Q&A: How United sees US Airways and Continental's role in Star Alliance

CHICAGO -- USA TODAY's Ben Mutzabaugh recently sat down with Graham Atkinson, the president of United Airlines' Mileage Plus frequent-flier program. Atkinson also agreed to take questions submitted by Today in the Sky readers.

Among the topics from today's installment, Atkinson addresses US Airways' future status in the Star Alliance, and how he gets customer feedback. This is the second part of our Q&A session; come back Tuesday for our final installment.

Ben Mutzabaugh:One of my favorite promotions in recent years has been the reduced-mileage award tickets for short flights (typically under 700 miles or so). Those short-flight awards could be redeemed for just 15,000 miles, instead of the normal 25,000. I've used that before on the Washington-Toronto route, which is typically an expensive flight even though it's a short one. You and American, for example, have each offered this several times in recent years. Will we see more of these types of promotions going forward?

Atkinson:I think maybe what this period will teach us all is that, — even in a network and a successful business like ours, where we operate with load factors in the 80s on a year-round basis — there are still pockets of business. I don't know whether it's the Tuesday evening flight to Iowa City or as you say – your Thursday morning flight to Toronto.

As we build our capabilities to do targeted promotions, (that adds) real value to (some segments of the market. It) increases this sort of value proposition as seen by the person who is making a choice between one program and the other. You need the technology to be able to do that, flexibly. And that's one of the things we're looking at in terms of future capabilities in the program.

Mutzabaugh:I could probably spend the rest of the day on my own frequent-flier questions, but I'd like to shift to questions that have been submitted by our readers. We won't have time for all of them, but let's see how many we can get through. And, let me tell you, our readers' questions show some very intimate knowledge of United's Mileage Plus program.

Atkinson: When I travel and sit next to customers and introduce myself on a flight, I am invariably taken aback by their intricate knowledge of not just the Mileage Plus program, but their knowledge of every aspect of our product. I mean there is no hiding place as an airline in terms of what the customer sees and how they evaluate the value to them. (You hear things like): "That adds no value to me; This is what I really want. I don't know why, in the program, that you do this but I can't do that."

Mutzabaugh:You must get an earful…

Atkinson:In a good way. I mean many businesses angst over the fact that they can't get feedback from customers and that it's very difficult. We do not have that problem. For good and for evil.

Mutzabaugh:Ok, so let's start with our first reader question. We've actually heard this topic from many readers. They note that US Airways has rarely been mentioned in recent United and Continental statements regarding the new United-Continental alliance.

So, our readers want to know: Does that mean there's something to read into? Some people have interpreted this to mean something – perhaps that US Airways' status in Star Alliance is in trouble. So, from what you know, will US Airways continue to be a partner in Star Alliance? Or, does this indicate a change down the road?

Atkinson: It does not indicate a change – now or down the road. US Airways is a valued member of Star Alliance. They're a valued member in the U.S., as part of Star Alliance. They help to round out the network. I think when you put together Air Canada, United Airlines, Continental and US Airways, we really do have an unrivaled national network ... that speaks to best in class.

The relationship with Continental – obviously it's very important to us. We're thrilled to get them into Star. We're thrilled with the tentative immunity application. And the reason which maybe you've heard more about Continental lately than US Airways is that it's a new arrival and a new addition to Star. (Continental) fills a very important hole – for Star and for United in terms of geography. In terms of (Continental's) New York presence, their Newark hub is going to be a great addition and improve our competitiveness for global travelers.

The other distinguishing feature is that one of the core attractions of Continental is our ability to actually compete more effectively with SkyTeam and oneworld across the Atlantic. And Continental has a very complementary network to us across the Atlantic, in terms of destinations that we don't fly to. And in terms of product offerings, (it gives options) from, obviously, New York ... but also Houston and Cleveland.

So, the attraction to us is that US Airways and Continental serve very different parts of the country. They have very different networks. You know, US Airways is essentially a domestic airline with a few international routes. Continental is very much more like us, with a very broad network – but from different key hubs. So, (Continental) is covering the southern flank in Houston and Texas (and to points) south and covering the eastern flank in New York (and to points) east … .

It really rounds out our network in a way which can only benefit the consumer and can only benefit corporate accounts and is something that immediately resonated with us in terms of expanding the "A-Plus" agreement with Lufthansa as an opportunity to add even more value and even more options to customers.

There's no subliminal message about US Airways. Quite the contrary.

Mutzabaugh:So, to be clear, the fact that US Airways may not be mentioned in all of the latest Continental-United updates does not necessarily mean there's anything to read into?

Atkinson:They are a member of Star. You get all the Star benefits when you fly on them. Our partnership with them is very successful.