United Airlines last week launched a new program meant to add convenience for business travelers on key routes and compensate them for delayed flights. Meanwhile, United this month also claimed to be the first U.S. carrier to secure Federal Aviation Administration approval for installing wireless Internet technologies aboard its aircraft.
The airline's business travel promotion, dubbed Business 1, affects nonstop United and United Express flights between Chicago O'Hare and seven business destinations: Boston Logan, Dallas/Fort Worth, Minneapolis/St. Paul, Newark, New York La Guardia, Philadelphia and Reagan Washington National. Travelers who are registered for the new program, as well as the Mileage Plus loyalty program, will receive 500 bonus miles whenever their flight is delayed at least 30 minutes. Rather than disassociate itself from delays beyond its control, United's guarantee covers air traffic control and weather-related delays.
According to the U.S. Department of Transportation, United in April ranked first among all U.S. carriers serving O'Hare in terms of overall on-time arrivals at the airport. Its 87.8 percent on-time performance compared with the industry average of 84.8, even as United had 1,000 more April arrivals at O'Hare compared with the next largest operator, American Airlines.
With diminished savings opportunities from negotiated discount programs, more travel managers are considering customer service, amenities and other traveler benefits when assessing airline suppliers. On-time performance in particular is generally among the more important aspects for corporate travelers. Though Northwest Airlines, for one, provides corporate account-specific customer service metrics, no carrier has acknowledged contractual terms based on on-time performance.
United said the gates used for Business 1 flights are its closest to security checkpoints at each airport. At O'Hare, gates are located on the B concourse. Other perks include complimentary newspapers for those seated in first and economy plus classes on morning flights. First class passengers also receive meal service. Various restrictions apply and bonus mileage cannot be used toward elite status.
Business Travel Coalition chairman Kevin Mitchell said United's program would "encourage business travel ahead of what could be a difficult summer of delays and frustration." It also could help United compete against Chicago rival American for lucrative business travelers.
FAA Approves Inflight Wi-FiIn other United news, the carrier along with Verizon Airfone claimed to be the first companies to obtain Federal Aviation Administration approval to allow passengers to use wireless technology devices during flights. Specifically, FAA approved Wi-Fi technology for United's Boeing 757-200 aircraft, though United said it intends to gradually offer high-speed wireless Internet across its entire fleet.
The two companies said the actual date on which United Airlines passengers can start using Wi-Fi devices would be determined by the Federal Communications Commission in the coming months.
A recent online survey conducted by Innovation Analysis Group found that 84 percent of 280 respondents—encompassing members of IAG's travel panel and visitors to tripso.com—would always or occasionally make use of such services. "Respondents to this survey, while perhaps a biased group of travelers, are precisely at whom this service is aimed," IAG said. "It would appear that these respondents are eager to make better use of what is currently dead time." IAG also found that respondents generally would be willing to pay $7 or $8 per flight for the service.
To date, no domestic carriers offer inflight high-speed Internet connections, whereas several foreign carriers already have begun to roll out the service
(BTN, June 6).