photo by Drewski2112United Airlines, facing a slumping economy and rising fuel prices, announced today that it would ground 10 to 15 of its "older, less fuel efficient, narrowbody aircraft" as part of a plan "to offset what could be more than a $1 billion increase in fuel costs in 2008". "We are taking a prudent step now by reducing our fleet, taking assets out of the network that don't make sense at these fuel prices, to better position United to be successful in an ever-challenging environment," United CFO Jake Brace said. "United has an aggressive five-year plan focused on creating shareholder value. We have led the industry in reducing domestic capacity and continue to lead efforts to pass commodity costs onto our customers, as other industries do." As for which type United will ground: probably either some of the Boeing 737-300s and/or -500s.
2 comments:
UA has an agressive five year plan?
I guess abandoning their responsibilities to their retirees by way of stopping pensions was the first part of that'aggressive plan'.
Step Two must've been an overall reduction in the quality of passenger service.
I'm going to enjoy watching United squirm in this era of $102 BBL oil.
Try dumping those high priced do-nothiungs in the corporate office, and get back to the job of satisfying your core base frequent flyers and employees, past and present.
Been out to the Mohave lately?
I see a lot of airplanes with the United livery in mothballs out there.
Some have been there so long, that they wear the old paint scheme.
Yes, United is feeling the pinch of high priced oil.
For years, they have always thought that they could get away with just about anything.
They're bleeding financially, and no one cares.
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