United to Move Headquarters

UAL's (UAUA) United Airlines announced over the weekend it will move its headquarters to downtown Chicago from its base near Chicago's O'Hare International Airport.

Early next year the nation¿s second-largest airline will move about 350 managers to the new offices, located at 77 W. Wacker Drive. It will also consolidate several suburban facilities near Chicago in order to cut costs. United, which emerged from three years of Chapter 11 bankruptcy protection in February, said earlier this year it was looking for a new headquarters and had considered Denver and San Francisco.

"Today United strengthens our long relationship with our hometown, the city of Chicago, and with the state of Illinois," said Glenn F. Tilton, United¿s chairman, president and CEO, in a press release. "This move enables us to reduce our costs and drive efficiencies by consolidating facilities and bringing those who support the day-to-day operations together in one location, and it puts United's headquarters in the heart of the city's vibrant business district."

The airline received government enticements for the move. It will get $5.25 million in tax increment financing from the city of Chicago and $1.35 million in grants from the Illinois Department of Commerce and Economic Opportunity. The city and state also will propose legislation to cap the jet fuel tax for the next five years.

UAL shares lost $1.86 Friday to finish at $26.76.

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