United to ground 64 more 737's
06-03-2008, 11:46 PM
#1
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Joined APC: Mar 2007
Position: A340 R-sandpit
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United to ground 64 more 737's
If this is old news I apologize. Being half way around the planet from Chi-Town is my excuse.
http://www.chicagotribune.com/busine...,4018539.story
United Airlines is expected to ground dozens of its least fuel-efficient aircraft, including Boeing 747 jumbo jets, as part of sweeping cuts intended to help the carrier conserve cash and surviving a daunting environment as a stand-alone company.
The Chicago-based airline intensified planning for the initiative as it cooled on a potential merger with US Airways in mid-May, say people familiar with its plans. United is expected to announce the cuts as early as Wednesday.
With the economy in a downdraft, capital constraints have made large-scale mergers largely unfeasible, forcing carriers like United to seek other ways to cut capacity in an effort to gain sufficient pricing power to cover rising fuel costs.
United plans to retire the workhorses of its domestic fleet: 94 decades-old Boeing 737 jets, single-aisle planes that seat up to 123 passengers and shuttle over medium-range distances, say people close to the company.
United had already planned to ground 30 Boeing 737-500s in its fleet, which seat just 108 passengers but burn as much fuel as the larger narrow-body jets that it uses for flights within North America.
But the nation's second-largest carrier now will phase out the 64 Boeing 737-300s that it operates, whose average age is approaching 20 years, sources said.
"Aging goes hand-in-hand with fuel inefficiency," said aviation consultant Robert Mann, president of R.W. Mann & Co. "At these fuel prices, more and more of the domestic network is uneconomic."
United is also preparing to park some of its largest jets, Boeing 747s that haul about 350 passengers and are primarily used for flights to Asia and Australia, sources said.
The cuts are expected to come in phases through the end of 2009 with the bulk of the cuts coming next year, sources said.
http://www.chicagotribune.com/busine...,4018539.story
United Airlines is expected to ground dozens of its least fuel-efficient aircraft, including Boeing 747 jumbo jets, as part of sweeping cuts intended to help the carrier conserve cash and surviving a daunting environment as a stand-alone company.
The Chicago-based airline intensified planning for the initiative as it cooled on a potential merger with US Airways in mid-May, say people familiar with its plans. United is expected to announce the cuts as early as Wednesday.
With the economy in a downdraft, capital constraints have made large-scale mergers largely unfeasible, forcing carriers like United to seek other ways to cut capacity in an effort to gain sufficient pricing power to cover rising fuel costs.
United plans to retire the workhorses of its domestic fleet: 94 decades-old Boeing 737 jets, single-aisle planes that seat up to 123 passengers and shuttle over medium-range distances, say people close to the company.
United had already planned to ground 30 Boeing 737-500s in its fleet, which seat just 108 passengers but burn as much fuel as the larger narrow-body jets that it uses for flights within North America.
But the nation's second-largest carrier now will phase out the 64 Boeing 737-300s that it operates, whose average age is approaching 20 years, sources said.
"Aging goes hand-in-hand with fuel inefficiency," said aviation consultant Robert Mann, president of R.W. Mann & Co. "At these fuel prices, more and more of the domestic network is uneconomic."
United is also preparing to park some of its largest jets, Boeing 747s that haul about 350 passengers and are primarily used for flights to Asia and Australia, sources said.
The cuts are expected to come in phases through the end of 2009 with the bulk of the cuts coming next year, sources said.
06-04-2008, 04:20 AM
#3
Banned
Joined APC: May 2006
Posts: 540
I think they will be replaced by 737's in the "Canyon Blue" paint scheme. There is a reason SWA rolled into 3 UAL fortress hubs in the last two years.
06-04-2008, 04:27 AM
#4
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Joined APC: Nov 2005
Posts: 196
United Streamlines Operations to Compete in Unprecedented Fuel Environment
Wednesday June 4, 8:00 am ET
Company Announces 17 Percent Mainline Domestic Capacity Cuts by 2009
Reducing Fleet by 100 Planes, Eliminating Oldest and Least Fuel-Efficient Aircraft
Announces Executive Changes
CHICAGO, June 4 /PRNewswire-FirstCall/ -- United Airlines today announced significant fleet, capacity and personnel changes, enabling the company to build a stronger, more competitive business better able to withstand record oil prices and a softening economy.
