United to Drop Cleveland Hub in $2 Billion Savings Push

[FarCenter]

United Continental Holdings Inc. (UAL), the world’s second-biggest airline, is dropping Cleveland as a hub for connecting flights and cutting 470 jobs amid a cost-cutting push, according to a copy of an employee memo.

Average daily departures will shrink about 60 percent by June as the Chicago-based company eliminates most regional flights from Cleveland, Chief Executive Officer Jeff Smisek said in the Feb. 1 letter. New schedules will be in place by June, he said.

“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 in the memo. “The demand for hub-level connecting flying through Cleveland simply isn’t there.”

The move comes as United, which said in November it was eliminating $2 billion in annual expenses by 2017, struggles to control costs since its merger with Continental Airlines in 2010. Expenses are growing faster for each seat flown a mile than revenue on the same basis.

http://www.bloomberg.com/news/2014-02-02/united-to-drop-cleveland-hub-in-2-billion-savings-push.html

[liberal N proud]

1. When United consumed Continental, they insured Cleveland the Hub was safe.

A decade my ass, United - Continental consumption hasn't been 10 years.

United has destroyed everything that was good about Continental.



I guess parking will be easier at Cleveland Hopkins airport.

[Kennah]

2. Airlines aren't the future

In 2009, Christopher Steiner's "$20 a Gallon" predicted the death of the major air carriers (American, Continental, Delta, Northwest, US Airways, United) at $8 a gallon for gas.

Since then, Delta acquired Northwest, United acquired Continental, American and US Airways merged.

Air travel isn't the future. High speed rail is.

[GreenPartyVoter]

3. Although it would be nice if they could find a cost-effective, eco-friendly

way to launch sub-ortbital flights. I've always wanted to take a day trip to Asia.