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.

Disliked CEO Stephen Wolf was summarily removed (with a US$75 million severance package) and a new management team, Jerry Greenwald and John Edwardson took the reins at United.

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.

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.

United slowly converted the "Shuttle" to a hub and spoke feeder airline for its mainline and international flights.

With demand for travel to the San Francisco Bay Area heavy during the Dot-com bubble, Shuttle was profitable and United regained 80% of the market share that they had lost to Southwest Airlines in the early 1990s.

[1] When air travel declined following the September 11 attacks in 2001 it became evident that cost savings had not materialized to justify the Shuttle, it was folded back into the mainline United operation and in 2007, its Boeing 737 aircraft were eventually repainted.