United Airlines Earns Top First Quarter On-Time Performance; Front Line Employees Earn Three Monthly Bonuses
CHICAGO – United Airlines (Nasdaq: UAUA) took the top spot of the major network carriers in on-time performance in the first quarter, based on preliminary industry data, delivering on-time flights for customers and three consecutive monthly bonus payments for employees.
In March, more than 80 percent of United’s flights were on-time, earning the company a first-place finish for the month. A first-place finish in January’s Department of Transportation rankings as well gave United top honors for the quarter, the best first quarter performance since first quarter 2003.
“Our people managed enormous weather challenges and heavy Spring Break traffic, and did a great job getting our customers where they needed to be on time,” said John Tague, executive vice president and chief operating officer. “This is a great example of what we can accomplish when we are working together toward a common goal.”
United launched its Arrival: 14 cash incentive program in January. For every month that the company finishes first among its network peers, employees earn a $100 payout. If the company finishes second or achieves its internal goal, employees earn $65. So far this year, front line employees have earned $265 in cash incentives. Under the program, more than 40,000 front line employees each have the potential to earn up to $1,200 cash bonuses for on-time performance.
As the company’s operational performance is improving, so is its customer satisfaction. Tague said the company saw a 10 percentage point improvement year-over-year in the first quarter from its internet-based customer survey results. Those improvements reflect not just on-time performance, Tague said, but the work the company is doing to improve service and cleanliness of its aircraft.
“Our customer satisfaction improvement reflects our focus on improving reliability, the cleanliness and condition of our airplanes, and great service delivery by our people – key to running a good airline,” Tague said. “When we do this work well, our customers and our employees benefit.”
All of the drivers of customer satisfaction improved in the first quarter, with the majority showing double-digit gains. Included in the customer satisfaction survey are employee courtesy, baggage handling, on-time arrival and aircraft cleanliness, among others.
Note: For purposes of the employee cash incentive program, United considers Delta and Northwest one carrier.
United Airlines (NASDAQ: UAUA) operates more than 3,000* flights a day on United and United Express to more than 200 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. With key global air rights in the Asia-Pacific region, Europe and Latin America, United is one of the largest international carriers based in the United States. United also is a founding member of Star Alliance, which provides connections for our customers to 912 destinations in 159 countries worldwide. United’s 49,500 employees reside in every U.S. state and in many countries around the world. News releases and other information about United can be found at the company’s Web site at united.com.
*Based on United’s flight schedule between Jan. 1, 2009, and Jan. 1, 2010.
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