Tuesday, February 20, 2001
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Posted on: Tuesday, February 20, 2001

Airline plans merger ad before deal OK'd


USA Today

WASHINGTON — United Airlines, whose controversial plan to buy US Airways is under review by the U.S. Justice Department, is already planning a marketing campaign to introduce the merged airline to the public.

According to an internal memo obtained by USA Today, newspaper ads extolling the deal’s benefits would appear in mid-March — two weeks before Justice is expected to reveal a decision.

"Because of the long lead time (with advertising), United has been developing a strategy that would highlight benefits of the merger," spokesman Matthew Triaca says. "We have to plan ahead. But the whole merger is in the hands of the Justice Department right now." He declined to comment further.

The campaign’s goals were described in a Feb. 9 memo from Elizabeth Roch, United’s manager of employee communications, to dozens of employees at United and US Airways, as well as at affiliated commuter airlines.

"Our primary goal with all initial messages is to set customer expectations about what they will and will not experience," her memo says. "We want customers to understand that, No. 1, this merger is a good thing for both customers and the industry" and "merging two airlines is a complex process."

The memo says national and regional newspaper ads starting in mid-March will boast "more access, more routes, more places to earn and use frequent-flier miles. At a very low level, they also will begin to set expectations about what customers will and will not experience after the deal closes."

The memo says United and US Airways will operate as separate airlines "for several months" after the merger is approved.

Promoting a merged airline before Justice announces its decision would be risky, marketing experts say. Kevin Price, president of Market Performance Group, a Connecticut-based consulting firm, said early ads could be read to imply the airlines already know the government will bless the merger or are seeking public support for approval.

"It’s like poking the lion in the eye," he says.

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