Turbulent Times for United Airlines
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Case Code: BSTR308 Case Length: 17 Pages Period: 1970-2008 Pub Date: 2009 Teaching Note: Not Available |
Price: Rs.300 Organization: United Airlines Industry: Aviation Countries: United States Themes: Business Strategy |
Abstract Case Intro 1 Case Intro 2 Excerpts
Abstract
United Airlines (United), the first commercial airline in the US, began operations on April 6, 1926. By the 1960s it was one of the largest airlines in the world. However, several problems began to arise in the 1970s, which severely impacted its business. With labor problems and financial losses, the airline found itself struggling to survive. In 2001, the conditions further deteriorated and the company was compelled to file for bankruptcy. Although the operations continued after it came out of bankruptcy, many of the company's cost-cutting measures came in for criticism, for infringing employee rights and benefits.
Issues
The case is structured to achieve the following teaching objectives
- To understand the problems faced by United from time to time, and how the company dealt with the problems
- To understand the reasons behind the company's poor performance and analyze its strategies
Contents
Keywords
United Airlines, Commercial Airline, The Airline Deregulation Act, Operational cost, Labor cost, Employee Stock Option Plan, Bankruptcy, Debtor-in-possession financing, Restructuring
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