MIAMI – United’s revenue underperformance versus its peers is now front and center, thanks to Scott Kirby’s transition to United and greater transparency on levers the carrier is pulling to improve its unit revenues relative to Delta and American. But why is United lagging, despite having hubs in some of the largest and wealthiest U.S. cities (1:10)?
Vinay’s theory: the carrier is over-exposed to the volatilities of a large international network that could be off-set if the carrier were to re-allocate capacity back to its domestic hubs (3:00).
In this network beat episode, Vinay outlines his thesis (which is a complement to his article, “United Should Cut Back International Flying to Fund Domestic Growth,” which published in Airways digital on April 5, 2017) and Rohan asks a few clarifying questions. For the revenue management and network planning geeks, this is an episode you will not want to miss!
As we evolve the format of this new Airways feature, we would love your feedback as we look to find the optimal mix. For now, consider this “Podcast Unplugged”. We’ll be adding production value enhancements as we move forward, in addition to special guests and contributors.
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