ISTAT Jetrader - Autumn 2022 - 12

PERSPECTIVES
Jetrader: How will the strategies of
United Next affect the composition
of your fleet? What aircraft types
do you envision will see growth,
and what will see reduction or
elimination? Does the up-gauging
of the fleet imply that service to
smaller markets in the domestic U.S.
market must necessarily be reduced
or eliminated?
SK: Our goal is to build the biggest,
best and most profitable major airline
in the history of the industry. We've
spent the last two years getting United
Airlines ready for this moment, and
United Next is how we will get there.
We're doing our best to maintain
service to as many small communities
as we possibly can. But we really are
stretched. We're flying dramatically
fewer regional jets today than we were
in 2019 as the economics of those
flights, and the ability to staff them
with pilots, becomes more difficult.
We plan to operate close to 300
regional aircraft, in the future mostly
large regional jets, along with our CRJ550s,
and so we have a spot at United
flying to smaller communities because
that is the right aircraft but just a lot
less regional flying than what it used
to be.
Jetrader: You have large orders
for the A321neo, the A321XLR and
also the B737-10, all similarly sized
aircraft. What types of different
missions do you envision for each
type, and how will the complement
each other in your future route
planning?
SK: The MAX 10, A321neo and A321
XLR are similarly sized aircraft, but they
will play different roles in our network:
The MAX 10 will be a workhorse for our
domestic and short-haul international
network. It will likely fly out of all our
hubs and serve many markets where
demand justifies the extra capacity
versus the narrowbodies we fly today.
The A321neo will be even larger
than the MAX 10 and have better
performance on some routes. It will
12 * THE OF F I C I AL PUBL I CAT I ON OF ISTAT
complement the MAX 10 on domestic
and short-haul international routes,
especially in markets with very high
demand and markets where the MAX
10 faces performance limitations.
The A321XLR will play a completely
different role in the network: It will have
a premium configuration and be flown
primarily on longer-haul missions such
as transatlantic routes. There are many
transatlantic markets, especially out of
our transatlantic gateways at EWR and
IAD, that are too small for widebody
service but beyond the range of our
current narrowbodies. The A321XLR
will be a great tool to operate such
markets, with enough range to operate
across the Atlantic year-round and onboard
products for our customers that
will be on par with widebodies.
Jetrader: How is United going to
address the significant capex
requirements created by the recent
large orders with Boeing and Airbus?
SK: Most of the aircraft can be
financed, if need be, but there are
obviously other capital requirements
when you take on airplanes. As we
expect to return to profitability, we
will also generate cash to help us fund
these investments.
Jetrader: Consolidation in the U.S.
industry has re-emerged with the
recently agreed upon acquisition
of Spirit by JetBlue. How do you
envision the U.S. industry evolving
over the next decade at both
the mainline and regional level?
Should we expect to see more
combinations proposed?
SK: At United, we're really focused on
our own plans for growth and customer
improvements. Things like United Next
and the growth it enables are going
to help us succeed no matter what
happens with some of the smaller
players who come and go.
Jetrader: You assumed the role
of CEO at United during the most
challenging time the airline industry
has faced since 9/11. Your comments
at the start of the pandemic were
viewed by some as alarmist at the
time but have since been proven
prescient. How did you steer the
airline through the precipitous
decline in traffic and revenue and
then ultimately pivot to respond to
the strong return of traffic in 2021
and into 2022?
SK: Since the start of my time as the
CEO of United, I have always promised
to be clear and honest with my staff.
In a leadership position, my main job
is about people and taking care of
people. We were at the tip of the spear,
one of the first industries to see the
impact of the coronavirus. Although
some of my decisions, like being the
first to implement a mask mandate and
vaccination requirement for workers,
were controversial with some people,
it also meant we were the leaders
within the aviation industry. It wasn't
long before other airlines started to
follow our direction. Workers at United
take pride in being the best in the
business and love their life at United. It
is my job to help people feel this pride.
We believe that the hard work and
strategic thinking we took during the
pandemic have United best positioned
going forward.
Jetrader: What advice would you give
to our ISTAT Scholarship Recipients
and those involved as students in
ISTAT University looking to make a
career in the airline industry?
SK: When you are young, the world is
filled with opportunities, and my advice
is to take every opportunity thrown your
way. Do your research, get excited, and
work hard and it will all pay off. This is
an opportunity to get yourself into the
world of aviation, and I can promise it's
a fun and rewarding lifestyle.
Jetrader: Any final words of wisdom?
SK: Be creative. Question the way
things are done. Do in life what you
enjoy.
ISTAT Jetrader - Autumn 2022

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