NEW YORK (CNN/Money) -
Say hello to Ted, United Airlines' new corporate offspring.
United Airlines confirmed Wednesday that it has named its new low-cost air carrier "Ted," the last three letters of its United name, and that it will unveil the new airline next week.
Ted, which will offer cheaper flights that still allow United frequent fliers to earn miles, plans to begin service in February from Denver, its hub, to Reno and Ontario, Calif., Las Vegas, Phoenix, Ariz., New Orleans, and Ft. Lauderdale, Tampa and Orlando, Fla.
In addition, the new carrier will offer service between Las Vegas and Los Angeles, Las Vegas and San Francisco, and San Francisco and Phoenix.
"In order to meet the need and seize the opportunity, United has accomplished substantial cost-reductions, nearly $5 billion annually by 2005, that allow us to offer an operation that is competitive with other low-fare carriers," said Sean Donohue, vice president , low cost operation.
Ted will provide reserved seating and an economy plus section, two offerings not available on some other low-cost airlines, like Southwest (LUV: up $0.27 to $18.68, Research, Estimates), the company said.
Delta Air Lines (DAL: up $0.07 to $12.49, Research, Estimates) recently launched a low-fare airline, called Song, which flies the East Coast to Florida.
Ted, United, and United Express are all owned by corporate parent UAL Corp., which is operating under bankruptcy court protection.
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