History History of United Airlines

1 history

1.1 beginnings
1.2 expansion national carrier
1.3 de-regulation
1.4 strike of 1985
1.5 record-setting flight
1.6 employee stock ownership plan
1.7 turn-of-the-21st-century developments
1.8 september 11, 2001 attacks
1.9 bankruptcy , reorganization
1.10 beyond chapter 11
1.11 2009 recession, fuel efficiency issues , new jet orders
1.12 merger continental
1.13 2013 fine
1.14 2015 grounding of flights
1.15 2017 passenger removal controversy

history
beginnings

united airlines creation of aviation pioneer william boeing started out in airplane business in 1916. boeing airplane company, called, achieved first international postal delivery in 1919 , went on establish united aircraft corp. in 1928. uac acquired mail , passenger service operator pacific air transport on 1 january 1928, then, renamed boeing aircraft & transport co., merged pratt & whitney aircraft in 1929 form united aircraft , transport corporation (uatc). uatc acquired america s first scheduled passenger services carrier stout air services on 29 april 1929, nation s first scheduled service (mail only) operator varney air lines in 1930 and, finally, national air transport (a large chicago-based mail-only carrier) on 7 may 1930. on march 28, 1931, uatc formed corporation united air lines, inc. manage airline subsidiaries. united airlines makes claim oldest commercial airline in united states dint of varney acquisition.

varney founded walter varney in boise, idaho. varney s chief pilot, leon d. lee cuddeback, flew first contract air mail flight in swallow biplane varney s headquarters in boise, idaho, railroad mail hub @ pasco, washington, on april 5, 1926 , returned following day 200 pounds of mail. varney airlines original 1925 hangar served portion of terminal building boise airport until 2003, when structure replaced.

through string of successful acquisitions, 1930, united air lines provided coast-to-coast passenger , mail services. took 27 hours fly route, 1 way. boeing air transport hired registered nurse, ellen church, assist passengers. united claims church first airline stewardess.

following air mail scandal of 1930, air mail act of 1934 banned common ownership of manufacturers , airlines. uatc s president philip g. johnson forced resign , moved trans-canada airlines, future air canada. uatc broken 3 separate companies. uatc s manufacturing interests east of mississippi river became united aircraft (the future united technologies), while manufacturing interests west of mississippi became boeing airplane company. airline interests became united air lines. airline company s new president, hired make fresh start airmail contracts re-awarded in 1934, william a. patterson, remained president of united airlines until 1963.

expansion national carrier


united air lines route map, 1940

united s routes, formed connecting air mail routes, east-to-west new york city via chicago , salt lake city san francisco, , north-south along west coast. connections became basis of united hubs in chicago , san francisco , later in denver , washington, d.c. these remain united s principal hubs.

united introduced boeing 247 in 1933; first time passengers fly across without overnight stop or changing planes. summer fastest flight left newark @ noon (probably est) , arrived san francisco @ 0655 pst after 8 stops; fare $160 one-way, $2,868 in today s value.

on night of october 10, 1933 united boeing 247 exploded in mid-air , crashed near chesterton, indiana, killing 7 people aboard. investigation revealed explosion caused nitroglycerin bomb placed in baggage hold. united airlines chesterton crash believed first proven case of air sabotage in commercial aviation history. no suspects or motives ever found.

early 1950s 100,000 mile club award plaque (stars represent additional awards)

during world war ii united-trained ground crews modified airplanes use bombers, , transported mail, material, , passengers in support of war effort. airline quite busy covering need air transport across united states during war. fleet of fifty aircraft utilized @ rate of more thirteen hours per day 1945 (well above pre-war rate of less 9 hours per day), flying 100,000 miles per day. post-war united benefited new technologies (like pressurized cabin permitted planes fly above weather) , boom in customer demand air travel. period in pan american airways revived pacific route system later acquired united.

in 1954, united became first airline flight simulators had visual, sound , motion cues training pilots. purchased us$3 million (1954) curtiss-wright, these first modern simulators training of commercial pilots.

