Ual Cuts Domestic Flights
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The No. 2 U.S. carrier also said it plans to reduce its mainline fleet to 455 aircraft by next March, 68 fewer than it flew in August 2004 and a reduction of 112, or nearly 20 percent, since 2002.
It said it would increase international capacity by 14 percent and cut mainline domestic capacity by 12 percent.
That is almost equal in capacity so hopfully no furloughs of any kind. Going more international is a good thing, dont you think? Its one of the few areas where the carriers are making money or holding there own. the question is where will the build up be. Pacific, Atlantic or South America?
The No. 2 U.S. carrier also said it plans to reduce its mainline fleet to 455 aircraft by next March, 68 fewer than it flew in August 2004 and a reduction of 112, or nearly 20 percent, since 2002.
It said it would increase international capacity by 14 percent and cut mainline domestic capacity by 12 percent.
That is almost equal in capacity so hopfully no furloughs of any kind. Going more international is a good thing, dont you think? Its one of the few areas where the carriers are making money or holding there own. the question is where will the build up be. Pacific, Atlantic or South America?
FA Mikey said:
Mikey: Since domestic is a larger portion of UAL's ASMs and RPMs, the 12% domestic reduction is much more than the 14% increase in international.
They would only balance each other out if domestic and int'l ASMs and RPMs were about 50-50. So far this year, 63% of UAL's ASMs are domestic (only 37% are int'l).
Sadly, 68 fewer mainline aircraft by March 2005 compared to August of 2004 equals furloughs. Plenty of them. 🙁
Sadly, 68 fewer mainline aircraft by March 2005 compared to August of 2004 equals furloughs. Plenty of them. 🙁
I'm not sure that furloughs are going to be the result of the fleet reduction, but I could be wrong. From what I understand, they were planning on getting rid of about 50 737's and a few 767's and miscellaneous aircraft for a long time now and it wasn't a secret intention. I just think they are finally making this fact "public" today for some reason. Again, I could be wrong.
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[/quote]I'm not sure that furloughs are going to be the result of the fleet reduction, but I could be wrong. From what I understand, they were planning on getting rid of about 50 737's and a few 767's and miscellaneous aircraft for a long time now and it wasn't a secret intention. I just think they are finally making this fact "public" today for some reason. Again, I could be wrong.
767jetz
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Not so fast folks. Remember that UAL has been planning to park 737's all along. That's where most of the reduction in aircraft will come. According to a meeting I attended about 9 months ago, much of the man power reductions (particularly in Flight Ops, and I can only assume the same for other departments) have already been "baked into the manpower model." There will probably be some more adjustments, but don't expect any major layoffs for front line employees. This is old internal news only now being made public.
Keep in mind that we have been short staffed all summer, so the reductions in some fleets along with the increase in others will net a "right sized" manpower plan by next summer. Pilots are being recalled and I believe flight attendants as well.
As a side note to the "Smelly Fish," did you notice this part of the article? :
"UAL said it would continue to strengthen its hubs in Chicago, Denver, Washington, San Francisco and Los Angeles."
Looks like your wild dreams of UAL abandoning DEN have been interrupted. SO SORRY!
Keep in mind that we have been short staffed all summer, so the reductions in some fleets along with the increase in others will net a "right sized" manpower plan by next summer. Pilots are being recalled and I believe flight attendants as well.
As a side note to the "Smelly Fish," did you notice this part of the article? :
"UAL said it would continue to strengthen its hubs in Chicago, Denver, Washington, San Francisco and Los Angeles."
Looks like your wild dreams of UAL abandoning DEN have been interrupted. SO SORRY!
This may mean furloughs in some depts. and none in others. While Pilots and F/A's will most likely not be hit in this one as the airline has been short on crews and IMO flew last summers schedule with this fleet reduction in mind.
It will really depend on the block hours that the airline will fly next year. Some of the utilization rates on the 737's were less than 9 hours a day.
It will really depend on the block hours that the airline will fly next year. Some of the utilization rates on the 737's were less than 9 hours a day.
ualdriver said:
This is one instance where I would certainly welcome being wrong. B)
If UAL can ground 68 mainline airplanes in the next 6 months and not let anyone else go, and continue to improve on its efficiency, then that would be very good news.
