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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsUnited to Drop Cleveland Hub in $2 Billion Savings Push
United Continental Holdings Inc. (UAL), the worlds second-biggest airline, is dropping Cleveland as a hub for connecting flights and cutting 470 jobs amid a cost-cutting push, according to a copy of an employee memo.
Average daily departures will shrink about 60 percent by June as the Chicago-based company eliminates most regional flights from Cleveland, Chief Executive Officer Jeff Smisek said in the Feb. 1 letter. New schedules will be in place by June, he said.
Our hub in Cleveland hasnt been profitable for over a decade, and has generated tens of millions of dollars of annual losses in recent years, Smisek said in the memo. The demand for hub-level connecting flying through Cleveland simply isnt there.
The move comes as United, which said in November it was eliminating $2 billion in annual expenses by 2017, struggles to control costs since its merger with Continental Airlines in 2010. Expenses are growing faster for each seat flown a mile than revenue on the same basis.
http://www.bloomberg.com/news/2014-02-02/united-to-drop-cleveland-hub-in-2-billion-savings-push.html
liberal N proud
(60,302 posts)A decade my ass, United - Continental consumption hasn't been 10 years.
United has destroyed everything that was good about Continental.
I guess parking will be easier at Cleveland Hopkins airport.
Kennah
(14,115 posts)In 2009, Christopher Steiner's "$20 a Gallon" predicted the death of the major air carriers (American, Continental, Delta, Northwest, US Airways, United) at $8 a gallon for gas.
Since then, Delta acquired Northwest, United acquired Continental, American and US Airways merged.
Air travel isn't the future. High speed rail is.
GreenPartyVoter
(72,377 posts)way to launch sub-ortbital flights. I've always wanted to take a day trip to Asia.