ual dc-6 aircraft. similar plane bombed jack graham in 1955

on november 1, 1955 united airlines flight 629, flying stapleton airport in denver portland, oregon, bombed, killing 39 passengers , 5 crew members on board douglas dc-6b. bomb planted jack graham put device in mother s luggage collect on life insurance policy. graham arrested, tried, , executed year after explosion.

united sud aviation caravelle in 1965



ual boeing 747 wearing mid-1970s friend ship scheme @ chicago o hare airport in december 1973

in late 1950s, 3 united planes lost in mid-air collisions killed on both aircraft involved. on june 30, 1956, flight 718 collided trans world airlines lockheed l-1049 super constellation on grand canyon in world s deadliest commercial airline disaster. in 1958, flight 736 crashed in southern nevada after colliding usaf f-100 super sabre fighter jet. , on december 16, 1960, flight 826 hit twa super constellation on new york city. these accidents helped pave way modern air traffic control. in 1958, united received first douglas dc-8, first jet aircraft.

united merged capital airlines on june 1, 1961, displacing rival american airlines world s second largest airline behind aeroflot of soviet union. merger capital resulted in united operating british-manufactured vickers viscount mainline turboprop aircraft ever flown airline. in 1961, united began operating french-manufactured sud aviation caravelle jetliners , u.s. airline ever operate caravelle in scheduled passenger service. in 1968 company reorganized, creating ual corporation united airlines wholly owned subsidiary.

united took delivery of first boeing 747s in august 1970, operating them on longer routes within united states. year later, united, along american, launch customers mcdonnell douglas dc-10, many years served workhorse in both airlines fleets , others around world.

united airlines airline have operated executive one, designation given civil flight carrying u.s. president. on december 23, 1973 president richard nixon flew aboard united dc-10 flight washington dulles los angeles. white house staff explained done conserve fuel not having fly usual boeing 707 aircraft used air force one. in keeping practice of having 2 aircraft available @ times during presidential travel, air force aircraft followed in case of emergency.

in august 1940 united scheduled flights 37 airports. in august 1953, 66 airports on united , 51 on capital; in may 1968 united flew 91 , in november 1978 90 airports.

de-regulation

the third dc-10 delivered united in 1972.

united sought overseas routes in 1960s transpacific route case (1969) denied them expansion; did not gain overseas route until 1983 when began flights tokyo portland , seattle. united became proponent of deregulation due perception regulation, existed, major constraint on united s ability profitably grow. after years of focused work bring deregulation, 1978 airline deregulation act became law.

two planes @ portland international airport in may 1973.

in 1985 united agreed buy ailing pan american world airways entire pacific division, boeing 747sps, , l-1011-500s, , flight crew staffs $750 million. end of 1986 united flew 13 pacific destinations, of purchased pan am.

economic turmoil during 1970s led stagflation , labor unrest, , pressures of 1978 airline deregulation act hampered industry , united, incurred losses @ time when undergoing changes @ top of both united airlines , parent company ual corp. changes due largely retirement of long term senior management members performance driven changes @ top in 1969 , again in 1985 following pilot strike.

in may 1981, 1 week after rival american airlines launched aadvantage, first modern frequent flyer program, united launched mileage plus.

in 1982 united launch carrier boeing 767-200, receiving first 767-200s on august 19.

in 1984 united first airline serve 50 states when started flights atlanta, nashville, memphis, little rock, fargo, casper, jackson, , charleston.

strike of 1985

on may 17, 1985, united s pilots went on 29-day strike claiming ceo, richard ferris, trying break unions. used management s proposed b-scale pilot pay rates proof. american airlines had non-merging b-scale pilots. ferris insisted united had have pilot costs no higher american s, offered united pilots word-for-word contract match american s, or same bottom line numbers. united alpa-mec rejected offer. choice left, achieve parity american s pilot costs, begin b-scale united s new-hire pilots.

united 737-200 in 1974–1993 rainbow scheme

ferris wanted b-scale merge in captain s ranks, more generous american s b-scale, never merged @ all. but, alpa mec insisted merge in new pilot s sixth-year airline. in final hours before strike, issues had been resolved, except time length of b-scale. appeared resolved negotiations continued. alpa negotiators delivered new counter-proposal @ 12:20 am in effort avoid strike. however, mec chairman roger hall, hosting national teleconference odeum (a convention center in chicago suburbs) f. lee bailey, declared strike on @ 12:01 am, on may 17, without further consulting negotiators, of whom believed find agreement on contract terms, if negotiations allowed continue. moments before alpa announced strike deadline, began countdown of final 30 seconds chicago (the odeum teleconference). doing made impossible extend strike deadline, final issues resolved without strike.

