=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/10/06/f= inancial0844EDT0030.DTL --------------------------------------------------------------------- Wednesday, October 6, 2004 (AP) United Airlines announces domestic service cuts, fleet reduction HERBERT G. McCANN, AP Business Writer (10-06) 06:20 PDT CHICAGO (AP) -- As part of its bid to emerge from bankruptcy, United Airlines will slash its number of domestic flights and reduce the size of its fleet while increasing its more profitable international schedule, officials said Wednesday. "Fundamental changes in our industry, including ongoing high fuel costs, intense pricing pressure and continuing overcapacity, demand that we take aggressive steps now," said Glenn Tilton, chief executive of United's parent, UAL Corp. The airline said that by March 2005, it will increase the number of international flights by 14 percent and reduce its domestic flight schedule by 12 percent, shifting some of them to United Express. Despite slashing labor expenses last year by more than $2.5 billion annually, United seeks more than $1 billion in additional cutbacks and wants to dump pensions in order to attract financing to get out of bankruptcy -- a restructuring now in its 23rd month. Like other major U.S. airlines, the Elk Grove Village, Ill.-based carrier is struggling amid an unprecedented slump that has worsened this year because of soaring jet-fuel prices and deepening discount competition. The airline said it plans to reduce the fleet to 455 aircraft, 68 fewer than it flew in August. The airline has reduced its fleet by 112 aircraft, or nearly 20 percent, since 2002. Tilton said that despite the reduction in domestic flights, United will continue to operate its five hubs in Chicago, Denver, Washington Dulles, San Francisco and Los Angeles. He said the airline is on pace to achieve $5 billion in "annual costs improvements by 2005." ---------------------------------------------------------------------- Copyright 2004 AP