United to Start West Coast Shuttle

Sean1999 Ram Air TA · 12-12-2002, 11:30 AM

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Associated Press
United to Start West Coast Shuttle
Thursday December 12, 10:16 am ET
By Leigh Strope, Associated Press Writer
Bankrupt United Airlines Will Set Up a West Coast Shuttle Service Next Year, Reapply for Loan

HERNDON, Va. (AP) -- Bankrupt United Airlines will set up a shuttle service on the West Coast next year in an effort to regain financial footing as it struggles to negotiate pay cuts and secure a $1.8 billion federal loan guarantee, an official said Thursday.

Glenn Tilton, the airlines' chief executive, told reporters outside a closed meeting with labor leaders that the service would effectively revive Shuttle by United, which was shut down last year because of cost and competition.

The new service, he said, would operate much like Southwest Airlines, with "point-to-point service" of low-cost routes without layovers. It's fleet would include Boeing 737s and Airbus 320s, he added.

Tilton said he was negotiating with union leaders to have the subsidiary, carrying a new name, running next year.

Plans for the shuttle service are part of United's effort to come up with a business plan that would inspire government approval for a $1.8 billion federal loan.

The nation's No. 2 airline filed for bankruptcy protection Monday in the largest such filing in aviation history. The Chicago-based United has lost $4 billion in the last two years because of a slumping economy, flawed business strategies and last year's terrorist attacks.

It faced debt payments of $875 million this week, which it could not make.

Tilton said United plans to try again to win $1.8 billion in federal loan guarantees that the government denied it last week.

The airline chief, who was meeting with employees at Dulles International Airport Thursday morning, told reporters that he plans to file a new business plan with the Air Transportation Stabilization Board "as soon as we have it stitched up."

The board, an arm of the Treasury Department, last week denied United's request, saying its business plan was not financially sound.

"Well be talking to (the board) about the prospect of their partnership in our exit from bankruptcy," which Tilton expects to take about 18 months.

United needs to make steep labor and other cost cuts to emerge from bankruptcy in 2004 as planned, and to keep its $1.5 billion interim financing intact by meeting creditors periodic benchmark.

Tilton said he is talking to union leaders about taking paycuts. He hopes it will be an "equitable and fair process in deciding who can make what level of contributions to a more competitive cost structure as we go forward."

United had proposed $5.2 billion in labor cuts by 2008 in its application to the government for the loan guarantee.

United operates about 1,700 flights a day or about 20 percent of all U.S. flights. United's 83,000 employees own 55 percent of the company. The airline has promised to keep flying during bankruptcy as it tries to become profitable again.

Chansen · 12-12-2002, 11:36 AM

I wish them the best! Denver International is dependant on UAL's servival. They do have the majority of Gates there.

12-12-2002, 07:09 PM

Is this a reserection of Shuttle by UAL

Sean1999 Ram Air TA · 12-12-2002, 07:33 PM

Yep U2 is back like Scott said Shuttle would be back in 03 or 04

Sean

Scott · 12-13-2002, 01:51 AM

I like Glenn Tilton! He has shown leadership in a company that has long been rudderless. There are plenty of unpleasant chores ahead, specifically relative to staffing levels.

Westjetter · 12-13-2002, 02:40 AM

So here is a question:

Is "West Coast Shuttle" going to operate along side United, or is it going to "replace" United.

The reason I ask is that Zip has replaced the mainline Air Canada flights, not added seats. I wonder if West Coast Shuttle will be the equivilant?