mr. ferris changed united s parent company s name ual corporation allegis in february 1987 name change short lived. following ferris termination board, allegis divested non-airline properties in 1987 , reverted name ual corp. in may 1988.

record-setting flight

in 1988, using 747sp-21 purchased pan american world airways, united flew two-stop around-the-world flight raise money friendship foundation, plane loaned . flight made short-lived record fastest flight around globe; within month, gulfstream iv business jet had broken friendship 1 s record.

employee stock ownership plan

united airlines boeing 777–200 saul bass logo @ amsterdam airport schiphol in battleship grey livery, used 1993–2004 , common 2011

the decline of pan american world airways offered opportunities; in 1991 united purchased pan s routes london heathrow airport. in direct negotiations uk government united obtained rights fly heathrow chicago. however, aftermath of gulf war , competition low-cost carriers led losses of us$332 million in 1991 , us$957 million in 1992. in 1992 united purchased now-defunct pan s latin american , caribbean routes , miami gates, united allowed months elapse between pan s demise , launch of service.

in 1994 united s pilots, machinists, bag handlers , non-contract employees agreed acquire 55% of company stock in exchange 15% 25% salary concessions. flight attendants voted not participate in deal, , @ beginning wore buttons saying work here. employee stock ownership plan (esop) made united largest employee-owned corporation in world. united used opportunity create low-cost subsidiary, shuttle united, in attempt compete low-cost carriers.

united used employee-ownership in marketing communications, slogans such employee-owners of united invite come fly friendly skies, don t work here, , thank calling united airlines; please hold , 1 of our owner-representatives shortly.

the financial outcomes of esop decidedly uneven different players. part of esop agreement, united ceo stephen wolf resigned , took consulting job lazard freres, investment company had hired advise united s board during esop buyout process. stewart oran, key legal advisor pilots union, received $5.5 million package join management of new employee-owned company legal counsel after esop formed. united s unions, having larger voice in running company, later bargained significant pay increases, effect short-term. rank , file employees locked stock, got wiped out in eventual bankruptcy. around period (in 1993) united introduced grey , blue color scheme. had been criticized color scheme blended darkness during nighttime operations.

turn-of-the-21st-century developments

in 1997, united co-founded star alliance air canada, lufthansa, scandinavian airlines , thai airways. same year, united opened southwest hub @ los angeles international airport.

united planes parked @ san francisco international airport, 1 of main hubs. united 1 of founding members of star alliance.

in 1995, united became launch carrier boeing 777-200 , had significant input on design. first airline introduce twin-jet in commercial service.

in 1997 john cooperstock, engineer sony corp., , assistant professor @ mcgill university in montreal, quebec, created untied.com, website chronicling complaints service on united, including premier class customers. name untied.com transposes 2 of letters of name united. kevin simpson of denver post said in 2000 untied.com phenomenon mirrors online trend in consumer activism has caught on disgruntled flying public summer travel season.

in 1998, delta air lines , united introduced marketing partnership included reciprocal redemption agreement between skymiles , mileage plus programs , shared lounges. scheme allowed members of either frequent flier program earn miles on both carriers , utilize both carriers lounges. delta , united attempted form cozier codeshare relationship, deal killed alpa. marketing partnership ended in divorce in 2003, paved way future alliance airways.

in may 2000, united announced plans acquire competitor airways in complex deal valued @ $11.6 billion. offer drew immediate scorn consumer groups , employees of both airlines. following year, regulatory sentiment against deal, , united withdrew offer before department of justice barred merger on antitrust grounds in july. 2 airlines subsequently formed amicable partnership led airways entrance star alliance.

