Continental
Farting on your Jumpseat
- Joined
- Jul 23, 2007
- Posts
- 180
http://www.bloomberg.com/news/2011-03-11/united-may-ground-757-300s-767-200s-to-reduce-fuel-use-1-.html
United Continental Holdings Inc. (UAL), which burns $25,000 of fuel every minute, may ground its Boeing Co. (BA) 737-500 and 767-200ER jets to cut consumption as costs rise.
Culling less-efficient models from a fleet of more than 1,200 planes is among steps under study at the Chicago-based carrier, Chief Executive Officer Jeff Smisek said today. United announced March 7 it would pare planned growth in 2011 seating capacity, which Smisek said won’t require layoffs.
The price of jet fuel, one of airlines’ largest costs, has risen 28 percent this year, prompting United to join Delta Air Lines Inc. and AMR Corp.’s American Airlines in paring 2011 growth plans. Smisek said fuel accounts for about 40 percent of operating expenses at United, the world’s largest carrier.
“We can’t just hold our heads in our hands and cry and scream” in reaction to higher fuel prices, he said during a speech at a Houston energy conference today.
Jet fuel for immediate delivery in New York harbor rose 9.4 cents to $3.30 a gallon today. United fell 9 cents to $24.86 at 1:39 p.m. in New York Stock Exchange composite trading.
The airline has 34 737-500s with an average age of 15 years, and 10 767-200ERs that are an average 9.8 years old. Both are twin-engine models, and the 737s are single-aisle planes, while the 767s are wide-bodies.
Efficiency Gains
United also is looking at other opportunities to reduce fuel use across its fleet, said Smisek, who offered the $25,000- a-minute example in his remarks at CERAWeek, a conference held by IHS Cambridge Energy Research Associates. Fuel consumption exceeds 4 billion gallons year, he said.
Efficiency gains may come from steps such as expanding the practice of taxiing while using one engine, Smisek said.
Seating capacity this year will be unchanged, down from a forecast of 1 percent to 2 percent growth, United said this week. Domestic capacity will fall as much as 2.5 percent, while international will rise as much as 3.5 percent, United said.
The biggest U.S. airlines have raised fares six times this year across their networks. Some carriers, including JetBlue Airways Corp., also have boosted fees for optional goods and services to help offset the higher fuel costs.
United Continental was formed in October in a $3.47 billion merger between United Airlines parent UAL Corp. and Houston- based Continental Airlines. The two airlines will maintain separate flight operations until the parent company receives a single operating certificate from federal regulators.
United Continental Holdings Inc. (UAL), which burns $25,000 of fuel every minute, may ground its Boeing Co. (BA) 737-500 and 767-200ER jets to cut consumption as costs rise.
Culling less-efficient models from a fleet of more than 1,200 planes is among steps under study at the Chicago-based carrier, Chief Executive Officer Jeff Smisek said today. United announced March 7 it would pare planned growth in 2011 seating capacity, which Smisek said won’t require layoffs.
The price of jet fuel, one of airlines’ largest costs, has risen 28 percent this year, prompting United to join Delta Air Lines Inc. and AMR Corp.’s American Airlines in paring 2011 growth plans. Smisek said fuel accounts for about 40 percent of operating expenses at United, the world’s largest carrier.
“We can’t just hold our heads in our hands and cry and scream” in reaction to higher fuel prices, he said during a speech at a Houston energy conference today.
Jet fuel for immediate delivery in New York harbor rose 9.4 cents to $3.30 a gallon today. United fell 9 cents to $24.86 at 1:39 p.m. in New York Stock Exchange composite trading.
The airline has 34 737-500s with an average age of 15 years, and 10 767-200ERs that are an average 9.8 years old. Both are twin-engine models, and the 737s are single-aisle planes, while the 767s are wide-bodies.
Efficiency Gains
United also is looking at other opportunities to reduce fuel use across its fleet, said Smisek, who offered the $25,000- a-minute example in his remarks at CERAWeek, a conference held by IHS Cambridge Energy Research Associates. Fuel consumption exceeds 4 billion gallons year, he said.
Efficiency gains may come from steps such as expanding the practice of taxiing while using one engine, Smisek said.
Seating capacity this year will be unchanged, down from a forecast of 1 percent to 2 percent growth, United said this week. Domestic capacity will fall as much as 2.5 percent, while international will rise as much as 3.5 percent, United said.
The biggest U.S. airlines have raised fares six times this year across their networks. Some carriers, including JetBlue Airways Corp., also have boosted fees for optional goods and services to help offset the higher fuel costs.
United Continental was formed in October in a $3.47 billion merger between United Airlines parent UAL Corp. and Houston- based Continental Airlines. The two airlines will maintain separate flight operations until the parent company receives a single operating certificate from federal regulators.
