Shuttle by United
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| Commenced operations | 1994 | ||||||
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| Ceased operations | 2001 | ||||||
| Operating bases |
San Francisco International Airport Los Angeles International Airport |
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| Frequent-flyer program | MileagePlus | ||||||
| Destinations | See Destinations below | ||||||
| Parent company | United Airlines | ||||||
Shuttle by United was an "airline within an airline" operated as a subsidiary of United Airlines from 1994 to 2001 along the West Coast of the United States. It operated from San Francisco International Airport (SFO) and Los Angeles International Airport (LAX). Shuttle's fleet consisted of Boeing 737-300s and Boeing 737-500s. The service was eventually renamed United Shuttle before it was shut down by United and its aircraft returned to mainline service with the airline.
The recession of the early 1990s and the expansion of low-cost carriers and other effects of deregulation pressured the major airlines to reduce costs and fares. In 1993 United Airlines concluded an agreement with its unions whereby employees would take ownership of 55% of the airline in exchange for reduced wages and benefits for new employees. The management moved to organize the lowest scales into a new "airline within an airline" dubbed "U-2".
"U-2" attempted to replicate some of the cost advantages of regional competitors such as Southwest Airlines. All 58 of its aircraft were of a single type, the Boeing 737. Hot meals were eliminated. The fare structure would be reduced and simplified to lure passengers, with revenue stabilized by increasing frequency of service, while electronic ticketing would reduce costs.
At the same time, "U-2" would remain legally part of United Airlines, with access to its Apollo Computer Reservation System. Passengers would still enjoy pre-assigned seating, could transfer seamlessly to and from "mainline" service, and accumulate miles in United's MileagePlus frequent flyer program. In this respect, it resembled competitors' first generation "airline within an airline" divisions such as Continental Lite, Delta Express, and US Airways' MetroJet.
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