Earlier this week, United Airlines and many other carriers presented at the J.P. Morgan Aviation, Transportation & Defense Conference in New York, and once again, Jeff Smisek was very engaging as he’s willing to go off-script a bit adding more than what the bland presentation slides provide. I listened to the 40-minute audio of his presentation and Q&A session last night and found the following particularly interesting, some of which I was hearing for the first time (bolded items).

He started his talk off by showing the “Rah! Rah! United” commercial currently seen immediately preceding the safety videos airing onboard this month (and last) jokingly claiming, “We need to sell some tickets.” While proceeding through the slides, he mentioned:

• Consolidation has been very, very good for the airline business in part because the industry was selling seats for far less than customers were willing to pay from the 1980s until the mid-2000s.
• United’s current management team is focused on sufficient and sustainable return on invested capital (ROIC) and a “significant” portion of their compensation is tied to achieving this goal.
• The unbundling of products and services has created high margin items, something rarely seen in the airline industry.
• United is “marching toward a higher business mix.”
• The Guam hub/service is a profitable operation.
• United will take delivery of 19 fuel efficient 737-900ERs this year and the first five of 50 787s (I thought it was to be six in 2012). He also mentioned they “plan to revenue manage that airplane (787) differently than the rest of the fleet.” I translate that as “good luck getting BusinessFirst award seats.”
• 777 pilots are common type-rated with the 787.
• Depending on demand and seasonality, certain markets will see 787s swapped in on 777/747 routes. Makes sense.
• Original capacity guidance for 2012 has been adjusted downward with the airline now anticipating a decrease of between -0.5% to -1.5% YOY.
• United will be investing in customer resource management (CRM) software to better deliver the right offers to the right customers.
• He plugged Chase as being a very important partner of MileagePlus. Not surprising.
• He also recognized that issues remain from the conversion on March 3rd to a new passenger service system and gave a similar “we’re working on the issues” as the press releases since have mentioned.

During the Q&A portion:

• When asked, “Who will be running MileagePlus?” he responded with the simple fact that United is now since the OnePass program has been integrated. I think the questioner was aiming more at management style (CO vs. UA), so it effectively went unanswered.
• He’s comfortable with March bookings and isn’t particularly concerned over later months’ advance booking levels.
• When asked, “Do you make more money if American and US Airways merge?” he laughed and simply stated his viewpoint again that consolidation has been good and can continue to be a good thing.
• His top priorities for what Washington should be focused on are 1) modernization of the air traffic system and 2) a national airline policy with rational levels of taxation.
• He declined to comment on specific compensation United will receive from Boeing for the late deliveries of the 787.
• Revenue management moved to origin & destination-based vs. by segment and it underperformed in February noting it needs a degree of learning and history.
• He takes comfort in Delta’s RASM growth noting it shows how well a carrier can realize synergies post-merger.

The slide presentation can be found on United’s Investor Relations page with the audio currently available from J.P. Morgan. Presentations from the other airlines present are also available if you’re interested.

It might seem petty to be anxiously awaiting the arrival of my 2012 MileagePlus credentials, but as most of you know, Star Alliance “lounge dragons” demand a valid card for entry. I’ve witnessed many people turned away after not being able to present a current card even though their Star Gold status is clearly evident on their boarding passes, and since I still haven’t received mine with today’s mail, I called MileagePlus to complain.

As usual, calling more than once tends to yield different results, so I placed two calls directly to the MileagePlus Service Desk. Here’s a recap:

Call #1:

Agent: “Hello, this is Ms. Davis… am I speaking with Mr. Booth?”

Me: “Yes, hello.”

A: “Thank you for being a valued 1K, how may I assist you?”

Me: “Well, I’m a bit concerned I haven’t received my new card yet and I have a flight tomorrow on Singapore Airlines in economy (okay, I lied). Singapore’s lounge agents have always needed a valid card for entry, so given I haven’t received mine, I’m at a loss of what to do.”

A: “I’m so sorry. We mailed the cards and I know many still haven’t received them, so I’d recommend printing your activity from United.com to show that you’re a current 1K member.”

Me: “I’ll hope for the best with that. Do you show when my card was mailed?”

A: “No, we don’t have specifics for individual cards, but they were mailed.”

