According to the NYT
http://www.nytimes.com/2008/06/05/bu.../05air.html?hp
in an article released on Wednesday (and datelined Thursday), "United Airlines said Wednesday that it would discontinue its low-fare airline, called Ted." Interestingly in connection with the discussion above, United will not ground its A320s, but instead the "aircraft used to carry passengers on Ted would be incorporated back into its main fleet," presumably replacing the B737s that it wishes to ground from that fleet. There will be substantial job loss trauma here -- it's a terrible business.