This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx Here we go again: Starfish by Allegis. psa188@xxxxxxxx /-------------------- advertisement -----------------------\ Explore more of Starbucks at Starbucks.com. http://www.starbucks.com/default.asp?ci=1015 \----------------------------------------------------------/ United to Send 40 Jets to Start Low-Cost Unit July 16, 2003 By EDWARD WONG The chief executive of United Airlines said yesterday that the company would use about 40 planes from its existing fleet to create a low-cost airline. That was United's first clear indication of the initial size of the low-cost operation, a business the company has been trumpeting since it filed for bankruptcy protection last December. In a recorded employee voice-mail message yesterday, the chief executive, Glenn F. Tilton, also said that the planes would be deployed in "key leisure markets." United executives have said the low-cost airline will operate from United's hubs, so a Denver-Las Vegas route seems to be the kind of service the new airline will offer. The new airline has no official name yet. Within United, a unit of the UAL Corporation, the working name is Starfish. The 40 jets for Starfish would be pulled from United's fleet of 500 mainline planes, not from the company's regional fleet. Some of the mainline planes sit parked in the desert, but Jeff Green, a United spokesman, declined to say how many. On the voice-mail message, Mr. Tilton also said that Sean Donohue, vice president in charge of Starfish, met with United's executive council on Monday to discuss the low-cost airline. Starfish is United's second attempt at a low-cost unit within the larger company. In the 1990's, it created Shuttle by United in an effort to shove aside Southwest Airlines in the low-cost market on the West Coast. But Shuttle was never able to truly emulate the low-cost operations that gave Southwest the leverage to charge lower fares. United shut down Shuttle in 2001. Many industry experts and analysts are skeptical of these attempts by traditional airlines to create low-cost carriers. Even United seems less enthusiastic now. In May, company executives began turning down the spotlight they initially threw on Starfish, saying that while Starfish would remain important to United's recovery plan, they were now concentrating on getting revenue from business travelers on their mainline operation. In his voice-mail message yesterday, Mr. Tilton underscored that this was where United was still focusing. http://www.nytimes.com/2003/07/16/business/16UNIT.html?ex=1059363683&ei=1&en=2b2c659a41536662 --------------------------------- Get Home Delivery of The New York Times Newspaper. Imagine reading The New York Times any time & anywhere you like! Leisurely catch up on events & expand your horizons. Enjoy now for 50% off Home Delivery! Click here: http://www.nytimes.com/ads/nytcirc/index.html HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2003 The New York Times Company