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.
The bankruptcy of U.S. air carrier United Airlines could unleash some dire straits for Lufthansa, its German partner at Star Alliance, contrary to what the latter’s front office has been saying, a spokesman for the Cockpit Pilot Trade Union, Georg Fongern told German newspaper Die Welt.
United Airlines, the second-largest air carrier in the U.S., filed today for Chapter 11 of the country’s Bankruptcy Act, a process that will keep the company operational while it tries to overhaul its finances.
Spanair president Gonzalo Pascual said that would the current situation go on, his company could start marking down prices to the level of low-budget carriers, though keeping up high quality and good service since their own reshuffling matches up with what these airlines have to offer. Mr. Pascual’s remarks were heard in the 2nd Congress of the Travel Agency Management Leaders (CAAVE) that took place in Lanzarote.
The bankruptcy of U.S. company United Airlines and the tribulations of other major carriers are revealing an industry overhaul only workers and passengers will be bound to pay for, experts warn.
“Airlines can’t stick to money-losing fares,” said Julio Sorribas, general manager of ANA Travel Agency that does a considerable chunk of its business operations with passengers that fly between the U.S. and Latin America.
All tourist activity hit bedrock bottom in the Mexican destination of Isla Mujeres as visitors were stranded inside the hotels and just a handful trickled out to the beaches. Only a few golf carts and mopeds were spotted barreling down the south end as a result of heavy showers.
Few vessels docked in with tourists from Cancun, a situation that hurt retailers across the board and generated losses among businesspeople, the Novedades de Quintana Roo newspaper reported.
Grenada’s government will earmark $5.5 million next year for tourist development, one of the main revenue sources for this tiny island nation of the Eastern Caribbean, the country’s Minister of Finance Anthony Boatswain announced.Out of that total money granted to the sector, $3.3 million will be devoted to promotion and marketing efforts, while the remainder of that lump sum will be handed over to the Ministry of Tourism to cover risks shared with the aviation industry.