United CEO says business travelers top priority

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United CEO says business travelers top priority

CHICAGO (AP) =97 United Airlines' main focus as it tried to get out of=20
bankruptcy is on business travelers =97 the latest sign the world's No. 2=20
carrier doesn't intend to become like Southwest or JetBlue. Six months into=
=20
Chapter 11 reorganization, United is still tinkering with a business plan=20
that it must submit in U.S. Bankruptcy Court by Oct. 6. While creating a=20
separate low-fare carrier remains part of the plan, officials are making it=
=20
clear that the discount arm is no longer its key element. In a message to=20
employees taped Monday, CEO Glenn Tilton told employees the No. 1 priority=
=20
is to "focus on our core customers, the premium business segment," as well=
=20
as to strengthen United's brand and increase revenues. He also wants to=20
improve United's route network to "profitably serve a full range of=20
customers," while maintaining a competitive cost structure and keeping=20
operations running smoothly. Unlike in past such messages, there was no=20
specific mention of the low-fare carrier that was intended to handle as=20
many as a third of United's daily flights. United spokesmen declined to=20
comment about it Tuesday. But company officials have acknowledged the size=
=20
of the carrier are being scaled back significantly from the major role=20
envisioned earlier this spring =97 a plan which was widely criticized by=20
industry experts as unlikely to succeed.

Revised recommendations are to be drawn up by the end of this month. United=
=20
executives presented the latest business plan to meetings of the board of=20
directors and creditors committee last week. Tilton said it was well=20
received. United has continued to lose money heavily in bankruptcy =97 a=
 fact=20
likely to count against it when it reapplies for a federal loan guarantee=20
that was denied by the government last December. Tilton maintained that the=
=20
Elk Grove Village, Ill.-based airline narrowed the revenue gap between it=20
and other carriers substantially in May, and added that "June is looking=20
encouraging." The airline's creditors, who have declined public comment on=
=20
United's financial status, require that it have a positive cash flow by=20
October after more than three years of heavy losses. But based on United's=
=20
solid recent progress, including new contracts cutting labor costs by $15=20
billion over six years, they are unlikely to step in if United misses any=20
of its required monthly financial benchmarks this summer.


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