Attention Economy


Tuesday, April 11, 2017

United Airlines – A Case Study in What Not to Do

Atrocious behavior by the American carrier United Airlines creates a global viral storm and real financial consequences:

Domestic US airline industry is a protected sector with lousy service and uncompetitive prices – Foreign carriers are not allowed to fly on domestic routes in the US.
Dangers of declining competition – [Guardian piece]: 
America's airlines are shameless. But United has just set a new low
“But, really, is anyone actually surprised at United’s lack of compunction? Thanks to deregulation and industry consolidation, the power relationship between airlines and customers is dramatically skewed in airlines’ favour. Carriers can basically do whatever they like and get away with it. After all, what are you going to do? Take a bus?
Short of boycotting flying altogether there’s basically no way for customers to hold airlines to account. So we just hand them our money and grin and bear it. We expect airlines to be awful. And low expectations are lucrative; while airlines like to cry poor to justify incessant cost-cutting, last year global airlines made profits of $35bn.”

Related:
Heather Olen notes:
https://www.nytimes.com/2017/04/11/opinion/united-airlines-is-not-alone.html
“Too many companies — not to mention the government — are treating all but the very wealthiest with contempt.”