UAL orders Carson marketing company to dump all clients except United Airlines.

UAL orders Carson marketing company to dump all clients except United Airlines

MPI, the successful Carson-based marketing subsidiary of troubled airline giant UAL Corp. of Chicago, was rocked last week by corporate directives that it drop major clients to refocus exclusively on United Airlines.

Barbara Mowry, MPI president for seven years, resigned in response last week, and could not be reached for comment.

An MPI spokesman confirmed that last week's UAL orders stunned MPI. "This was a surprise to us," said Dan Sheehy, MPI spokesman. "We have a lot of questions."

Answering those questions at employee meetings last week was Anita Hoffman, UAL vice president and controller, has been appointed MPI president. She could not be reached for comment.

MPI, which employs 700 in its Carson headquarters, handles United Airlines' Mileage Plus "frequent flyer" program.

According to company insiders, MPI -- which began seven years ago as Mileage Plus Inc. -- successfully pioneered the frequent flyer concept in airline marketing, by which repeat customers earned discounts or premiums, usually based upon miles flown on United Airlines.

The idea of rewarding repeat customers was applicable to other industries, and MPI soon had a flock of corporate clients, including California Federal Bank, American West Airlines, Westin Hotels and Resorts, Seafirst Bank and The Chicago Tribune. UAL is still MPI's largest client.

But for reasons that UAL spokespeople left unexplained last week, UAL directed MPI to dump the other clients. Reportedly, Jack Pope, executive vice president of marketing for UAL, ordered the changes.

The UAL order came in the face of MPI's successful track record. Only last summer MPI expanded by adding on 200 workers in Rapid City, S.D. to handle telemarketing and customer service work.

"There really isn't a spokesman here who can address the MPI situation," said Sarah Donneker, UAL spokeswoman in Chicago. "I'll have to refer your questions to a senior officer."

Donneker said the time of senior officers was "very limited" because of management upheavals at the firm.

UAL Corp. is in the throes of a management struggle; last week Gerald Greenwald, the No. 2 executive at automaker Chrysler Corp., announced he would lead a $4.38 billion bid by UAL unions to take over the airline company. The union bid is the largest effort yet by unions to take control of a U.S.-based company.