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Recap of January performance.

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Source: Jane Allen

Date: Feb 25, 2005

Hello, this is Jane Allen with an Update for Friday, February 25, 2005.

January's Marketrak results are in, so today I'll recap our performance. January was a difficult month for us operationally, as you know, and that is reflected in our Definite Intent to Repurchase (DIR) ratings. Although more than 38 percent of our most frequent fliers told us they would definitely choose United for their next flight, we fell one tenth of a percentage point below our first-quarter Success Sharing customer satisfaction goal of thirty-eight point five (38.5) percent.

While January is typically the strongest month of the quarter for DIR, we know that when customers are inconvenienced, it impacts their overall perception of their travel experience. This month's challenges affected certain DIR factors more heavily than others. In particular, customer service representatives' courtesy and helpfulness and check-in efficiency received weak ratings by customers on both North American and international flights.

We also saw a slight decline in overall flight attendant ratings, from December 2004 to January 2005. We are currently 2.4 points below our first-quarter goal. As for meals, year-to-date, we are eight tenths of a point below our first-quarter goal.

So, it's a disappointing result, no question about it, after 13 straight months of achieving our DIR targets. But, remember, this DIR performance would still generate a threshold payment in the Success Sharing program. Most importantly, I think, we should recognize that we still have half the quarter ahead of us to bring our ratings up to the target. We've seen operational reliability improve over the past few weeks, which will help us run a better airline and give us a better chance at meeting our targets in February and for the quarter.

I know that you did great work during this very stressful and challenging month, and I appreciate your efforts. Our overall results show that you did an exceptional job of delivering a positive experience for customers, despite the weather-related delays and cancellations. Thank you.

Finally, we know that being able to attract and retain our customers is crucial to our overall success. And according to one Premier Executive customer, we have London-based Maria O'Brien to thank for bringing customers back to United again and again.

This customer describes Maria as a "superlative employee," and recalls that after the dinner service, his companion noted that Maria delivered the best service she had ever received. "I think it was the personal handshake that Maria offered to all the customers in business class that sealed the deal, but it is seldom that I have seen an individual exude such grace and style. Maria is a class act all the way." He concludes by saying how lucky we are to have someone like Maria. I agree wholeheartedly. Congratulations, Maria, and thank you.

That's all I have for today. Fly safe and I'll talk with you again next week.

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