Me: “In previous years, they were always sent via Standard mail, which can take up to a month… do you know when they were sent?”

A: “Oh, I don’t think they’d mail 1K cards Standard mail. Hold on.”

After about three minutes on hold…

A: “Thank you for your patience. They were mailed First Class, so you should receive it in within the next week.”

Me: “Okay, thanks… I’ll hope for the best with the lounge agent.”

Here’s how the second phone call went.

Call #2:

Agent: “Hello, am I speaking with Mr. Booth?”

Me: “Yes, hello.”

A: “How can I help you?”

Me: “Well, I’m a bit concerned I haven’t received my new 1K card as of today’s mail and I’m flying with Singapore Airlines tomorrow in economy. The lounge agents have historically always required a valid card for entry, so I’m a bit worried I’ll be denied access.”

A: “I’m sorry, Mr. Booth, but they were mailed last week.”

Me: “Last year they were sent via Standard mail which can take up to a month. Do you know if that’s the case now?”

A: “No, I was told they were mailed First Class. I can send you an email confirming your status if you like.”

Me: “Yes, please, that would be helpful. I just hope the lounge agents accept it.”

A: “Well, with the merger, we’ve advised Star Alliance that things are going slow, so hopefully the email will be accepted.”

Me: “Thanks for your help.”

Here’s the email as it was sent to me. Quite honestly, it’s not very official looking, but if you still haven’t received your credentials it might not hurt to give MileagePlus a call to request the same.

Finally, if you’re a million-miler… be sure to check your doorstep for a FedEx package. This Flyertalk thread is reporting many MMs received their credentials and a gift today.

[Edited to add: Definitely follow Gene's recommendation in his comment below to print a temporary card. Also, a friend here in Southern California received his Gold kit today and his, anyway, was sent standard mail...]

Continental sent out their weekly “News and Offers” email to subscribers yesterday and I noticed an offer for 200 “free” OnePass (soon to be MileagePlus) miles for new e-miles memberships and a sweepstakes with a grand prize of 100,000 miles.

There’s a bit of work to get those 200 miles, though, as it requires you sign-up and activate your free membership by February 29, 2012, then participate in a little marketing research.

I haven’t signed up as of yet, but probably will in the coming days just to check it out and see if continued participation might yield a few hundred miles here and there. Miles earned in the program can then be redeemed with a variety of airlines, either Hilton or IHG Priority Club on the hotel front, or converted into Amazon gift cards.

Given the terms state it takes 4-6 weeks for the 200 miles to post, I’d recommend plugging your OnePass number in to avoid any posting issues once legacy MileagePlus numbers disappear on March 3.

Status matches with airlines generally require calling to inquire about the possibility, but United Airlines now has a page on their website dedicated for matches requested between now and December 31, 2012.

Primarily targeting American and Delta, it’s open to all competing frequent flyer programs with the exception of those that grant Star Alliance Silver and Gold status (sorry US Airways elites).

Once approved, a newly minted Premier needs the following activity completed within 90-days to retain their matched status for the rest of the year.

Other terms and conditions apply, so be sure to read this linked page.

Hat tip: FrequentFlier.com

Tonight, United Airlines revealed that 2012 program benefits – and system conversion from Apollo to Shares – will occur on March 3, 2012. The official “UA Insider” over on MilePoint posted additional details, including very welcome news that we’ll receive letters later this week with stickers for our current cards to officially extend 2011 credentials. This comes as a sigh of relief for those of us worrying about Star Alliance Gold lounge access beyond January 31^st. Here’s the UA Insider info:

If you didn’t hit the mark to requalify for your elite status level with United Airlines for 2012, you’re getting a small bonus this year. While they finalize the transition from Apollo to Shares, United is extending elite members’ 2011 status and bennies until late in the first quarter.

I’m guessing the official conversion will take place in March and we’ll find out the exact date later this month. What still has not been revealed, however, is how we’ll gain access to those Star Alliance lounges that require we show our cards. I’m hoping they’ll either mail out stickers with new expiration dates to apply to our existing cards or just issue the official 2012 credentials even though the systems haven’t merged. I just hope it’s not via Standard mail which has taken nearly a month for me to receive.

