Aviation Week has published an article on "Starfish" and some of the plans UA has for it.
The article can be read at:
http://www.aviationnow.com/avnow/new...s/ual02253.xml
A snipet: "United's new separate low-cost carrier, which yesterday named its first executive, plans to serve 37 U.S. cities with a fleet of 134 aircraft..."
It appears that all the hubs will have Starfish service, so dropping LAX and IAD may not be on the table.
Nothing about cost savings, other than the planes will fly an extra hour a day.
Considering that gate rental, landing fees, aircraft leases, and payroll (management and staff) appear to be the same as mainline, I cannot see how Starfish will do anything more than bleed even harder, as folks take advantage of even cheaper fares compared to what mainline would be charging.
If Starfish wants to compete, they need to halve their labor costs (management and staff), fly to cities that are near the hubs, but charge less to operate from, negotiate cheaper lease fees for their 737s and Airbus aircraft, and market it as a seperate airline with a seperate frequent flyer program geared towards free flights.