United Continental to close its hub at Cleveland
United Continental Holdings has said that it is planning to drop Cleveland from the list of its hubs in the country as it has not been able to generate enough business.
As are result of the move, the company will cut up to 470 jobs at the site and will reduce the average number of daily departures about 60 percent. The company said that Cleveland hub has been losing money for more than a decade causing millions of dollars in losses to the company.
United Chief Executive Jeff Smisek said, "The demand for hub-level connecting flying through Cleveland simply isn't there. Ultimately, we can't create demand, but we do have a responsibility to react to it. We must make the right business decisions, even when those decisions are painful."
The Chicago-based airline earnings have been affected due to the losses at the hub during the previous few years. The company said that the job cuts will include airport operations workers and some catering employees. The company clarified that no pilots or flight attendants will lose their jobs.