Recently, United Airlines, the major US carrier has indicated that it will ground around 100 of its aircraft thereby axing around 17% of its network. The entire operation is to be completed by the end of 2008. The move is in response to the mounting fuel cost that is causing a tremendous loss to the carrier.

It is noted that a major part of the axing operation will take place within the US However, the airline has confirmed that it will also considerably reduce its international network in the year 2009, working out to around 5% reduction. However, services operated from Heathrow are not to be disturbed as part of this exercise. In addition to the redundancies announced in the month of April, not less than 1,100 jobs will be lost during the exercise.

President and chief executive of United Airlines, Glenn Tilton, noted, "We are taking aggressive steps that reflect the current market reality. This environment demands the industry act decisively."

Notably, United is embarking on this move following the initiatives by the American Airlines last week that announced a reduction of about 12% of the airline's flights.

Earlier, United Airlines took back from a merger operation proposed with its rival, US Airways, late last week. This was due to the fact that the airline feels that the costs involved in this merger will certainly outweigh any savings, during the period while the airline deepens downturn in the airline industry.