12-12-2002, 11:30 AM	#1
Sean1999 Ram Air TA Senior Collector Join Date: Jan 2001 Location: Orlando, FL Posts: 249	United to Start West Coast Shuttle Welcome [Sign In] To track stocks & more, Register Financial News Enter symbol(s) BasicDayWatchPerformanceReal-time MktDetailedChartResearchOptionsOrder Book Symbol Lookup Associated Press United to Start West Coast Shuttle Thursday December 12, 10:16 am ET By Leigh Strope, Associated Press Writer Bankrupt United Airlines Will Set Up a West Coast Shuttle Service Next Year, Reapply for Loan HERNDON, Va. (AP) -- Bankrupt United Airlines will set up a shuttle service on the West Coast next year in an effort to regain financial footing as it struggles to negotiate pay cuts and secure a $1.8 billion federal loan guarantee, an official said Thursday. Glenn Tilton, the airlines' chief executive, told reporters outside a closed meeting with labor leaders that the service would effectively revive Shuttle by United, which was shut down last year because of cost and competition. The new service, he said, would operate much like Southwest Airlines, with "point-to-point service" of low-cost routes without layovers. It's fleet would include Boeing 737s and Airbus 320s, he added. Tilton said he was negotiating with union leaders to have the subsidiary, carrying a new name, running next year. Plans for the shuttle service are part of United's effort to come up with a business plan that would inspire government approval for a $1.8 billion federal loan. The nation's No. 2 airline filed for bankruptcy protection Monday in the largest such filing in aviation history. The Chicago-based United has lost $4 billion in the last two years because of a slumping economy, flawed business strategies and last year's terrorist attacks. It faced debt payments of $875 million this week, which it could not make. Tilton said United plans to try again to win $1.8 billion in federal loan guarantees that the government denied it last week. The airline chief, who was meeting with employees at Dulles International Airport Thursday morning, told reporters that he plans to file a new business plan with the Air Transportation Stabilization Board "as soon as we have it stitched up." The board, an arm of the Treasury Department, last week denied United's request, saying its business plan was not financially sound. "Well be talking to (the board) about the prospect of their partnership in our exit from bankruptcy," which Tilton expects to take about 18 months. United needs to make steep labor and other cost cuts to emerge from bankruptcy in 2004 as planned, and to keep its $1.5 billion interim financing intact by meeting creditors periodic benchmark. Tilton said he is talking to union leaders about taking paycuts. He hopes it will be an "equitable and fair process in deciding who can make what level of contributions to a more competitive cost structure as we go forward." United had proposed $5.2 billion in labor cuts by 2008 in its application to the government for the loan guarantee. United operates about 1,700 flights a day or about 20 percent of all U.S. flights. United's 83,000 employees own 55 percent of the company. The airline has promised to keep flying during bankruptcy as it tries to become profitable again. __________________ United Airlines Historian and Memorabilia Collector WAHS Member

12-12-2002, 11:36 AM	#2
Chansen Complete Wacko! Join Date: Oct 2000 Location: Parker, CO Posts: 3,041	Is this just a restart of UAL Shuttle? I wish them the best! Denver International is dependant on UAL's servival. They do have the majority of Gates there.

12-12-2002, 07:33 PM	#4
Sean1999 Ram Air TA Senior Collector Join Date: Jan 2001 Location: Orlando, FL Posts: 249	Yep U2 is back like Scott said Shuttle would be back in 03 or 04 Sean __________________ United Airlines Historian and Memorabilia Collector WAHS Member

12-13-2002, 01:51 AM	#5
Scott Insane Collector Join Date: Mar 2000 Location: Escondido, Ca. USA Age: 50 Posts: 2,763	I like Glenn Tilton! He has shown leadership in a company that has long been rudderless. There are plenty of unpleasant chores ahead, specifically relative to staffing levels. __________________ Fly the Friendly Skies of United uniTED takes wing Feb 12, 2004

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12-12-2002, 07:09 PM	#3
Romania is #1 Guest Posts: n/a	Is this a reserection of Shuttle by UAL

12-13-2002, 02:40 AM	#6
Westjetter Registered User Join Date: Mar 2002 Age: 27 Posts: 2,650	So here is a question: Is "West Coast Shuttle" going to operate along side United, or is it going to "replace" United. The reason I ask is that Zip has replaced the mainline Air Canada flights, not added seats. I wonder if West Coast Shuttle will be the equivilant?