The article below from NYTimes.com has been sent to you by psa188@xxxxxxxxx /--------- E-mail Sponsored by Fox Searchlight ------------\ I HEART HUCKABEES - OPENING IN SELECT CITIES OCTOBER 1 From David O. Russell, writer and director of THREE KINGS and FLIRTING WITH DISASTER comes an existential comedy starring Dustin Hoffman, Isabelle Hupert, Jude Law, Jason Schwartzman, Lily Tomlin, Mark Wahlberg and Naomi Watts. Watch the trailer now at: http://www.foxsearchlight.com/huckabees/index_nyt.html \----------------------------------------------------------/ United Looks to Overseas Service for Profit October 7, 2004 By MICHELINE MAYNARD United Airlines, which is struggling to emerge from bankruptcy protection, said yesterday that it would cut 68 airplanes from its fleet, shift more responsibility for domestic routes to its regional carrier and expand its international flights. While the actions are likely to lead to job cuts, United did not specify any when announcing the plan. "We're expecting some, but we haven't determined that number," a spokeswoman, Jean Medina, said. The move by United, the primary business of UAL and the nation's second-biggest airline after American, is the clearest indication yet of the future shape of its operations. United, which failed on June 28 to win approval for federally backed loans that it was seeking to pave its way out of bankruptcy, has been on a drive since then to reorganize itself. The company has told a bankruptcy court that it is likely to terminate its employee pension plans, and it has said it needs $1 billion a year in cost cuts on top of $5 billion in reductions it has already identified. The de-emphasis of flying within the United States and the increased emphasis on international routes falls in line with the predictions of some analysts, who said United needs such a strategy to battle stiff domestic competition from low-fare airlines and to get more out of its prized international routes. In a message to employees yesterday, United's chief executive, Glenn F. Tilton, said the changes would allow the airline to make the most of its assets. Nonetheless, the move is a major change for United, based outside of Chicago, which once prided itself on flying to all 50 states. United said it would cut 68 aircraft from its fleet by March, leaving it with 455 planes. United had 567 planes in 2002, before it sought Chapter 11 bankruptcy protection in December of that year. United said it would shift its biggest planes from domestic service to international routes, increasing the number of seats on international flights by 14 percent. When the shifts are finished, the airline projects that 40 percent of its flights and half its revenue will come from flights outside the United States. United had already announced plans to retire some Boeing 767-200 jets. Throughout its bankruptcy, United has left its route system virtually untouched. It has valuable rights to serve Tokyo and other Asian cities, and it also flies to Europe and Latin America. In recent months, the airline has added flights between Chicago and Shanghai, Chicago and Buenos Aires, and San Francisco and Nagoya, Japan. John Tague, an executive vice president at United, said that the airline's international revenue had rebounded to levels achieved before the September 2001 attacks, and said that the airline commands a premium on some routes. "The numbers tell you where you should allocate assets," Mr. Tague said. As a result of the move, available seats on domestic flights would drop 12 percent. United said that it would shift some routes to United Express, its regional carrier, although it did not specify which cities would be affected. The airline said United Express would expand its use of 70-seat regional jets, some of which offer first-class service. The strategy is similar to that taken by Delta Air Lines in shifting flights to its regional carriers, said Robert W. Mann Jr., an industry consultant based in Port Washington, N.Y. "I don't think they have any alternative, frankly," Mr. Mann said. "All the domestic carriers have to downsize the cost of their domestic networks, or they have to reduce their networks." http://www.nytimes.com/2004/10/07/business/07air.html?ex=1098156417&ei=1&en=578e5e1a746a4c2b --------------------------------- 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! 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