United to drop 'new' bag system

DENVER — United Airlines is abandoning the automated baggage-handling system at Denver International Airport that became notorious for losing or tearing apart luggage.

After more than a decade of trouble with the equipment, the airline said Tuesday it will switch to a cheaper, more conventional manual system by the end of the year.

"It has never worked exactly how it was intended to do," United spokesman Jeff Green said. "We are looking at all areas where we can cut back on costs in our operations in every airport where we operate."

The airline, which is trying to emerge from bankruptcy protection, expects to save about $1 million a month in operating costs.

The $250 million automated system was intended to be a cutting-edge model but turned into a major problem for DIA, one of United's hubs. The city, which owns the airport, spent an additional $100 million for construction and $341 million in interest to try to get it to work.

The automated system was an underground, computer-driven railroad network for moving baggage. But bags were misdelivered, luggage was chewed up and cars derailed and jammed tracks. The system was responsible for repeated delays in the opening of DIA, which began operating in 1995.

"They're finally admitting to reality," said Raymond Neidl, an airline analyst with Calyon Securities. "They wanted to make it work, but they just couldn't get it to work."

Under the manual system, bags will be hauled to a sorting area, where handlers will load them onto carts and haul them to other planes or to baggage carousels.

United, a unit of UAL Corp., based in Elk Grove Village, Ill., filed for Chapter 11 bankruptcy in December 2002.