United Airlines is struggling to fill transatlantic economy class seats at reasonable fares, but is making up the difference by capitalizing on a robust market for premium seats, an executive said Wednesday at an investor event in Miami Beach, Florida.

The admission is not a surprise. Many airlines have increased transatlantic capacity in the past three years. Discount airline Norwegian Air has grown most — it’s the biggest foreign airline flying to the New York area and flies to 17 U.S. airports — but legacy carriers also have expanded, in part as a competitive response.

In spring and summer, airlines fill economy class seats at decent fares with U.S and European vacationers. In winter, that’s tougher. Even with fare sales, airlines have trouble persuading Americans to visit Paris or Barcelona in January.

“The economy class transatlantic has been challenging,” Dave Bartels, United’s vice president for revenue management, said at the Barclays Industrial Select Conference 2019. “You saw it in the first fourth quarter and this quarter as well. That is a weaker spot relative to others in our network.”

Premium travel is stronger for several reasons. Norwegian does not have flat-bed business class seats, so legacy carriers can set high prices without fearing an upstart will undercut them. And with the economy strong, businesses and premium leisure travelers are willing to pay high prices for a better experience. They’re not nearly as price-sensitive as coach flyers.

“The business class side still looks good,” Bartels said. “That has helped consistently through this time.”

It’s important, as United is placing a big bet on premium transatlantic cabins. United soon will introduce a new configuration for 21 of the Boeing 767-300 jets it flies from the Midwest and East Coast to Europe.

Instead of the usual 30 seats in business class and 184 in economy, United is reconfiguring planes to have 46 seats in business class, 22 in premium economy and 99 in economy class.

United has said it expects the special configuration to fly to business-centric destinations, including London.

Basic Economy Update

United is the only full-service U.S. airline that does not allow passengers buying its cheapest fares to bring a large carry-on bag for free.

American had a similar no-bags policy for its no-frills fares, called basic economy, but pulled it in September, saying it was uncompetitive. Some wondered if United might follow to align its policies with Delta Air Lines and American.

But on Wednesday, Bartels said United’s offering is competitive.

“We rolled it out pretty aggressively and maybe went a little too far, too quickly and scaled that back,” he said. “Now we are in a place where there is parity in terms of the scope of the rollout at least with our primary competitors.”

Pilot Discussions

Since Scott Kirby joined United as its president in August 2016, the airline has moved quickly to fix what he viewed as past mistakes, altering orders for jets, strengthening hubs, and adding capacity so it could regain the “natural share” it lost to American and Delta under previous management.

But one major item remains. Kirby seeks to renegotiate a contract with United’s pilot union that would allow United to add more 76-seat regional jets. United hires contractors to operate these airplanes, and their pilots are paid less than United pilots.

United’s current contract with its pilots puts limits on how many of these large regional jets the airline can use. United can only add more if it also adds roughly 100-seat airplanes flown by United pilots. Kirby has said he is not interested in buying 100-seat jets.

Jonathan Ireland, vice president for finance, told investors Wednesday the airline having “healthy and productive conversations,” with the Air Line Pilots Association.

The union did not respond to a request for comment, but union leaders have said they little interest in changing this clause of their contract.

As a short-term fix, United is taking larger regional jets and putting fewer seats on them, as the pilot contact permits. But that’s probably not the most efficient long-term solution.

“We have still been able to execute a growth plan without having that, but of course we would be a more profitable airline with it,” Ireland said.

CHICAGO, Feb. 22, 2019 /PRNewswire/ — United Airlines today named transportation industry veteran Robert S. Rivkin senior vice president and general counsel. For the last three decades, Rivkin has drawn on his exceptional legal skills while serving in leadership positions in the airline industry, the U.S. Department of Transportation (DOT) and local government.  Rivkin brings this unique background and extraordinary skill set to a top role at one of the world’s leading airlines. At United, he will be responsible for all legal matters, as well as ethics, compliance, government contracting and security. Rivkin will report to Executive Vice President and Chief Administrative Officer Brett Hart.

