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What remained of the airline-within-an-airline strategy for battling low fare carriers was grounded this week when United Airlines announced that it would discontinue Ted Airlines.
United plans to reconfigure Ted’s fleet of 56 Airbus 320s with first class seats and re-brand them as United planes starting in spring 2009. United also said it would remove 100 aircrafts from its fleet, retiring the oldest and the least fuel-efficient planes. The move will reduce its domestic mainline capacity 18% by 2009.
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