United Airlines' CEO wants to create a brand that all Americans can be proud of.
United Airlines CEO Scott Kirby met with The Dallas Morning News last week for an exclusive interview at the carrier's new Terminal B at George Bush Intercontinental Airport (IAH). He told reporter Jordan Parker that he wants United to become a brand that all Americans are proud of. He compared this ambition to the status that carriers like Emirates and Singapore Airlines have in their local communities.
Kirby has this ambition because he is unsatisfied with sharing flag-carrier status with America's two other legacy airlines. Yet, he sees plenty of room for improvement before United reaches this height.
This interview was a compelling statement of intent for United to become America's undisputed flag carrier, rising above Delta Air Lines and American Airlines. Kirby said that United is the world's best airline "in totality", with dreams of upgrading this status to being the "best airline in the history of aviation."
Kirby isn't looking to other US carriers for a pathway to this goal, but to airlines in Asia and the Middle East. He said that these carriers consistently outperform the best that America can offer.
“I like to be the best at everything. If you go to Dubai, people that live in Dubai are proud of Emirates. If you go to Singapore, people [who] live in Singapore are proud of Singapore. I'd like to create a brand in the United States that Americans broadly feel that way about.”
Simple Flying has contacted United for further comment.
Kirby also used this exclusive interview to define where United must improve if it ever becomes America's flag carrier. Firstly, the airline has no presence at John F. Kennedy International Airport (JFK). Kirby recognized that next year's partnership with JetBlue Airways will help to amend this situation, but won't go as far as he would like.
Across United's five busiest hubs, almost 1.9 million flights have been scheduled this year, according to aviation data and analytics firm Cirium.
Chicago O'Hare International Airport (ORD)
George Bush Intercontinental Airport (IAH)
San Francisco International Airport (SFO)
Another area where United is weak is South America, where American dominates the market. He's not optimistic about a rapid solution, but thinks it would provide an essential additional option for passengers flying south from American's gateway at Miami International Airport (MIA).
An unlikely path for United to become America's flag carrier is a merger with American, one of its key competitors. A merged carrier would control 40% of the US aviation industry's market share. Kirby conceived this idea earlier this year. American quickly shut it down, arguing that the merger would harm competition for US consumers. According to Kirby, the two carriers had been in conversations with American Airlines, which was skeptical but did not refuse to explore the idea.
Kirby told The Dallas Morning News that he was disappointed and surprised by American's public statement. Yet, the carrier has disputed Kirby's claims in a statement. It is unsurprising that Kirby is frustrated, given that he dedicated significant time to communicating his vision and had scheduled to make it public days before American's statement.
Whatever is true about American's interest in Kirby's scheme, it is even more inconceivable that it will occur now. Kirby is now looking to a back-to-basics approach to making United an industry leader, primarily by improving profit margins and revenues. Additional cash flow is essential for any airline that will remain stable through the ongoing crisis in the Middle East.