Introduction, Vision, Mission, Goals and Obsjectives of Continental Research Paper

Introduction, Vision, Mission, Goals and Obsjectives of Continental Airlines - Research Paper Example UAL has the world’s widest global route, because it can travel in the U.S., Asia?Pacific, Europe, Middle East, Africa, and Latin America (UAL, 2011, p.4). UAL has 5,600 flights a day to â€Å"more than 370 U.S. domestic and international destinations† from the Company’s usual routes at â€Å"Newark Liberty International Airport, Chicago O’Hare International Airport, Denver International Airport, George Bush Intercontinental Airport, Hopkins International Airport, Los Angeles International Airport, A.B. Won Pat International Airport, San Francisco International Airport, and Washington Dulles International Airport† (UAL, 2011, p.4). When regional operations are added, United has around 3,200 flights a day to more than 235 domestic and international places since January 1, 2012 (UAL, 2011, p.4). UAL’s present strategy is â€Å"unbundling† existing products and services, enhancing value?added products, and providing customers with greater flexibility and choice in choosing the products and services they are ready to buy (UAL, 2011, p.38). The company also aims to invest in technology that helps assist customers with efficient self-service tools and enables the company to make high-quality operational decisions, while decreasing operating costs (UAL, 2011, p.38). UAL posted a net income of $840 million in 2011, which is 232% higher in 2012 (UAL, 2011, p.32). ... One of UAL’s existing goals is to earn â€Å"$1.0 billion to $1.2 billion in net annual synergies on a run?rate basis in 2013, including between $800 million and $900 million of annual revenue synergies from its merger† (UAL, 2011, p.4). In order to attain this goal, its objectives are to expand customer options, to attain greater scope and scale, to optimize fleet operations, and to expand services (UAL, 2011, p.4). UAL also wants to control fuel prices through hedging future fuel requirements (UAL, 2011, p.14). Nonetheless, the Company’s hedging programs may employ noteworthy amounts of cash, because of the posting of cash collateral in several instances, so it might not be effective in controlling fuel costs and may be restricted due to market conditions and other reasons (UAL, 2011, p.14). Moreover, considerable reductions in fuel prices may augment the costs related with the Company’s fuel hedging arrangements to the degree that it uses swaps or colla rs (UAL, 2011, p.14). Swaps and sold-put alternatives (which belongs to a collar) may obligate the company to pay to the counterparty upon decision on the contracts, if the cost of the commodity hedged goes below the agreed upon quantity (UAL, 2011, p.14). Falling crude and other prices may result to significant amounts of collateral to pay for these swaps (UAL, 2011, p.14). Furthermore, UAL aims to reduce operational costs by promoting website use for customers and enhancing the capabilities of the company website (UAL, 2011, p.7). It seeks to improve availability of new services and ease of access at its website (UAL, 2011, p.7). Moreover, UAL is pursuing different actions to decrease its carbon