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UNITED AIRLINES TO REDUCE SERVICE IN ORLANDO; ENTERS CODE-SHARE AGREEMENT WITH USAIR IN MIAMI

 CHICAGO, Aug. 11 /PRNewswire/ -- As another step in its competitive action plan announced earlier this year and as part of its strategy to rationalize its U.S. route system, United Airlines will cancel certain uneconomic flights to and from Orlando International Airport. United also will enter into a code-share agreement with USAir to improve traffic feed to its international flights at Miami International Airport, United's primary Latin American gateway.
 Effective October 1, United will reduce the number of daily departures at Orlando from 39 to 16. The carrier will continue to provide daily non-stop service, with some reduced frequencies, from Orlando to nine locations:
 Chicago (five daily flights), Denver (two), Fort Myers
 (one), Fort Lauderdale (one), Los Angeles (one), Miami
 (two), San Francisco (one), Washington Dulles (two) and West
 Palm Beach (one). The carrier also will operate seasonal
 service between Orlando and Mexico City.
 United will discontinue non-stop service between Orlando and Boston, Jacksonville, Newark, New York La Guardia, Sarasota, Tampa and Washington National. United has made arrangements for USAir to protect United passengers booked on flights in those non-stop city pairs after October 1.
 United employees in Orlando affected by the schedule reduction may transfer to other United locations, take layoff with severance pay, or take retirement, based on seniority and eligibility.
 "This was a difficult decision to make, but we feel we had no alternative," said United Chairman and Chief Executive Officer Stephen M. Wolf. "In Orlando, we have experienced unacceptable financial results. As we carry out our plans to reduce our U.S. capacity by 5 percent next year, necessitated by competition from low-cost carriers and the weak economic environment, we must eliminate our exposure to unprofitable flights. We owe it to all of our stakeholders -- our shareholders, employees, the communities we serve, and our customers -- to do what is necessary to compete successfully in a changed U.S. marketplace."
 The flight reductions at Orlando are the latest in a series of, steps United has taken this year to improve its financial performance. Among those steps are: capital spending cuts and a reduction in expenses systemwide; employee layoffs; the deferral of aircraft deliveries; accelerated aircraft retirements; schedule changes on the West Coast; a restructuring of the Washington Dulles hub and a resultant buildup of service in Denver; and the discontinuation of service at six U.S. airports effective September 8.
 As part of the agreement between the two carriers, United will acquire from USAir gate capacity at Chicago's O'Hare International Airport, and USAir will acquire gate capacity from United at Orlando.
 Code-share at Miami
 Separately, United and USAir will enter into a code-share agreement at Miami International Airport. Specific details of that agreement, which will take effect this fall, will be worked out in the coming weeks.
 "This agreement will provide United with valuable feed for our flights to Central and South America from our Latin American gateway at Miami," Wolf said. "A code-share agreement such as this is a win-win arrangement since both carriers will experience increased traffic on their respective flights."
 United currently serves 13 cities in Central America, South America and Mexico, and operates 31 daily departures at Miami.
 -0- 8/11/93
 /CONTACT: Corporate Communications, John Kiker, 708-952-4162, or Joe Hopkins, 708-952-5770, or night 708-952-4088, or Pamela Hanlon, investor relations, 708-952-7501, all for United Airlines/
 (UAL)


CO: United Airlines ST: Illinois IN: AIR SU:

LD -- NY108 -- 1910 08/11/93 18:12 EDT
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Publication:PR Newswire
Date:Aug 11, 1993
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