may 2000 saw bitter contract dispute between united , pilots union. pilots wanted pay restored levels existed prior pay cuts , concessions taken fund esop. planning busy summer season, united had counted on pilots flying overtime. however, pilots not forced work overtime, , pilots refused fly hours. although united knew have cancel numerous flights if happen, did not hire new pilots make potential shortage. on summer, united had cancel large portion of schedule @ major hubs. eventually, ceo jim goodwin , rest of management had pilots in cockpits , offered pilots 48% increase on 4 years 28% upfront.

september 11, 2001 attacks

as part of september 11, 2001 attacks, 2 of 4 planes hijacked united planes. 1 aircraft n612ua, boeing 767–200 operating united airlines flight 175, flown south tower of world trade center. other n591ua, boeing 757–222 operating united airlines flight 93, crashed in rural pennsylvania after passengers fought against hijackers, , suspected have been directed towards united states capitol building according dhs.

bankruptcy , reorganization

airbus a320-200 landing @ norman y. mineta san jose international airport.

with strong presence on west coast, united benefited dot-com boom boosted traffic (especially premium traffic) san francisco hub. increase temporary , when bubble burst, united in worse position before because had failed keep costs under control, possibly due giving pilots pay raises of 28% in summer of 2000. coupled battered network, post-9/11 decline in air travel , skyrocketing oil prices, company lost $2.14 billion in 2001 on revenues of $16.14 billion. in same year united applied $1.5 billion loan guarantee federal air transportation stabilization board established in wake of september 11 attacks. when iam union failed approve loan guarantee—while other unions approved it—the application rejected in late 2002 , company forced seek debtor-in-possession financing commercial sources cover expected future losses. united made several attempts obtain government loans, enlisting several congressmen , senators help. government rejected application claiming united obtain $2 billion in financing needs emerge protection without federal loan guarantee .

unable secure additional capital, ual corporation filed chapter 11 bankruptcy protection in december 2002. esop terminated, although shares had become virtually worthless. blame bankruptcy has fallen on 9/11, triggered financial crisis in major north american airlines, coupled economic slowdown underway.

united continued operations during bankruptcy, forced cut costs drastically. tens of thousands of workers furloughed, , city ticket offices in closed. airline canceled several existing , planned routes, , eliminated entire latin american gateway , flight crew base @ miami international airport after march 1, 2004. furthermore, reduced mainline fleet 557 (before 9/11) 460 aircraft.

a united boeing 747-400 @ frankfurt airport

at same time, airline continued invest in new projects. on november 12, 2003, launched new low-cost carrier, ted, compete other low-cost airlines. in 2004 launched luxury p.s. (for premium service ) service on re-configured boeing 757-200s jfk airport in new york city los angeles , san francisco. service targeted business customers , high-end leisure customers in coast-to-coast market. in february 2004, airline introduced new blue , white livery blue tulip on tail coincide new advertising campaign.

financial pressure on airline heavy. sars epidemic in 2003 depressed traffic on united s extensive pacific network. spikes in price of jet fuel ate away remaining profits united made. united implemented several fare hikes on overseas routes, citing rising fuel costs, in 2004 , 2005. 2 days after triumphant first flight vietnam, united announced cut u.s. flight capacity 14% after holidays , add more international flights, more profitable.

united took advantage of chapter 11 status negotiate hard-to-cut costs employees, suppliers, , contractors, including cancellation of feeder contracts united express carriers atlantic coast airlines (which became independence air) , air wisconsin (which became airways express carrier).

most controversial of all, however, 2005 cancellation of pension plan, largest such default in u.s. corporate history. renegotiated contracts pilots , mechanics unions , association of flight attendants lower pay. criticism leveled @ ceo, glenn tilton, demanding pay cuts employees while receiving highest salary of major u.s. airline ceo.

originally slated exit bankruptcy protection after 2½ years in third quarter of 2005, united requested yet extension in light of record-high fuel prices. on august 26, 2005, bankruptcy court extended airline s exclusive right file reorganization plan november 1, although stated firmly extension last. united announced @ same time had raised $3 billion in exit financing , filed plan of reorganization, announced, on september 7, 2005.

the bankruptcy court approved restructuring plan on january 20, 2006, clearing way united exit bankruptcy on february 1, 2006, , return normal operations.

