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United To Stop Flying To 4 Cities  
User currently offlineBoeing757/767 From United States of America, joined Jun 1999, 2282 posts, RR: 1
Posted (12 years 2 months 1 day 12 hours ago) and read 3444 times:

Here's the news release:

United Announces Additional Cost-Cutting Initiatives
Wednesday October 23, 4:04 pm ET
Actions to Improve Profitability By $120 Million Annually


CHICAGO, Oct. 23 /PRNewswire-FirstCall/ -- As part of the implementation of the updated business plan submitted to the Air Transportation Stabilization Board (ATSB) last night, United Airlines (NYSE: UAL - News) today announced this week's second round of cost-cutting measures that are expected to improve profitability by approximately $120 million annually. In response to current market conditions, the carrier will be closing four international stations and better matching capacity with demand by shifting to smaller aircraft in several markets. In combination, the U.S. domestic and international cost- cutting initiatives announced this week are expected to improve the carrier's profitability by approximately $220 million annually.


Beginning Jan. 7, 2003, United will close stations in Caracas, Venezuela; Santiago, Chile; and Dusseldorf, Germany. On January 22, 2003, United will close its station in Milan, Italy. The closings will affect 69 employees in Caracas, 110 in Santiago, 46 in Milan and four in Dusseldorf.

The last flights will depart Dusseldorf, Caracas and Santiago on January 6, 2003, and will depart Milan on January 21, 2003. Customers already booked for travel beyond the last date of service will be offered reaccommodation on other carriers.

"Closing a station is always an extremely difficult decision to make, but given the unprecedented challenges the global airline industry faces, these closings are an essential and prudent course of action," said Glenn Tilton, United's chairman, president and chief executive officer. "These measures are unfortunately necessary given the continued deterioration of profitability in these four international markets. We regret the necessity of making these decisions because of the impact it will have on our customers, employees, their families and their countries," Tilton continued.

"United will work closely with employees affected by these measures. Our goal is to be as helpful as we can be during this extremely difficult time for everyone," said Tilton.

"These cuts come as a result of careful analysis of the stations' profitability for the last several years," said Graham Atkinson, United's senior vice president - International. "Results from all four cities fall well below United's profitability hurdles."

While the company regrets today's announcement, it remains strongly committed to its customers in the European and Latin America regions. United will continue to serve the needs of its customers to these affected locations in Europe and Latin America through its Star Alliance partners, Lufthansa and Varig.

In addition, the company will also better match capacity to demand by downgauging the equipment it uses in several markets. The company will fly Boeing 767 aircraft instead of Boeing 777 aircraft in the Paris-Washington Dulles, Paris-San Francisco and Miami-Buenos Aires markets. United will also replace Boeing 747s with Boeing 777s on the flowing routes: Osaka-San Francisco, United's second Seoul-Tokyo flight and the carrier's second daily Tokyo-Chicago flight. These downgauges allow the company to more efficiently operate these flights by using equipment that adequately meets the demand.




Free-thinking, left-leaning secularist
30 replies: All unread, showing first 25:
 
User currently offlineBigo747 From , joined Dec 1969, posts, RR:
Reply 1, posted (12 years 2 months 1 day 12 hours ago) and read 3389 times:

Too bad, South American market is shrinking......

User currently offlineBA319-131 From United Kingdom, joined Jan 2001, 8589 posts, RR: 54
Reply 2, posted (12 years 2 months 1 day 12 hours ago) and read 3384 times:
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Nasty blow for those airports.

Lets hope given time UA makes a recovery and may re-install service to those cities.

