CHICAGO, June 4 (Xinhua) -- United Airlines announced significant fleet and personnel changes on Wednesday, enabling the company to build a 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 of 2008 by 14 percent year over year. 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.
"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," said Glenn Tilton, United's chairman, president and CEO.
With fuel at current prices, it creates a challenge amounting to more than 3 billion U.S. dollars for the company to overcome. United believes that these actions will offset that challenge by 2009, assuming the industry as a whole takes similar actions.
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.
United Airlines operates more than 3,200 flights a day. With key global air rights in the Asia-Pacific region, Europe and Latin America, United is one of the largest international carriers based in Chicago.