hr: Money

Photo Credit: Cubbie_n_Vegas

United Airlines, which is a subsidiary of the world’s second biggest carrier UAL Corp., will be shutting down some of its operations, grounding its fleet by approximately 70 planes. The shutdown also includes a low-fare unit called the Ted unit in a desperate attempt to combat surging fuel costs.

The planned unit shutdown will be carried out sometime near the end of 2008. With the reduced number of planes, about 1,100 jobs will also be cut as a consequence. This plan was announce by United in April.

United Airlines, which is based in Chicago, will be doing more cutbacks in about two months. This tends to elucidate how badly the airline was affected by surges in jet fuel for up to 76 percent counting from the previous year. The Ted unit was a project started in 2004, which aimed at competing with its competitors who charge relatively lower fares, has collapsed during the previous six months.

These capacity cuts were not made arbitrarily. They were carefully planned. They know exactly which planes and routes to ground and why.

United Airlines, which employs around 52,500 personnel and crews, will be doing further job cuts regarding management and salaried workers.