... United Clips Its Own Wings

As if to illustrate why U. S. carriers are seeking foreign investors, yet another American airline has announced a restructuring. On Jan. 6, United Airlines unveiled moves designed to save the beleaguered company $400 million annually. The carrier, which lost $332 million in 1991 and $166 million during the first nine months of 1992, will lay off 2,800 employees and forgo hiring an additional 1,900. Some upper-level managers of the nation's second-largest airline will take a 5% salary cut, and United will pare unprofitable domestic flights.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.