This article from NYTimes.com has been sent to you by psa188@juno.com. Less Marketing at United December 11, 2002 By NAT IVES UNITED AIRLINES, having run two newspaper ads nationwide in the last week to reassure customers that their travel plans would be unaffected by its financial troubles, is withdrawing from advertising in the traditional media until its new branding campaign is ready to begin sometime in the next quarter. United, which filed for Chapter 11 bankruptcy protection on Monday, is instead planning to rely on e-mail messages and direct mail to its most loyal customers, as well as an increased emphasis on public relations. Swearing off national television and print advertising, however, could prove risky, as a drumbeat of negative news could scare off customers and allow competitors a chance to poach. United executives said its approach would be enough to get across the message that its planes would continue to fly, that tickets would be honored and that frequent-flier miles would be good. "If we need to come back and aggressively defend our position in the marketplace, we will absolutely do that," said Jerry Dow, director for worldwide marketing communications at United in Elk Grove Village, Ill. "There's no sense in dwelling on the realities of Chapter 11," he added. "We're ready to move on as fast as we can." • Analysts said that given the financial constraints and uncertainty over the airline's future shape, United might be playing its hand the best way it can. "United has to go out with a message, but they have to be careful about the way they advertise," said Henry Harteveldt, a senior analyst covering the airline and travel industries at the San Francisco office of Forrester Research. Overpromising, a chronic mistake in airline ads, could be more damaging now, Mr. Harteveldt said. "United has a well of good will that it can tap into," he said, citing advertising successes like the airline's "Fly the Friendly Skies" campaign of the past and the commercials after Sept. 11. "But the minute people detect United is lying to them, they will bolt." "They can't be overly glossy, can't be doing extravaganzas," without seeming to ignore the financial problems that led to the bankruptcy filing in the first place, Mr. Harteveldt added. As a result, using the Internet, e-mail messages and direct marketing instead will be vital. The UAL Corporation, the parent of United, spent $35.8 million advertising the airline in the media during the first half of 2002, more than the $25.8 million it spent during the period a year earlier, according to CMR, a division of Taylor Nelson Sofres. Southwest Airlines and American Airlines, whose parent is the AMR Corporation, spent more during the first half of this year, while Delta Air Lines and Continental Airlines spent less. • "All the airlines have cut back on advertising this year," said Ray L. Neidl, an airlines analyst at Blaylock & Partners in New York. "A few years ago you'd open the paper and see big pictures of airplanes" everywhere in ads, he said. Now, the difficult business environment and the increasing use of e-mail messages to communicate with frequent fliers means that airlines promote themselves differently. The shift does not mean that United should let red ink and negative press make its situation even worse, Mr. Neidl said. "If they start losing bookings because of the bankruptcy, that will accelerate the problem," he said. "That would require additional advertising." David Sigel, group account director at Fallon Worldwide in Minneapolis, United's worldwide agency, part of the Publicis Groupe, said: "We want to be careful not to change the subject. It's very obvious to anybody who flies or considers United that it's going through the situation that it is," and addressing that situation for consumers is a prerequisite of any later marketing. "There could be future ads" like those yesterday, Mr. Sigel said, but only when there is news to deliver. The text of yesterday's ads, for example, noted that United was ranked first among major airlines for on-time arrival in two of the last four months reported. United had previously never ranked first in the rankings' 13-year history, so the improvement merited a mention. "If there's nothing new to say, we'll probably save our powder," he said. United has also hired Gavin Anderson & Company, a public relations consulting firm with experience in crisis management. United's approach is similar to the one taken by US Airways after it filed for bankruptcy protection on Aug. 11. "We communicated with our customers quickly following our filing," said David Castelveter, a spokesman for US Airways. It also used its Web site, e-mail messages and direct mail to get out its message that customers need not worry. "We felt that we had adequate coverage" without a television or branding campaign, he said. Both US Airways and United could also benefit from a public that attaches less of a stigma to companies operating under bankruptcy protection. "People have become more used to flying on bankrupt airlines these days," said Betsy Snyder, director at Standard & Poor's in New York. http://www.nytimes.com/2002/12/11/business/media/11ADCO.html?ex=1040620791&ei=1&en=e7f51853288fd7d0 HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@nytimes.com or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@nytimes.com. Copyright 2002 The New York Times Company