Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: LOCATION SEGMENT

CHOICE 3 COMPONENT: PROVIDE A FREE, OR HEAVILY DISCOUNTED, PRODUCT FROM THE COMPANY, OTHER THAN THE PRODUCT ON SALE

No. SIC Year Notes
1 4512 2004 Independence Air, formerly known as Atlantic Coast Airlines and as United's regional affiliate, will become an independent low-fare carrier in June from Washington's Dulles Airport. To replace the 50-seat regional jets pulled out by Independence Air, United Airlines will replace the service lost by putting new regional airline operators on the routes and possibly adding some of its own big jets. In addition, United said it has already matched Independence Air's lowest fares, although only on a portion of seats, and has also matched Independence Air's more flexible fare rules, which allow for one-way travel and don't require a Saturday night stay. United is also offering bonus miles to members of its frequent-flier plan and awarding free trips to customers who earn points flying to or from its three Washington-area airports.

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