"Beleaguered United tries to reassure travelers"

Tuesday, May 17, 2005

Beleaguered United tries to reassure travelers 
By Keith L. Alexander 
The Washington Post 

 
WASHINGTON - United Airlines is seeking to reassure its biggest corporate
clients these days. With strike threats growing, the carrier's executives
have been telephoning travel managers of some Fortune 500 companies to
encourage them to continue booking flights as usual. 

United is informing business travelers that it has contingency plans to
prevent flight disruptions should a strike occur, spokeswoman Robin Urbanski
said. "We're telling customers to continue to book with confidence and that
we are prepared to take whatever actions that are necessary to prevent
disruption of service in case there is a strike," she said. 

If United were forced to cancel flights, it would probably have to shift
passengers to other airlines. But finding open seats could prove difficult
because most airlines are flying nearly full planes. 

Many travel experts said they weren't discouraging passengers from booking
United. 

Terry Trippler, chief executive of Farefacts.com, said he was not telling
passengers to avoid the airline but urging them to be "cautious and alert"
to the potential of delayed and canceled flights because of labor unrest. 

Trippler said United customers on a flight disrupted by a strike or any type
of labor unrest would be entitled to full refunds for any unused portion of
the ticket. 

Travelers should also consider booking flights that depart earlier in the
day. If a disruption occurs, customers would have the rest of the day to
make alternative flight arrangements. 

United's frequent fliers are keeping a much closer eye on the carrier after
a bankruptcy judge last week approved its request to terminate its pension
plans. United employees had threatened to strike if the airline ditched the
pensions or altered their labor agreements. However, Monday night, the
airline and leaders of its mechanics union reached agreement on a tentative,
five-year contract that would provide the carrier with $96 million in
savings. The airline, which has been in bankruptcy protection since 2002, is
trying to cut billions of dollars in labor costs in hopes of emerging from
bankruptcy later this year. 

Most United frequent fliers remember the disruptions in the summer of 2000
when the airline's pilots refused to work overtime during a bitter contract
dispute. United was forced to cancel 25,000 flights, inconveniencing
thousands of its frequent fliers in one of the worst airline labor
disruptions in more than a decade. 

To win back passengers' loyalty, United offered its most frequent fliers
between 10,000 and 25,000 free bonus miles or first-class upgrades. It also
lowered the number of bonus miles needed to reach elite status and gave
discounts on memberships to its Red Carpet airport lounges.


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