SF Gate: United Airlines might add low-cost carrier/Managers begin briefing creditors on plan to restructure

[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

 



=20
----------------------------------------------------------------------
This article was sent to you by someone who found it on SF Gate.
The original article can be found on SFGate.com here:
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/chronicle/archive/2003/01=
/29/BU60586.DTL
----------------------------------------------------------------------
Wednesday, January 29, 2003 (SF Chronicle)
United Airlines might add low-cost carrier/Managers begin briefing creditor=
s on plan to restructure
George Raine, Chronicle Staff Writer


   Management at United Airlines has begun a series of briefings on its
restructuring plan that is believed to include a new unit with a low-cost
carrier not unlike Southwest Airlines and JetBlue, two industry success
stories.
   The briefing was given to United creditors Monday. The company's board of
directors will hear it Thursday, and financial advisers to United's unions
will be briefed Friday, said Joe Hopkins, a spokesman for the Elk Grove
Township, Ill., carrier.
   Hopkins would not disclose details. He said United wants to discuss its
ideas for a low-cost unit with employee groups "before they become more
public. "
   United, the world's second-largest airline, sought Chapter 11 bankruptcy
protection on Dec. 9. It has lost $4 billion since mid-2000.
   United formerly operated Shuttle by United on the West Coast. It competed
with Southwest, in particular, on flights between the Bay Area and Los
Angeles and San Diego. However, Shuttle by United was often unable to
operate on time, so it became a public relations problem for the company.
The shuttle operation was scuttled in late 2001.
   In a taped message to employees Tuesday, Glenn Tilton, the chief executi=
ve
officer of UAL Corp., used the words "performance" and "credibility" to
describe goals for all 80,000 employees so that the company can emerge
from bankruptcy protection with a promising future.
   Also Tuesday, United's Web page had an announcement of a new nonstop
route, between its Denver hub and Charlotte, N.C., beginning April 6. This
addition could appear contrary to a restructuring that is more focused on
reductions, but Hopkins noted that United is still looking for business
opportunities and found one in that route.
   US Airways, a United partner, uses Charlotte as a hub, so United can ser=
ve
US Airways' customers as well as its own out of Denver with the new route,
he said.
   E-mail George Raine at graine@sfchronicle.com.=20
----------------------------------------------------------------------
Copyright 2003 SF Chronicle

[Index of Archives]         [NTSB]     [NASA KSC]     [Yosemite]     [Steve's Art]     [Deep Creek Hot Springs]     [NTSB]     [STB]     [Share Photos]     [Yosemite Campsites]