SFGate: United Airlines mulling headquarters move to SF

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Friday, June 16, 2006 (AP)
United Airlines mulling headquarters move to SF



   (06-16) 08:29 PDT San Francisco (AP) --

   UAL Corp., the parent company of United Airlines, is considering San
Francisco among cities where it might relocate its corporate headquarters,
an airline spokesman said.

   The carrier, which operates half of the flights at San Francisco
International Airport, discussed a possible move last week with airport
and city officials.

   "We're making the case that if they want to remake their corporate image,
San Francisco is a good place to be," said Jesse Blout, economic
development director for San Francisco.

   Talks with San Francisco officials are in the early stages, and there is
no timeline for making a decision, said United spokesman Brandon Borrman.
Other possible locations include Denver and downtown Chicago.

   UAL is currently based near O'Hare International Airport in the Chicago
suburb of Elk Grove Village, Ill. Some employees would stay there if the
company moves, Borrman said.

   UAL is looking to cut costs four months after emerging from bankruptcy
protection. The carrier announced Wednesday it will fire 1,000 salaried
and management workers to save $100 million.

   "We're looking at all options," Borrman said. "It's about what makes the
best sense financially and operationally."

   The carrier is hunting for tax breaks, utility discounts and training
programs, but might stumble over San Francisco's high cost of living, said
Gerald Bernstein, airline analyst with the Velocity Group in San
Francisco.

   "I'd be surprised if they left Chicago and moved here," Bernstein said.
"San Francisco may have been shortlisted, but United is fishing for the
best offer they can get."

   ___

   Information from: The Oakland Tribune,

   www.oaklandtribune.com -------------------------------------------------=
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Copyright 2006 AP

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