Article from bizjournals.com: United, like American, says it will win back premium fliers

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Hello from bizjournals.com! David Mueller (dmueller7@xxxxxxxxx) thought you
might like the following article from Pacific Business News:

The sender's comment about the article:

AA and UA still don't get it: Premium passengers want bizjets; everyone
else wants Southwest.


United, like American, says it will win back premium fliers


Howard Dicus
------------------------------------------------------------
   Both of the biggest U.S. airlines are now on record as pinning their
   hopes for profitability on a hypothetical return of business travelers
   paying premium prices when they can fly more cheaply on discount
   carriers on most routes.

   The chief executive of United Airlines made it clear this weekend that
   UAL hopes to emerge from Chapter 11 with renewed business from the
   high-paying corporate fliers who once produced so much United revenue
   that it could afford to pay six figure salaries to pilots who worked an
   average nine days a month.

   CEO Glenn Tilton said, "We're going to make sure we continue to focus on
   the core of United's passengers -- that is the business traveler," the
   Reuter news agency reported.

   United, still in Chapter 11, thus joins American Airlines, so far
   skirting bankruptcy, in telling the world that it thinks it will one day
   see a return of business travelers who willingly pay up to a third more
   than they would be charged on discount carriers.

   On May 21, American CEO Gerard Arpey told his shareholders American had
   chosen a strategy of "compete versus retreat." His predecessor Don Carty
   had said only two months earlier that costs had to be cut because
   business fliers would not pay more than 30 percent above discount fares
   for a premium flight, without explaining why he thought business fliers
   would pay even that much.

   Not all airline CEOs believe in the return of the full price business
   flier.

   On April 16, Northwest CEO Richard Anderson said, "We believe that
   revenues will not recover to historical levels."

   A survey early this year of corporate travel managers by their
   professional association found that a majority of them, having made deep
   spending cuts in the months following 9/11, found their travel budgets
   had been cut permanently, with senior executives expecting them to make
   permanent use of the savings they found in 2002 by flying less, flying
   coach, and never paying full price under any circumstances.



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http://pacific.bizjournals.com/pacific/stories/2003/05/26/daily60.html

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