"United says it's learned from industry mistakes"

Thursday, February 13, 2003

United says it's learned from industry mistakes 
The Chicago (IL) Sun-Times


United Airlines is well aware of history, thank you very much.

No major airline pulled off a profitable, long-lasting low-cost carrier to
supplement its main business--though many have tried--and are trying again
now.

The Elk Grove Village-based carrier is formulating its plans for a low-fare
carrier, code-named "Starfish," and has learned from the industry's
mistakes, including its own. United, which filed for Chapter 11
reorganization in December, will use that newfound knowledge in forming the
new airline, spokesman Joe Hopkins said. 

He said United will keep costs in line with the low fares it will collect,
which means the low-cost carrier's workers will be paid far less, and United
will use Starfish to supplement its mainline carrier by allowing Starfish
passengers to transfer to international flights with ease.

United must convince its unions that "Starfish" is a good idea. So far, its
reception has been chilly. It must also convince the U.S. Bankruptcy Court,
creditors and lenders.


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