United Airlines, which has been grappling with financial problems, will soon outsource 650 telephone-reservations jobs to India from the United States, reported Rocky Mountain News.

Even as United struggles to exit bankruptcy, it said that this would help the airline cut costs drastically. Rocky Mountain News reported that the airline in a letter to its reservations employees said that the plan to shift jobs to India will 'help make United more responsive to customers seeking competitive fares in an industry being pressured by record fuel prices, increased competition and lower yields on average fares.'

United plans to hire up to 650 call centre workers in India through agreements with two suppliers, whose names have yet to be revealed.

A reservations centre in Bloomington, Indiana, which has a staff of 83 people, will soon be shut down. The airline is also likely to axe some call centre jobs at its 300-strong centre in Denver.

The carrier, however, has offered its Indiana reservations staff that they would be absorbed into the company if they relocate to the airline's Chicago call centre.

Many companies have resorted to outsourcing of work and jobs to India and other low wage nations in order to cut costs and increase profitability.

United will be the second American carrier after Delta Air Lines to outsource jobs to India.

United Airlines plans to meet its target of over $1 billion in cost cuts annually and this might lead to as many as 6,000 jobs being lost at the 62,000-strong carrier.