United, the world’s No. 2 airline by traffic, suspended its
flights world-wide for about two hours on Wednesday morning because a faulty
router prevented the company from checking in passengers. The company said as
of Wednesday afternoon it canceled 61 flights and delayed another 1,162 because
of the computer problem, with disruptions cascading throughout the day.
The airline, meanwhile, is wrestling with unhappy unions,
poor punctuality and a recent increase in maintenance-related delays and
cancellations. Hundreds of United’s 9,000 mechanics picketed outside of the
company’s annual meeting in June, warning of turbulence ahead if they don’t get
a combined labor contract. Many of United’s flight attendants are preparing
next week for protests at all of their crew bases to signal their impatience
over their own slow contract talks.
While the Chicago-based company has turned the corner
financially—net profit nearly doubled last year to a record $1.1 billion—it has
experienced a series of mishaps and operational crises that analysts say is
preventing it from living up to the promise seen when the merger was announced
in 2010.
Wednesday’s problem followed another brief grounding of
United’s fleet in early June, and marked at least the fifth such incident for
the airline since 2012—when it melded the systems of United and Continental,
leading to months of problems for fliers. Vess Bakalov, co-founder of
SevOne Inc., which helps manage companies’ digital infrastructures, said
United’s computer systems should have backup features that prevent one glitch
from causing widespread problems.
The disruptions have angered many customers. The 176
passengers were put up at a military barracks overnight due to a lack of
hotels. In June, nearly half of United’s flights arrived late, up from 37% in
April, and several percentage points worse than its main rivals, according to
masFlight, an aviation data provider. The rate of delays and cancellations due
to maintenance for United’s 767 fleet alone doubled in June from May.
Analysts say United’s labor problems contribute to poor
morale that can affect service quality. The 21,000 flight attendants have been
trying to reach a joint agreement since 2012. Without a joint contract, United
attendants can only fly on United planes and vice versa, reducing flexibility
and raising costs. Part of the reason the talks have been slow, according to
people familiar with the matter, is because the two attendant groups don’t see
eye-to-eye themselves.
Sam Risoli, United’s senior vice president of inflight,
told the attendants in a memo last week that the company will continue to work
toward a contract that is “fair” to everyone and matches a deal reached by
American and its attendants.
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