beyond chapter 11

united airlines boeing 777-200 landing in blue tulip livery.

on december 9, 2004, airline made history when ua869, operated boeing 747–400, landed @ ho chi minh city (formerly saigon), vietnam. scheduled flight san francisco via hong kong (sfo–hkg–sgn) first u.s. airline since end of vietnam war, when pan halted service shortly before fall of saigon in 1975.

united s management called consolidation in industry , looked suitor in 2006. wall street journal revealed in late 2006, continental airlines in merger discussions united. deal not or imminent, talks being in preliminary state. in interim, increased ties british carrier bmi , aloha airlines. in april 2007, united , british carrier bmi announced merge trans-atlantic operations . merged operations have begun in march 2008, lufthansa’s takeover of bmi preempted 2 carrier’s plans when bmi’s transatlantic flights terminated. united’s may 2007 acquisition of equity stake in longtime partner aloha airlines short-lived aloha ceased operations in march 2008. on june 14, 2007, cfo jake brace said company still looking tie knot suitable merger partner.

in years following united’s exit bankruptcy, 2 large financial firms, bank of america , fidelity investments, accumulated shares become second largest owner 11 percent stake in company. mentioned earlier, industry environment ripe pressures merge , consolidate. pardus capital management lp, hedge fund owned 7 million shares of delta , 5.6 million shares of united, called 2 carriers merge. action sent shares of both airlines short-lived , became moot because delta wedded northwest.

the surge in jet fuel prices caused disruption united’s impending start of non-stop long-haul services. though faa had awarded sfo guangzhou, china united, postponed launch citing high fuel prices. other long-haul city pairs, such 2009 application fly between los angeles , shanghai (which began may 2011) denied faa.

during time of turmoil brought on external forces, united explored options reestablish financial footing , raise capital. these changes included:

divesting of maintenance, repair , overhaul operations @ sfo.
spinning off cargo division.
spinning off mileage plus frequent flier program.

these spin-offs , divestitures have not come fruition.

on february 19, 2008, westin hotels & resorts announced refreshed partnership united westin provide products heavenly bed line on p.s. routes.

in may 2008, american customer satisfaction index scored united airlines second-last among us-based airlines in customer satisfaction 21% decrease since study began in 1994 , 11% decrease on previous year.

on june 12, 2008, united announced charge $15 first checked bag, becoming second united states airline so, first being american airlines. charges, while not affecting every united flight, created in effort offset high fuel prices.

on june 28, 2008, united announced cessation of several international routes including san francisco–nagoya , chicago – mexico city.

a united airlines boeing 767-300er taking off london heathrow airport, england. (2007)

on september 8, 2008, price of ual shares fell 99% in fifteen minutes $0.01 amid rumors of bankruptcy, before nasdaq temporarily halted trading. rumors traced old story on south florida sun-sentinel website 2002 bankruptcy being picked google news , subsequently presented bloomberg lp breaking story. share price subsequently recovered of value. on february 1, 2006, united emerged chapter 11 bankruptcy protection under had operated since december 9, 2002, largest , longest airline bankruptcy case in history of industry.

on april 27, 2008, reported ual corporation , airways group, inc. in advanced stages of merger negotiations well. sources stated merger expected announced within 2 weeks of report. united pilots vociferously rejected proposal , vowed fight it. star alliance co-founder lufthansa ceo wolfgang mayrhuber threw support behind marriage of partner carriers united , airways.

on june 4, 2008, united announced close ted unit , reconfigure them return mainline configuration, compensate removal of united s boeing 737s retired. retirement plan included boeing 737s , boeing 747s, reducing mainline fleet 460 359 aircraft , furthering airline s goal of cutting domestic capacity 15 percent. on january 6, 2009, ted ended operations converting entire fleet united mainline fleet. ted flights changed united mainline flights.

in january 2009, united announced code-sharing agreement aer lingus flights between washington dulles , madrid. aer lingus operate service, permitted under recent open skies agreements between , eu.

in 2009, united entered extensive partnership continental airlines. partnership included codeshare , frequent flyer agreements. part of agreement, continental left skyteam , joined star alliance. elite members of each airline s frequent flyer program received benefits on both airlines.

