James Anatidae
September 10th, 2003, 11:08 AM
http://www.forbes.com/newswire/2003/09/08/rtr1076098.html
United low-cost operation to start in 2004
Reuters, 09.08.03, 5:05 PM ET
By Kathy Fieweger
CHICAGO, Sept 8 (Reuters) - United Airlines' parent UAL Corp.<UALAQ.OB>
plans to launch its low-cost airline operation in the first quarter of 2004,
said chief executive Glenn Tilton, beginning with 40 airplanes as previously
outlined.
The world's No. 2 airline, which filed for bankruptcy in December, 2002, is
beginning to work on various marketing tasks including the potential name
for the low-cost carrier, said Tilton, speaking after a business conference
here.
Delta Air Lines Inc., the No. 3 U.S. airline, has already started a low-cost
unit called Song on the New York-to-Florida market. Executives at
Atlanta-based Delta have said the carrier is doing very well but no separate
financial details have been released.
Low-cost airlines like Southwest Airlines Inc. and newer rival JetBlue
Airways Corp. have been taking market share from major network carriers
including United, AMR Corp.'s American Airlines and Delta.
Public details of United's plans to compete in the low-cost market --
code-named Starfish -- have been sparse, other than company statements that
it now has in place wage and other cost cuts from unions that will allow the
venture to move forward.
Kevin Mitchell of the Business Travel Coalition, which represents corporate
travel managers and has criticized United's strategies, said United does not
have the luxury of time or the resources to launch a new business.
"Their back is against the wall. They run the risk of brand confusion in the
eyes of the customer," Mitchell said.
--
Goliath & Wildwing's Storage Room
http://anatidae.homestead.com/
United low-cost operation to start in 2004
Reuters, 09.08.03, 5:05 PM ET
By Kathy Fieweger
CHICAGO, Sept 8 (Reuters) - United Airlines' parent UAL Corp.<UALAQ.OB>
plans to launch its low-cost airline operation in the first quarter of 2004,
said chief executive Glenn Tilton, beginning with 40 airplanes as previously
outlined.
The world's No. 2 airline, which filed for bankruptcy in December, 2002, is
beginning to work on various marketing tasks including the potential name
for the low-cost carrier, said Tilton, speaking after a business conference
here.
Delta Air Lines Inc., the No. 3 U.S. airline, has already started a low-cost
unit called Song on the New York-to-Florida market. Executives at
Atlanta-based Delta have said the carrier is doing very well but no separate
financial details have been released.
Low-cost airlines like Southwest Airlines Inc. and newer rival JetBlue
Airways Corp. have been taking market share from major network carriers
including United, AMR Corp.'s American Airlines and Delta.
Public details of United's plans to compete in the low-cost market --
code-named Starfish -- have been sparse, other than company statements that
it now has in place wage and other cost cuts from unions that will allow the
venture to move forward.
Kevin Mitchell of the Business Travel Coalition, which represents corporate
travel managers and has criticized United's strategies, said United does not
have the luxury of time or the resources to launch a new business.
"Their back is against the wall. They run the risk of brand confusion in the
eyes of the customer," Mitchell said.
--
Goliath & Wildwing's Storage Room
http://anatidae.homestead.com/