Let's call it "Allegis" by "Avolar" ---------------------------------------------------------------------- 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/news/archive/2003/02/05/n= ational1819EST0808.DTL ---------------------------------------------------------------------- Wednesday, February 5, 2003 (AP) United plan cites low-cost carrier in detailing revival plan DAVE CARPENTER, AP Business Writer (02-05) 15:19 PST CHICAGO (AP) -- United Airlines on Wednesday defended its plan to launch a new discount carrier, saying it would help the bankrupt airline keep pace with lower-cost competitors. In a taped message to employees, the company said the new carrier will u= se a business model that "has learned from the industry's past mistakes." It offered few specifics. United CEO Glenn Tilton announced in December that the company plans to launch a low-cost carrier. Despite United's assertion that it needs its own discount carrier to become more competitive, unions remained cool to the plan and analysts said there were not enough details to assess it. United said its strategy is centered on a strong network of routes and hubs that give it a "distinct revenue advantage" over competitors. "We simply generate more money with our network," executive vice preside= nt Doug Hacker said in the message. "What we don't have are cost advantage and the flexibility that allow us to respond to substantial changes in the market." United, the world's No. 2 carrier, filed for bankruptcy protection eight weeks ago and lost a company-worst $3.2 billion in 2002. It has been scrambling to overhaul its financial strategy, slash labor costs by a targeted $2.4 billion a year, renegotiate aircraft leases and mortgages and restructure its fleet. Unions for the pilots and flight attendants have criticized management f= or not presenting more specific data to justify the dramatic changes and wage concessions the airline is seeking. They have pledged to fight the plan for a low-cost carrier. On the Net: www.united.com =20 ---------------------------------------------------------------------- Copyright 2003 AP