30 Jul '12, 4pm

United Airlines Reservation Systems Woes Hit Harder Than Expected: Airline still dealing with aftermath

Last week, United-Continental Holdings CEO Jeff Smisek admitted in a conference call to investment analysts that the airline had been overly optimistic in its belief that the merger of United's and Continental's airline reservation systems last March would not have much impact on passengers or on the company's bottom line. You may recall Smisek's prediction of a smooth transition just before problems with the cut-over appeared, and his belief that the airline was "exceedingly well prepared for it ." Smisek expressed confidence at the time because the airline had conducted four dress rehearsals and had spent significant amounts of time and money training the airline’s staff on how to operate the new reservation system. However, as he told the analysts in explaining the 39-percent drop in company profits compared with the same quarter last year, many customer-service agents ...

Full article: http://spectrum.ieee.org/riskfactor/aerospace/aviation/un...

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