United Airlines plans to shut down its Denver-based coach-only carrier Ted, cut more than 1,100 jobs and ground dozens of aircraft to deal with soaring fuel prices.
“While these are difficult decisions that will impact many of our employees, they nevertheless must be made if we are to assure United’s long-term viability,” chief operating officer John Tague said in a message to employees.
United, Denver’s biggest airline and the nation’s second largest, said it hasn’t yet determined the impact of the cutbacks on routes and flight schedules, but analysts said it undoubtedly will mean higher fares and less convenience for travelers.
“It will be very painful for United,” said airline industry analyst Henry Harteveldt of San Francisco-based Forrester Research. “They’re going to have to let go a lot of employees, and it’s going to be harder for passengers to get from point A to point B.”
Denver was Ted’s first market when United launched the low-fare carrier in 2003. The airline plans to refit Ted’s 56 Airbus 320 and 319 aircraft with first-class cabins and rebrand them as United planes, helping to replace some of the 94 Boeing 737s that the carrier will retire.
United employs 5,500 workers in Denver. Officials could not say today how many of the job cuts will come from Denver. United has 55,000 workers throughout its system.
The Chicago-based carrier will cut mainline domestic capacity by 17 to 18 percent in 2009 while also scaling back international capacity by 4 to 5 percent.
“The decision to dramatically reduce our capacity profile, particularly in the domestic marketplace, while over time eliminating a fleet type, is a significant step leading to a more effective and efficient operating fleet for United in the years ahead, while improving our customer experience and reliability,” Tague said in a statement.
The nation’s airlines are struggling amid record-high fuel prices and are slashing capacity and jobs while charging customers extra fees.
American Airlines announced last month that it would cut workers and slash its domestic flight capacity by 11 percent to 12 percent in the fourth quarter, after the peak summer season is over. The carrier was previously planning a 4.6 percent cut.
And the subsidiary of AMR Corp. said it would charge passengers $15 for the first checked bag.
Meanwhile Delta Air Lines Inc. is reducing capacity and trimming thousands of jobs.
The Associated Press contributed to this report.
Steve Raabe: 303-954-1948 or sraabe@denverpost.com
