• Brandweek, Thursday, June 15, 2006 1 PM

United Airlines is cutting its advertising and marketing costs by $60 million, which amounts to 80 percent of the $75 million the company spent on media in 2005. The move was announced this week as part of the company's restructuring following its emergence from bankruptcy earlier this year. "They invested heavily before and after bankruptcy to establish niche products and reinvigorate the brand," said Robert Mann, president of R. W. Mann & Company, an airline industry analysis firm. United's reemergence earlier this year required a focus on traditional media like radio and newspaper ads, Mann said. "Once that's been established and the pump has been primed, they're going to rely on the far more efficient new media," Mann said. "It could coast a while on the changes it had already made." United also said it would lay off at least 1,000 salaried workers. "The airline industry right now is seeing exceptionally strong demand for travel," said United spokeswoman Robin Urbanski. "We're going to lower our spending on staffing and focus on increasing passenger volume." Industry-wide, however, passenger volume is hitting maximum capacity, Mann said. "Everybody's sharing an armrest. You couldn't put any more people on those planes."

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