UAL to shed 68 more aircraft

[storminpilot]

http://biz.yahoo.com/prnews/041006/nyw065_1.html
Press ReleaseSource: UAL Corporation


United Accelerates Plans to Optimize Worldwide Network
Wednesday October 6, 7:00 am ET Aligns Capacity with Market Conditions with 14% International Capacity Increase, 12% Domestic Mainline Decrease

CHICAGO, Oct. 6 /PRNewswire-FirstCall/ -- UAL Corporation (OTC Bulletin Board: UALAQ - News), the holding company whose primary subsidiary is United Airlines, today announced it is substantially accelerating the company's plan to expand its international leadership, redeploy aircraft to more profitable routes and reduce the overall size of its mainline fleet. These actions are part of United's ongoing strategy to leverage its product portfolio and worldwide route network, reduce its costs to competitive levels, continue to lead the industry in operational excellence and further strengthen the company's sharp focus on customers by investing in innovative products and services.

"Our strategy has been to continually align our fleet size and deployment with market conditions, which are brutally competitive," said Glenn Tilton, UAL's chairman, president and chief executive officer. "Fundamental changes in our industry, including ongoing high fuel costs, intense pricing pressure and continuing over-capacity, demand that we take aggressive steps now in implementing this plan to ensure that United remains competitive." By March 2005, the company's fleet modifications will:
-- Reallocate assets to more profitable routes, expanding and strengthening international routes, which will account for over 40 percent of United's global capacity and 50 percent of mainline revenue when fully implemented, and shifting some domestic routes to United Express (UAX).
-- Reduce United's mainline fleet to 455 aircraft - 68 fewer aircraft than United flew in August 2004 and a reduction of 112 aircraft or nearly 20 percent of the fleet since 2002.

These changes will result in international ASMs (available seat miles) increasing by 14 percent, with United mainline domestic ASMs declining by 12 percent for a total system wide ASM decline of 3 percent.

Tilton said, "While there is still more work to do to make our cost structure competitive, the network model, with its broad connectivity and its value for premium customers, remains viable today and in the future. We will continue to maintain and strengthen the unparalleled scope of our global network and will continue to operate our five hubs in Chicago, Denver, Washington Dulles, San Francisco and Los Angeles." Tilton pointed out that the actions United is announcing are part ofUnited's ongoing strategy to:
-- Leverage Product Portfolio and Network: United's product portfolio and worldwide route network give United the flexibility to put the right product in the right market at the right price to meet customer demand while generating a profit for the company. United's product portfolio includes: United mainline, serving high-yield business travelers; United Express, providing service to smaller domestic markets and feeding passengers to the mainline; Ted, flying more cost-conscious travelers to leisure markets from all five United hub airports; and the Star Alliance, which extends United's global network to hundreds of destinations worldwide.
-- Reduce Costs: United continues to reduce its costs to competitive levels. The company is on track to achieve $5 billion in annual cost improvements by 2005. In addition to the savings from a potential termination and replacement of pensions, United is targeting more than $1 billion in additional annual savings. No decision has been made on pensions, and discussions with United's stakeholders are continuing.
-- Deliver Operational Excellence: United continues to lead the industry in operational excellence. United employees have delivered record- breaking performance metrics under some of the most difficult and potentially distracting conditions in the company's history. United's Success Sharing program rewards employees and helps align them with the company's business goals as United continues to implement programs to streamline airport operations, maintenance and distribution.
-- Focus on Customer Service and Investment: United maintains a sharp focus on customers by investing in innovative products and services, including expanding the availability of United EasyCheck-in and other electronic and online ticketing and notification systems, and introducing Ted and p.s.(sm), the company's new premium flights serving the West Coast from New York City.

John Tague, United's executive vice president - Marketing, Sales & Revenue, said, "The dynamics of today's industry environment, with fuel prices at an all-time high, require significant changes to address industry over- capacity. For the last 24 months we have continued to exercise discipline in adjusting capacity to meet market conditions. With today's change, United is moving faster to implement our plans and leverage our international leadership." Tague detailed the steps the company has already taken:
-- United launched 30 new international routes since February 2002 - 70 percent of those announced this year;
-- United Express service has expanded to 21 new destinations;
-- Ted now flies to eight leisure markets from all five United hub airports.
-- Four new partners have joined the Star Alliance since late 2002, with two additional new partners scheduled to join in 2005.

 

[efiscompmon]

...and so goes our industry. "Major carriers" relegated to trunk lines supporting B75 or larger equipment and international flights while domestic flying goes to CRJs and EMB 175/190 and whatever comes next operted by "regional" pilots for third-world wages.

I'd sure like to meet those boys at DALPA who relaxed scope years ago and let this pandora's box open. "All turbojet flying is to be done by the pilots of Brand X." Now how hard was that?

 

[doh]

actually, I think the first "express" was operated by Eastern Airlines. If you want to meet the guy that was resonsible you need to go see Randy Babbitt speak some time. He deeply regrets having done that, and readily acknowledges that it will take tremendous bargaining capital to bring all the flying back under one roof. He also says ALPA should spend that capital because it is the only fix for the problem.

 

[B6Busdriver]

...I'd sure like to meet those boys at DALPA who relaxed scope years ago and let this pandora's box open. "All turbojet flying is to be done by the pilots of Brand X." Now how hard was that?

Thank you for reminding many whom have forgotten or never even knew this fact!