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Wed, Jul 16, 2003

United Sets 40 Jets Aside for Low-Cost Unit

Saves the Rest for High-Cost Unit?

United, eight months into Chapter 11, is talking publicly about setting up a low-cost subsidiary airline, to compete with the profitable airlines in its markets.

A long way from UAL's stillborn Avolar (which was to have launched with an all-new fleet of RJs), the new unit will go head-to-head against stiff competition on the ankle-biting vacation flyer routes.

The new unit, codenamed 'Starfish' at headquarters, will be headed by Sean Donohue, whose official title (beyond his current, 'vice president') has not been announced. ['Big Tuna' was reportedly discussed, but already claimed in the Chicago area...]

Well, anyway, it looks like the low-cost branch will be flying as many as 40 of the older 737s and A320s, machines that still have a lot of life left in them, but which are increasingly hard to make appealing to the premium-paying business-class travelers that United hopes to retain on its traditional routes.

FMI: www.united.com

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