“Bob’s distinguished career in public service, the legal community and the airline industry make him an ideal fit for this critical role on our United team. He’s a proven leader who will make an immediate impact as we work to fulfill United’s incredible potential,” said United Airlines Chief Executive Officer Oscar Munoz.

Rivkin is no stranger to the commercial aviation industry, having served as deputy general counsel for Delta Air Lines from 2013 to 2016. Prior to joining Delta, he served as general counsel for the DOT from 2009 to 2013, where he was sworn in following a unanimous confirmation by the U.S. Senate. Currently, Rivkin serves as the deputy mayor of the City of Chicago.  He has also worked in private law practice and as a federal prosecutor.

Rivkin graduated magna cum laude from Harvard College, and received a juris doctorate degree from Stanford Law School, where he was an associate editor of the Stanford Law Review. Rivkin and his wife of more than 30 years have three children. Rivkin’s last day as Chicago’s deputy mayor will be February 28, and he will start his new role at United the week of March 18.

Every customer. Every flight. Every day.

In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers’ best interests at the heart of its service. In addition to today’s announcement, United recently released a re-imagined version of the most downloaded app in the airline industry and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats. The multimillion-dollar investment in improving inflight entertainment options will benefit the more than 29 million people expected to fly United’s DIRECTV-enabled planes this year.

About United

United’s shared purpose is “Connecting People. Uniting the World.” We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world’s most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline’s United Express carriers operate 559 regional aircraft. United is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United’s parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol “UAL”.

 

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United Airlines is within its rights to cut off Expedia from selling tickets for flights after October due to a contractural dispute, the carrier said Friday in a federal court filing, a reply to what it called a “meritless” lawsuit filed by the online travel agency earlier this month.

In a complaint filed Feb. 4 in federal court in New York, Expedia acknowledged its contract with United ends Sept. 30, but said it may sell whatever tickets it wants until then, even for flights that depart late this year or early in 2020. United said is contractually permitted to stop Expedia from selling post-September flights if it wants, so it can have an “orderly wind-down” of the business relationship.

“Limiting ticketing authority to flights that depart during the duration of the parties’ contract is a common-sense solution to an obvious and impeding problem, and a solution that is entirely permissible and appropriate under the parties’ contract,” United said in its reply.

An Expedia spokeswoman could not immediately be reached for comment despite multiple attempts. In its complaint, Expedia said, “While United may ultimately choose to enter into a new commercial agreement with Expedia when the term of the current agreement ends, it has no right to breach the existing agreement and to unilaterally inflict harm on Expedia and its customers as a negotiating tactic.”

At one point, United had threatened to turn off Expedia’s access as soon as this month, but both companies said Feb. 8 that United would hold off as the litigation played out. 

What’s at Issue

Neither United nor Expedia has said much in public court documents about what’s behind the contract dispute, though Expedia said in its complaint United expressed dissatisfaction with the “economic terms” of the agreement in 2017.

It is possible this will be a temporarily blip as the sides work out their differences. Or it could be a long-term problem, with United’s fares disappearing from Expedia for the foreseeable future.

Regardless, United said, it is not practical for Expedia to sell tickets for post-contract travel. Some flights will need to be changed or canceled, United said, but Expedia will not be able to do so beginning in October. Customers will be confused, and could take out their anger on the airline and Expedia.

In its reply, United argued this is part of Expedia’s strategy. The company, United alleged, may want to sell as many tickets as possible before the contract ends, so it can have more leverage on a new agreement.

“Recognizing that United now intends to walk away from Expedia upon the Sept. 30, 2019 expiration of their contractual relationship, Expedia has resorted to litigation to maximize the number of Expedia customers holding United tickets for flights after the expiration of the parties’ contract,” United said in its reply. “The reason is simple: Expedia hopes that the frustration, disruption, and expense that would otherwise result to these customers will force United to continue working with it after the contract expires.”

