State, United Airlines may launch marketing project
By Dan Nakaso
Advertiser Staff Writer
United Airlines officials and Gov. Linda Lingle yesterday talked about collaborating on a possible promotional campaign to boost travel to the Islands, United's CEO said yesterday.
Richard Ambo • The Honolulu Advertiser
The campaign could be similar to an October promotional project called "Visit Hong Kong Month" that was sponsored by United, the Hong Kong government and other companies, said Glenn Tilton, United's chairman, president and CEO.
Glenn Tilton, chairman, president and CEO of United Airlines, talked with state leaders during a Honolulu stopover.
"It was very successful, and we want to work with destinations, both business and leisure, in creating similar stimulation for travel," said Tilton, who was in Honolulu yesterday en route to Tokyo.
It was Tilton's first Hawai'i visit since he took over United in September 2002 just as it was heading toward the airline industry's largest bankruptcy.
United, which represents about 25 percent of the Hawai'i market, has since had its most successful October ever.
United's performance in terms of yield and load factor are up 5 percent over last year, Tilton said, and the Hawai'i market has done better than other United markets on average.
Hawai'i also has the highest goal in the company for customer satisfaction — 71.1 percent compared to a companywide average of 56 percent, said Hawai'i general manager Michael Navares. But it actually has seen a 74 percent customer satisfaction rate, Navares said.
"Hawai'i is one of our best-performing markets," Tilton said.
Tilton's visit coincided with the company's announcement yesterday of a fare sale between Hawai'i and the Mainland for limited dates between Jan. 7 and March 31. The sale includes one-way fares of $203 between Honolulu and Los Angeles, based on round-trip flights, and one-way fares of $254 between Honolulu and New York City.
The fare sale is aimed at a traditional slow time for the airline industry, Tilton said.
"Obviously, it was designed to be stimulative, and I think it will be," he said.
Although travel to Hawai'i and through the Pacific has rebounded since Sept. 11 and the SARS epidemic, Tilton said Hawai'i still faces competition from destinations such as Mexico and the Caribbean.
And he hopes that increased attention on Hawai'i by other airlines doesn't flood the island market.
American Trans Air, a low-cost carrier, announced in October that it is adding more flights to the Islands. Continental Airlines and Northwest Airlines also added or resumed seasonal flights.
"If the economy continues to improve and Hawaii indeed looks like an attractive destination, I think there will be more product on the market," Tilton said.
"... There's got to be fiscal discipline, or people will start putting up schedules that don't make any money. We're not in business recreationally. So I'm hoping that there's going to be some discipline around the route structures."
Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or 525-8085.
