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In case of the web sites operated by United Airlines themselves, the services are owned by them and therefore, the revenue is direct. (Abdollahi & Leimstoll, 2011)
Another model used is the advertising business model. According to this model, the UAL provides advertisement to the companies. These companies then broadcast the advertisements on their website. According to this model, the revenue is commission based and the commission is based on the contract. (Abdollahi & Leimstoll, 2011)
The aforementioned business models can be used together. The advertisement model would work as an attracting force that increases the flow of the customers whereas the brokerage model will be applied to the websites that are either company owned or third party operated. (Abdollahi & Leimstoll, 2011)
System Development Life Cycle
System development life cycle (SDLC) is the name given to the process by which the companies introduce, maintain and dispose new and old information systems. SDLC uses the method of strict review at the end of every phase. In this way, the UAL will be able to have more control on management. (Radack, 2002)
In addition to that, companies working according to the SDLC process rely on regular documentation about every phase and the problems associated with it. Therefore, the benefits and demerits of an information system is obtained and the implementation is made easy. (Radack, 2002)
UAL can also benefit from System Development Life Cycle by having an archive of all documents. All the events and transactions during the design or implementation of an information system can be traced back to their origin and discrepancies can be reduced to a minimum. (Radack, 2002)
The use of SDLC leads to the invention of products which can be introduced in the market as well. In case of UAL, new ideas or strategies can be found during the process which can then help UAL in other matters. (Radack, 2002)
Business Continuity Planning
The first phase of business continuity is the evaluation phase. This phase involves the identification of risks, threats and strengths. United Airlines has also identified the risks associated with the airlines business. These risks are mainly related to security, fuel efficiency and loyalty. (Hermann, 2008) (Gavito, 2013)
The second phase is the implementation. In this phase, the company makes a strategy and implements it. United Airlines has also implemented its strategy by making its fleet the most fuel efficient fleet in the world. United Airlines has also targeted customer loyalty by introducing extensive routes so that the customers choose united only. In addition, security measures are also enforced to take care of the final risk. (Hermann, 2008) (Gavito, 2013)
The last to come is the steering phase. In this phase, the results of the business continuity planning are assessed. The negative outcomes are addressed and the improvements are continually made. Keeping this in mind, UAL has continued to engage in innovation and has created a customer complaint portal through which the complaints of the customers are addressed. (Hermann, 2008) (Gavito, 2013)
Use of Bluetooth, Wi-Fi and RFID
Usage of RFID is very beneficial for airlines. There is a plethora of mishandled baggage each year. The airlines face losses for every mishandled bag and traditional bar code tags are useless in finding out missing luggage. A solution to this is RFID baggage...
These tags contain RFID chips which can be traced and therefore mishandled luggage can be avoided. (Ben-Yosef, 2005)
The United Airlines, with the help of airports and other aviation authorities, can install Bluetooth beacon technology. These beacons can be installed in the airports and every time a passenger, with a device having Bluetooth, comes into the proximity of the beacon, a message will be triggered containing information about the flight and other things. Wi-Fi technology is also being used to provide the passengers with internet facility. (Ben-Yosef, 2005)
Information Security
The extensive use of IT in airlines has opened doors to cyber-crime. The airlines have to be cautious as it handles the information of customers. Software and protocols should be designed to avoid unauthorized access. In addition, the aircraft's IT components should also be updated for security threats. The airline should also be clear about any changes in the IT components of the aircraft so that accidents are avoided. (Iasiello, n.d.)
References
Abdollahi, G., & Leimstoll, U. (2011). A Classification for Business Model Types in E-commerce.
Ben-Yosef, E. (2005). The Evolution of the U.S. Airline Industry (1st ed.). [New York]: Springer.
Boland, D., Morrison, D., & O'Neill, S. (2002). The future of CRM in the airline industry: A new paradigm for customer management (1st ed., pp. 6-7). New York: International Business Machines Corporation. Retrieved from http://www-05.ibm.com/innovation/nl/pdf/highlights/integration/crm_airline.pdf
Entrekin, L., & Scott-Ladd, B. (2013). Human Resource Management (1st ed., pp. 6-128). Hoboken: Taylor and Francis.
Kim, J. (2014). An Agent-based Model for Airline Evolution, Competition andAirport Congestion (1st ed., pp. 5-11). Charlottesville: Virginia Polytechnic Institute. Retrieved from http://scholar.lib.vt.edu/theses/available/etd-06032005-165152/unrestricted/Dissertation_Kim.pdf
Van Decker, J. (2009). United Airlines Improves Reconciliation Management by Leveraging Technologies (1st ed., p. 3). Stamford: Gartner. Retrieved from http://www.alpern.com/UserFiles/File/Services/United%20Airlines%20Improves%20Reconciliation%20Management.pdf
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