Boston, MA 02\/04\/2014 (wallstreetpr) – Cleveland will no longer be a hub for connecting airplanes for United Continental Holdings Inc (NYSE:UAL) as an effort of the carrier to manage $2 billion in yearly costs in the next three years. The company will be reducing workforce by as much as 470 numbers.<\/p>\n
Losses faced<\/b><\/p>\n
In a letter to the employees dated Feb 1, Chief Executive Officer Jeff Smisek wrote that United will cut down on the number of daily flights presently available from an airport the company has been incurring at a loss at. Regional flights at the airport will be cut down by almost 60%, he wrote and only one of 26 peak day departures on mainline jets will be stopped. Out of 470 employees he expects to cut down on, 430 will be those involved in airport-operations and the remaining would be caterers.<\/p>\n
Analysts in favor<\/b><\/p>\n
Analysts are seeing this as a positive move on the world\u2019s second biggest airline. In a note today, a Cowen & Co. analyst in New York called Helane Becker wrote that this news did not come as a big surprise give their focus on regional flights. This move has been more gradual since recently United has been seen shifting to larger aircrafts flying less frequently from the early smaller aircrafts flying more often.<\/p>\n
Since the 2010 merger between United and Continental Airlines, United has been seen struggling to manage costs and in November it had outlined its savings strategy. This move will generate more revenue for the Chicago based carrier as it will allow them to distribute their operating costs across more seats in the new larger airplanes. The impact will be expectedly significant as expenses per seat per mile flown are increasing faster than the revenue being generated on the same basis. United Continental Holdings Inc (NYSE:UAL) expects the January revenue for each seat flown a mile will increase only slightly this quarter.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 02\/04\/2014 (wallstreetpr) – Cleveland will no longer be a hub for connecting airplanes for United Continental Holdings Inc (NYSE:UAL) as an effort of […]<\/p>\n","protected":false},"author":32,"featured_media":14304,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2018],"tags":[1460,3088],"stock_ticker":[],"class_list":["post-14303","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-automobile","tag-nyseual","tag-united-continental-holdings-inc-nyseual","entry"],"acf":[],"yoast_head":"\n