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DENVER, Colorado (AP) -- United Airlines said Wednesday it will launch a low-cost carrier from its Denver, Colorado, hub in February, flying to destinations in the Southwest and Southeast before expanding service nationwide.
The bankrupt airline's goal is to better compete with discount carriers such as Frontier, JetBlue and Southwest, who've grown quickly amid the economic downturn.
"Customers want low fares, low fares, low fares, and they're not willing to pay extra for a free meal," said Sean Donohue, vice president for the new operation.
The new airline, which has not yet been named, will initially fly to Reno and Las Vegas, Nevada; Phoenix, Arizona; New Orleans, Louisiana and Tampa, Florida. Tickets will go on sale in November.
Since filing for Chapter 11 last year, United has restructured its labor contracts -- saving $2.6 billion a year through 2008 -- and its airplane leases. The Illinois-based airline is trying to end years of heavy losses and compete better.
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