NYTimes.com Article: United Assures Fliers Service Won't Decline

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United Assures Fliers Service Won't Decline

December 10, 2002
By MICHELINE MAYNARD






United Airlines, on its first day of operating under
bankruptcy protection, moved swiftly yesterday to assure
passengers that they would see no changes in service. But
airline analysts said it was only a matter of time before
travelers noticed fewer flights, smaller planes and the
elimination of some routes.

United, answering the question on the minds of many
travelers, emphasized yesterday that passengers could
continue to earn frequent-flier miles and that they could
continue to trade them in for tickets at the same mileage
levels as before.

For the moment, the airline said it would operate a normal
schedule of 1,800 flights a day, worldwide, with no changes
in snacks or other onboard service. United said there was
no need to rebook flights on other airlines because it was
honoring all tickets.

But it may not be as easy in the future for travelers to
book the flights on the dates and to the destinations they
want, whether they are buying tickets or cashing in
frequent-flier miles.

Even before it announced that it would file for bankruptcy
protection, United said it would cut back its flights by 6
percent through spring. Yesterday, the airline said that
was still the plan.

But Sam Buttrick, an airline analyst with UBS Warburg in
New York, said that United could trim its service by more
than twice that, up to 13 percent, depending on the changes
it needed to make. Mr. Buttrick forecast that the airline
would reduce flights incrementally, cutting 5 percent at a
time as it worked through its schedules.

In an interview yesterday, United's chief executive, Glenn
F. Tilton, declined to predict which services might be
eliminated. "The most important thing at United right now,"
Mr. Tilton said, "is our customers, our customers, our
customers."

He visited O'Hare Airport in Chicago at 6:20 a.m.
yesterday, shortly before the airline filed its papers with
the bankruptcy court, to talk to passengers and assure them
that everything would be fine.

Still, there were hints of what was to come. Amid the
relentlessly upbeat tone of a long list of reassurances
posted on United's Web site was the acknowledgment that "as
we move through the restructuring process, there may be
some changes that could affect certain routes, although we
will strive to keep the impact on customers to a minimum."

"We will make public announcements about any such
decisions," the airline said.

Among the places most likely to be affected are those
served by United's fleet of Boeing 747-400 jets, the
wide-bodied, long-haul planes that have the highest
operating costs, both in maintenance and pilot pay per
hour.

That means passengers on routes where the 747's are most
often used - like the Asia-Pacific region, Latin America
and on transcontinental flights within the United States -
could find themselves in smaller aircraft as United begins
reallocating its fleet. And some fliers could see their
routes eliminated.

Mr. Tilton said United planned to work more closely with
its Star Alliance partners - including Air Canada,
Lufthansa and Varig in Brazil - relying on them to pick up
the slack on service it had been offering but might
discontinue. In the case of Brazil, where United serves the
two largest cities, São Paulo and Rio de Janeiro, from the
United States, it may decide to stop flying to one of them,
with Varig ferrying United passengers the 224 air miles to
the other city.

In addition, smaller planes are expected to be used on
short flights in the United States. In the coming months,
United will be giving up some bigger aircraft in favor of
regional jets, which are more economical to operate but
have fewer seats.

Along with streamlining its schedule, United said it might
close some of its Red Carpet executive lounges, although it
had not determined where or when. It noted that club
members have reciprocity privileges, under certain rules,
with clubs run by US Airways, which filed for bankruptcy
protection earlier this fall.

The American Society of Travel Agents, which issued a list
of tips for airline passengers, said the best protection
for people flying on United "or any airline that has
declared Chapter 11 bankruptcy" was to use a credit card
when purchasing tickets. The trade group said passengers
could refuse to pay for services that were not rendered,
like flights that are canceled if a carrier stopped flying.


Industry analysts said United's passengers might face
unpleasantness from demoralized United's employees, who saw
the value of their stock in the airline virtually wiped out
by the bankruptcy filing.

But Mr. Tilton said he was certain that morale among the
airline's more than 80,000 employees would remain high. He
said that the combination of the terrorist attacks in
September 2001, which involved two United jets, and the
turmoil that has roiled the airline in the last weeks as it
tried to avert the Chapter 11 filing, have made United's
work force "extraordinarily resilient."

Mr. Tilton said he was pleased by the reaction he received
from passengers as he stood in the middle of the airport
terminal at dawn.

"Our customers said, `We are with you, we are with you, we
are with you,' " he recalled.

http://www.nytimes.com/2002/12/10/business/10FLIE.html?ex=1040529058&ei=1&en=a54d40da5d4d9f1e



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