United said it had been open to a new deal, but accused Expedia of being an unwilling participant.

“Expedia refused to negotiate,” the filing said, “even as Expedia customers began in greater numbers to book flights set to depart after their contract expired—and even though Expedia, with ample opportunity to protect its customers, now claims it will be irreparably harmed by not being able to service these same customers.”

In the complaint, Expedia said otherwise, telling the court it had pursued a comprehensive negotiation on a new agreement.

The following is United’s answer to the Expedia complaint:

Download (PDF, 166KB)

It took a while, but the recovery is taking shape at United Airlines.

After the deluge of negative publicity surrounding the forced removal of David Dao from a flight from Chicago to Louisville in 2017 and the unfortunate death of a passenger’s pet dog – Kokito – a year later, the US carrier has managed to stem the tide of negative headlines.

All staff have been undergoing what the company calls core4 training in order to better understand the needs of guests, while there has also been a sharp uptick in on-time performance.

Speaking to Breaking Travel News in London, Bob Schumacher, managing director for the UK Ireland at United Airlines, is keen to present 2019 as a fresh start.

“We have a message to share, in terms of a healthy airline, one that is making healthy profits and one that has a story to tell,” he explains.

The new Polaris business class offering has been well-received

With United reporting pre-tax earnings of $2.7 billion last year, the carrier does indeed seem to have turned the page.

A large part of this has been down to a renewed focus on premium passengers – those who make up a big percentage of revenue at any full-service airline.

Later this year United will roll-out its new Premium Plus product, premier economy seating for passengers with budgets just below business class.

This is in addition to the revamped top-end product, Polaris, that has been well received among passengers following its launch a couple of years ago.

As Schumacher continues: “United Airlines has a strong message in 2019, focusing on the increase in premium seats that we are bringing to market, including here in the UK and across Europe.

“The includes the Polaris business class, which has been out now for a while, but is rolling-out across the fleet at a pace of one aircraft every ten days, and, of course, the new Premium Plus, our premium economy seat.

“This is a new product for us in the UK, three rows of seats within the cabin that will have a differentiated service, and it is part of us responding to the marketplace.

“We have seen the premium market being very strong, and we have spilt a lot of passengers here and there, and we don’t like doing that, particularly if they are of the premium sort.

“People have been coming to us, choosing United, and we have not had enough seats in the premium cabin for that – this is our response.”

New Premium Plus seats are the latest addition to the United fleet

In total 21 Boeing 767s are being reconfigured to carry the new Polaris and Premium Plus offering, with these planes set to offer a total of 46 premium seats.

“This is an ideal time for us reconfigure this sub-fleet, those 21 aircraft, as they roll out by the end of September, headed to dedicated destinations, including here in London, as well as New York,” adds Schumacher.

In the tail of the plane, United has also been recalibrating its offering to cater to an emerging, price-savvy generation of travellers.

The new Basic Economy fare seeks to match the price offered by low-cost, long-haul carriers, but to include a superior service.

“This is something you are seeing across all walks of life – you have the young, new traveller, who is price sensitive and has been brought up on Southwest Airlines and Ryanair,” continues Schumacher.

“They have an expectation on a price point, and they are willing to travel without their kitchen sink.

“We have seen the low-cost carries evolve into medium- and long-haul and offer those price points.

“What we did initially, as an industry, was ignore it, but we have now realised it is a significant market in size.

“With Basic Economy we keep the quality of service, in terms of meals and drinks, seat assignment, but also to strip out everything else.

“There has been a real segmentation onboard that aeroplane – at some point we will end up with individual seats with your name embroidered on it,” he jokes.

United has renewed its focus on premium passengers

With a number of low-cost, long-haul carriers – including flag-bearer Norwegian – facing financial trouble, Schumacher is keen to point to the strengths of diversification.

“This unquestionably makes these routes sustainable for us,” he explains.

