Sunday, October 4, 2015

United Airlines CEO Oscar Munoz adopts new strategies; accepts the faults – NYC Today

United Airlines CEO Oscar Munoz has started his tenure with an apology from his company for not taking enough care of its customers and employees. The CEO said that situation at the airline has started improving and he will ensure that United Airlines meets expectations of its customers. United Airlines and Continental merger has left many people fuming, especially employees.

In a video message, CEO Oscar Munoz said that since he took over the control on September 8, many steps have been taken to ensure higher flyer satisfaction and better performance of employees. Frequent fliers have given a mixed response to CEO's message, according to a report published in Fortune magazine. In a recently writer letter to staff, Munoz said, "I recognize that the journey hasn't always been smooth and it won't be fixed in a day. This is a marathon with a running start. I'm ready to take this team forward. It's time for a new day. Come with me."

There are a few positive things about the way Munoz is ready to accept the mistake United Airlines management has made in the past. And, he is ready to fix the problem. And, he has asked for some more time to streamline the things and improve the operations of the airline.

With a personal message from CEO Munoz, United Airlines published advertisements in 13 publications across the country. United Airlines has also launched a website UnitedAirtime.com for customers to give their valuable feedback. The company will continue to focus on improving customer experience.

Continental and United Airlines merged in 2010. United Airlines is affiliated with Star Alliance. In 2014, United Airlines suffered another setback to its Airline Quality Rating (AQR) to -1.62 from -1.43 in 2013.

United Airlines also fared bad in on-time performance. For United Airlines, on-time performance declined to 76 percent in 2014 compared to 79.3 percent during 2013.

Customer complaints increased to 2.71 for every 100 thousand flyers compared to 2.14 in year 2013. Mishandled baggage reports increased to 3.67 for every 1,000 passengers compared to 3.67 in 2013.

Clearly, on most of the factors representing the quality of service, United Airlines performed worse in 2014 compared to 2013.

On Skytrax, customers gave a rating of 3 out of 10 to United Airlines. However, with Mr. Munoz in control, we can expect improvement. Or maybe the airline has already hit the bottom and only way ahead is improvement.

According to Bloomberg report, "Munoz became president and CEO after the board replaced Smisek amid a government probe and an internal investigation into the airline's dealings with the Port Authority of New York & New Jersey."

In his earlier message to employees, Munoz said, "We've heard that you want to be empowered to do good work with effective tools. We will give you the right tools to deliver the service and reliability I know we are capable of."

In few months, we might see how United Airlines will perform under Mr. Munoz. Munoz has not yet announced any changes to United Airlines team.

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