Rgds

BA319-131



111,732,3,4,5,7,8,BBJ,741,742,743,744,752,762,763,764,772,77L,773,77W,L15,D10,30,40,AB3,AB6,A312.313,319,320,321,332,333
User currently offlineJohnnybgoode From Germany, joined Jan 2001, 2187 posts, RR: 6
Reply 3, posted (12 years 2 months 1 day 12 hours ago) and read 3371 times:

they are cutting DUS???
any chance of keeping this flight alive or if LH is going to take that over???

daniel



If only pure sweetness was offered, why's this bitter taste left in my mouth.
User currently offlineContinentalEWR From United States of America, joined May 2000, 3762 posts, RR: 13
Reply 4, posted (12 years 2 months 1 day 12 hours ago) and read 3352 times:

No surprises. The Miami-Santiago route depends heavily on O&D traffic and a very limited number of connections, given that United's Miami operation is not a full fledged hub. The Washington-Milan route also should come as no surprise along with Washington-Dusseldorf. These are not primary European markets (Milan is a major business and industrial center, but the demand is clearly not there for United), and the political turmoil in Venezuela renders the market less than desirable. The Miami-Buenos Aires downgrade is also quite understandable and a 767-300 is a perfectly fine aircraft for this route.

United is teetering on the brink of bankruptcy, largely due to the ineffectiveness of its former CEO and the airline's unions who got some of the highest wages in exchange for nearly ruining their employer. Other miscalculations include the failed attempt to buy US Airways, which was a waste of time and money. The 9/11 aftermath and the economy are not at the root cause of United's problems.



User currently offlineJtamu97 From United States of America, joined Mar 2001, 658 posts, RR: 2
Reply 5, posted (12 years 2 months 1 day 11 hours ago) and read 3286 times:

Yep, sad to see that happening..Perhaps CO can pick up some of those routes out of IAH as the airport just keeps getting bigger!!


Propeller, we don't need no stinkin propeller
User currently offlineChepos From Puerto Rico, joined Dec 2000, 6235 posts, RR: 11
Reply 6, posted (12 years 2 months 1 day 11 hours ago) and read 3268 times:

Im surprised to see United close down its Santiago and Caracas stations altogether. The CCS -MIA route has suffered because of the political and ecnomic turmoil in Venezuela and at the same time United just offers a daily flight which gives it a minor presence in the market. I had understood the MIA-SCL route was doing prety well- but I guess I was wrong (this will virtually give one world partners (LA and AA) a monolopy on the Mia-SCL route.) Right now I would not be surprised to see Ual drop the MIA-EZE route.
Chepos



Fly the Flag!!!!
User currently offlineMAH4546 From Sweden, joined Jan 2001, 33280 posts, RR: 71
Reply 7, posted (12 years 2 months 1 day 11 hours ago) and read 3209 times:

It is too bad to see them cut the MIA routes, but they do remain dedicated to the Miami market.

Caracas has obviously been suffering alot lately, and the fact that UA offered only one daily did hurt them.

Santiago de Chile, as stated, is very O&D dependent. The market between the United States and Chile outside of South Florida is virtually zero. I would not be surprised to see AA add a second frequency (4 or 5x a week).

At least Buenos Aires, Montevideo, Rio de Janeiro, and Sao Paulo continue. There have also been rumours lately that they want to return to MIA-LIM and MIA-MEX.



a.
User currently offlineFutureFO From Ireland, joined Oct 2001, 3132 posts, RR: 21
Reply 8, posted (12 years 2 months 1 day 10 hours ago) and read 3154 times:

They are also to stop flying BOS-LHR on 26 Oct. Also it is amazing that we are cutting MXP service that has been a hard flight to Non-Rev on lately it has been a pretty full route as of late. DUS I am suprised to it was held onto this long.


I Don't know where I am anymore
User currently offlineUsairways85 From United States of America, joined Nov 2001, 3473 posts, RR: 7
Reply 9, posted (12 years 2 months 1 day 9 hours ago) and read 3118 times:

So now what are they going to do with the extra 777's and 747's? It seems like they have been continualously downgrading the 744 flts to 777's or 767's.

at little O/T
do you think there is any possibility that UA might convert some of their extra 744 to 744F and restart their dedicated cargo operation?


