Transportation Industry

Company Watch - United Airlines

AirGuide Business, Sept 8, 2008

Sep 7, 2008

United Airlines reversed its decision to charge for meals in economy on certain transatlantic flights beginning in the fourth quarter owing to "direct, candid feedback" from customers. However, it said that "in this environment, where higher costs driven by volatile fuel prices are now the norm, we must continue to tailor products and services" and that it will "continue to be proactive in testing new ideas." It plans to proceed with the testing of a free but reduced meal offering in the business cabin on three-cabin aircraft flying domestic routes. United attempted to institute those changes to reduce costs as it posted a $2.7 billion loss during the second quarter and could see a $3.5 billion rise in its fuel bill during 2008. Sep 3, 2008

United Airlines has decided to terminate tests of charging passengers in economy class for meals on certain transatlantic flights after the carrier received negative feedback from its customers. When in trouble, smart airlines pamper their passengers to retain them, not charge them for services they are getting for free. Also, United should have considering the fact that all its major competitors do not charge for meals. Last month United said it intended to eliminate complimentary food on flights beginning 2 September, but would offer buy-on-board products to customers, with business class passengers still receiving complimentary drinks and given buy-on-board options for a particular flight. United attempted to institute those changes to reduce costs as it posted a $2.7 billion loss during the second quarter and could see a $3.5 billion rise in its fuel bill during 2008. In a letter to customers today United praised the "direct, candid feedback" on the tests, explaining it has decided not to move forward and will continue to offer complimentary hot meals on those transatlantic flights tagged for the testing. Sep 2, 2008

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