“Of course, there are many variables, but offering services to 160 million customers a year through several key hubs, which ebb and flow through like a beating heart, is a key to our success.

“Having the right sized fleet, not a uniformed fleet, for the right route and the differentiation of the number of business seats we offer in a market, are real strengths.

“Corporate customers will want their passengers turning up at the other end capable of doing their business – and that is never really going to be offered by a low-cost carrier.”

He adds: “Low-cost carriers, I am sure, had their business case built on metrics that they thought were sufficient to serve their purpose on long-haul routes, we would argue that the ingredients we have are what make us successful.

“Connectivity is key to that – point-to-point works in primary markets, but once you go into secondary, tertiary markets, you will find you need to go through hubs that feed frequency.”

United has recovered from a deluge of negative headlines

Of course, no conversation about aviation in the UK in 2019 would be complete without mention of Brexit and the potential for the UK’s departure from the EU to disrupt the sector.

But here Schumacher is sanguine.

“As a United States-based carrier, with Open Skies with the UK signed, there will be normal operations whatever happens at the end of March,” he explains.

“This is perhaps more of a leisure market issue for travellers in Europe, but we will continue to operate the following day, whichever day that might be.

“It is no different to an election cycle.

“If the pound were to rally, that would also be useful, as we would see more travellers looking to visit the United States.”

Looking ahead there are no new United routes set to debut in the UK in 2019, but several summer services will return.

“We are returning to Denver, with our summer only slot out of London Heathrow, while Manchester will go wide-body for the first time in many years, with a Boeing 767 flying to New York,” explains Schumacher.

“Edinburgh-Washington will also return this summer, after a successful launch last year, as well as Chicago and New York from Scotland.

“We are also celebrating 21-years out of Glasgow to New York.”

The image Schumacher is keen to present is of an airline comfortable with where it is and enthusiastic about where it is going, having put recent troubles behind it.

He concludes: “United tends to reflect what is happening in the wider economy, as we connect business, and the US economy, where we sell 70 per cent of our corporate tickets, is very strong at present.

“We are in a very strong revenue environment, with low unemployment and economic growth, while the strong relationship between the United Kingdom and United States endures – we are set fair.”

More Information

United Airlines and United Express operate approximately 4,700 flights a day to 356 airports across five continents.

The carrier claims the most comprehensive route network in the world, including US mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C.

Find out more on the official website.

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In this era of diminishing legroom, higher checked baggage fees and basic economy fares, an elite group of frequent fliers will never have to contend with any of that. They are members of United Airlines’ quasi-secretive Global Services program, a loyalty status chock full of enviable perks and benefits many fliers will never see.

The status ranks above the four published MileagePlus tiers (Premier Silver, Gold, Platinum and 1K). American Airlines’s ConciergeKey and Delta Air Lines’s Delta 360 are the comparable super-secret VIP programs for those carriers.

These prestigious statuses are a bit of a mystery, and airlines are reticent to talk about them.

“Our Global Services program is by invitation,” an United Airlines spokesperson said. “Since it’s not a published tier of our loyalty program, we don’t publicize this level or the qualification/benefits.”

There’s a general consensus that Global Services members are comprised of the airline’s highest spenders, and it’s also understood that some of United’s most lucrative corporate clients get the status.

The membership is good for one year, and there’s never a guarantee it will be renewed the following year. United needs to invite you back.

“To the best of my knowledge, it’s about how much you spend on first or full-fare international business,” said a Boston-based United Global Services flier who declined to be named for this story. “Most spend plus or minus $50,000 a year on tickets.”

The only published means of getting Global Services status is by flying 4 million miles — roughly 160 times around the earth — on United Airlines or United Express flights. That’ll get you the status for life.

Global Services Benefits

From the moment they arrive at the airport until they leave, Global Services fliers (or just “GS” as insiders say) are pampered with personal attention and preferential treatment. Only members know the full list of benefits that come with the status, but through interviews and our own TravelSkills sleuthing, we’ve been able to compile a few:

They visit special check-in areas at some of United’s hub airports (including at San Francisco International Airport- see the slideshow at the top for a look inside). After dropping off checked bags, they immediately exit these reception areas into the nearest TSA PreCheck lane where they’re first to clear security — jumping ahead of others in the queue.

