Soaring fuel prices forces United to ground planes
United Airlines plans to ground as many as 20 airplanes, or 4 percent of its fleet, and further cut capacity in 2008 to soften the blow of soaring oil prices that could add $1 billion to its fuel tab over last year, reports the Associated Press. The nation’s second-largest carrier said it will ground and sell back to lessors 15 to 20 older, narrow-body 737s that are less fuel-efficient than others in its 460-plane fleet. It did not immediately specify what domestic flights or routes could be trimmed. Meanwhile, BusinessWeek columnist Rob Reed has called for United’s CEO Glenn Tilton to be replaced, citing his “deal hungry” management style that has come at the expense of the airline’s financial health.
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