Revived airline ramps up PR after Chapter 11

United Airlines has taken the first step in rebuilding its brand image across the region, after more than three years in the financial wilderness sparked by its entry into Chapter 11 bankruptcy protection in December 2002.

The airline has concluded a PR reshuffle in four markets across Asia-Pacific, with Ogilvy Public Relations Worldwide taking charge in China, Ketchum Newscan in Hong Kong, News Communications in South Korea and Icon PR in Australia. The accounts were decided through competitive pitches.

In early February, United Airlines emerged from Chapter 11 having slashed US$7 billion from its annual operating cost. United Airlines' regional manager, communications, Asia-Pacific Nadia Stoyle, said the PR review -- initiated before the airline's exit from Chapter 11 -- was prompted by the fact that United Airlines was now a different organisation, with different needs. "United aims to leverage PR to articulate the customer benefits of our product and services, while also highlighting our depth of experience, our investments in Asia and our knowledge of the region," said Stoyle.

One of the key activities will be promoting the airline's 20th anniversary in Asia-Pacific, in conjunction with new customer services in Hong Kong and Japan, and a new non-stop service from Seoul to San Francisco.

"With so much in the pipeline, we were seeking creative partners with a strong on-the-ground experience, to build a network of communication professionals that can share best practice across the region," said Stoyle.

United Airlines filed for Chapter 11 protection after lawyers for its parent company UAL indicated the airline was haemorrhaging more than US$20 million each day, prompting widespread redundancies throughout the airline. Despite the financial problems plaguing the airline, it continued to push forward, launching new routes and services. Things began turning around last year, when it claimed a number of 'Best North American Airline' awards, as voted by several Asia-based publications.

"United is now a fundamentally stronger company with dramatically lower costs and sustainable improvements, a revenue performance which is outpacing the US industry, and improved operating earnings despite continued high fuel costs," said Stoyle.