United's profit plan includes smaller fleet By Dan Reed, USA TODAY United Airlines would return to profitability in 2004, but its fleet would= =20 shrink 5.3% over the next five years, according to a management plan=20 outlined for the carrier's creditors. The plan does not consider potential= =20 effects of a war with Iraq on UAL, United's parent company. United now has= =20 526 jets and would reduce that by 32. The plan presumes that 134=20 narrow-body jets, such as Boeing 737s or Airbus A320s, would move to a=20 low-cost carrier United plans to compete against discounters such as=20 Southwest Airlines. A copy of the 278-page briefing document, used by=20 management at the Jan. 31 creditors' committee meeting, was obtained=20 Wednesday from a Web site for airline mechanics. Details of the=20 restructuring plan remain sketchy despite the length of the briefing=20 document. But management projects that passenger revenue will rise 3.6%=20 over the next five years to about $13.5 billion annually. Previously,=20 management had projected annual passenger revenue would reach $16 billion=20 to $20 billion in the same time frame. United's management also projects a= =20 $1.8 billion improvement in the company's operating earnings this year. The restructuring plan is based around the creation of a four-pronged=20 marketing effort: =B7 United, the second-largest airline, would still provide a global= =20 network of service through its major hubs and alliances with foreign=20 carriers. Its wide-body fleet, such as Boeing 777s and 747s, would grow by= =20 one jet over five years to 119, most of which would be used in=20 international service. =B7 Its narrow-body fleet would shrink to 241 planes from 408 and= would=20 fly primarily on domestic routes with significant business-travel demand. =B7 United's low-cost carrier would use its hubs. =B7 United Express, United's network of affiliated regional carriers,= =20 would expand from 199 regional jets in 2003 to 275 by 2008. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@escape.ca Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.trotters.net TnT Webdirectory: http://search.co.tt *********************************************************