User currently offlineMSY-MSP From United States of America, joined Jun 2002, 151 posts, RR: 0
Reply 10, posted (12 years 2 months 1 day 8 hours ago) and read 3030 times:

Most of the moves make sense to me. As UA looks at it ops, it needs to get rid of routes that aren't holding their own. I wonder if someone in UA knows what the loads on these routes were pre 9/11 especially the ORD-DUS, IAD-MXP, and the SA routes. I think the folks at UA looked at the books for these routes and decided that these routes held little chance of becoming profitable in the near future, therefore it was best to just drop these routes before the became too costly to keep.

However, cuting routes out of MIA to SA while adding routes from IAD to SA just has me a little confused. Any thoughts on this one. I thought MIA had a larger latin community than IAD, but maybe I am wrong.

I also think that reducing the capacity on some of these routes may help improve finacial results. Fewer seats means higher fares if the same number of people travel the route, as more people are competing for available seats on a per available seat basis. This most likely results in more people buying Y, B, M and H fares. Of course that is just my thoughts.

MSY-MSP


User currently offlineBA From United States of America, joined May 2000, 11154 posts, RR: 59
Reply 11, posted (12 years 2 months 1 day 8 hours ago) and read 3019 times:

However, cuting routes out of MIA to SA while adding routes from IAD to SA just has me a little confused. Any thoughts on this one. I thought MIA had a larger latin community than IAD, but maybe I am wrong.

MIA is a much larger South American market than IAD. However, IAD has lots of connection opportunities, while MIA does not.

So IAD actually makes a lot of sense.

Regards



"Generosity is giving more than you can, and pride is taking less than you need." - Khalil Gibran
User currently offlineMAH4546 From Sweden, joined Jan 2001, 33280 posts, RR: 71
Reply 12, posted (12 years 2 months 1 day 8 hours ago) and read 3010 times:

They are not cutting from MIA and adding to IAD. They cut form JFK and will add those to IAD. MIA-SCL and MIA-CCS service is not going to IAD because IAD does not have the infastructure to support it, and neither does ORD. MIA still has GIG, GRU, EZE, and MVD.


a.
User currently offlineDIA77 From United States of America, joined Jan 2000, 706 posts, RR: 6
Reply 13, posted (12 years 2 months 1 day 7 hours ago) and read 2964 times:

Infrastructure to support? hmmm

User currently offlineMAH4546 From Sweden, joined Jan 2001, 33280 posts, RR: 71
Reply 14, posted (12 years 2 months 1 day 7 hours ago) and read 2955 times:

I should have said demographics, sorry.


a.
User currently offlineFLY777UAL From United States of America, joined May 1999, 4512 posts, RR: 3
Reply 15, posted (12 years 2 months 1 day 7 hours ago) and read 2956 times:

What a shame...

Too bad UA wouldn't be able to follow in the footsteps of other carriers and start placing re-configured 767-200 and 757 aircraft on these routes...

F L Y 7 7 7 U A L


User currently offlineJohnboy From United States of America, joined Aug 1999, 2602 posts, RR: 7
Reply 16, posted (12 years 2 months 21 hours ago) and read 2766 times:

United will continue to serve the needs of its customers to these affected locations in Europe and Latin America through its Star Alliance partners, Lufthansa and Varig.



So, if I'm going to CCS, should I book RG via GRU or LH via FRA?  Big grin


User currently offlineMAH4546 From Sweden, joined Jan 2001, 33280 posts, RR: 71
Reply 17, posted (12 years 2 months 20 hours ago) and read 2755 times:

So, if I'm going to CCS, should I book RG via GRU or LH via FRA?

To go to CCS, book MX via MEX.

To go to SCL, book RG or LH via EZE (not GRU).

Mexicana has been planning on launching MIA-CCS in 2003. It will undoubtly have a UA codeshare. However, with the recent turmoil in Venezuela, those plans are likely on hold.



a.
User currently offlineJrlander From United States of America, joined Aug 1999, 1106 posts, RR: 0
Reply 18, posted (12 years 2 months 18 hours ago) and read 2660 times:

"Santiago de Chile, as stated, is very O&D dependent. The market between the United States and Chile outside of South Florida is virtually zero. I would not be surprised to see AA add a second frequency (4 or 5x a week)."

