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United Execs Outline 2020 Plans

By Michael B. Baker / October 30, 2019 / Contact Reporter
Business Travel News on X

United Airlines at its recent Media Day in Chicago outlined its product, network and investment strategy for 2020, a year in which CEO Oscar Munoz said the goal was "changing how you feel about flying us."

One of the announcements to generate the most buzz and questions was the carrier's plans to install new overhead storage on 80 percent of its mainline fleet by 2023. SVP and chief customer officer Toby Enqvist said the bins will have the capacity for every passenger to store one large carry-on bag. That will speed up the boarding process, as the scarcity of space is the big driver of passengers massing around the boarding area to get on board first to avoid the "dreaded gate-checked bag," Enqvist said. "This will put an end to needing to gate check bags."

The new bins will begin appearing next year, he said. Despite the new space availability, United has not made any plans to change its Basic Economy policy, which does not allow those passengers to bring full-size carry-ons onboard, he said.

Among the carrier's other announcements:

Network growth: United's growth strategy is centered on "being the leading airline for business travelers in the United States," based on its figures that 75 percent of business travel traffic in the U.S. flies out of one of its hubs, EVP and chief commercial officer Andrew Nocella said.

Two key business routes from Newark are on tap for expansion next year, he said. In March, United will add a sixth daily fight between London and Newark, meaning the carrier will have hourly service between New York and London from 6 pm to 10 pm in addition to its 8:30 am flight. It also is boosting service between Newark and Washington Reagan to 13 daily flights on two-cabin regional jets.

Other service additions from Newark include Cape Town later this year, Curacao in December, Nice and Sicily in 2020 and additional service to Frankfurt and Amsterdam in March, he said.

Domestically, United will boost its premium capacity next year. It will increase domestic first class seats by 11 percent, and lie-flat seats on transcontinental flights will increase from 680 daily to 780 daily, according to Nocella.

New regional aircraft: United's two-cabin, 50-seat Bombardier CRJ-550 aircraft began flying this week, with service out of Chicago O'Hare to Allentown, Pa.; Bentonville, Ark.; Cedar Rapids, Iowa; Cincinnati; Columbus, Ohio; Des Moines; Grand Rapids, Mich.; Greensboro, N.C.; Harrisburg, Pa. Indianapolis: Madison, Wisc.; Oklahoma City; Richmond, Va.; St. Louis; and Tulsa. More cities will be added out of Chicago, Newark and Washington Dulles in the coming weeks.

Latin America partnership plans: United is working to bring Brazilian carrier Azul into its planned joint venture with Avianca and Copa. The recently announced strategic partnership plans of Delta and Latam, which ended Latam's planned partnership with American Airlines and will ultimately see Latam leave the Oneworld alliance, has reshaped competition in the region, United president Scott Kirby said.

"The No. 1 and No. 2 [carriers in the region] were American and Latam, and they were together," Kirby said. "With Copa—one of the best managed airlines in the entire word—Avianca and Azul, the four of us together can get a joint venture that gives us a shot at being number one."

United already holds a minority stake in Azul. The carriers have not yet filed for antitrust immunity with the U.S. Department of Transportation.

Tech enhancements: United is rolling out a three-dimensional virtual cabin tour of its aircraft as part of the seat selection process on its website, EVP of technology and chief digital officer Linda Jojo said. The feature already is available for its new CRJ-550 aircraft, and the carrier is working to expand it across other aircraft types as well, she said.

In addition, United is working on tech enhancements at its hub airports, including an indoor GPS network at Chicago O'Hare, with which passengers can map out step-by-step directions to their gate via United's app. Meanwhile, Apple, which Jojo identified as a "great customer" of United, is working with the carrier to on "design and technology" that will "transform the airport experience" out of its San Francisco hub. So far, Apple has been onsite to look at baggage holding areas, lobbies and customer service at the airport, Jojo said.

Meal selection: United first class passengers on domestic flights next year will be able to select their meal choices 24 hours in advance, and options will be expanded beyond the usual two choices per flight, Enqvist said.

In addition, United is working to add more plant-based, healthier options to its menus. Meanwhile, flight attendants are moving to a digital method of recording passenger meal choices, which will give the carrier more data on what's popular among passengers and which items need to be phased out. 

If recent history is any indication, those travelers not on a health kick will still be satisfied, according to Enqvist. "The hamburger and Buffalo mac and cheese are our two top chosen meals," he said. "Those are not the most healthy, but I'm not here to judge."

Clear expansion: Expedited security program Clear opened lanes at Houston's George Bush Intercontinental Airport's terminals B and E on Wednesday and are launching in Newark's Terminal C on Friday, which means Clear is available at six of United's seven mainland U.S. hubs. Clear lanes at O'Hare, as well as Houston's Terminal C, are coming "very soon," VP of loyalty and head of MileagePlus Luc Bondar said.

MileagePlus partners: United already is a partner of Marriott's Bonvoy rewards program, with such benefits as status matching available. On Nov. 1, United will begin testing a luggage delivery service on its flights from Newark to London with Marriott, in which Polaris passengers can drop their baggage off after clearing customs and immigration in Heathrow and have them delivered directly to their hotel room at five Marriott hotels in the city: JW Marriott Grosvenor House London, London Marriott Hotel Canary Wharf, London Marriott Hotel County Hall, Sheraton Grand London Park Lan and St. Pancras Renaissance Hotel London. Based on its success, United will be looking at other markets in which it can expand that program, Bondar said.

In addition, United has forged a new partnership with jet lag management app Timeshifter, in which MileagePlus members can get free or discounted membership to the app.

Eco-fuel investment: United has pledged $40 million toward an investment vehicle "dedicated to revolutionary technology, entities, individuals and companies trying to create alternative sources of fuel," United president Scott Kirby said. The investment is on top of an agreement earlier this year for United to buy up to 10 million gallons of sustainable aviation fuel over the next two years.

Updated Thursday, Oct. 31 at 12:22 p.m. Eastern to include United's announcement that it is launching a Clear lane for Newark Terminal C launch on Friday, November 1.

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