Since Global Services members are frequently flying on international business class tickets, they get their pick of lounges to visit before flights —although they do not receive complimentary United Club memberships.

These fliers board planes first (meaning they’ll never need to fruitlessly search for overhead bin space), get their first choice of meals, and have an easier time clearing upgrades. (Read more about United’s new boarding process here.)

Special United Global Services airport agents (you can spot them easily because they wear gold ties or handkerchiefs) look after these VIP passengers. They track their flights, monitor connection times, and proactively tend to delays and cancellations before they become headaches for the flier.

These agents frequently meet Global Services passengers at the gate once their planes have landed to greet them, or to whisk them to another gate if they have a tight connection.

If time is of the utmost essence, United will oftentimes send a Mercedes S-class sedan or GL-class SUV for a chauffeured gate-to-gate transfer via the airfield at its hub airports. (See slideshow at the top for a look at one of these cars.)

The real benefits of the status come through when unforeseen things happen, members said. They get access to a special phone number to call when they need to rebook or re-route itineraries. Global Services members are seldom placed on hold.

“The number one most cherished benefit is when there are irregular operations,” said the Boston-based Global Services member. “United fixes it, and they fix it proactively. They do everything in their power to do something.”

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The flier remembered one such instance when his flight out of Shanghai was delayed because of a mechanical problem onboard the plane.

“The Global Services employee boarded the plane, came up to me, and whispered in my ear: the crew doesn’t know this yet, but we are going to cancel the flight. But I’ve booked you on the last business class seat available on another flight home,” the flier remembers the agent saying.

“Everyone else is flying home in coach or staying overnight.”

Who are these people?

The Global Services membership roster — from what we’ve been able to glean — is comprised mostly of those who fly for work for multinational companies or organizations with generous travel budgets. Most travel for business on paid, full-fare, front-of-the-airplane international tickets. Some well-heeled loyal United fliers actually pay this airfare out-of-pocket.

For reference, a round-trip, full-fare, business class flight in mid-March between San Francisco and London on United runs about $19,712.

Many members look at Global Services as a personal achievement, but some don’t even know they have it.

“There’s a bunch of Global Services members that have very large contracts with United that are granted a number of Global Services slots as a thank you for doing business,” the Boston flier said. “Some of those executives fly United, and they don’t know what Global Services is.”

But, “they don’t dislike it.”

If you don’t have Global Services status and you think you deserve it, you’ll have a tough time getting it. United and other airlines employ a “don’t call us, we’ll call you” attitude when it comes to doling out the coveted secret statuses. One place to start, though, would be via your company’s corporate travel manager or travel agency, which have access to your spending and connections to airline sale representatives.

Do you have Global Services or another ultra-elite status or know someone who does? Tell us about it in the comments. 

Read all recent TravelSkills posts here

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Chris McGinnis is the founder of TravelSkills.com. The author is solely responsible for the content above, and it is used here by permission.  You can reach Chris at chris@travelskills.com or on Twitter @cjmcginnis.

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United Airlines ‘deeply saddened’ at death of passenger on flight between Germany and US

United Airlines is extending its condolences to the family of a woman who passed away on a flight from Germany to New Jersey.

United Airlines is extending its condolences to the family of a woman who passed away on a flight from Germany to New Jersey on Wednesday, forcing the aircraft to divert to an airport in Ireland.

“United Flight 961 traveling from Frankfurt to Newark diverted to Shannon due to a medical emergency onboard. Medical personnel met the aircraft at the gate. We are deeply saddened to learn that our customer passed away and we are assisting the family,” the airline confirmed in a statement obtained by Fox News.

