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[NEWS]: United low-cost operation to start in 2004
http://www.forbes.com/newswire/2003/...tr1076098.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/ |
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