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Making the Chicago market happy.

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Source: Jane Allen

Date: Mar 18, 2005

Hello, this is Jane Allen with an Update for Friday, March 18, 2005.

In an effort to get a "leg up" on our competition and extend our leadership position in Chicago, we are launching a national television and print ad campaign around United's Economy Plus seating. We want to make sure that our loyal customers, particularly our Chicago travelers, know that while other U.S. airlines are shrinking legroom, spacious Economy Plus seating remains available on United. In other words, we're taking on American Airlines.

As Glenn Tilton said recently in a speech to the Chicagoland Chamber of commerce, "The Chicago market is vital to our company's success. Chicago is the central crossroads of business travel for the nation, and O'Hare is the last two-carrier hub in the United States, with both ourselves and American."

Though Chicago is United's hometown, this market is very competitive. Our research shows that frequent business travelers rank seat comfort high on their list reasons of reasons for choosing a carrier and many of them are willing to pay a modest premium for more space. But many customers think that American has a legroom advantage and we want to set the record straight.

To do so, and to appeal to those business customers, we are running new advertisements next week in Chicago with tag lines like, "Fly American and you could kick yourself. Literally." Or, "The Straight Story on our Legroom vs. American." In other words, we're taking the gloves off.

In addition to increasing the awareness of the Economy Plus advantage among Chicago business fliers, we have also enhanced products and services in the Chicago marketplace. We've repositioned weekday flights bound for key business destinations to the B Concourse at O'Hare and refreshed the Red Carpet Clubs.

In United First, we added breakfast on flights between Chicago and Washington D.C., and new breakfast, lunch and dinner meal services between Chicago and Philadelphia, which matches the competition.

Finally, we're rolling out a best-in-class, 70-seat regional jet product that will be the only product in the market with First Class and Economy Plus seating, among the regional jet competitors.

These initiatives are just part of our comprehensive plan to win the Chicago market. We are making a specific decision - and putting dollars behind the effort to win and retain our customers. So while we continue to reduce our costs at every opportunity, we will also continue to play to our strengths - and invest as necessary. We know that our unmatched worldwide network and a portfolio of products give us the flexibility to put the right product in the right market at the right price. And that includes adding tailored service in business markets for high-yield customers.

So as Glenn said in his EYE-ON-UA message yesterday, "It's time for leg-to-leg combat." We already offer the best service from Chicago, now we're letting our business customers know that we also have a superior product.

That's all for today. Fly safe and I'll talk with you again next week.

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