United Airlines seeks a way out of the crisis

godking
19 December 2002 6:00am

United Airlines is planning to embark on a low-budget strategy aimed at luring big-time passengers and working its way out of bankruptcy, according to a memo issued to the staff by the company’s Vice President for Strategy, Doug Hacker.

The communiqué points out that United intends to develop a low-cost air service among its competitors. On the one hand, the carrier will try to court international-route travelers through a collaboration effort with its partners in Star Alliance, the airline merger.

On the other hand, and with a view to operate in America’s midsize cities, UA will continue developing flights that use small aircraft flown by its regional affiliates. In the same breath and in order to draw tourist-class travelers, the airline intends to offer a low-budget product in those markets dominated by this kind of fliers within the framework of a competitive atmosphere.

Finally, Mr. Hacker informed his employees that requirements for bailing out United Airlines include lower payrolls.

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