United will remove a total of 100 aircraft from its mainline fleet, including the 30 previously announced Boeing 737s, and reduce its mainline domestic capacity in the fourth quarter 2008 by 14 percent year over year. The company expects to retire all of its 94 B737s, provided it can work out terms with certain lessors, and six Boeing 747s. Over the 2008 and 2009 period, cumulative mainline domestic capacity will be reduced between 17 percent and 18 percent and cumulative consolidated capacity between 9 percent and 10 percent.
Capacity Fourth Quarter Full-year Full-year
(Available Seat Miles) 2008 2008 2009
(Versus FY 2007)
North America -14.5% to -13.5% -8.0% to -7.0% -18.0% to -17.0%
International -4.5% to -3.5% +1.5% to +2.5% -5.0% to -4.0%
Mainline -10.5% to -9.5% -4.0% to -3.0% -12.5% to -11.5%
Express +3.0% to +4.0% Flat to +1.0% +10.0% to +11.0%
Consolidated Domestic -11.5% to -10.5% -6.5% to -5.5% -13.5% to -12.5%
Consolidated -9.0% to -8.0% -3.5% to -2.5% -10.0% to -9.0%
"Today we are taking additional, aggressive steps that demonstrate our commitment to size our business appropriately to reflect the current market reality, leverage capacity discipline to pass commodity costs on to customers, develop new revenue streams and continue to reduce non-fuel costs and capital expenditures," said Glenn Tilton, United's chairman, president and CEO. "This environment demands that we and the industry act decisively and responsibly. At United, we continue to do the right work to reduce costs and increase revenue to respond to record fuel costs and the challenging economic environment."
With fuel at current prices, it creates more than a $3 billion challenge to overcome. United believes that these actions will offset that challenge by 2009, assuming the industry as a whole takes similar actions.
When complete, the fleet reduction is expected to retire United's oldest and least fuel-efficient jets, and will lower the company's average fleet age to 11.8 years. The majority of schedule changes related to the elimination of 30 B737s previously announced are currently reflected in reservation systems. Further changes related to the retirement of an additional 50 aircraft by year end will be reflected in these systems in the near future. Schedule changes will be principally accommodated through modest reductions of underperforming markets and through frequency reductions while retaining a commitment to all five U.S. hubs. About 80 planes are expected to be out of the system by the end of 2008, with the other 20 coming out by the end of 2009. The fleet reduction also includes six Boeing 747s. As part of these changes, United is eliminating its Ted product, reconfiguring that fleet's 56 A320s to include United First class seats. The reconfiguration of the Ted aircraft will begin in spring 2009 and be completed by year-end 2009.
"The decision to dramatically reduce our capacity profile, particularly in the domestic marketplace, while over time eliminating a fleet type, is a significant step leading to a more effective and efficient operating fleet for United in the years ahead, while improving our customer experience and reliability," said John Tague, executive vice president and chief operating officer.
As United reduces the size of its operation, it is further reducing staff. United expects to reduce the number of salaried and management employees and contractors by 1,400-1,600, including the previously announced 500 employee reduction by year-end, and the company will determine the number of front-line employee furloughs as it finalizes the schedule over the next month.
The company named Joe Kolshak senior vice president of operations, overseeing United Services, Flight Operations and Operations Control. Kolshak previously served as Delta's executive vice president of operations, responsible for Delta's maintenance, flight operations, ground operations, operations control, safety and security as well as the Delta Express operations. He will be based in San Francisco, and will report to Tague.
"Joe brings a depth and breadth of experience to United that will enable us to accelerate our work to improve customer service and operational performance moving us toward a goal to be the industry leader in the U.S.," Tague said. "We are committed to building a leadership team with the capability and accountability to drive performance improvements across our company and realize the full potential of United Airlines."
