Wow! Does it cost THAT MUCH to serve a city?
Oct 23, 2002 | 3:06 pm
#1
Original Poster
Join Date: May 1999
Location: Madison, WI, USA; NW Platinum, Marriott Silver, Hilton Diamond, Hyatt Platinum
Posts: 938
Wow! Does it cost THAT MUCH to serve a city?
From http://biz.yahoo.com/rb/021023/airli...centers_1.html
That's incredible -- saving $30 million per year per city. That means United is losing more than $82,000 per day at each of these four cities.
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">CHICAGO (Reuters) - UAL Corp.'s (NYSE:UAL - News) United Airlines said on Wednesday it will stop service at four international locations as part of broad moves to cut costs across the system.
The locations are Caracas, Venezuela; Santiago, Chile; Dusseldorf, Germany; and Milan, Italy. "We're no longer going to serve those locations," said a United spokeswoman.
The closures are expected to improve profitability by about $120 million annually, the airline said.</font>
The locations are Caracas, Venezuela; Santiago, Chile; Dusseldorf, Germany; and Milan, Italy. "We're no longer going to serve those locations," said a United spokeswoman.
The closures are expected to improve profitability by about $120 million annually, the airline said.</font>
Oct 23, 2002 | 4:52 pm
#2
Join Date: Apr 2001
Location: Bethesda, MD USA
Posts: 2,802
It doesn't surprise me. Think about all the costs of having space at the airport, landing rights, gates, and so on. Just think about the cost of filling up a plane with fuel!
It ain't cheap to run an airline. There's a reason why even Warren Buffett couldn't make money on one.
It ain't cheap to run an airline. There's a reason why even Warren Buffett couldn't make money on one.
Oct 23, 2002 | 9:50 pm
#3
Moderator: Avianca, Travel Photography, Travel Technology & USA
Join Date: Jul 2001
Location: Far western edge of the La-La Land City limits
Programs: Emeritus VIP Fromins Deli Encino grandfathered successor program - UA MM & HH Diamond
Posts: 3,812
As this is not specific mileage related, either "In The News", "TravelBuzz", or the United" forums would be better location options. Please continue to follow the thread "In the News".
------------------
Craig6z
Buzz & United Moderator
[email protected]
------------------
Craig6z
Buzz & United Moderator
[email protected]