United Airlines and Organizational Culture

Paper Summary:

This paper discusses the unique corporate make-up of United Airlines, given that since 1994, employees gave up nearly five billion dollars in wages and other concessions in return for 55 percent of the company's shares. The paper looks at the mission statements put out by United Airlines and discusses ways that the company can succeed in being a profitable employee-run organization.

From the Paper:

"In 1996, United became the first airline to acknowledge the stresses faced by travelers and affirm a commitment to improve air travel, according to its January 7, 2000 press release. Additionally, the release cited heavy investment in airport ground equipment and baggage handling improvements. Currently, United Airlines has been heavily publicizing its organization culture in what it calls "Our United Commitment". In an article in Airline Business ("Friendly Skies' Let's Get Honest", July 1997), Karen Walker wrote that due to the abysmal results of a passenger survey, United embarked on a $400 million, three year project that aims to lessen the gap between the promise of good service and the actual experience, concentrating on expanding executive lounges, improving on-time performance and using new airport technology."

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