United's LCC

[crashpad]

Reuters
United expects to use 40 jets for low-cost carrier
Tuesday July 15, 10:41 am ET


CHICAGO, July 15 (Reuters) - Bankrupt United Airlines said on Tuesday it plans to use 40 planes from its regular fleet for the start-up of a low-cost carrier designed to compete with discount airlines that are eating up its market share.

United and parent UAL Corp. (OTC BB:UALAQ.OB - News) filed the largest bankruptcy in U.S. airline history in December and said that a low-fare airline-within-an-airline would be part of the mix needed to restore profits and emerge from court protection.

"Our initial first-year plan calls for a fleet of approximately 40 aircraft from our mainline fleet operating in key leisure markets," said Sean Donohue, vice president for the low cost operation, in a statement recorded on an employee hotline.

Donohue provided an update on the low-cost carrier, which has been called Starfish internally, to United's executive council during a regular weekly meeting on Monday. A proposed route structure and some financial estimates for the operation were reviewed at the meeting, United said.

 

[mach none]

It did not work the first time( CAL Lite, DAL Express, UAL Shuttle), so try it again?

Yet again, another poor attempt by the poor, misdirected management. Why not focus on the mainline itself. Ual has a great route structure and had a great following. Why not build upon that?

 

[Ty Webb]

I know I am going to get a lot of flack about this, but UAL's upper management couldn't run a Dunkin' Donuts.

Starfish, if it ever happens, is all that is likely to be left of this once great airline, unless they can get the State of Illinois and/or the Federal Gummint to bail them out, like Chrysler.

 

[General Lee]

Well, I agree with TY in some ways, and I wonder how they are going to run the LCC though the hubs. There is going to be a lot of confusion about which carrier the passengers are on---United, United Express RJ's, United Shuttle or Starfish, etc. I wish them luck because I have plenty of friends over there, but it will be interesting to see.

Bye Bye--General Lee

 

[SWA/FO]

Chrysler had a plan, leadership and employees that believed.

 

[NEDude]

Here's a thought:

If frills and high labor costs are a hinderance to profitability, then Delta Express, MetroJet, Cal Lite, and Shuttle by United all should have flourished. Perhaps cutting frills and squeezing labor for concessions isn't what makes a healthy airline.

 

[Draginass]

If United tanks, you can be sure that senior management will walk away rich.

 

[KingAirer]

If they want to succeed the first thing they have to do is get rid of the Starfish name. I know its an internal thing now, but lets hope, for UAL sake, its not the external name.

Secondly, United needs to distinguish Starfish as a NEW airline. Delta has done a good job with SOng on this, There is nothing huge on their website or airplane Screaming "THIS IS A CHEAPER DELTA". People feel like they are flying something new, even its just new seats and a paint job.

I think this is why the other airlines within have failed. People didnt know the difference. If someone bought a ticket from Nashville to Orlando, it was possibly a Delta Express flight, but if you asked them who they were flying, DElta. So Express wasnt able to capture that New airline feeling (ala Jetblue). Same thing for MetroJet and the others.

Good luck UAL.

 

[js31pilot]

Too many friends over at UAL to want them to tank. It would ruin my ultimate goal and many others, but more needs to be done then is being done now. Market share is going away faster than EVER to the LCC's and that is their right in a free marketplace. The industry has finally gone from business travel and Middle-to Upper-Middle class passengers to regular Greyhound types. If the majors don't really change the way they do business they will go away and QUICK. If anybody thinks the Government will bail out anymore in my opinion they are mistaken. Don't quote me but I heard awhile back that some gov't sources have said that it is kinda like a race to see which major falls first........no MO MONEY.

Heck all I want is a job that allows me to live comfortably in ONE house and support my family.....whatever the equipment.

 

[P3-Adub]

Starfish ?

Anyone else see the council 34 newsletter with a possible "theme" 737 with SpongeBob and the Starfish characters ?? Pink Nacells ??? What the &%$# ??? I sure hope that management does not bank on this concept. I actually like the Western Pacific (?) themes of 10 years or so ago but UAL ???

Thought that the LCC idea was tanked and the effort was to refocus on the core business. With all of the pay cuts and work rule changes, UAL is already an LCC !!! Hard to believe that some of the remaining guys and gals have taken almost 50% paycuts with all of the bumps, aircraft pay groupings, and the accross the board 30% pay cuts ! Bad for the profession overall, we are now seeing the trickle down effects, even seeing it in the corporate sector, ( with the over abundance of highly qualified furloughed pilots available, who needs to pay these high wages ???) Really a sad state for the industry as a whole. I know, there are some of you guys out there that think pilots are overpaid anyway, good for you, I think not. Dismal state of affairfs when the public only wants to pay $99.00 to fly coast to coast ! Can't even pay for gas in your car for that trip !!! Lets get real folks. What do Greyhound drivers get paid anyway ?

I agree, there is more to saving this once great airline than just slashing pay, maybe an ultra cheap LCC with cheap seats for the Greyhound types is what is needed. One thing for sure is that none of these armchair quarterbacks on this board really has the whole story or solution. Great entertainment though !