FlyerTalk Forums - View Single Post - Wow! Does it cost THAT MUCH to serve a city?
Old Oct 23, 2002 | 3:06 pm
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TravelLover
 
Join Date: May 1999
Location: Madison, WI, USA; NW Platinum, Marriott Silver, Hilton Diamond, Hyatt Platinum
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Wow! Does it cost THAT MUCH to serve a city?

From http://biz.yahoo.com/rb/021023/airli...centers_1.html

<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.
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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.
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