Richard Crum last week became president of the U.S. division of Lufthansa-owned AirPlus after leaving his post as president and chairman of corporate payment system Universal Air Travel Plan.
AirPlus is UATP's "largest and arguably most successful issuer," Crum told BTN last month. Frankfurt, Germany-based AirPlus has more traction in Europe—where it claims more than 20,000 corporate clients, comprising 47 percent of Europe's top 500 companies—but the company is leveraging Crum's position "to increase the pace of our penetration into the U.S. market," AirPlus president Patrick Diemer said.
"AirPlus is realizing the need to be an international company to respond to the needs of multinationals," Crum added. "While they're top-of-the-line in Europe and they've done a good job among Europe's top companies, more of those companies want a presence in the North American market. My big goal is to build that brand in the U.S."
Prior to Crum's move, AirPlus' U.S.-based employees reported to senior management in Europe. The company's step to bring on its first U.S.-based division president is a harbinger of more stateside activity, an AirPlus spokesperson said. Still, AirPlus has a relatively small operation in the United States. "They've had regional sales staff in the U.S., but they've always been run out of Germany," Crum said. "When Patrick Diemer talked to me, he said that AirPlus is making a serious effort in the U.S. and they need a leader, not just a sales staff."
AirPlus last month announced a co-branded payment and billing system with Continental Airlines, which mimicks AirPlus partnerships with British Airways and Swiss Airlines and was the first such partnership to take hold this side of the Atlantic 4.
(BTN, Sept. 22, 2003). Crum's initial duties will consist largely of supporting Continental and helping "advance their new product," he said. The deal also will bring in another U.S.-based employee, who will support the Continental account out of Houston. "We'll certainly have to staff up to support Continental, as well as any other business we acquire," he said.
In the course of his five-year tenure at UATP, the payment system grew to encompass 15 airline issuers and increased acceptance to more than 200 airlines—providing an alternative to traditional corporate cards through a centrally billed account.
Meanwhile, UATP's board of directors in a unanimous vote selected vice president and general counsel Ralph Kaiser to take Crum's place, UATP announced this month. The board also elected United Airlines director of passenger revenue accounting Marc Krohn to become the board's vice chairman.