Recent news on United

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Jun 17th, 2004, 09:56 PM
  #1
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Recent news on United

So, there are a lot of news on UA recently, mostly bad, but not all. Just wondering what you guys think...

- ATSB denied $1.6bn loan guarantee. Probably means staying in bankruptcy longer, and will have to pay higher interest on loans and bonds.

- Independence Air starting operation this week at Dulles & Virgin starting US operation at San Francisco next year. These suggest that a lot of start ups see UA as weak, and are raiding their market. This means UA will have competition at all its major hubs - ORD (AA), IAD (Independence), DEN (Frontier), SFO (Virgin US).

- On-time performance tops major airlines, and customer service also good. [That's the good news.]

Anyways, there are reports that if things deteriorate further, UA may have to sell its lucrative Asia/Pacific routes, probably to AA. If we see that happening, then it'd be a sign to kiss UA goodbye, as it'll probably be in the history books like Pan Am and TWA.

But even if that doesn't happen, UA will see more competition in the Pacific. China has agreed to open its market to 2 more US airlines and possibly a 4-fold increase of flights. That would probably mean new competition from AA and CO - both stronger competitor than NW.
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Jun 18th, 2004, 06:08 AM
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I would love it if UA sold its Asia/Pacific routes to AA--hope it happens soon!
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Jun 18th, 2004, 08:19 AM
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While I have read about the possibility of a Pacific route sale, I have serious doubt that it will happen, and I don't think AA would like to buy it either.

In the past, if you want a successful Asian operation, you basically have to have a hub in NRT, and fly 747-400. That's what NW's doing for decades, and what UA does as well, though they have more direct flights. But AA doesn't fly 747s (at least not recently), and I doubt they really want to pick up a new airplane type and take in a big group of 747-400 pilots from UA.

The new Asian business model is direct flights to China, which is what AA and others want. AA's already got a decent market and flight selections to NRT, with 2 DFW flights a day, and one each to LAX, ORD, SJC and JFK; plus various code-shares with JL. So, they have the NRT market pretty well covered.

In fact, it's pretty amazing how many flights AA already have at NRT, especially since they don't have any Asian flights from there; UA also only has 6 flights to the US mainland (though 4 are on 744); and even NW has only 9 (mix of 744, 742, and D10).

Even AA's executive has said recently what they really want are non-stops ORD-PVG and ORD-HKG. With the Chinese government willing to open up more slots, AA can do that without having to purchase a big chunk of UA.
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Jun 24th, 2004, 10:52 AM
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I don't like it. I've been flying United out of Dulles since back when the shuttles would drive from the main terminal right to the plane. I would hate to see them go away.

More competition for United at Dulles is good as long it isn't a fight to the death and UA loses. With the lower fares, I can book UA flights for business travel (without guilt) and earn MP miles and status.

Looking at the list of cities to be served this year by Independence Air makes me think of USAir.
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Jun 24th, 2004, 10:57 AM
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nother thing: I have heard people (not here) try to compare low cost airlines like jetBlue with United. When one of those airlines can fly me to Hong Kong, Rio de Janeiro, or Munich, then I will listen.
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