The cause and effect relationship is evident in the 4 key areas (Norton and Kaplan).
United aims to increase its pre-tax earnings and generate sufficient cash to begin allocating capital to shareholders by 2015. The aim is in addition to the existing goal of achieving a 10% capital return. United is also planning to improve its overall financial performance by increasing ancillary revenue by $700 million and to generate $3.5 billion in ancillary revenue by 2017 (PRNewswire). This growth will be fueled by improving customer service, optimizing prices on existing services and adding distributional channels. Executive Vice President and Chief Financial Officer of United Airlines highlighted the aim of improving efficiency, profitability and capital structure of the business to better serve the stakeholders (PRNewswire).
United wishes to build on its strengths by planning joint ventures to develop an optimized route network for its flights. This include trans-Pacific and trans-Atlantic routes. The company wants to do so by improving its business processes which means redeploying wide body aircrafts and include a second Houston to Tokyo service. It also plans on reallocating long-haul aircraft to more profitable routes (PRNewswire).
The company also wants to provide 787 carrier services to new markets which include flights to Chengdu, China. This will allow the company to optimize its network while servicing secondary markets in Asia and serving European markets from the East coast of the United States. United also aims to include seasonal routes to Madrid, Chicago and Edinburgh (PRNewswire).
The company is aiming to initiate a successful e-commerce strategy to better satisfy the needs of the modern day traveler. In addition to a mobile app, a website with customized shopping and booking experience will be launched. This way United hopes to