FWAAA said:
30+ aircraft were parked in Sept. The remainder were already planned to be removed. The breakdown I saw from a source was the remainder of the 767-200's for a total of 18 of those. This fleet is a bit of an orphan as it has JT9 engines and other items that are not compatiable to the remainder of the airline. The 737's that were parked were in need of RVSM and some heavy maintenance checks. Also there will be some of the 400's in the desert returning to fly new international service.
In fact Tilton stated on the 6th that this reduction represents less than 1% reduction in ASM's from any one market and less than 3% system wide. Once again pilots and F/A's are a factor of block hours more so than airframs. With almost half of these aircraft already missing from the fleet this is one time I do not forsee the huge negative impact that is implicated by some.
BigRed1
Member
Dear Fellow Pilot,
Following is a Hotline I recorded this morning about United's plans to
optimize our global network. Please note that our plan to recall 40
pilots by the end of the year is unchanged.
Steve Forte
UNITED ACCELERATES PLANS TO OPTIMIZE GLOBAL NETWORK
Good morning. This is Captain Steve Forte on Wednesday, October 6.
Earlier today, United announced that it is substantially accelerating
its plan to expand the company's international leadership, redeploy
aircraft to more profitable routes and reduce the overall size of the
mainline fleet. This is part of the company's ongoing strategy to
address fiercely challenging market conditions now and in the future.
Complete details are available in NewsReal but I want to highlight some
of the key aspects of this announcement and discuss how they will affect
us in Flight Operations.
The fleet modifications, which will be complete by March 2005, will
reallocate assets to more profitable routes - including expanding and
strengthening international routes, which will account for more than 40%
of our global capacity and 50% of mainline revenue when ramped up fully.
This reallocation of assets will also include shifting some domestic
routes to United Express.
In addition, the modifications will reduce our mainline fleet to 455
aircraft - 68 fewer aircraft than we flew in August of 2004.
All told, these changes will result in international ASMs increasing by
14 percent and mainline domestic ASMs declining by 12 percent, for a
total systemwide ASM decline of three percent. Our plan to recall 40
pilots by the end of 2004 remains unchanged.
Pilot staffing is based on crew block hours, not aircraft count, so we
can't project our future staffing needs directly from the modified fleet
size. 2005 staffing requirements, which are largely driven by summer
block hours, won't be finalized until later this year. However, we do
know that more international flying and increased aircraft utilization
will partially offset the reduction in block hours caused by the fleet
reduction.
One additional point: today's announcement does not mean that we are
moving away from the competitive advantages provided by our worldwide
network. In fact, as Glenn Tilton pointed out in a press release today,
"We will continue to maintain and strengthen the unparalleled scope of
our global network and will continue to operate our five hubs."
We're working in a brutally competitive environment with intense pricing
pressure, continuing over-capacity in the industry and fuel prices that
remain at record highs. With today's announcement, we're moving faster
- and with great discipline - to implement the changes necessary to be
successful today and for the long-term.
Once again, NewsReal has additional details about today's announcement
and I encourage you to take a look. I'll keep you posted on any new
developments.
In the meantime, fly safe and let's keep running a great airline.
Following is a Hotline I recorded this morning about United's plans to
optimize our global network. Please note that our plan to recall 40
pilots by the end of the year is unchanged.
Steve Forte
UNITED ACCELERATES PLANS TO OPTIMIZE GLOBAL NETWORK
Good morning. This is Captain Steve Forte on Wednesday, October 6.
Earlier today, United announced that it is substantially accelerating
its plan to expand the company's international leadership, redeploy
aircraft to more profitable routes and reduce the overall size of the
mainline fleet. This is part of the company's ongoing strategy to
address fiercely challenging market conditions now and in the future.
Complete details are available in NewsReal but I want to highlight some
of the key aspects of this announcement and discuss how they will affect
us in Flight Operations.
The fleet modifications, which will be complete by March 2005, will
reallocate assets to more profitable routes - including expanding and
strengthening international routes, which will account for more than 40%
of our global capacity and 50% of mainline revenue when ramped up fully.
This reallocation of assets will also include shifting some domestic
routes to United Express.
