UNITED Scott Kirby CEO criticizes the budget airline model: “It’s dead”
UNITED Airlines Scott Kirby earlier this week received a payment of what he called the “CARAPPY” airline.
Speaking at the “Future of everything” event in Wall Street Journal on Thursday, Kirby said that the low -cost transportation company was “dead”.
“The model was the client nail,” he said.
“It was like the trick of people, made them buy, and made them come, then ship them a full set of drawings that they do not expect … the disclosures buried in Legalese.” “Their problem is that they have become so big enough that they need to repeat customers. They do not get them.”
Kirby’s comments came on the same day that United announced a new partnership with Jetblue, which many consider a budget company.
The partnership, known as Blue Sky, will allow UNITED to reach seven -back holes from JFK 6 Station early in 2027.
The deal, which is subject to organizational review, will allow customers to win and use the miles of the traveler frequently through each of the airlines, among other things.
Kirby said on Thursday that Jetblue showed something different from traditional airlines.
“Jetblue was founded in an attempt to be a better airline for customers. Budget airlines have been established in an attempt to obtain the lowest cost of absolute bones,” he said. “Both of them may be emerging companies, but two polar commercial models.”
Exec was clicked on whether United had thought about buying Jetblue.
Laughing, Kirby said he was asked that he was “a lot” and that he was “hesitant” in integration.
“The integrations are difficult,” he said.
He said that United was focusing on frequent bulletins.
“What we really are looking for is a greater presence of our repeated tapes on both sides of Hudson,” he said. “To be larger in places like Boston.”
Although most of its peers excelled in 2024, United announced in April that it would reduce about 4 % of its local energy starting in July due to softening the demand.
Trump’s tariff in some Canadians and other international travelers caused their summer vacation in the United States, which may mean a problem for local airlines.
The airline said: “The company’s expectations depend on the macro environment, which the company believes is impossible to predict this year with any degree of confidence.”