Also, as a reminder to those like me who’ve emblazoned their United Mileage Plus number in their memories, they will use the OnePass alphanumeric system going forward. I’ll admit it’s pretty easy to remember and I’ve had mine since 1990, but I’m sad my 001## ### ### will be retired.

Happy New Year!

Check your lifetime miles with United. Mine just jumped almost 100k when I thought I was only going to get 15k or so due to the one-time addition of elite qualifying miles dating back to program inception. I certainly hope it’s not a mistake or glitch. How did you make out?

[Updated to add: Looks like just about everyone received many more than they thought they would based on this Flyertalk thread.]

I’m saddened by the confirmation today that United Airlines will use OnePass numbers, but understand since Continental’s reservations system, SHARES, is winning out in the merger. I’ve had my 001## ### ### number emblazoned in my brain since 1988. It will live on, though, on my very sturdy bag tags United used to mail out to elites back in the late-80s and early-90s. Here’s the link with the information, as well as UA Insider’s information from MilePoint below:

United Airlines provided the details for the 2012 Mileage Plus program yesterday, as was widely reported and blogged. Many of the speculated changes did not actually come to pass, but there are some program details leaving many disappointed. All the specifics can be found here and I offer my comments on some of them below.

Tiers. As expected, United officially rolled out four mileage/segment-based tiers from Silver to 1K with “Premier” being the branded leading word at all levels. Global Services still exists, of course, on an invitation-only basis determined by your annual spend. I think adding the 75,000-mile level was a smart move to further reward the higher mileage flying 75,000 to 99,999 members with some extra goodies, including matching the fee waivers 1Ks currently enjoy. A few other highlights (Elite Qualifying Miles & Segments are now Premier Qualifying Miles & Segments: PQM/PQS):

United cut bonus miles back down below 100% for lower level elites, as it was about 20 years ago. I think it’s fair, actually, but will be uncompetitive with the rest of the industry except US Airways. Slight adjustments to the upgrade windows were made and the minimum four-segment requirement – the least worrisome rumored change – did make an appearance. Apparently the backlash United received from the “leaked” tier-based revenue requirements were bad enough to keep it totally off the program. I was ready to book a discounted business class ticket to Australia next year had they required it, but will happily achieve 1K again inexpensively.

Upgrades. After Global Services, priority is now given to elites on full-fare Y and B tickets (plus M for 1Ks), so the all mighty dollar on any given flight is now more important to United than long-term loyalty. I think this is remarkably unfair to the consistently loyal elite who, say, normally buys last-minute tickets for business travel only to get penalized when they pre-plan a vacation and booked a cheaper rate. It just doesn’t make sense to me. On the other hand, mileage upgrades – and regionals & systemwides, now named Regional Premier Upgrades & Global Premier Upgrades – will trump anyone looking for a complimentary upgrade and while hard to swallow, I agree with this. Priority should be given to instrument-sponsored upgrades before any complimentaries should come into play. I know some of you will disagree with me here.

Fare-based bonus miles. Finally United is awarding bonus miles for full-fare economy tickets and also greatly enhanced bonuses for the premium cabins. Here’s a summary showing the current percentages and what will eventually be the new structure once both carriers are on the Shares GDS (late first quarter 2012).

Economy Plus access. In quite a bitch-slap to the 25,000- to 49,999-mile flyers, United will now only allow Premier Silvers to reserve an Economy Plus seat at time of check-in. I think United had better end one of their current advertisements advising “Place your expectations in the upright position.”

Lifetime benefits. I am incredibly pleased with the details for the million-miler program. First, United will make a one-time adjustment to add in elite qualifying miles (EQMs) from years past since Continental Airlines’ current program incorporates those miles. Not counting the “roll-over” bonus EQMs I received in 2009 and 2010 (will those count?) I probably have about 15,000 miles coming to me. Going forward, only actual flight miles will count toward status and I’m fine with that having been used to it as a United flyer. Thankfully, at one million miles, United will bestow lifetime Premier Gold status (I had feared Silver), Premier Platinum for two million, Premier 1K for three million and (wow!) Global Services for four million. Also, million-milers will be able to designate a spouse or significant other with matching status.

