DENVER -- United Airlines announced Wednesday that Denver will be the launch hub for United's new low-cost airline. The airline will serve predominantly leisure markets and feature a simplified fare structure with low-cost business and leisure fare options.

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"The United low cost operation and its attractiveness to leisure and business travelers perfectly complement our mainline and United Express operations, and those of our Star Alliance partners," said Sean Donohue, the vice president for the new airline. "We've made significant reductions in our cost structure this year, allowing our low cost operation to be competitive, profitable and sustainable. The (airline) is operated entirely by United employees and part of the strong brand and portfolio of products that our customers expect us to provide."

The name of the new airline has not yet been revealed.

The fleet for the new airline will launch in February 2004 with 4 Airbus 320 aircraft in Denver, and expand to 40 A320s by the end of 2004, 19 of which will be based in Denver.

From Denver, the airline will fly to Reno, Nev., Las Vegas, Phoenix, New Orleans, Tampa, Fla, Ontario, Calif., and Orlando, Fla. Additional destinations will be announced at a later date.

Tickets will go on sale in November.