Shuttle by United was an "airline within an airline" operated as a subsidiary of United Airlines from 1994 to 2001 along the West Coast of the United States. It operated from San Francisco International Airport and Los Angeles International Airport. Shuttle's fleet consisted of Boeing 737-300s and 737-500s. The service was eventually renamed United Shuttle before it was shut down by United and its aircraft returned to mainline service with the airline. Operations The recession of the early 1990s and the expansion of low-cost carriers and other effects of deregulation pressured the major airlines to reduce costs and fares. In July 1994, United Airlines concluded an ESOP agreement with its pilot (ALPA) and machinists (IAM) unions whereby employees would take ownership of 55% of the airline in exchange for reduced wages (4.88 billion reduction for 5.5 years) and benefits for new employees. Disliked CEO Stephen Wolf was summarily removed (with a 75 million severance package) and a new management team, Jerry Greenwald and John Edwardson took the reins at United. The new "Team" began a spending spree. In their first year, they replaced all of United's ground equipment. Eating up nearly all of the United's ESOP tax advantage for 1994–1995. Feeling financially flush, management moved to organize the lowest scales into a new "airline within an airline" dubbed "U-2". "U-2" designed to replicate some of the cost and operational advantages of regional competitors such as Southwest Airlines. All 58 of its aircraft were of a single type, the Boeing 737. Hot meals were eliminated, aircraft turn-around times were reduced to less than 20 minutes and OAK replaced SFO as "U-2's" new hub. The fare structure was reduced and simplified to lure passengers, with revenue stabilized by increasing frequency of service, over time, United was able to regain 80% of its market share that it had lost to Southwest. At the same time, "U-2" would remain legally part of United Airlines, with access to its Apollo Computer Reservation System. In the beginning, "U-2" experimented with un-assigned seating (window-middle-aisle boarding). Not until near the end of the "U-2" did passengers again enjoy preassigned seating, could transfer seamlessly to and from "mainline" service, and accumulate miles in United's MileagePlus frequent flyer program. In this respect, it resembled competitors' first generation "airline within an airline" divisions such as Continental Lite, Delta Express, and US Airways' MetroJet. Development and testing for "U-2", began in May