An 8 page SWOT analysis of United Air Lines focusing on events current to 1Q2003, several months after United filed for Chapter 11 bankruptcy. United’s management seems determined to make as many missteps as it can find to make. Exit from the industry is difficult, and analysts believe that the threat of liquidation is low. Liquidation is what United is threatening, however, if a bankruptcy court refuses to negate all of its labor contracts. Bibliography lists 7 sources.
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was suffering on September 10, 2001. September 11 dealt what could have been a death blow. All of the US airline industry was affected of course, and likely
it could have made better recovery. The terrorist attacks of September 11 sent the teetering US economy over the edge into recession, however, dashing any hopes at United of
quick recovery. It drove away its former CEO for suggesting that United could end up in bankruptcy; the company filed 14 months later. SWOT Analysis Strengths * The company
estimates that "approximately 65% to 75% of Uniteds domestic revenues are derived from business travelers" (United Air Lines, 2003), allowing United to command some of the highest fares in the
industry. * United is returning to its core business. It gained $46 million from the sale of its remaining interest in Cendant Corporation. * The company has been able
to decrease operating expenses by 10 percent, or $504 million. * The airline industry expects online distribution to contribute more than 28% of total passenger revenue by 2005 (Starkov, 2002),
and Uniteds online distribution is among the strongest in the industry, allowing passengers to book their own flights without directly involving any United-paid labor sources. * United "has the best
hubs in the industry and a global network in a network business" (Flint, 2003; p. 34). * Customer complaints about service continue, but United has "made great strides over the
past year in terms of punctuality and reliability" (Flint, 2003; p. 34). * Analysts believe that United will emerge from bankruptcy to remain operational. One comments that "there is
a reasonable chance that United will not survive Chapter 11 but that he is cautiously optimistic about the carriers future. UBS Warburgs Samuel Buttrick has put the odds of a
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