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The Honolulu Advertiser
Posted on: Tuesday, June 4, 2002

United plans to close more offices

By Lynne Marek
Bloomberg News Service

CHICAGO — UAL Corp.'s United Airlines plans to close 23 city ticket offices in the western United States, in addition to the 32 U.S. offices closed last year, to reduce costs and aid its return to profitability.

The airline said in a taped message to workers that it will close two offices in Portland, Ore., and one office each in Las Vegas, San Diego and Sacramento, Calif.

It will decide in the next few weeks which offices to close in Denver, Los Angeles and other cities where there are multiple offices.

Last week, the carrier, which once had as many as seven ticket offices in Hawai'i, said it will close all but one by mid-July as part of a nationwide move among airlines to sell tickets through more efficient means. United has four ticket offices left in Hawai'i — at Ala Moana Center, Bishop Square, Pearlridge Macy's and one on Maui. One of those four will remain open after July, but the company has not decided which one.

The Chicago-based carrier had a first-quarter loss of $510 million on top of a record $2.1 billion loss last year following the terrorist attacks, which deepened a slump in air-travel demand sparked by the U.S. economic recession. United and rivals have shifted more ticket sales to the Internet in recent years to lower administrative and distribution costs.

The timing of the office closings will vary and the company said it will provide assistance for employees who want to move from the closed offices.

United spokesman Chris Brathwaite confirmed the closures.