MAN SAYS GUN WAS STOLEN FROM AIRPORT BAGGAGE CAROUSEL: ‘THIS IS A NIGHTMARE’

The passenger, identified as a 71-year-old woman, is reported to have suffered a cardiac arrest, according to the Irish Sun. However, a “post-mortem examination” will be conducted at a hospital in Limerick.

Passengers aboard the plane say the cabin crew attempted to resuscitate the woman, administering oxygen and utilizing a defibrillator. Adam Lisberg, who spoke to the Sun, said “a number of people” attempted to perform CPR for between 30 and 40 minutes.

“It’s a sad story but everyone did what they could,” Lisberg told the Sun. “The pilots also did a great job with the landing under the circumstances.”

TAMPA AIRPORT INVESTIGATES THREATS MADE ON MAYOR’S HACKED TWITTER ACCOUNT

Emergency medical crews met the flight at the Shannon Airport upon landing. The woman was relocated to the University Hospital Limerick, the Limerick Leader confirmed.

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Passengers continued on to Newark following the incident, arriving at Newark Liberty International Airport approximately three and a half hours past schedule, the Independent reported.

LAS VEGAS (KTNV) — United Airlines my soon offer new gender options for passengers when they book their flight.

The airlines says “unspecified” and “undisclosed” gender options will be available in the next few weeks in addition to the options “male” and “female.”

Other airlines say they are working on adding more gender options, including Alaska Airlines, American Airlines, Delta Airlines and Southwest Airlines.

The Transportation Security Administration says the ID you use must have the same gender identification at your ticket.

READ MORE

MINOT, N.D. – Air Travelers in North Central North Dakota will soon have another option when planning to head out west.

United Airlines has added a third daily round trip between Minot and Denver. The new flight will add 50 available seats per day.

Minot departures will take place at 6:15 a.m., 3:15 p.m., 8:10 p.m., while arrivals will be 1 p.m., 6:45 p.m., 11 p.m.

The added flight will begin June 6, though reservations are now open.

For information on booking flights, log on to: https://www.motairport.com/​

United Airlines adds third roundtrip flight from Minot to Denver

Copyright 2019 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Minot International Airport is about to have a little more foot traffic.

United Airlines has added a third daily roundtrip flight between Minot and Denver. 

This means Minot will now have three daily flight leaving to and from Denver.

The new flight will begin on June 6th. 

We spoke to the airport director who says he’s hopeful more airlines add more routes in the future.

“We certainly hope that other carriers will sit up and take notice of what United is doing and that they take a serious look at Minot for their service as well,” said Rick Feltner.

Minot airport currently has direct flights to Minneapolis, Denver, Las Vegas, and Phoenix.

Male, or female? U.S. airlines passengers may soon no longer be limited to these two gender choices when purchasing tickets, an airlines trade group announced Tuesday, according to Agence France-Presse.

Starting on June 1, carriers represented by Airlines for America can give customers the options of “unspecified” and “undisclosed” in addition to the conventional choices.

How the member airlines implement the new options will be up to each carrier, according to the trade association, known as A4A.

A number of major carriers, including United Airlines, American Airlines and Southwest Airlines, are members of A4A, AFP reports.

United Airlines said on Twitter that “In the coming weeks, customers will be able to select the gender with which they most closely identify during the booking process.”

Carriers outside this association also appear to be mulling a similar change. Delta for instance, has said it is planning to institute non-binary gender options, according to AFP.

The shift comes amid a growing trend to allow citizens and customers to opt for non-binary labels. Seven states and the District of Columbia allow people to identify as “X” gender on state IDs and in some cases, driver’s licenses, AFP reports.

“Non-binary people face unnecessary, invasive, and discriminatory scrutiny by airlines, airports and security services alike,” said Arli Christian, state policy director for the National Center for Transgender Equality.

“A4A’s work is in line with other states who offer gender neutral designations on IDs and is an important step toward ensuring safe and smooth travel for all passengers regardless of their gender.”

Contact us at editors@time.com.