Alexandria Marren was also promoted to senior vice president - Onboard Service, and will also oversee flight attendant scheduling. She previously served as vice president - Onboard Service. Marren will report to Tague. William Yantiss, vice president - Corporate Safety, Security and Environment, also will report to Tague.
Cindy Szadokierski, who has been responsible for Operations Control, will now be vice president of United Express and Airport Operations Planning, reporting to Scott Dolan, senior vice president - Airport Operations, Cargo and United Express. As a result of the reorganization, the company also announced that Bill Norman, senior vice president - United Services, and Sean Donohue, senior vice president - Flight Operations and Onboard Service, will be leaving United.
"We thank Bill and Sean for their many contributions during their long and successful careers with United, and wish them well in their future endeavors," Tague said.
About United
Wednesday June 4, 8:00 am ET
Company Announces 17 Percent Mainline Domestic Capacity Cuts by 2009
Reducing Fleet by 100 Planes, Eliminating Oldest and Least Fuel-Efficient Aircraft
Announces Executive Changes
CHICAGO, June 4 /PRNewswire-FirstCall/ -- United Airlines today announced significant fleet, capacity and personnel changes, enabling the company to build a stronger, more competitive business better able to withstand record oil prices and a softening economy.
United will remove a total of 100 aircraft from its mainline fleet, including the 30 previously announced Boeing 737s, and reduce its mainline domestic capacity in the fourth quarter 2008 by 14 percent year over year. The company expects to retire all of its 94 B737s, provided it can work out terms with certain lessors, and six Boeing 747s. Over the 2008 and 2009 period, cumulative mainline domestic capacity will be reduced between 17 percent and 18 percent and cumulative consolidated capacity between 9 percent and 10 percent.
Capacity Fourth Quarter Full-year Full-year
(Available Seat Miles) 2008 2008 2009
(Versus FY 2007)
North America -14.5% to -13.5% -8.0% to -7.0% -18.0% to -17.0%
International -4.5% to -3.5% +1.5% to +2.5% -5.0% to -4.0%
Mainline -10.5% to -9.5% -4.0% to -3.0% -12.5% to -11.5%
Express +3.0% to +4.0% Flat to +1.0% +10.0% to +11.0%
Consolidated Domestic -11.5% to -10.5% -6.5% to -5.5% -13.5% to -12.5%
Consolidated -9.0% to -8.0% -3.5% to -2.5% -10.0% to -9.0%
"Today we are taking additional, aggressive steps that demonstrate our commitment to size our business appropriately to reflect the current market reality, leverage capacity discipline to pass commodity costs on to customers, develop new revenue streams and continue to reduce non-fuel costs and capital expenditures," said Glenn Tilton, United's chairman, president and CEO. "This environment demands that we and the industry act decisively and responsibly. At United, we continue to do the right work to reduce costs and increase revenue to respond to record fuel costs and the challenging economic environment."
With fuel at current prices, it creates more than a $3 billion challenge to overcome. United believes that these actions will offset that challenge by 2009, assuming the industry as a whole takes similar actions.
When complete, the fleet reduction is expected to retire United's oldest and least fuel-efficient jets, and will lower the company's average fleet age to 11.8 years. The majority of schedule changes related to the elimination of 30 B737s previously announced are currently reflected in reservation systems. Further changes related to the retirement of an additional 50 aircraft by year end will be reflected in these systems in the near future. Schedule changes will be principally accommodated through modest reductions of underperforming markets and through frequency reductions while retaining a commitment to all five U.S. hubs. About 80 planes are expected to be out of the system by the end of 2008, with the other 20 coming out by the end of 2009. The fleet reduction also includes six Boeing 747s. As part of these changes, United is eliminating its Ted product, reconfiguring that fleet's 56 A320s to include United First class seats. The reconfiguration of the Ted aircraft will begin in spring 2009 and be completed by year-end 2009.
"The decision to dramatically reduce our capacity profile, particularly in the domestic marketplace, while over time eliminating a fleet type, is a significant step leading to a more effective and efficient operating fleet for United in the years ahead, while improving our customer experience and reliability," said John Tague, executive vice president and chief operating officer.
