UA Announces Round #2 of Cost Cuts

These seem like very minor changes, but they do seem very rational as well. I am sure that every market is being evaluated to see where righ sizing is needed, as with the aircraft downgrades, as well as markets that can't sustain continued service. Hopefully, these changes do not affect too many of the biz travellers ability to connect and get UAL points. That is the good thing about the strength of the Star Alliance.

UAL will be ok, I just hope that the healing is done outside of BK.
 
While these actions as outlined in United's press release ([A href=http://biz.yahoo.com/prnews/021023/cgw061_1.html]http://biz.yahoo.com/prnews/021023/cgw061_1.html[/A]) are understandable though unfortunate, United isn't getting much help in its time of need from its Star Alliance partner Lufthansa. Indeed, just the opposite. Apparently it wasn't enough that LH would see added revenues stemming from UA ending nonstop service to DUS and MXP -- on the very same day as UA's announcement, LH decided to help themselves to some additional UA revenues by announcing the start of their own FRA-PDX nonstop service. You can see that press release at:

[A href=http://biz.yahoo.com/bw/021023/232476_1.html]http://biz.yahoo.com/bw/021023/232476_1.html[/A]

Now, having said that, it's certainly possible that LH is assisting UA in some as-yet-undisclosed and potentially significant way. Yet with the announcement of new LH service from FRA to a second-tier city like PDX, a city that undoubtedly provides UA with a reasonable amount of European traffic, it still makes me wonder if LH is trying to push UA out of any Transatlantic market that could logically flow over LH's hubs in FRA and/or MUC. And IMHO it seems clear that LH intends to be the predominant U.S.-Europe carrier in Star, no matter how that might impact UA.
 
Cosmo,

While it is a bit surprising that they'd fly FRA-PDX nonstop, I would question their motives. If anything. the working relationship between UA and LH has become stronger through their joint venture agreement.