Profile: United Continental Holdings Inc (UAL.N)
United Continental Holdings, Inc. (UAL), incorporated on December 30, 1968, is a holding company and its principal, wholly owned subsidiaries are United Air Lines, Inc. (United) and Continental Airlines, Inc. (Continental). The Company transports people and cargo through its mainline operations, which use jet aircraft with at least 110 seats, and its regional operations. The Company has contractual relationships with various regional carriers to provide regional jet and turboprop service branded as United Express. United and Continental have a range of bilateral and multilateral alliances with other airlines. The Company’s airline seat inventory distributed through the traditional channels of travel agencies and global distribution systems (GDS).
The Company has global air rights in the United States, Asia-Pacific, Europe, Middle East, Africa, and Latin America. As of UAL has a global route network. As of December 31, 2012, UAL, through United and Continental and their regional carriers, operates more than 5,500 daily flights to more than 375 the United States and international destinations from the Company’s hubs at Newark Liberty International Airport (Newark Liberty), Chicago O’Hare International Airport (Chicago O’Hare), Denver International Airport (Denver), George Bush Intercontinental Airport (Houston Bush), Hopkins International Airport (Cleveland Hopkins), Los Angeles International Airport (LAX), A.B. Won Pat International Airport (Guam), San Francisco International Airport (SFO) and Washington Dulles International Airport (Washington Dulles).
The regional operations are an extension of the Company’s mainline network. This regional service complements its operations by carrying traffic that connects to its mainline service and allows flights to smaller cities. Chautauqua Airlines, Republic Airlines (Republic), CommutAir Airlines, ExpressJet Airlines, GoJet Airlines, Mesa Airlines, Shuttle America, SkyWest Airlines (SkyWest) and Trans States Airlines (Trans States) are all regional carriers, which operate most of their capacity under capacity purchase agreements with United and/or Continental. Under these capacity purchase agreements, the Company pays the regional carriers contractually-agreed fees (carrier-controlled costs) for operating these flights plus a variable reimbursement (incentive payment for superior operational performance) based on agreed performance metrics. While the regional carriers operating under capacity purchase agreements comprise more than 95% of all regional flights, the Company also has prorate agreements with Hyannis Air Service, Inc. (Cape Air), Silver Airways (Silver), SkyWest and Trans States. .
The Company’s marketing alliances include features, such as loyalty program reciprocity; codesharing of flight operations (whereby seats on one carrier’s selected flights can be marketed under the brand name of another carrier); coordination of reservations, ticketing, passenger check-in, baggage handling and flight schedules, and other resource-sharing activities. United is a member of Star Alliance, a global integrated airline network. As of January 1, 2013, Star Alliance carriers served 1,329 airports in 194 countries with over 21,900 daily flights. Current Star Alliance members, in addition to United, are Adria Airways, Aegean Airlines, Air Canada, Air China, Air New Zealand, All Nippon Airways, Asiana Airlines, Austrian Airlines, Avianca/Taca Airlines, Brussels Airlines, Copa Airlines, Croatia Airlines, EGYPTAIR, Ethiopian Airlines, LOT Polish Airlines, Lufthansa, SAS Scandinavian Airlines, Shenzhen Airlines, Singapore Airlines, South African Airways, SWISS, TAM Airlines, TAP Portugal, THAI Airways International, Turkish Airlines and US Airways.
United’s Mileage Plus and Continental’s OnePass (OnePass) program builds customer loyalty by offering awards and services to program participants. Members in these programs earn mileage credit for flights on United, United Express, Continental, airlines in Star Alliance and certain other airlines that participate in the program. Members can also earn miles by purchasing the goods and services of its network of non-airline partners, such as credit card issuers, retail merchants, hotels and car rental companies. Members can redeem mileage credits for free, discounted or upgraded travel and non-travel awards.
During the year ended December 31, 2012, 4.7 million MileagePlus travel awards were used on United and Continental. During 2012, these awards represented 7.4% and 6.8% of United’s and Continental’s total revenue passenger miles respectively. During 2012, total miles redeemed for travel on United and Continental, including class-of-service upgrades, represented 83% of the total miles redeemed. During 2012, in addition, excluding miles redeemed for travel on United and Continental, MileagePlus members redeemed miles for approximately 1.6 million awards. These non-United and non-Continental travel awards include United Club memberships, car and hotel awards, merchandise and travel on another air carrier.
United Continental Holdings Inc
JENNIFER L. KRAFT - WHQLD
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