qxeplt
Well-known member
- Joined
- Nov 27, 2001
- Posts
- 199
United could shift to smaller jets
Paper reports deals for Bombardier 50-seat airliners
By CBS.MarketWatch.com
Last Update: 5:46 PM ET Jan. 4, 2003
SAN FRANCISCO (CBS.MW) -- United Airlines might shift to smaller jetliners as a scale-down strategy, the Rocky Mountain News reported Saturday.
Based on interviews and court filings, the Denver paper said bankrupt United, run by UAL Corp. (UAL: news, chart, profile), has lined up the purchase or lease of several hundred CRJ-200 model planes built by Canada-based Bombardier (CA:BBDA: news, chart, profile).
Via agreements with regional airlines in its United Express network, the paper said, United could be using up to 425 of the slim, 50-seat jets within a few years.
The article said SkyWest (SKYWE: news, chart, profile) has orders for 55 jets and options for 84; privately held Air Wisconsin has orders for 29 and options on 85; and Atlantic Coast (ACAI: news, chart, profile) has orders for 47 and an unknown number of options to buy. All those planes plus an existing 125 would add up to a fleet of 425.
United, the nation's second-biggest airline, presently has a fleet of 540 full-size jets, according to Hoover's. Quoting Merrill Lynch analyst Michael Linenberg, the Denver paper said United has 557 full-size jets, with an agreement with pilots to lop that to 496.
As part of its recovery from bankruptcy, United has said it will be cutting operations and just Friday added to its reduction with at least 1,500 new job cuts. See full story.
The Rocky Mountain News article said that United's pilots have long opposed allowing smaller, regional jets to cut into operations but now may be willing to accept the change as a price for keeping the airline going, as well as feeding passengers into regular routes.
Besides the regional carriers, United has an agreement with bankrupt US Airways (UAWGQ: news, chart, profile) for sharing passengers and flight numbers.
The Denver article said Atlantic Coast has asked the bankruptcy judge overseeing United's case to order it to honor its contract, otherwise the smaller carrier could be on the hook for $940 million.
SkyWest spokesman Phil Gee told the paper that his airline might shift the smaller jets to routes it flies for Delta Air Lines (DAL: news, chart, profile) if its United accord collapses.
Irregardless of using smaller jets, United apparently is playing hardball with the regional airlines. The article says the carriers have been asked to cut their fees by $60 million and that United has sought bids from three other carriers to provide regional service.
Paper reports deals for Bombardier 50-seat airliners
By CBS.MarketWatch.com
Last Update: 5:46 PM ET Jan. 4, 2003
SAN FRANCISCO (CBS.MW) -- United Airlines might shift to smaller jetliners as a scale-down strategy, the Rocky Mountain News reported Saturday.
Based on interviews and court filings, the Denver paper said bankrupt United, run by UAL Corp. (UAL: news, chart, profile), has lined up the purchase or lease of several hundred CRJ-200 model planes built by Canada-based Bombardier (CA:BBDA: news, chart, profile).
Via agreements with regional airlines in its United Express network, the paper said, United could be using up to 425 of the slim, 50-seat jets within a few years.
The article said SkyWest (SKYWE: news, chart, profile) has orders for 55 jets and options for 84; privately held Air Wisconsin has orders for 29 and options on 85; and Atlantic Coast (ACAI: news, chart, profile) has orders for 47 and an unknown number of options to buy. All those planes plus an existing 125 would add up to a fleet of 425.
United, the nation's second-biggest airline, presently has a fleet of 540 full-size jets, according to Hoover's. Quoting Merrill Lynch analyst Michael Linenberg, the Denver paper said United has 557 full-size jets, with an agreement with pilots to lop that to 496.
As part of its recovery from bankruptcy, United has said it will be cutting operations and just Friday added to its reduction with at least 1,500 new job cuts. See full story.
The Rocky Mountain News article said that United's pilots have long opposed allowing smaller, regional jets to cut into operations but now may be willing to accept the change as a price for keeping the airline going, as well as feeding passengers into regular routes.
Besides the regional carriers, United has an agreement with bankrupt US Airways (UAWGQ: news, chart, profile) for sharing passengers and flight numbers.
The Denver article said Atlantic Coast has asked the bankruptcy judge overseeing United's case to order it to honor its contract, otherwise the smaller carrier could be on the hook for $940 million.
SkyWest spokesman Phil Gee told the paper that his airline might shift the smaller jets to routes it flies for Delta Air Lines (DAL: news, chart, profile) if its United accord collapses.
Irregardless of using smaller jets, United apparently is playing hardball with the regional airlines. The article says the carriers have been asked to cut their fees by $60 million and that United has sought bids from three other carriers to provide regional service.
