Wednesday, March 19, 2008

United to Sell Some 737 Aircraft

Sale of planes could change mix at Denver International Airport

United Airlines has announced that it is putting the "for sale" sign on 15 to 20 older 737-500 aircraft and cutting back its flight schedule to save on fuel costs and to address an uncertain economy. United has been Denver International Airport's largest carrier since it opened, initially providing more than 70 percent of the lift from the then-new airport. Since then Denver-based Frontier Airlines has steadily expanded its route system, and Southwest Airlines has been adding flights as well. (Other smaller carriers have come and gone in the Denver market since the airport opened.)

United is continuing to cut its domestic flight schedule at DIA and other airports, and expects its capacity at DIA to to drop below 50 percent for the first time. United is not the only carrier to reduce its fleet. Frontier Airlines is selling four airplanes and and is prepared to slow its growth to 3-5 percent in the next year.

In addition to cutting its schedules and selling off about 4 percent of its fleet, assuming a buyer can be found, United has been generating revenues by such tactics as charging passengers for each second checked bag -- an unpopular move with its customers.

If other carriers continue to see Denver as vibrant air market and come in to fill the void created by United's changes in operations, Chicago-based United might no longer be the 900-pound gorilla at DIA.

1 comment:

  1. It's now April 11, and I bet American wishes it had unloaded some of its MD80's.

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