Introduction of case study:United break guitar protested songs by Canadian singer DaveCarroll and his band, Sons of Maxell. It based on a real-life experience of how hisguitar was broken during a trip on unitedairlines in 2008, because United baggage handlersthrowing their guitar out there and Dave immediately try to communicate withstaff of united but they denied by saying this it is not their responsibilityand asked him to other staff member of united. Base of Taylor had been smashed and Dave asked united to compensate his loss but theresponse from the airline was worse first they put responsibilities on one onanother and after 9 months they refused to compensate. So he decided to launcha unique protest against united by uploading three songs against united inwhich he explained what happen with him. These songs became an instant YouTubeand I tunes hit upon its release in July 2009 and a public-relationsembarrassment for the airline.
Due to which united bear loss of 180 milliondollar and 10% of its share value. Then company spokesperson managingdirector of customer solution telephoned Carroll Dave to apologies and offeredhim to pay his loss which he overturned and suggested that give this money tocharity and as a good will gesture united donate 3000 dollar toThelonious Monk Institute of Jazz and asked permission from Carroll Daveto use this video internally for training to learn from incident and change itscustomer service policy.This casestudy explain worse condition of aviation industry in North America and Europedue to terrorist attacks of September 11, 2001.In March 2009, the International AirTransport Association (IATA) issued forecast for the industry predicting thatin 2009· Industry”net”losses”would”reach”US$4.7″billion;· Airline”revenues”would”decline”by”12%,”or”US$63″billion· Cargo”traffic”would”fall”by”13%,”passenger”traffic”by”7%,”and”airlines”would”cut”· capacity”by”6%Airlines reacted by cutting costs wherever possible and byunbundling services that Had previously been included in the ticket price. Numerousmajor carriers began Charging for checked baggage in 2009.
Situation:United air line was oldest commercialair lines in United States. “In the 20th century, it had developedby the industry and, alongside with other airlines, had experienced majordisruptions from attacks and supervisory changes. In 1997, United Started Star Alliance with AirCanada, Lufthansa, SAS and Thai Airways, the first such Association for code sharing andnetwork advantages.
In 2010, Star Alliance stayed theMajor and utmost popular airlineallianceAs part of the September 11, 2001terrorist attacks, two United Airlines plane were Takeover by terrorists one collidedinto the South Tower of the World Trade Center inNew York City and the other crashedin rural Pennsylvania. As a consequence of the September 11 episodeand economic slowdown, United ran into Severe financial struggle and filedfor chapter 11 bankruptcy protection in December 2002. The airline sustained their operations during itsbankruptcy, but was enforced to cut Costs harshly, laying off tens of thousandsof workers, closing city offices, canceling Several existing and planned routes, and reducing the size of its fleet.United took Benefit of its Chapter 11 status to negotiate cost decreases with workers,suppliers, and contractors.