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While the price of jet fuel has steadily increased over the last few years, the rise in 2008 has been unprecedented, with fuel increasing by more
than 37% since the beginning of the year. To address the difficulties
created by these record prices, United Airlines is executing an aggressive plan
which
includes reducing costs across the business, reducing capital
expenditures, new fees and realigning capacity to more profitable
routes.
In
addition, and as part of the plan, United
has confirmed it is to remove 94 narrowbody aircraft and 6 widebody aircraft from its operations,
retiring its entire fleet of Boeing 737s in the process.
“Our industry is challenged as never before by the unrelenting price of oil, and United is taking aggressive action to
offset unprecedented fuel costs and to strengthen the competitiveness of our business,” said Glenn Tilton, United president, chairman and CEO.
“The elimination of our entire B737 fleet and our alliance with Continental are examples of the different approach we are taking to respond to
dramatically changed market conditions to deliver better results for all our stakeholders.”
United
recently announced a framework agreement to form a unique partnership with Continental
Airlines.
This agreement will result in extensive cooperation, linking networks and services worldwide to the benefit of customers while creating revenue
opportunities, cost savings and other operating efficiencies.
In addition, Continental plans to join United in the Star Alliance,
one of the largest airline
alliances in the world. This week, Continental Airlines, United Airlines and eight
other member airlines in the Star Alliance plan to ask the U.S. Department of Transportation (DOT) to allow Continental to join the group of carriers that already hold antitrust immunity. Approval by the DOT
would enable Continental, United and the other immunized Star Alliance carriers to work closely together to deliver
competitive flight schedules, fares and service.
Recently
Austrian
Airlines, Cathay
Pacific, Northwest
Airlines, United
Airlines, SriLankan
Airlines, Air
New Zealand, Qantas,
Continental
Airlines, Virgin
Blue, American
Airlines and Air
Canada have announced significant reductions to their international
operations. British Airways is also expected to make an announcement
about a similar move in the coming weeks.
See
other recent news regarding:
Airlines,
Aviation,
Flights,
Hotels, Promotions,
New
Hotels, United
Airlines, Boeing,
Reductions
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