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United adding Mesa Air as regional partner

DAVE CARPENTER, AP Business Writer Thursday, February 27, 2003

(02-27) 18:47 PST CHICAGO (AP) --

United Airlines is adding Mesa Air Group to its roster of United Express partners on Western routes in place of Air Wisconsin -- a step toward its goal of slashing regional carrier costs as it reorganizes in bankruptcy.

Under a five-year agreement announced Thursday, Mesa is expected to operate as a United Express carrier out of United's Denver hub beginning in July. Specific routes will be announced later for the 10 Bombardier turboprop aircraft involved, which seat 37 passengers each.

The Q200 planes will replace Air Wisconsin's Dornier 328 turboprops, which are being retired. United said Air Wisconsin will continue to provide jet service in the United Express system.

In announcing the agreement, United senior vice president Gregory Taylor said Mesa would allow the airline to continue to offer United Express service to medium-sized mountain communities from Denver.

United, which filed for bankruptcy court protection Dec. 9 after more than two years of heavy losses, wants to shift more flights to smaller, lower-cost regional jets while paying less for each flight. It plans to trim $100 million or more annually from existing contracts with three United Express partners: Air Wisconsin, Atlantic Coast and SkyWest.

Colorado-based airline consultant Michael Boyd said the glut of planes and regional carriers on the market allows United to pick and choose as it negotiates new contracts at favorable terms.

"United's putting the squeeze on everybody," he said. "What United is saying is `Either play ball with us or we'll find somebody to replace you with.' United needs them, but they need United."

Air Wisconsin and Atlantic Coast -- small jet carriers heavily dependent upon United's business -- have been pushing unsuccessfully in bankruptcy court for United to disclose more of its plans for using regional jets.

United and United Express carriers combined operate more than 3,300 flights daily.

Shares in United parent UAL Corp. fell 3 cents to close at $1.09 on the New York Stock Exchange. Mesa shares rose 22 cents, or 6 cents, to $4 on the Nasdaq Stock Market.

Separately, United faces its first key financial benchmark in bankruptcy on Friday when it must show cash losses of no more than $964 million from Dec. 1 to Feb. 28.

United spokesman Joe Hopkins said the required information would be given to the airline's lenders and creditors committee. In recent interviews with newspaper editorial boards, United executives have said they were on track to meet the early goal.

http://makeashorterlink.com/?R2EE621A3

Aéroports de Montréal Welcomes United Express with New Thrice-Daily Non-Stop Jet Service to Chicago

Note: The Export Development Corporation gave $1.5 billion dollars in Canadian taxpayer subsidized loans to Air Wisconsin to buy bombardier jets. They also operate YEG-DEN and YWG - DEN. These flights were formerly operated by ACR

MONTREAL, Feb. 27 /CNW Telbec/ - United Airlines and Aéroports de Montréal today announced that new thrice-daily non-stop jet service between Montreal and Chicago, Illinois, will commence April 6, 2003. Flights will be operated by United Express, regional partner of United Airlines, and will provide direct access into the Midwest United States.

"Montreal is the third new Canadian city added to United's schedule in the past 12 months, and the fifth city in Canada to be served by our United Express partners," said Richard Carret, General Manager, Sales, Canada. "The flights will provide customers in Quebec with more service to United's largest hometown hub, O'Hare International Airport, and expanded business and tourism opportunities."

'We are very pleased to welcome United Express, which will join the approximately 40 passenger carriers already flying out of Montréal-Dorval and which, along with Air Canada and Austrian Airlines, will be the third member of the Star Alliance group operating flights there," said James Cherry, President and Chief Executive Officer of Aéroports de Montréal. "This new service is sure to be appreciated because it will improve the connection with O'Hare, one of the world's busiest airports."

The schedule will be as follows:

<<

DEPART MONTREAL ARRIVE CHICAGO DEPART CHICAGO ARRIVE MONTREAL

6:00 a.m. 7:19 a.m. 7:00 a.m. 10:03 a.m.

12:25 p.m. 1:44 p.m. 3:45 p.m. 6:48 p.m.

7:18 p.m. 8:35 p.m. 8:55 p.m. 11:58 p.m.

(*)Subject to change without notice.

>>

The service will complement Air Canada's four daily non-stop flights and will allow customers to access United's worldwide network. All of United's Canadian flights are code-shared with Star Alliance member Air Canada, allowing customers the benefit of earning or redeeming Aeroplan miles. United and United Express provide more than 584 daily flights from Chicago, with non-stop service to 118 destinations across North America.

The new service will use Canadair Regional Jets (CRJ), known for their convenience, comfort and speed. The CRJ carries 50 passengers in a two-by-two seating arrangement; every seat is next to an aisle or window with no middle seats. The plane can cruise at speeds of 530 miles per hour at a maximum altitude of 41,000 feet and is recognized as one of the quietest commercial jet aircraft in the world.

Montréal-Dorval International Airport has more than 200 regular daily departures serving some 110 destinations non-stop, including 25 in the United States. United Express's inaugural flight to Chicago will follow by only a few days the opening of Montréal-Dorval's new transborder jetty.

http://www.newswire.ca/releases/February2003/27/c4948.html

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