United eyes more overseas flights

CHICAGO -- United Airlines intends to expand about 15 percent internationally over the next three years but has no interest in increasing its domestic operations, a senior executive of the carrier said Tuesday.

Jake Brace, chief financial officer of United and parent UAL Corp., told investors and analysts the No. 2 U.S. airline remains strongly interested in combining with another carrier. But he declined to comment on any specific efforts beyond ongoing exploratory work by its lawyers and investment bankers into potential deals.

"We are not standing around waiting for consolidation to happen," Brace told an investor conference in New York. "We're interested in that. But we're focused on our business plan."

The Chicago company's business plan calls in part for shedding units, and Brace said the company has held talks with numerous potential buyers of its maintenance, repair and overhaul operations and expects to receive multiple bids soon.

The maintenance unit employs about 5,500 mechanics and handles much of the airline's routine repair work as well as maintenance for about 150 other carriers.

United is starting discussions with its unions on that prospective deal, he said, since "they have the ability to block something like this."

Efforts to sell the frequent-flier program are "not quite as far along," he said.

United already had said it is pulling back domestically, with plans to shrink capacity by 3 percent to 4 percent next year in a U.S. market it considers overcrowded and lacking the money-making potential of overseas routes.