As United reduces the size of its operation, it is further reducing staff. United expects to reduce the number of salaried and management employees and contractors by 1,400-1,600, including the previously announced 500 employee reduction by year-end, and the company will determine the number of front-line employee furloughs as it finalizes the schedule over the next month.
The company named Joe Kolshak senior vice president of operations, overseeing United Services, Flight Operations and Operations Control. Kolshak previously served as Delta's executive vice president of operations, responsible for Delta's maintenance, flight operations, ground operations, operations control, safety and security as well as the Delta Express operations. He will be based in San Francisco, and will report to Tague.
"Joe brings a depth and breadth of experience to United that will enable us to accelerate our work to improve customer service and operational performance moving us toward a goal to be the industry leader in the U.S.," Tague said. "We are committed to building a leadership team with the capability and accountability to drive performance improvements across our company and realize the full potential of United Airlines."
Alexandria Marren was also promoted to senior vice president - Onboard Service, and will also oversee flight attendant scheduling. She previously served as vice president - Onboard Service. Marren will report to Tague. William Yantiss, vice president - Corporate Safety, Security and Environment, also will report to Tague.
Cindy Szadokierski, who has been responsible for Operations Control, will now be vice president of United Express and Airport Operations Planning, reporting to Scott Dolan, senior vice president - Airport Operations, Cargo and United Express. As a result of the reorganization, the company also announced that Bill Norman, senior vice president - United Services, and Sean Donohue, senior vice president - Flight Operations and Onboard Service, will be leaving United.
"We thank Bill and Sean for their many contributions during their long and successful careers with United, and wish them well in their future endeavors," Tague said.
About United
06-04-2008, 04:52 AM
#6
AAmerican Way for AA Pay
Joined APC: Oct 2005
Position: B-737 Pilot
Posts: 1,617
Hopefully not. Legacy capacity should NOT be replaced by LCC capacity, in this declining market. Airlines need pricing power, but can't get it if the supply of seats is too high.
06-04-2008, 04:54 AM
#7
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Joined APC: Dec 2007
Position: Freddy driver
Posts: 154
To continue this depressing thread...
http://money.cnn.com/2008/06/04/news...ex.htm?cnn=yes
I hate to see this. United was the first airline I flew on as a kid and they have always held a special place in my heart.
Keep your chins up UAL folks, we are all praying for things to get better.
http://money.cnn.com/2008/06/04/news...ex.htm?cnn=yes
I hate to see this. United was the first airline I flew on as a kid and they have always held a special place in my heart.
Keep your chins up UAL folks, we are all praying for things to get better.
06-04-2008, 05:00 AM
#8
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Joined APC: Feb 2008
Position: 757/767 FO
Posts: 847
06-04-2008, 05:14 AM
#9
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Joined APC: Jun 2006
Position: FO
Posts: 179
Looks like Express will be increasing as Mainline jobs are decreased.
Capacity Fourth Quarter Full-year Full-year
(Available Seat Miles) 2008 2008 2009
(Versus FY 2007)
North America -14.5% to -13.5% -8.0% to -7.0% -18.0% to -17.0%
International -4.5% to -3.5% +1.5% to +2.5% -5.0% to -4.0%
Mainline -10.5% to -9.5% -4.0% to -3.0% -12.5% to -11.5%
Express +3.0% to +4.0% Flat to +1.0% +10.0% to +11.0%
Consolidated Domestic -11.5% to -10.5% -6.5% to -5.5% -13.5% to -12.5%
Consolidated -9.0% to -8.0% -3.5% to -2.5% -10.0% to -9.0%
(Available Seat Miles) 2008 2008 2009
(Versus FY 2007)
North America -14.5% to -13.5% -8.0% to -7.0% -18.0% to -17.0%
International -4.5% to -3.5% +1.5% to +2.5% -5.0% to -4.0%
Mainline -10.5% to -9.5% -4.0% to -3.0% -12.5% to -11.5%
Express +3.0% to +4.0% Flat to +1.0% +10.0% to +11.0%
Consolidated Domestic -11.5% to -10.5% -6.5% to -5.5% -13.5% to -12.5%
Consolidated -9.0% to -8.0% -3.5% to -2.5% -10.0% to -9.0%
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