United Seeks ATC Account Support

<B> United Seeks ATC Account Support</B>

By Mary Ann McNulty

United Airlines by year-end expects to select a new back-office accounting software for its Air Travel Card that will be year 2000 compliant, as well as afford customers the flexibility they want.

Finding its existing system too out-of-date to upgrade, a team of United executives began drafting a wish list for a new system earlier this year. The team reviewed a number of options in the market and expects to make a selection in coming months to ensure an easy transition early next year, according to Sue Domenick, corporate products manager for United's payment products.

Talking to new and prospective customers, Domenick said reconciliation remains one of the biggest challenges for many corporations.

To help its customers who use the Apollo system, United's ATC product accepts files from Apollo that include cost center or project numbers that can later be linked up with ATC charges.

Besides the ATC offering, United also offers its privately branded American Express product that debuted in April 1997. The airline now has 13 customers using its full-service card with 13,000 cardholders.

"The selling cycle is much longer than we expected," Domenick said, but officials are encouraged by their progress to date. In some instances, they began selling the card a year ago, and corporations still haven't selected a card.

With others, it took longer than expected to fully deploy the card. Based on its experience, Domenick said, the airline no longer sets goals based on revenue, but on the number of new accounts it secures.

In the highly competitive card market, Domenick said, United is offering corporations some financial incentives on its full-service card, namely rebates that are not based on performance, hurdles or payment terms.

What's more, United pays quarterly, not annually, as with some competitors.