COMING, UNITED IS TAKING STEPS
TO KEEP CUSTOMERS COMING BACK.
IT’S ONE OF THE THINGS
PASSENGERS HATE THE MOST.
THOSE AIRLINE TICKET CHANGE
FEES.
WHILE AIRLINES HAVE WAVED THEM
THROUGH THE PANDEMIC, UNITED IS
THIS MORNING MAKING A BIG
ANNOUNCEMENT.
WAVING CHANGE FEES ON ALL BUT
ITS CHEAPEST TICKETS FOR U.S.
TRAVEL.
FIRM
PERMANENTLY.
>> OUR CUSTOMERS HAVE ALWAYS
ASKED FOR THAT FLEXIBILITY.
WE’RE GIVING THEM THE
FLEXIBILITY AND CONFIDENCE TO
KNOW IF THEIR PLANS CHANGE, IF
ANYTHING CHANGES, THEY CAN MAKE
THAT CHANGE FOR FREE.
>> Reporter: PASSENGERS WILL
ALSO BE ALLOWED TO STAND BY FOR
AN EARLIER OR LATER FLIGHT
WITHOUT PAYING FEES.
UNITED’S ANNOUNCEMENT COMES AS
THE ENTIRE AIRLINE INDUSTRY IS
IN DEEP TROUBLE.
TRYING TO SURVIVE THE COVID
CATASTROPHE AS PASSENGER VOLUME
HAS DROPPED OFF A CLIFF.
THE CYNIC IS GOING TO SAY YOU
COULD HAVE DONE THIS A YEAR AGO
WHEN YOU WERE FLUSH WITH CASH.
NOW THAT YOU NEED CUSTOMERS
BADLY, NOW YOU’RE GOING TO DROP
THE CHANGE FEES BECAUSE YOU NEED
CUSTOMERS.
>> WE’RE MAKING THE BET AND I
THINK IT’S THE RIGHT ONE THAT
DOING THE RIGHT THING FOR
CUSTOMERS IN THE LONG-TERM IS
GOING TO PAY OFF.
>> Reporter: ALL OF THE AIRLINES
AGREED TO KEEP THEIR EMPLOYEES
ON THROUGH SEPTEMBER IN EXCHANGE
FOR BILLIONS IN GOVERNMENT AID.
WHILE SOME EMPLOYEES DEPARTED
VOLUNTARILY, THE AIRLINES NOW
WARN THAT WITHOUT MORE TAXPAYER
ASSISTANCE, THEY’LL BE FORCED TO
FURLOUGH TENS OF THOUSANDS OF
WORKERS VERY SOON.
FROM PILOTS AND FLIGHT
ATTENDANTS TO AIRPORT WORKERS
AND EXECUTIVES.
DELTA EXPECTS TO VOLUNTARILY
FURLOUGH 1900 PILOTS.
AMERICAN SAYS IT WILL LOSE
40,000 EMPLOYEES IN ALL.
SOUTHWEST SAYS IT’S HAD ENOUGH
VOLUNTARY DEPARTURES TO AVOID
INVOLUNTARY FURLOUGHS FOR NOW.
BUT UNITED SAYS IT COULD SHRINK
ITS TOTAL WORKFORCE BY A THIRD.
36,000 EMPLOYEES.
>> YOU KNOW, WE’VE GOT A TOUGH
YEAR AHEAD.
>> Reporter: SCOTT KIRBY TOOK
OVER AS CEO JUST OVER 100 DAYS
AGO JUST AS THE PANDEMIC WAS
HITTING FULL FORCE.
IT’S HARD TO BELIEVE THIS IS
O’HARE AIRPORT.
IT’S ALMOST EMPTY.
>> YEAH.
IT’S SAD TO SEE THE AIRPORT
EMPTY.
>> Reporter: LIKE ALL AIRLINES,
UNITED IS DEEP CLEANING PLANES
AND REQUIRING MASKS.
WHILE DELTA AND SOUTHWEST ARE
BLOCKING MIDDLE SEATS, UNITED IS
INSTEAD NOTIFYING PASSENGERS IF
THEIR PLANE WILL BE 70% FULL SO
THEY CAN REBOOK IF THEY’D LOOK.
WHEN WILL PASSENGERS RETURN IN
BIG NUMBERS?
THAT COULD BE A WHILE.
>> THE LEISURE DEMAND OF GOING
TO DISNEY WORLD OR CASINOS IN
LAS VEGAS IS PROBABLY GOING TO
HAVE TO WAIT UNTIL THERE’S A
VACCINE BEFORE IT REALLY KOMS
BACK ANYWHERE CLOSE TO 100%.
>> Reporter: BUSINESS TRAVEL,
THE BREAD AND BUTTER FOR
AIRLINES IS DOWN A STUNNING 90%.
KIRBY THINKS IT WILL BE FOUR
YEARS BEFORE AIRLINES CARRY THE
SAME NUMBER OF PASSENGERS IT
CARRIED IN 2019.
SO THE WHITE HOUSE CHIEF OF
STAFF SUGGESTED LAST WEEK THAT
THE PRESIDENT COULD ISSUE AN
EXECUTIVE ORDER OF PROVIDING
MORE MONEY TO THE AIRLINES, BUT
THAT MAY ALSO REALLY TAKE
CONGRESSIONAL ACTION.
GUYS, BACK TO YOU.
>> ALL RIGHT.
SO PEOPLE DO HATE THOSE CHANGE
FEES, BUT THEY ALSO HATE THE
LUGGAGE FEES.
IS THERE ANY WORD ON IF THOSE
CAN CHANGE AS WELL?
>> YEAH.
I SKID HIM THAT.
I SAID WILL YOU STOP CHARGING
FOR BAGS.
HE SAID NO.
THEY’RE STILL GOING TO CHARGE
BAGS.
THEY SAY IT COSTS AN AWFUL LOT
OF MONEY FOR THE INFRASTRUCTURE
TO CARRY LUGGAGE.
THEY HAVE TO KEEP CHARGING, HE
SAYS.
>> SO YOU TOUCHED ON THIS IN THE
PIECE, BUT BUSINESS TRAVEL IS
STAGGERING DOWN 90%.
WHEN DO THEY EXPECT IT TO COME
BACK A LITTLE BIT?
>> Reporter: AND THE QUESTION
REALLY IS TO EXPAND ON THAT IS
ZOOM IS WORKING SO WELL FOR
COMPANIES, WHY WOULD YOU WANT
PEOPLE TO START FLYING?
WHY WOULD YOU HAVE YOUR
EMPLOYEES FLY?
NOW, HE BELIEVES THAT ULTIMATELY
AND IT MAY TAKE THREE, FOUR
YEARS, ULTIMATELY COMPANIES WILL
SAY WE CANNOT AFFORD TO LOSE A
SALE BECAUSE OUR SALES REP
DECIDED TO DO THIS ON ZOOM
INSTEAD OF FLY TO MEET THE
CUSTOMERS.
AND AS SOON AS THAT HAPPENS, AS
SOON AS SOMEBODY LOSES A SALE,
THAT COMPANIES WILL START
