United Airlines Converts Flying to United Express in Six Markets

CHICAGO, April 18 /PRNewswire/ -- United Airlines (NYSE: UAL announced today a conversion of flying this summer to United Express regional jet service in six markets in its U.S. domestic system.

The markets where United Airlines will transition its service to United Express are Jacksonville, Lincoln, Memphis, Milwaukee, Nashville and Saginaw. The changes are effective from July 9, 2001.

Commenting on the changes, United's president Rono Dutta said: ``Although United has not been profitable in these markets, we are very pleased that United Express will continue to serve the needs of both business and leisure travelers in the seven cities. As our fleet of regional jets has grown, our customers are telling us they find them fast, efficient and comfortable.''

Dutta said United's decision to replace United Airlines flying with United Express service in these cities was driven by the soft economic environment. ``Revenues simply are not keeping pace with costs in these markets, and the outlook is not encouraging. We believe that these communities will be well- served by our United Express partner carriers whose cost structure offers the prospect of good service in comfortable jet aircraft as well as profitable operations,'' Dutta said.

United will offer employees at the seven affected locations other employment opportunities within the company if the employees choose to stay with United or offer appropriate severance packages if they choose to leave the company. A total of 337 employees in the combined stations will be affected by the decision -- 33 in Jacksonville, 32 in Lincoln, 35 in Memphis, 88 in Milwaukee, 56 in Nashville and 25 in Saginaw.

Here is a breakdown of current and planned service:

                     Market           Existing         Planned UEX Service
                  Roundtrips          Equipment    Roundtrips    Equipment
    Jacksonville-     2                Boeing 737      3           CRJ*
    Lincoln-          2                Boeing 737      3           CRJ
    Memphis-          3                Boeing 737      4           CRJ
    Milwaukee-        2                727             8           BAe-146
    Chicago           6 United Exp     BAe-146
    Nashville-        4                BAe-146         4           BAe-146
    Saginaw-          4                Boeing 737      5           CRJ
    * CRJ is an abbreviation for Canadair Regional Jet
    ** Palm Springs-Denver is operated during the winter season only.

[Chicago ATC News]