BLOOMBERG NEWS
A United Airlines customer service agent talked with a passenger at O'Hare International Airport. United said yesterday it has pinpointed $1.4 billion in operational cuts.
United cuts likely to UAL Corp., the parent company of United Airlines, told employees in a phone message yesterday it had pinpointed a total of $1.4 billion in annual operational cuts. Of that, $100 million would come from a streamlining that includes the loss of about 1,250 jobs, a company spokesman said.
spare local jobs
The airline says it will cut 1,250 jobs
to save about $100 millionStar-Bulletin staff and wire
That cut results from the closing of reservations centers in San Francisco, Long Beach, Calif., and Indianapolis; the elimination of a maintenance line in Indianapolis; the conversion of five airport stations to cheaper regional jet service; and a reduction in the flight schedule.
United spokesman Joe Hopkins said no positions in Hawaii would be affected, though he acknowledged it was possible a few maintenance line employees, who are responsible for overnight repair work on the planes, could be impacted. Hopkins said he didn't have a breakdown of the location of the maintenance line employees affected.
"For the most part, there is not any impact on Hawaii," Hopkins said. "Service is not being changed at all. Major facilities are not affected, planes are not affected and flights are not affected."
"In fact, we're expanding service in Hawaii. We're switching to daily service from Denver in February."
United operates 19 daily flights to Hawaii and has about 1,200 employees statewide
United's planned cuts are intended to help strengthen a revised business plan that the company expects to submit this week to the federal government to bolster its application for a $1.8 billion federal loan guarantee. Executives are also expected to meet with leaders of United's five unions throughout the week to try to win concessions totaling $5.8 billion over five and a half years.