United’s Parent Weighs Move to San Francisco

UAL Corp., the parent company of United Airlines, is considering San Francisco among cities where it might relocate its corporate headquarters, an airline spokesman said.

The carrier, which operates half of the flights at San Francisco International Airport, discussed a possible move last week with airport and city officials.

“We’re making the case that if they want to remake their corporate image, San Francisco is a good place to be,” said Jesse Blout, economic development director for San Francisco.

The talks are at an early stage and there is no deadline for making a decision, United spokesman Brandon Borrman said. Other possible locations include Denver and downtown Chicago.

UAL is based near O’Hare International Airport in the Chicago suburb of Elk Grove Village, Ill. Some employees would stay there if the company moved, Borrman said.

UAL is looking to cut costs four months after emerging from bankruptcy protection. The carrier announced Wednesday that it would lay off 1,000 salaried and management workers to save $100 million.

“We’re looking at all options,” Borrman said.

“It’s about what makes the best sense financially and operationally.”

The carrier is hunting for tax breaks, utility discounts and training programs as it considers a move, but it might stumble over San Francisco’s high cost of living, said Gerald Bernstein, an airline analyst with the Velocity Group in San Francisco.