Hello, this is Jane Allen with an update for Friday, February 20, 2004.
United this week demonstrated that it is investing in its customers and its mainline business by announcing a new look, a new voice and a new international route.
The new look is a stylish dark blue and white livery, with the company's name boldly spelled out in dark blue on the front sides of the aircraft and the United logo completely covering the tail. You can see the new color scheme on SkyNet by clicking on the "new livery" banner on the home page.
I know your first question must be: "How can United afford to introduce a new livery now?" As you probably know, United must paint its aircraft on a regular schedule in order to maintain the shell of the aircraft. So, the cost of the new paint scheme will be minimal because our aircraft will get the new look only as they come due for their regularly scheduled repainting, or as we bring new regional jets into our fleet. That will be a total of 72 aircraft this year. In addition, the simpler livery allows us to paint planes and get them back into service more quickly than before.
The livery will appear on mainline and United Express aircraft, and will present a unified look for our airline -- from our check-in areas to our web site and our aircraft. It demonstrates to customers, especially our core business customers, that we are investing in our business. The new livery also is visible evidence of our strong portfolio of products under the United brand.
Our new voice is a new ad campaign with the tag line, "It's time to fly." By using distinctive animation, this campaign of print and television ads represents a bold new direction in our advertising. The ads' story lines are about frequent business travelers, who represent the greatest share of our passenger revenue. We think the ads will forge an emotional connection with our most valued customers. Our first print ad appeared in The Wall Street Journal on Feb. 18. Our television spots will debut in hub markets during the Academy Awards broadcast on Feb. 29.
The new route we announced this week is daily service between San Francisco and Beijing. We're beginning these flights June 10 in response to a steady rise in customer demand in the Pacific. This latest announcement follows our recently announced plans for a second daily flight between Tokyo and Honolulu, also starting in June, and new daily nonstop service between Chicago and Osaka. In June of last year, we started flying nonstop between San Francisco and Seoul. It's exciting to see United not only restoring service suspended during the SARS epidemic, but also adding new service that builds on our leadership position across the Pacific. To fit our San Francisco-Beijing service into our allowance of a maximum of 21 weekly frequencies, we will discontinue our Tokyo-Beijing service in June.
All of these changes - the new livery, the new routes and our new branding - show that we are reinvesting in our brand, our company and our customers. That's something we must do if we are to compete today and after we exit Chapter 11.
Just as important to our ability to compete is the need to focus on customers and provide the consistent service they want. Employees are doing just that, as evidenced by our January Marketrak results. We didn't just meet our corporate goal for Definite Intent to Repurchase for the month, we exceeded it by nearly two points. We also exceeded our quarterly goal by more than two points, which keeps us on track to achieve our quarterly Success Sharing goal for customer satisfaction. If we can keep up this good work, we all will share in the cash rewards that are part of the Success Sharing program.
I want to point out that our division played a major role in January's high Marketrak ratings. We met or exceeded all of our monthly goals for North America and international flight attendant and meal ratings. In addition, North America flight attendant ratings were the best January ratings in 10 years, and international flight attendant ratings were the best for that month since 2000. North America meal ratings also were the best January since 2000, and international were the best January since 2001. Thanks to everyone who contributed to these excellent results. It's clear that the work you're doing is having an impact on customer perceptions of United and their choice of airline for future travel. Achieving service excellence and consistency is the way United will be able to compete successfully against other carriers.
As you know, we are planning to expand our new Ted service to Washington Dulles. This flying will be assigned to Dulles-based flight attendants. It includes service to Fort Lauderdale, Las Vegas and Tampa, beginning in April, and to Orlando, beginning in May. By the way, Ted has delivered big time for our customers. Our load factor month to date is right on target at 83.1 percent, and all of Ted's on-time performance measures exceed goal by 10 to 18 points. In addition, Buy on Board is selling very well. The Ted team is evaluating the feedback provided by flight attendants during the first week of service to further improve Ted.
Before I close, I'd like to recognize a Boston-based crew whose outstanding service on a flight from Boston to San Francisco impressed one of our frequent fliers. In a letter to United, he described the crew as: "efficient and proactive in responding to, and anticipating, passenger needs. They were friendly, courteous and professional." The customer provided a specific example of a crewmember's response when there were no meal choices left that his traveling companion could eat. "The flight attendant graciously offered to check crew meals to see if any of them were chicken, but they weren't. She offered to check the United Economy offering, then creatively thought to offer a special meal that evidently had been boarded in error. That's what you call making lemonade out of lemons." Let me echo that customer's sentiments by extending my thanks to crewmembers Olga Mota, Rafael Nobrega, Jeanne Breen, Allen Cheung and Mary Manor. You are a credit to United.
That's it for this week. Thanks for listening.