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The Shuttle by United

Author

Listed:
  • Sheryl E. Kimes

    (Cornell University, School of Hotel Administration, 335 Statler Hall, Ithaca, New York 14853)

  • Franklin S. Young

    (United Airlines, Methods and Standards, PO Box 66100, Chicago, Illinois 60666)

Abstract

United Airlines designed the Shuttle by United to compete in the short-haul air service market. Up to mid-1994, United had been steadily losing market share in the short-haul markets to new carriers with lower costs. It seized an opportunity created by an employee buyout through an employee stock ownership plan (ESOP) to reestablish itself as a competitor in those markets. Using a combination of market research, employee teams, and process analysis, United reduced its costs by 30 percent, increased plane utilization, and cut turnaround time in half from its existing air service. Its efforts have resulted in higher customer satisfaction, improved market share, reduced costs, and increased profitability.

Suggested Citation

  • Sheryl E. Kimes & Franklin S. Young, 1997. "The Shuttle by United," Interfaces, INFORMS, vol. 27(3), pages 1-13, June.
    • Handle: RePEc:inm:orinte:v:27:y:1997:i:3:p:1-13
    DOI: 10.1287/inte.27.3.1
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    Cited by:

    1. Menkes H. L. van den Briel & J. René Villalobos & Gary L. Hogg & Tim Lindemann & Anthony V. Mulé, 2005. "America West Airlines Develops Efficient Boarding Strategies," Interfaces, INFORMS, vol. 35(3), pages 191-201, June.

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