In addition, the modifications will reduce our mainline fleet to 455
aircraft - 68 fewer aircraft than we flew in August of 2004.
All told, these changes will result in international ASMs increasing by
14 percent and mainline domestic ASMs declining by 12 percent, for a
total systemwide ASM decline of three percent. Our plan to recall 40
pilots by the end of 2004 remains unchanged.
Pilot staffing is based on crew block hours, not aircraft count, so we
can't project our future staffing needs directly from the modified fleet
size. 2005 staffing requirements, which are largely driven by summer
block hours, won't be finalized until later this year. However, we do
know that more international flying and increased aircraft utilization
will partially offset the reduction in block hours caused by the fleet
reduction.
One additional point: today's announcement does not mean that we are
moving away from the competitive advantages provided by our worldwide
network. In fact, as Glenn Tilton pointed out in a press release today,
"We will continue to maintain and strengthen the unparalleled scope of
our global network and will continue to operate our five hubs."
We're working in a brutally competitive environment with intense pricing
pressure, continuing over-capacity in the industry and fuel prices that
remain at record highs. With today's announcement, we're moving faster
- and with great discipline - to implement the changes necessary to be
successful today and for the long-term.
Once again, NewsReal has additional details about today's announcement
and I encourage you to take a look. I'll keep you posted on any new
developments.
In the meantime, fly safe and let's keep running a great airline.
JetClipper
Advanced
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- May 2, 2004
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- 149
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How is United going to "continue to strengthen its hubs in Chicago, Denver, Washington, San Francisco and Los Angeles", yet reduce domestic capacity by 12%? Particularly if the majority of fleet reductions will come from 737s, which I assume are mostly used to feed the hubs? Is alot of that flying going to be replaced by UEX carriers?
WorldTraveler
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It’s not hard to see the increase in regional jet flying being largely used to replace at least the network flow, if not the capacity, from the mainline fleet reductions. In reality, the economics of carrying 30 extra seats are very unfavorable when comparing a 70 seat RJ to a 100 seat older 737.
While I agree that this is the right revenue strategy, I am concerned that United is not cutting costs aggressively enough (and I don’t mean off the backs of employees) to compete in the higher cost, lower revenue environment (and fuel is not appreciably different in cost for either domestic or international flights).
I just booked another award ticket for a friend on United for Jan; I continue to appreciate how well United is being run these days from an operational standpoint.
While I agree that this is the right revenue strategy, I am concerned that United is not cutting costs aggressively enough (and I don’t mean off the backs of employees) to compete in the higher cost, lower revenue environment (and fuel is not appreciably different in cost for either domestic or international flights).
I just booked another award ticket for a friend on United for Jan; I continue to appreciate how well United is being run these days from an operational standpoint.
767jetz
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Removing planes does not necessarily mean reducing service. Increased aircraft utilization can compensate for a smaller fleet. For example, pilot manpower depends on block hours and not the number of hulls.
Some markets may see reduced frequency and others more. Either way it is smart to allocate assets where they will do the most good for the bottom line.
Some markets may see reduced frequency and others more. Either way it is smart to allocate assets where they will do the most good for the bottom line.
johnny gearpin
Member
world traveler says,
It is easy to see the regional jet factor in indianapolis these days. republic, the chatauqua spinoff, has two emb 170s here in the new united livery. they seem to be doing pilot training and accepting gawkers. a mini-bus or mini-guppy carrying 70 butts definitely looks to be the future.
out of my realm, but doesn't the ual pilot contract have scope clause for 50+ seaters being flown by mainline crews?
well wishes to those ual amts. heard the seniority list is late 1990 around the system. sad state our trade is in.
best regards,
johnny gearpin
It is easy to see the regional jet factor in indianapolis these days. republic, the chatauqua spinoff, has two emb 170s here in the new united livery. they seem to be doing pilot training and accepting gawkers. a mini-bus or mini-guppy carrying 70 butts definitely looks to be the future.
out of my realm, but doesn't the ual pilot contract have scope clause for 50+ seaters being flown by mainline crews?
well wishes to those ual amts. heard the seniority list is late 1990 around the system. sad state our trade is in.
best regards,
johnny gearpin
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