as of may 2009, u.s. department of transportation rated ual eleventh among 19 carriers in lost, damaged, delayed or pilfered baggage 3.67 complaints per 1,000 passengers. in july 2009, viral music video, united breaks guitars released disputed damaged baggage claim airline. united said use video staff training tool company improve internal corporate culture relating customer relations in area of services.

on october 28, 2009, united flew final boeing 737 flight, ua flight 737. retirement flight flew washington-dulles san francisco via chicago-o hare, denver, , los angeles, united s main hubs. united s 737 retirement particularly significant, u.s. launch customer of 737 family in 1967, , operated variants of type 42 years. while united retired 737s had in 2009, airline ended regaining 737s merge continental.

2009 recession, fuel efficiency issues , new jet orders

in april, 2009, united eliminated ability call customer service, leaving reservations agents reachable contact airline.

in june 2009, united asked manufacturers boeing , airbus submit proposals sell airline 150 jets in winner-take-all competition. united taking advantage of declining sales @ both plane makers reap steep price reductions; large size of prospective order influence pricing. wall street journal cited average ages of 4 types of jets in united s fleet follows:

boeing 747-400 – 13 years
boeing 777-200er – 10 years
boeing 767-300er – 14 years
boeing 757-200 – 17 years

merger continental

united airlines boeing 777-200 taking off los angeles international airport on december 25, 2010. new branding combines united brand continental airlines livery introduced in 1991.

on april 16, 2010, united resumed merger talks continental. board of directors of both continental , ual corporation s united airlines reached agreement combine operations create world s largest airline on may 2, 2010. combined carrier take united airlines name use continental s logo , livery. carrier headquartered in chicago , continental ceo jeff smisek ceo of combined airline. merger contingent upon shareholder , regulatory approval.

the continental-united merger approved european union.

continental , united airlines revealed new logo, based on continental s logo, used post-merger united. on august 27, 2010, justice department approved continental-united merger. partially because united , continental agreed lease 18 take-off , 18 landing slots @ newark liberty international airport southwest airlines. on september 17, 2010, united shareholders approved merger deal continental airlines. both carriers planned begin merging operations in 2011 form world s biggest carrier , expected receive single operating certificate late 2011. continental s single operating certificate (soc) (using united name) retained, whereas of united , air micronesia surrendered. on other hand, united s maintenance certificate survive , continental s lapse.

on october 1, 2010, ual corporation (the parent company of united airlines) completed acquisition of continental airlines , changed name united continental holdings, inc. although 2 airlines remain separate until operational integration completed (by mid-2012), of mid-2011 both airlines corporately controlled same leadership. united , continental announced united mileage plus remaining frequent flyer program of 2 airlines, , renamed frequent flier program mileageplus.

the airline received single operating certificate faa on november 30, 2011.

united airlines, inc. merged continental airlines, inc., continental airlines, inc. being surviving corporate entity , wholly owned subsidiary of ual corporation, on march 31, 2013. continental airlines inc. made decision change name united airlines in order conserve built-in brand equity of pre-merger legacy united airlines.

2013 fine

the united states department of transportation fined united $1.1 million lengthy tarmac delays @ o hare international airport in july 2012. largest fine yet leaving passengers stuck on planes. fine 13 flights carrying total of 939 passengers delayed longer 3 hours during severe thunderstorms , lightning on july 13, 2012. flights little 2 minutes on limit, 1 held 4 hours , 17 minutes. 2 united express regional flights had inoperable lavatories during part of delays.

2015 grounding of flights

on tuesday, june 2, 2015, united airlines flights grounded.

on wednesday, july 8, 2015, united airlines flights grounded again on 2 hours after computer glitch. glitch blamed on router failure.

2017 passenger removal controversy

on april 9, 2017 dr david dao forcibly removed united express flight 3411 sustaining injuries in process. after plane had been boarded 4 members of staff presented flight. company offered compensation seated passengers give seats had no volunteers , 4 selected passengers told must leave plane. dr dao refused instruction , law enforcement officers called. activity video-recorded several passengers , officials , resultant publicity , subsequent handling of incident united airlines pr disaster.