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-   -   Wow! Does it cost THAT MUCH to serve a city? (https://www.flyertalk.com/forum/milesbuzz/7149-wow-does-cost-much-serve-city.html)

TravelLover Oct 23, 2002 3:06 pm
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.</font>
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.

mdtony Oct 23, 2002 4:52 pm
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.

Moderator2 Oct 23, 2002 9:50 pm
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".

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Craig6z
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