United targets business travelers

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United targets business travelers

CHICAGO (AP) =97 United Airlines is kicking off its biggest advertising=20
campaign since 2001 in a push to lure back more business travelers while it=
=20
overhauls its operations in bankruptcy. The promotion =97 four trips for the=
=20
price of three =97 is being backed by full-page ads in national newspapers=
=20
and others in key markets throughout the summer travel season that is=20
critical to United's recovery effort. Under the initiative announced=20
Wednesday, customers enrolled in United's frequent-flier program who fly=20
three eligible paid round trips between Thursday and Sept. 30 will earn a=20
free round-trip ticket for travel in the 48 contiguous states between Sept.=
=20
2 and the end of the year. A maximum of two free tickets can be earned. The=
=20
``Fly Three, Fly Free" ad campaign is the first under new marketing chief=20
John Tague, the former president and CEO of American Trans Air whom United=
=20
hired last month. ``The competition for today's business traveler has never=
=20
been more significant," said Tague, executive vice president for customer=20
initiatives. ``United is aggressively utilizing responsible promotional=20
activities to successfully compete in the marketplace." As part of the $5=20
million ad launch, United hired eight-piece orchestras to play its=20
``Rhapsody in Blue" theme song in prominent downtown locations, including=20
the Sears Tower in Chicago's Loop area.

Since filing for Chapter 11 bankruptcy last December, United has scored=20
important gains in restructuring its labor contracts =97 saving $2.56=
 billion=20
a year through 2008 =97 and its airplane leases. It restored 162 flights to=
=20
its June schedule amid what it says are encouraging signs of booking=20
improvement after months when passengers steered clear of the bankrupt=20
carrier. But the Elk Grove Village, Ill.-based airline still faces tough=20
challenges as it tries to end three years of heavy losses and compete=20
better against discount carriers and other rivals. United, which depends=20
heavily on revenue from business travelers, said in a bankruptcy court=20
filing last week that it lost $375 million in April, when the war in Iraq=20
and fallout from SARS dealt a devastating blow to air travel. It also might=
=20
be difficult for the airline to win back some of the business travelers who=
=20
fled for other carriers when its operations began suffering from labor=20
turmoil in the summer of 2000, even though its on-time record recently has=
=20
been one of the industry's best.

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