Copy Of United Airlines Case

United Airlines Case United Airlines was founded in 1926, which gives the airline nearly 90 years of experience. United faced many challenges throughout its years of operation, however the airline has still managed to be relevant and competitive in its industry. Theses challenges include: mergers, acquisitions, war, the Great Depression, labor union strikes, buyout attempts, terrorist attacks, bankruptcy, and recessions. The Airline deregulation Act of 1978 was the genesis for the airline industry we know today. This act made Air travel a private venture which meant lower fares for consumers and higher productivity from workers due to less government involvement, which made everything run faster. The next two decades proved to be rough times for United Airlines as well as the entire airline industry. Through the years of 1970­1989, United Airlines had six different presidents. having so many changes in top executives over these years, new strategies and new visions for the firm caused chaos. United Airlines had purchased a rental car company as well as some hotel properties. These attempts to diversify failed and goes to show how desperate one of the biggest airlines in the industry was acting at such an unpredictable time.
United eventually sold off those failed ventures and began to refocus on air travel. By the early
1990’s, the airline industry had experienced increased globalization. In order to expand, United
Airlines decided to form alliances which would strategically put them in an advantageous position worldwide. In 1992, they formed an alliance with Air Canada. In 1993, they made an marketing agreement with Lufthansa. By 1997, they formed the Star Alliance group consisting of
14 airlines worldwide. By creating alliances, United Airlines is able to reduce risk and also share

resources with airlines across the world, making global air travel more efficient. From
1995­1998, United Airlines recorded three straight incredibly