TheDenverChannel.com










Money

United Cuts 1,250 Jobs

3 Reservation Centers Closing

POSTED: 9:25 a.m. MDT October 22, 2002
UPDATED: 3:50 p.m. MDT October 22, 2002

United Airlines says it's cutting 1,250 jobs and closing three reservation centers because of the weak revenue environment.

It's not known if any workers at Denver International Airport will lose their jobs.

Nearly 500 workers at United's call center in San Francisco are affected. They have until Jan. 4 to transfer to other centers around the country. Agents at reservation centers in Long Beach, Calif., and Indianapolis received the same bad news.

United also said that it is changing its jet service to United Express commuter service in five cities.

DIA's largest carrier says the move is part of cost-cutting efforts aimed at saving about $100 million a year.

The announcement comes just three days after United posted an $889 million third-quarter loss and said its operations have been losing about $7 million a day.

United's new chairman, Glenn Tilton, says the cuts alone won't be enough to save the airline from bankruptcy. He insists he's still counting on unions to agree to more cutbacks.

Experts say that more job cutbacks are to be expected, but what it needs -- and what all the other airlines need -- is more passengers.

The number of passengers flying at all of the carriers is down about 20 percent, 7NEWS reported. The biggest decline is in business travelers who often fly last-minute and pay full price.

With fewer passengers getting on board, United has tightened some ticket restrictions in an effort to make profit.

But experts believe those restrictions are the reason why passengers are turned off by the carrier.

"You need to lighten up on those rules. Why do you think people want to fly Southwest? 'Cause they don't have that many stupid rules. Why do people want to fly JetBlue or Frontier? Cause there's fewer stupid rules," said aviation expert Mike Boyd.

Worldwide, United operates more than 1,900 flights daily. The company has 84,000 employees.

United and the leaders of its five unions have agreed in principle on the need for $5.8 billion in labor concessions over 5 1/2 years. But implementation of such an agreement hinges on separate deals being reached with each union.

United is seeking a $1.8 billion federal loan guarantee.

Links We Like

Sponsored Content
Find out what a sputtering economy and an increasingly difficult to crack job market means to you. More

If your credit is shabby, you'll need to shore up your score to convince a lender you're worthy. Here's how to boost your point total. More

Acupuncture, massage, or other complementary therapies could manage your type-2 diabetes. Find out whether they can help you. More

You’ve heard of certain foods that can help you prevent cancer and even halt the spread of the disease. Find out if these anti-cancer foods really work. More

Credit Report

560? 675? 720? The average US Credit Score is 692. What is your score? See it online for FREE! More

Best Local Rates On...



LocalNational

30 Yr Fixed Mortgage4.90%5.02%

48 Mo New Car Loan6.97%6.79%

$30k Home Eq Loan7.90%8.33%

6 Month CD1.02%1.13%
Help! I don't understand!
More Rates


Sponsored Links

Stock Quotes

Get a Quote
Enter Symbol

Gas Prices

Gas prices
Keep tabs on the latest news, and calculate the cost of a trip in our special section. More


E-Mail News Alerts
Get breaking news and daily headlines.
Browse all e-mail newsletters