United's New Low Cost Operation Launches From DEN in February

United Airlines has announced that Denver will be the launch hub for its new low-cost operation (LCO), an essential element within United's portfolio of products. The LCO will serve predominantly 'leisure' markets, and will feature a simplified fare structure with low-cost business and leisure fare options. The LCO will launch from Denver International Airport in February 2004. [The HCO will continue nearly all its routes --ed.]

"The United low cost operation and its attractiveness to leisure and business travelers perfectly complement our mainline and United Express operations, and those of our Star Alliance partners," said Sean Donohue, vice president for the LCO. "We've made significant reductions in our cost structure this year, allowing our low cost operation to be competitive, profitable and sustainable. The LCO is operated entirely by United employees and part of the strong brand and portfolio of products that our customers expect us to provide."

Tickets will go on sale in November through all existing sales channels -- united.com, United Reservations, travel agents, and on-line reservation systems -- and, later, via sales channels unique to the LCO.

The LCO fleet will launch with 4, A320 aircraft in Denver, and expand to 40 A320s by the end of 2004, 19 of which will be based in Denver. Each plane will have 156 seats, including a section of Economy Plus seats with extra legroom. From Denver, the LCO will fly to Reno, Las Vegas, Phoenix, New Orleans, Tampa, Ontario (CA), and Orlando. Additional destinations will be announced at a later date.

All seats will be pre-assigned, and food and beverage service will be available on board. United customers will earn Mileage Plus miles on the LCO, and United's suite of Easy products, including EasyCheck-in and EasyUpdate, will be available to LCO customers.

The LCO will complement United's mainline and United Express service from Denver, the company's second-largest hub, and will be fully integrated into the United and United Express network. LCO customers will enjoy seamless connections to United, United Express and Star Alliance flights, including baggage check-through.

"This really underscores our long-term commitment to Denver, to Denver International Airport, and to our United and United Express employees in this community," said Pete McDonald, executive vice president - operations. "It also signals our intent to offer consumers more choice, more flights, more destinations, and simplified, lower fares on the LCO routes."

* "Avolar" is the name of UAL's stillborn fractional airline. The LCO, name not yet determined, will be a United-branded product. The LCO name will be announced later this year.

FMI: www.united.com