Delta seems to make an ATL-SCL work. Even though they are cutting Rio de Janeiro and Buenos Aires, they are keeping the daily service to Santiago. So there must be some demand away from Southern Florida.




User currently offlineFlyguy1 From United States of America, joined Jun 1999, 1743 posts, RR: 4
Reply 19, posted (12 years 2 months 18 hours ago) and read 2642 times:

I doubt the new IAD South American flights will work. If UA can't make money operating these services from JFK, MIA, why would IAD work any better? Feed from the UA hub, just does not seem enough. Look at DL, they are cutting EZE, and SCL from ATL. DL Has a much larger feed there, still unable to make these flights work.


727, L1011, MD80, A300, 777-200, 737-300, 737-700, 747-400, 757-200, 737-800, A320. E190, E135, 767-200, CRJ9
User currently offlineRai From Canada, joined Feb 2008, 0 posts, RR: 0
Reply 20, posted (12 years 2 months 18 hours ago) and read 2639 times:

Delta seems to make an ATL-SCL work.

It works because of cargo loads, which are outstanding. They alone make the flight profitable. Passenger loads suck.


User currently offlineAirblue From San Marino, joined May 2001, 1825 posts, RR: 11
Reply 21, posted (12 years 2 months 17 hours ago) and read 2629 times:

If they drop Milan MXP that's mean they cut IAD-MXP and plus the new service announced last summer ORD-MXP won't start next week??

So after AA, TW (before they were bought by AA), NW and UA dropped MXP, CO to EWR is the only American carriers to Milan (except DL, but they are partner with AZ, so now they have almost the monopoly on the North Italy- US routes)..... very sad Sad


User currently offlineSabena332 From , joined Dec 1969, posts, RR:
Reply 22, posted (12 years 2 months 17 hours ago) and read 2618 times:

they are cutting DUS???
any chance of keeping this flight alive or if LH is going to take that over???


I do not think that LH will take over the flight to IAD, look what happened to LH`s flight to EWR, they switched from the 340 to a BBJ because there are not enough passengers to fill up a big Airbus. I think also that the airport administration do not mind that UA quit the flight, the main thing for them is that there are 30 daily flights between DUS and PMI.

Patrick


User currently offlineFlyPNS1 From United States of America, joined Nov 1999, 6733 posts, RR: 24
Reply 23, posted (12 years 2 months 17 hours ago) and read 2604 times:

I think the SkyTeam alliance may at least be part to blame for the failure of UA's MXP flight. Remember this past spring, DL launched ATL-MXP along with the existing JFK-MXP. The ATL-MXP flight has done well (the AZ codeshare definitely helps) especially in these difficult conditions.

It would be nice to see DL take advantage of UA's weakness and maybe launch CVG-MXP...it could work. Unfortunately, I'm not sure if DL is really in a position to launch new routes. Plus, the retirement of the MD11's doesn't leave DL with a lot of widebodies to play with.


User currently offlineJumboClassic From United States of America, joined Jun 2000, 315 posts, RR: 0
Reply 24, posted (12 years 2 months 17 hours ago) and read 2578 times:

Word is that almost half of UA 744s are in the desert already. Can someone confirm this?

JC


25 DaV : It's true that Skyteam member AZ and DL can only take advantage UA's retirement from US-Italy market, but why don't NW and CO boost up that market a b
26 FlyPNS1 : DTW-MXP could happen on NW and the route might be successful....though DL will have the advantage because of the AZ codeshare. If NW joins SkyTeam, th
27 Ouboy79 : UAL is currently parking 744s as they come up for D checks. It is unknown if they will ever return to the fleet.
28 WiLdmanVzla : UA stopping their daily flight to CCS? that´s great news for AA!!!!!!!!!!!!!!!... (4 times daily with AA)... I really hope UA won't return back to CC
29 PSU.DTW.SCE : NW did fly DTW-MXP during the summer of 2000. It didn't last very long...from about June through September. NW highly publized the launch of DTW-MXP a
30 Post contains links Lymanm : United is trying to sell some of it's 744s. Check it out: http://www.ualservices.com/html/aircraft_avail.html
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