Re: United slashes staff, planes as it tries to save money

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On Jun 4, 2008, at 7:12 AM, Tyler Munoz wrote:
> I thought "Ted" was doing pretty well for UAL.

Ted was a terrible idea, both for passengers and for the airline.  
Delta learned that with Song, and some of the European carriers  
learned the same lesson.  Ted was particularly lame, since it could  
not really compete on price with Southwest and JetBlue, so all you got  
was a bunch of single-class A320s with reduced amenities, which put  
off high-yield business travelers (no paid F, no upgrades) in favor of  
low-yield leisure/family travelers.

Good riddance.  Won't be missed. Nor will the aging, fuel-guzzling  
737-300/-500 fleet, either.  United missed the boat in not ordering  
737NGs when they (sort of) had the money, and now they'll have to make  
the A320/319 fleet stretch until the next up-cycle when they can maybe  
order some planes.

So my question is, is this really primarily intended to make UAL a  
more attractive merger candidate next year when the cost reductions  
and ongoing reduced liabilities are reflected in the balance sheet?

-- 
Michael C. Berch
mcb@xxxxxxxxxxxxxx

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