The parent company of United faces renewed uncertainty after the former CE of Continental Airlines on Tuesday led a proxy battle to join the board and reverse the company’s “substantial and inexcusable . . . underperformance”.<br/>The action fronted by Gordon Bethune comes two days after Oscar Munoz, the company’s CE, announced he would return to work next Monday after nearly five months’ absence following a heart attack. Bethune represents two shareholders that together control 7.1% of the stock in United Continental Holdings, the airline’s parent company, which was formed from a merger of United and Continental in 2010. Altimeter Capital and PAR Capital are seeking to place Bethune and five others on United’s board. Brad Gerstner, CE of Altimeter, said the two shareholders had been “greatly disappointed” with United’s “poor performance and bad decisions” over the past several years. Gerstner is one of the board candidates, as is Rodney O’Neal, the former CE of Delphi Automotive. On Monday, United sought to head off the shareholders’ action by adding three new members to its board, taking the total to 15. Gerstner said that “last-ditch effort” had been a “cynical attempt to preserve power”. “Stockholders and employees deserve a proactive, well-crafted, and diverse board that has the experience required to end years of chronic underperformance,” he added. Altimeter and PAR also published a letter to Henry Meyer, United’s chairman, which said “meaningful change” was urgently required to reverse “longstanding poor board governance and the resulting many years of substantial and inexcusable company underperformance relative to United’s competitors”. Meyer responded that United had attempted to engage in a “constructive, good-faith dialogue” with Altimeter and PAR. He said the announcement of the three new board members, and a fourth that the company intends to name in the future, had shown United’s willingness to make changes to its board.<br/>
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United said on Tuesday it would buy 25 more 737-700 aircraft from Boeing, in addition to an order for 40 of the narrow-body jetliners announced in January. United announced the new order for the aircraft, which can carry 149 passengers, as it cuts its regional fleet of smaller aircraft. "The new 737-700 aircraft are ideal for our fleet as we continue to reduce our reliance on 50-seat aircraft," said Gerry Laderman, United's acting CFO. The order for the 25 737-700s is valued at US$2.01b at list prices. United could pay less than that as aircraft manufacturers tend to offer customer discounts. Deliveries of the plane are expected to begin at the end of 2017. United also announced on Tuesday that it would retire its 747 fleet from scheduled service by the end of 2018. To meet capacity needs, United said it was converting 787 orders, initially anticipated for delivery beginning in 2020, to four 777-300ERs and five 787-9s, with deliveries to begin in 2017.<br/>
It's going to pay to be wearing clothes that scream "effortless LA cool" if you're flying across the Atlantic next month as Air New Zealand rewards the most stylish passengers with free upgrades. In a promotion linked to Los Angeles Fashion Week, Air New Zealand has appointed a stylist to walk the terminals at London's Heathrow airport to give away free upgrades and indulgent treats to those passengers adorned in the most on-trend looks. The promotion has even caught the attention of UK fashion bible Harper's Bazaar, which suggests taking the lead from English beauty Rosie Huntington-Whiteley, who is often snapped at airports after longhaul flights looking fresh and stylish, to land an upgrade. For those struggling in the fashion stakes, the Air New Zealand UK website includes a style guide from the woman who will be casting an eye over passengers. Stylist and former fashion editor Laura Martin describes LA fashion as modern and accessible, which means anyone can play a part in it. The promotion, which runs between April 14-16, not only includes business upgrades but lounge access, pre-departure champagne and free pamper kits for a comfortable journey.<br/>