United Emerges From Bankruptcy |
 After three years of bankruptcy, United Airlines has finally left its Chapter 11 status behind. It's a big move for the company, but passengers probably won't notice any immediate differences when they fly. The Associated Press sums up the changes made at United over the last three years:
It now has about 30 percent fewer employees (58,000), 20 percent fewer airplanes (460) and 20 percent lower operating costs (7.5 cents per seat per mile), excluding fuel, than it did when the bankruptcy began on Dec. 9, 2002. Labor costs are down by more than $3 billion annually after two steep pay cuts and the elimination of defined-benefit pensions. Dozens of daily domestic flights have been eliminated.
Some things are up, too, including the number of international routes, on-time arrivals, the percentage of seats filled and the cost of on-board meals, no longer free to all.
Analysts say United will have to continue to work hard to compete against low-cost carriers and deal with ever-increasing oil prices. But for now at least, the airline is breathing a sigh of relief.
United Airlines official site
|
|
POSTED BY SYSADMIN AT 3:35 PM
|