I can now happily continue my trek for million-miler status having seriously been considering a jump over to American Airlines if the program were unattractive. I still have a nagging worry, though, that we’ll eventually see reduced PQMs for the cheapest tickets. With United relenting on a hard figure revenue requirement, will they boldly be the first U.S. carrier to attempt a shakeup of elite qualification based on fare?

Via Wandering Aramean & United’s tweet from about an hour ago, United Airlines will retain the ‘Mileage Plus’ name as its frequent flyer program. I’m in agreement with Seth that Continental’s ‘OnePass’ doesn’t carry the same strength of brand & name as Mileage Plus, so I’m happy with the not-so-shocking decision to keep it as Mileage Plus.

I’m not sure if the website is new today, or has been around for a while, but take a look at mileageplusmergerupdates.com. It summarizes all of the changes thus far and provides a forward-looking timeline of sorts with future announcements. It looks like this third quarter of 2011 is going to be pretty quiet, as they’ve just announced the program name, we can already link our OnePass & Mileage Plus accounts, and signage is continuing to appear systemwide.

What we’re all waiting on, of course, are the specifics of the Mileage Plus program for 2012 and beyond, which will be communicated in the fourth quarter according to the above. Is it simply going to be as we know it today, with the addition of a 75,000-mile “Premier Platinum” level? I thought American’s 30^th Anniversary celebration of the AAdvantage program was a nice promotion, so United has a similar opportunity to do something extra special with the rollout and I really think they should. It would be a huge disservice to both United & Continental’s base of loyal frequent flyers to build the anticipation of having “the world’s greatest frequent flyer program” that “we’re really going to like” and then blow the official rollout by staying status quo. Come on United, take this opportunity by the horns and give us something special! For starters, I’d like a couple of personalized bag tags similar to what’s shown below:

Image courtesy United Airlines

Today, United Airlines added a merger integration update as one of the six main featured articles appearing in the center of the main landing page. While this isn’t quite “Customer Day 1” of a fully merged carrier, it summarizes the progress United and Continental Airlines have made to date. Full details can be found here, with a summary appearing below:

• Website & check-in improvements: The ability to shop for flights, select seats and check flight status on either carrier’s website is now operational. Also being introduced at “key airports,” you can now apparently check in at either carrier’s self-service check-in kiosks. I’m looking forward to testing this out on my next trip.
• Premier Access priority services: This is basically now the official rebranding of Continental’s EliteAccess and United’s Premier Line & other priority services bundled together as an option to purchase for general travelers, or for regular use by current elite members.
• Mileage Plus & OnePass: Nothing really new to report on this front, as they rolled a reciprocal policy out back in March. Here, you can now link accounts, transfer miles freely between programs, have your status matched at both United and Continental, and access the elite lines when calling into reservations.
• Airport experience: Many check-in areas are next to each other now at airports around the country, including here at LAX. Boarding processes have aligned with Continental’s method winning out: uniformed military, followed by first class, business class, elites, families with children under the age of four, and finally by row numbers back to front. Also, lounges offer the same free Wi-Fi and complimentary beverage choices.
• Onboard snacks, meals & beverages: The same Choice Menu now appears on Continental and United, and it sounds like in late summer United might be dumping Starbucks with a statement reading, “both airlines will begin serving a new custom coffee.” Pure speculation on my part, so fear not yet Starbucks lovers.
• Policy & fee alignment: Consistent policies and fees for same-day flight changes, standby & unaccompanied children have been streamlined.
• Signage & branding: Starting at Chicago O’Hare, new signage will be appearing reflecting the official rebrand. Farewell to the tulip.
• Social Media: Today, United and Continental now have a common Twitter account as @united. Why they didn’t just keep the @UnitedAirlines is unusual, but perhaps to maintain consistency with “United” only appearing on the planes without “Airlines.” Also, they’ve decided to keep the existing Facebook account of UnitedAirlines.

Nothing earth shattering and unexpected, except perhaps the change in Twitter accounts, but it’s nice they’re continuing to show progress and posting it for everyone to see. I’m most interested to check-in for my next flight with the different carrier just to see how that function works (probably a toggle between existing systems of Continental & United). Sadly, I don’t have another United flight until July, and will be flying American virtually every week until then.