Flying through the pandemic with the new United CEO
There’s rarely an easy time to become CE of an airline, in an industry with near-constant turbulence. Try doing it during a pandemic. United promoted Scott Kirby to CEO six weeks ago in a long-planned transition. He had already slashed schedules 88%—far more aggressively than competitors. He took on a lot more debt, mortgaging its frequent-flier program and selling new shares of stock to raise $10.65b in cash in addition to a $5b federal bailout. He never promised an empty middle seat, instead filling up the few planes United was flying, but was among the first to require mask-wearing onboard. United shares, up 38% through Wednesday since he took over May 20, have outperformed rivals Delta, American and Southwest. “You play the cards you are dealt,” says Kirby, 52. He succeeds Oscar Munoz, who is now United’s executive chairman. Kirby is known more for quick, data-driven decisions than for nuance. But he also angered customers when United, which had pledged to be more customer-friendly after dragging a passenger off a plane in 2017, changed policies this spring to deny refunds and force vouchers for cancelled flights. United’s rules changes violated DoT regulations and left millions of customers with significant dollars locked up at United for cancelled trips they might never reschedule. The changes were ultimately rolled back under pressure from customers, Congress and the DOT. Does he regret the unfriendly customer change? Kirby says he is committed to doing the right thing for customers. Story has more.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-07-02/star/flying-through-the-pandemic-with-the-new-united-ceo
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Flying through the pandemic with the new United CEO
There’s rarely an easy time to become CE of an airline, in an industry with near-constant turbulence. Try doing it during a pandemic. United promoted Scott Kirby to CEO six weeks ago in a long-planned transition. He had already slashed schedules 88%—far more aggressively than competitors. He took on a lot more debt, mortgaging its frequent-flier program and selling new shares of stock to raise $10.65b in cash in addition to a $5b federal bailout. He never promised an empty middle seat, instead filling up the few planes United was flying, but was among the first to require mask-wearing onboard. United shares, up 38% through Wednesday since he took over May 20, have outperformed rivals Delta, American and Southwest. “You play the cards you are dealt,” says Kirby, 52. He succeeds Oscar Munoz, who is now United’s executive chairman. Kirby is known more for quick, data-driven decisions than for nuance. But he also angered customers when United, which had pledged to be more customer-friendly after dragging a passenger off a plane in 2017, changed policies this spring to deny refunds and force vouchers for cancelled flights. United’s rules changes violated DoT regulations and left millions of customers with significant dollars locked up at United for cancelled trips they might never reschedule. The changes were ultimately rolled back under pressure from customers, Congress and the DOT. Does he regret the unfriendly customer change? Kirby says he is committed to doing the right thing for customers. Story has more.<br/>
