United Faces Restructuring

United Airlines is headed for a turbulent restructuring that will fundamentally alter its flight operations, labor relations and, possibly, top management according according to Crain's Business News.

At best, the nation's second-largest carrier will emerge a much smaller, weaker competitor, probably falling to third place behind Atlanta's Delta Air Lines. At worst, United will join a long line of second-tier airlines that have gone through bankruptcy.

A larger-than-expected loss of USD$525 million reported last week by American Airlines was a bad omen for United, which already was losing much more than its archrival before the September 11 terrorist attacks.

Crain's reported that United parent UAL Corp. will report a third-quarter loss on November 1, probably far higher than the roughly USD$500 million loss Wall Street is expecting. Analysts expect losses for the year to be about USD$2 billion.

http://news.airwise.com/display/stor...004275144.html

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Operations wll reportedly be cut another 10% down to 70%, rather than the previously announced 80%.



[This message has been edited by doc (edited 10-29-2001).]