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United Prepares for Life After Independence







November 11, 2005

United Airlines

Itinerary changes
Lost luggage
Group sales
Unaccompanied minors
Ineffective bumbling
---
News
United Scraps Hike in Second Bag Fee
United Pilot Arrested for Alleged Drunkeness
United Doubles Second Bag Fee To $50
United Pilots Want CEO Fired
United To Reduce its Fleet By 4 Percent
United Charges for Second Bag
United Pilots Contradict Carrier on Cancellations
Computer Glitch Hits United Airlines
Winter Weather Wreaks Havoc with United Flights
United Gets New Daily U.S.-China Flight
Airline Pensions Under Government Review
United Cleared to Taxi Out of Bankruptcy
United Poised To Emerge From Bankruptcy
United Prepares for Life After Independence
United Wins New Labor Pact
United Plans To End Employee Pensions
United Reaches Agreement With Flight Attendents
United's Union Deals Unraveling

With its upstart rival Independence Air in shambles, United Airlines is moving quickly to beef up its operations at Washington Dulles International Airport. The Washington Post reports the carrier is preparing to hire 2,000 flight attendants, with about 700 of them to be based at Dulles.

Independence, which operated as a United regional carrier before challenging its former parent, was United's biggest competitor at Dulles before folding its wings and filing for bankruptcy last week. It is expected to be liquidated by early next year.

United and US Airways matched Independence Air's low fares on East Coast routes and are expected to benefit, at least temporarily, by the upstart carrier's demise.

Unable to join the party is bankrupt Delta Airlines, which reported it suffered a staggering $1 billion loss in the July through September period. The struggling carrier blames a more than 50 percent increase in its fuel bills for the red ink.

United has been operating under Chapter 11 bankruptcy itself for nearly three years but plans to emerge in February. As part of its revised business plan it is adding numerous international flights from Dulles, its primary international hub.

US Air emerged recently from bankruptcy when it merged with America West. Though still not profitable, the merged carrier is, like United, reporting high passenger volume.

What It Means

What all this means for consumers is that prices will be going up and planes will be more crowded.

Independence Air forced the major carriers to lower their prices and add flights on routes that were only marginally profitable. With Independence out of the way, the majors can raise prices and trim their schedules, at least for awhile.

Of course, nothing stands still in the airline business. If a stronger low-cost carrier, like JetBlue, decides to beef up its presence at Dulles, the whole cycle could start over again. JetBlue has done just that in the New York market, adding flights at Newark and LaGuardia, in addition to those at its John F. Kennedy hub.



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