SF Gate: Just call United's new discount carrier Ted

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 At least they're not calling it "Allegis 2.0"
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/13/BUGLE30GE51.DTL

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Thursday, November 13, 2003 (SF Chronicle)
Just call United's new discount carrier Ted
David Armstrong, Chronicle Staff Writer


   United Airlines said Wednesday that its long-awaited low-cost carrier wi=
ll
take off in February from its Denver hub with low fares, reconfigured
aircraft seating, a Sunbelt route structure and a fairly odd name.
   The name is Ted, the last three letters in United, and it conveys a
casual, friendly feel, United executives said in announcing the new
service.
   San Francisco International Airport will be one of nine initial airports
served by the carrier-within-a-carrier. SFO will be linked to Las Vegas
and Phoenix, with other destinations to follow. By April, there will be
seven daily flights between SFO and Las Vegas and four daily flights
between SFO and Phoenix, according to Stephen A. Roth, a United spokesman.
   Roth said Ted's fares will be competitive with other low-cost carriers
such as Southwest Airlines and JetBlue Airways, which serve Oakland
International Airport, and with AirTran, America West and ATA, low-cost
carriers that serve SFO. Fares will be considerably cheaper on Ted than on
United, he said.
   Southwest's fare from Oakland to Las Vegas on Tuesday, the day Ted's far=
es
will be disclosed, range from $74 to $228 for a one-way ticket. Southwest
fares from Oakland to Phoenix on the same day run from $59 to $282.
   United executives insist Ted will be different from the ill-fated Shuttle
by United, its failed attempt to compete with Southwest in the busy San
Francisco-Los Angeles corridor. For one thing, they say that Ted's planes
will be turned around faster. For another, the fares on Ted will be deeply
discounted, "which was not always the case with the Shuttle," Roth said.
   The Shuttle was plagued by delays, especially in the busy summer of 2000,
when disgruntled United pilots fulfilled their daily work requirements but
declined to work overtime. Management now has a better understanding with
its whittled-down workforce, United executives say.
   The new carrier will fly Airbus320 aircraft, all of which will be
reconfigured at United's sprawling maintenance facility at SFO. By taking
out first class, the A320s will bulk up to 156 seats, from their present
138 seats.
   Most seating will be in economy class, but United also plans to offer an
economy-plus service that will provide 5 extra inches of legroom. Meals
and snacks will be sold on board.
   United executives presented Ted as part of United's strategy to emerge
from Chapter 11 bankruptcy protection, which it entered 11 months ago.
   "United has established substantial cost reductions, nearly $5.billion by
2005, that allow us to offer an operation that is competitive with other
low- fare carriers," said Sean Donohue, a United vice president.
   Passengers will be able to earn United Mileage Plus frequent-flier miles
on Ted, and use the low-cost operation to connect to United's extensive
global route structure, Roth said.
   In addition to San Francisco, Las Vegas and Phoenix, Ted will begin
service at Reno, New Orleans, Tampa, Orlando, Ontario (San Bernardino
County) and Fort Lauderdale.
   Tickets go on sale Tuesday.
   E-mail David Armstrong at davidarmstrong@xxxxxxxxxxxxxxxx=20
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Copyright 2003 SF Chronicle

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