Fewer flights to choose from, longer layovers and a greater chance of flying on small jets await United Airlines passengers at O’Hare International Airport as the carrier attempts an inevitable restructuring to survive, experts said Thursday.
Over the past year, the airline has added and then trimmed service in an effort to stanch the millions of dollars it is losing every day. But those efforts are expected to accelerate as United’s financial crisis pushes it toward an expected bankruptcy filing.
“I give United credit for lowering their schedule somewhat recently, and I would expect even more cutbacks soon,” said Joseph Schwieterman, an economist at DePaul University. “Too bad they didn’t do it last summer.”
By January, United will operate 46 fewer flights a day at O’Hare than it did in October, a 12 percent reduction from the 379 currently offered and the largest cut among United’s five hub airports. Further cuts threaten to imperil O’Hare’s status as the world’s busiest airport.
United’s tenuous situation also could cause O’Hare to fall behind in the Daley administration’s airfield and terminal modernization efforts, experts said.
“If I were still the commissioner of aviation in Chicago, I would be very worried that O’Hare is losing its leading edge as a hub,” said Mary Rose Loney, who ran Chicago’s three airports from 1996 to 1999. “I would certainly want to get a commitment from United on the timeline for producing a new business model that spells out their relationship with the airport and restates their commitment to O’Hare expansion.”
What happens if United files Chapter 11?
United gains protection from its creditors but loses control of its restructuring, and its shares are almost certain to become worthless. A bankruptcy judge can order steeper cutbacks than the ones already proposed by United, and alter or even dissolve its labor and other contracts; the employee stock ownership plan also could be scrapped.
– Will it stop flying? United has pledged to keep operating its normal schedule during bankruptcy.
– Will frequent-flier miles be affected? Experts say they probably are safe. Frequent-flier programs are one of the airlines’ best marketing tools and unlikely to be suspended even in Bankruptcy Court. It’s possible they could be tightened to require more miles. Even if United were to go out of business in the future, a competitor probably would step in and honor 25 percent to 50 percent of the miles to try to create loyal new customers.
