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UAL launching low-cost carrier

Thursday, Feb. 6, 2003 | 10:04 a.m.

CHICAGO -- United Airlines said Wednesday it plans to return to profitability through a combination of reducing costs, launching a low-cost carrier and using more regional jets.

In the most extensive comments yet on its new strategy in bankruptcy, United told its employees it needs its own discount carrier to become more competitive in the leisure travel market.

It defended the plan to create a separate, low-cost airline -- which has been assailed by unions and questioned by industry experts -- saying it will entail a new business model that "has learned from the industry's past mistakes."

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