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United
Continental to reduce departures from Cleveland hub
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[February 03, 2014]
(Reuters) — United Continental Holdings Inc <UAL.N>, the parent
company of United Airlines, plans to lower the number of daily
departures from its unprofitable Cleveland hub starting in April
because of insufficient demand, according to a memo to employees.
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 Average daily departures will fall by around 60 percent, leading to
36 percent less capacity based on seats, Chief Executive Jeff Smisek
said in the memo.
"Our hub in Cleveland hasn't been profitable for over a decade, and
has generated tens of millions of dollars of annual losses in recent
years," Smisek said.
The reduction could result in up to 430 airport operations staff and
40 catering personnel losing their jobs, Smisek said.
A pilot shortage accelerated the decision to reduce flights, Smisek
said.
New federal regulations implemented last year require more flight
experience from pilots than previously needed, resulting in a
shortage of pilots across the industry.
Local officials had expressed concern that United would drop
Cleveland because the airline has a hub in its headquarter city of
Chicago, and because the two cities are relatively close to each
other.
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But United plans to keep pilot and flight attendant bases there as
well as technical operations, Smisek said.
United was formed by a merger of UAL and Continental in 2010.
(Reporting by Nivedita Bhattacharjee and
Nicola Leske; editing by Christopher Cushing)
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