United plans to return to basics Business blueprint presented to creditors By Greg Griffin, Denver Post Business Writer United Airlines will attempt to rebuild its base of premium customers, deliver quality service and revitalize its marketing efforts under a new business plan presented to creditors on Wednesday. The plan, discussed by United's board of directors on Monday, represents a return to fundamentals rather than a new direction, people familiar with the presentations said. United still plans to launch a low-cost division to compete with Southwest Airlines, JetBlue Airways and Frontier Airlines, but the scope is likely to be smaller. United initially expected to fly about 30 percent of its routes with the low-cost carrier. United filed for bankruptcy protection Dec. 9. Parts of the business plan have been revealed in recent weeks, so Wednesday's formal presentation held few surprises. The heart of United's emerging strategy will be to attract and retain premium business passengers. Many of those customers were driven away by labor-related operational problems beginning in 2000, by what some have called poor service, and finally by the uncertainty surrounding United's future during the last 18 months. The airline has already started to beef up its marketing, beginning with full-page advertisements appearing in Denver newspapers and other publications across the country. Other aspects of the marketing push include pricing promotions and an emphasis on what the company views as its strengths: its comprehensive national and international route network, its highly rated frequent-flier program and such business-friendly amenities as electronic check-in kiosks and Red Carpet lounges. The company "is going to go after what United has been doing for 77 years," a source close to the company said. United would not comment on Wednesday's meeting of creditors, which took place at the company's headquarters in Elk Grove Village, Ill. Representatives of several unsecured creditors on the committee, including three labor unions, would not comment or were unavailable. United's plan for gathering funding to emerge from bankruptcy in late 2003 or 2004 also was discussed at Wednesday's meeting. One industry observer praised United for focusing on gaining back business travelers but said the plan lacks clarity. "They want to unleash their employees and let them do what they do best, which is to treat customers well," said Michael Boyd, an airline consultant based in Evergreen. "That's good, but the plan still sounds vague. They seem to be foundering for a strategy." *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Mas Site: www.tntisland.com/tntrecords/mas2003/ Site of the Week: http://www.natalielaughlin.com/ TnT Webdirectory: http://search.co.tt *********************************************************