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Introduction Contd...
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It added that it was working on new cost cutting measures, in addition to those,
such as job cuts and reducing employee wages, which it had already taken.
United was the first commercial airline in the US and was created on April 6,
1926, as Varney's Airlines (VA), a transporter of air mail across the US.
Later VA was acquired by United Aircraft Transport Corporation (UATC).8 United
flourished in the 1950s and 1960s. In 1961, it became the world's largest
airline after merging with Capital Airlines.9
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However, United started facing troubles in 1970, when for the
first time, it made a loss of US$ 46 million. This was followed by several years
of losses.
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In 1978, the Airline Deregulation Act10
brought in more trouble in the form of increased competition. In the
late 1970s, United also started facing labor problems, something that
was to plague the company for years to come.
In the 1980s and 1990s, instability at the top level management and
labor disputes saw the company incur losses, although some years in the
mid-1990s were profitable.
The company also started a low cost airline called Shuttle by United,
developed its Information Technology (IT) system, and entered into
mergers and alliances during this period... |
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