on-time performance. While the company faces some economic challenges, our commitment to you doesn't waiver — we will continue to keep our focus on delivering the best service to our customers.


United #1 in On-time Arrivals

Getting you where you want to go on time is a key objective at United. I'm pleased to announce we've moved up to first place in on-time arrivals in the recently published U.S. Department of Transportation statistics for the month of July. More than 83% of our flights arrived early, on time or within 14 minutes of scheduled arrival. This performance demonstrates that United is keeping its focus sharp on what is important to you day in and day out.

In my first week on the job, I have been impressed with employees' commitment to customers and this airline. In the days ahead, all of us at United will be working to address near-term financial issues and build a competitive company with a prosperous long-term future. I believe that together we can put United on a firm foundation that serves the best interests of our customers for years to come.

We look forward to seeing you on board.

Sincerely,


Glenn F. Tilton
Chairman, President and
Chief Executive Officer


Our letter replying to United regarding Mr. Tilton's letter.


My first impression on receiving Mr. Tilton's letter was quite positive, in view of the fact this is his first week on the job.

I am a big fan of United. At every possible opportunity, I fly with your airline.

As I read his letter, recent improvements in on-time flights were noted. Congratulations. I must admit, however, that the 83% on time statistic simply highlighted the fact that 17% of the flights are late!

I really don't think many fret about on time arrivals - because we know the statistics are biased by so many factors - like weather or air traffic control! Doesn't everyone know this by now? We also know much of the frustration in flying does not fall under your control.

Nonetheless, after completing his letter, it felt as though the legal, finance, marketing and perhaps even the information systems departments had assembled and said, "What shall we let our new Chairman say after his first week on the job?" Not what he has really encountered - that's for sure.

The newsworthiness of having a new leader on board gains the reader's attention ... momentarily. The opportunity to initiate some form of credible personal communication with a customer is a valuable one.

Everyone wants to know his personal views. Most are interested in cheering him on. Many crave a hint at what his coming will mean to them. For customers to walk away from this encounter with no feelings, is a terrible waste.

David Olgilvy, the master of advertising once quoted Field Marshall Montgomery, who said:

"The leader must have infectious optimism, and the determination to persevere in the face of difficulties. He must also radiate confidence, even when he himself is not too certain of the outcome.

"The final test of a leader is the feeling you have when you leave his presence after a conference. Have you a feeling of uplift and confidence?"

As I closed his communication, I thought about this, deciding to comment here. Perhaps my candor will open some thoughts. Hopefully, we will hear more from Mr. Tilton from time to time, and his next message will come from his heart ... with words that truly strike ours.

Very best regards ...


William H. Thompson
Principal

Postscript: 01/14/03

The next letter we received from Mr. Tilton was much better - although the airline was not. It had just declared bankruptcy!. We've posted it below:

December 9, 2002

Dear Mr. William H Thompson:

I want to share some important news with you about the steps we are taking to change the way we do business and better serve your needs.

In the past several months, we told you about the efforts we have been making to bring our costs in line with revenues that have fallen dramatically as the airline industry has changed. United® has filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code in order to make the fundamental changes necessary to remain one of the world's premier airlines. While United undergoes reorganization, please know that our commitment to providing you with safe and reliable service remains unchanged.

During this process, United will continue to operate around the world. We will honor tickets and will maintain our refund and exchange policies. We remain ready to meet your travel needs and you can continue to count on the level of service you have come to expect from United.

The Mileage Plus® program is in full effect as confirmed today by the court. As a member of Mileage Plus you can continue to accrue and redeem miles on United and Star Alliance carriers and with Mileage Plus partners as usual. Miles previously earned in the program remain in your account, and award travel remains available as always. Other products and services, such as Red Carpet Clubs, EasyUpdate and EasyCheck-in, remain available to meet your travel needs.

The decision to take this course of action was not an easy one. But it will ultimately enable United to remain competitive and better serve you for the long-term. We will continue to keep you informed of significant news at United. I also invite you to visit our web site at www.united.com for the latest news and information.

On behalf of all United employees worldwide, we appreciate your continued support and loyalty.

Sincerely,

Glenn F. Tilton
Chairman, President and CEO


If you would like to receive a copy of the notice of commencement of United's Chapter 11 cases, which, among other things, provides information about meetings of creditors, deadlines for filing proofs of claim, and case management and notice procedures, you may do so by visiting www.pd-ual.com or by contacting the Poorman-Douglas Corporation at 1-877-752-5527 or 503-277-7999.
  Privacy | Subscribe/Unsubscribe  ©2002  United Air Lines, Inc.  
This email message and its contents are copyrighted and are proprietary products of United.
© Copyright 2002 United Air Lines, Inc. All rights reserved.

For more on the continuing saga of United Airlines - and our prediction for its fate - check our article in the LINKS section - just click here.

Return to case studies.

If you came to this page from outside the Thompson Group web site.
Click here!