rptrain
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Press Release
Source: United Airlines
United Takes Additional Steps to Move Business Plan Forward
Wednesday November 10, 5:42 pm ET Company Works to Implement Non-Labor Cost Reductions by Seeking Competitive Bids for a Portion of its Current United Express Capacity
CHICAGO, Nov. 10 /PRNewswire-FirstCall/ -- United Airlines today announced that it has extended a request for proposal (RFP) to a number of regional airlines to provide up to 70 regional jets to the United Express network. These jets will be used to cover capacity currently operated by Air Wisconsin, one of United's six United Express partners. The RFP is not expected to increase the overall size of the fleet at United Express. Rather, United expects that under the terms of the bids it receives, the cost of the capacity currently operated by Air Wisconsin will likely be reduced. Additionally, the RFP will provide United with an opportunity to fine-tune the mix of smaller and larger regional jet aircraft in the United Express fleet.
"As we continue with our cost-control efforts, we must look at every area of the company and within every contract we have," said Sean Donohue, vice president-United Express and Ted. "Air Wisconsin is a long standing, valuable partner for United Airlines that performs well for us today, and we look forward to productive discussions with Air Wisconsin and other potential bidders. We must ensure we are paying market rates for our United Express service. By requesting competitive bids from a number of regional airlines, we are confident we will secure proper market rates for our United Express contracts while providing our customers with safe, reliable service throughout our United Express network."
United submitted the RFP to 10 regional airline companies including all of its existing partners. Initial proposals are due back to United by Dec. 10. Companies that received an RFP include: Air Wisconsin, Trans States, Chautauqua, Mesa, SkyWest, Independence Air, Horizon, Pinnacle, Mesaba and Express Jet.
"Every aspect of our business has got to be competitive. We will meet the goal of lowering our costs by an additional $2 billion, about one-third of which we expect to come from non-labor costs," said Peter D. McDonald, executive vice president and chief operating officer.
United Airlines (OTC Bulletin Board: UALAQ - News) is the world's second largest airline, operating more than 3,500 flights a day on United, United Express and Ted to more than 200 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. With key global air rights in the Asia-Pacific region and Europe, United is the largest international carrier based in the United States (measured by revenue passenger miles***). United is also a founding member of Star Alliance, which provides connections for our customers to more than 700 destinations in more than 130 countries worldwide. United's nearly 62,000 employees reside in every state in the United States and in many countries around the world. News releases and other information about United can be found at the company's Web site at united.com. Revenue passenger miles for 12-months ending June 2004 as reported to the U.S. Department of Transportation. Worldwide Communications: Media Relations Office: 847.700.5538 Evenings/Weekends: 847.700.4088
Source: United Airlines
Source: United Airlines
United Takes Additional Steps to Move Business Plan Forward
Wednesday November 10, 5:42 pm ET Company Works to Implement Non-Labor Cost Reductions by Seeking Competitive Bids for a Portion of its Current United Express Capacity
CHICAGO, Nov. 10 /PRNewswire-FirstCall/ -- United Airlines today announced that it has extended a request for proposal (RFP) to a number of regional airlines to provide up to 70 regional jets to the United Express network. These jets will be used to cover capacity currently operated by Air Wisconsin, one of United's six United Express partners. The RFP is not expected to increase the overall size of the fleet at United Express. Rather, United expects that under the terms of the bids it receives, the cost of the capacity currently operated by Air Wisconsin will likely be reduced. Additionally, the RFP will provide United with an opportunity to fine-tune the mix of smaller and larger regional jet aircraft in the United Express fleet.
"As we continue with our cost-control efforts, we must look at every area of the company and within every contract we have," said Sean Donohue, vice president-United Express and Ted. "Air Wisconsin is a long standing, valuable partner for United Airlines that performs well for us today, and we look forward to productive discussions with Air Wisconsin and other potential bidders. We must ensure we are paying market rates for our United Express service. By requesting competitive bids from a number of regional airlines, we are confident we will secure proper market rates for our United Express contracts while providing our customers with safe, reliable service throughout our United Express network."
United submitted the RFP to 10 regional airline companies including all of its existing partners. Initial proposals are due back to United by Dec. 10. Companies that received an RFP include: Air Wisconsin, Trans States, Chautauqua, Mesa, SkyWest, Independence Air, Horizon, Pinnacle, Mesaba and Express Jet.
"Every aspect of our business has got to be competitive. We will meet the goal of lowering our costs by an additional $2 billion, about one-third of which we expect to come from non-labor costs," said Peter D. McDonald, executive vice president and chief operating officer.
United Airlines (OTC Bulletin Board: UALAQ - News) is the world's second largest airline, operating more than 3,500 flights a day on United, United Express and Ted to more than 200 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. With key global air rights in the Asia-Pacific region and Europe, United is the largest international carrier based in the United States (measured by revenue passenger miles***). United is also a founding member of Star Alliance, which provides connections for our customers to more than 700 destinations in more than 130 countries worldwide. United's nearly 62,000 employees reside in every state in the United States and in many countries around the world. News releases and other information about United can be found at the company's Web site at united.com. Revenue passenger miles for 12-months ending June 2004 as reported to the U.S. Department of Transportation. Worldwide Communications: Media Relations Office: 847.700.5538 Evenings/Weekends: 847.700.4088
Source: United Airlines
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