The history
Boeing, Rentschuler, and others founded United Airlines under the original name of United Aircraft Transport Corporation. During the post-World War II era, the economic boom filtered into the airline business. This time frame commenced the rise of this great airline company. Sadly, the current decade has not been as kind as previous ones have been.
Hard Times
Problems had been building up for years, but the problems hit the fan in 2002. The Air Transportation Stabilization Board (ATSB) denied a $1.8 billion loan to the airline. Shortly thereafter, UA filed for chapter 11 bankruptcy. According to a recent article in The Washington Post, UA was denied another claim by the ATSB, this time for $1.1 billion. This month, it was also announced that international fares had increased 5 percent due to the rise in crude oil prices.
Their financial woes spilled out into investor relations as well. United Airlines decided to cancel its stock and its preferred shares. Basically, all UA equity will be ceased. According to the company’s website, UA has decided to take these drastic measures in order to “exit from bankruptcy.”
Not all is lost
In July 2004, UA reported a traffic increase that rose to 16.9 percent, a big leap from the same time last year. Its load factor, which is basically the number of seats occupied on a given flight, grew strong at about 86 percent. Their frequent fliers (the Milage Plus Program) also seemed not to mind the company’s troubles; the newspaper reported that the company has an estimated 40 million frequent fliers.
Programs
Even though the airline has struggled, they still offer three viable traveler programs to customers. They are the following:
- GroupPlus Program — this program allows groups of ten or more to have reduced airfare and guaranteed available space for travel companions.
- United College Plus — this program is basically a frequent flier program for students.
- Silver Wings Plus Program — this program provides savings for those who are 55-years-old and over.
In addition to these programs, the airline also offers savings and resources for business travelers. Indeed, UA continues to provide, even through hardships.
Great offers and deals still available
Hertz and United Airlines have teamed up to offer a free rental day (if you rent for two days). The stipulation is that the flight must be booked on the company’s website. Hurry, this offer ends very soon.
There are also great deals on flights in the western and eastern hemispheres. There are special deals for trips to Mexico, Europe, and even Las Vegas. Another great travel deal is to the great island of Bahamas. If you live in major cities, special discount offers are available. If you live in Chicago, you’re in luck. The price for a Chicago to Bahamas flight costs only $159, definitely a good deal.
Check their website often to stay updated on any deals you might want to take advantage of.
Throughout history, United Airlines has been resilient, even during the smoking ban in the early 1990s. This company has a track record of being tough. You don’t get to be 75-years-old because you’re stupid.
Fasten your seat belts, and enjoy your flight!
By Michelle Presbury