United Postpones New China Service By At Least A Year | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date



Airborne-Wednesday Airborne-Thursday


Airborne On YouTube



Airborne-Unlimited-05.15.24 Airborne-AffordableFlyers-05.16.24


Mon, Apr 14, 2008

United Postpones New China Service By At Least A Year

Blame It On Oil Prices, Carrier Says

United Airlines said Monday it will postpone the launch of nonstop service between San Francisco and Guangzhou by one year, blaming surging fuel prices.

As ANN reported, United was awarded the new route to China by the US Department of Transportation late last year; the airline must get DOT's okay for the delay. CBS Marketwatch reports the second-largest US carrier has applied for agency approval. Service was originally planned to start June 18.

In an official statement, United said it originally made plans for the service based on oil at $72 a barrel. "With prices in excess of $100 US a barrel today, we face a cost increase of more than $2 billion," the carrier said Monday.

So... why not just raise ticket prices to compensate, or add a fuel surcharge?

Industry experts say airlines typically must offer steep ticket price discounts to attract demand on a new route, and make up the loss elsewhere in the company's operation. With fuel prices where they are now, that's not possible.

The airline's reiterated that "United remains committed to serving China, the airline's fastest growing market in the Asia-Pacific region."

There are currently seven nonstop US-China routes. United flies five of them, with Continental Airlines Inc. and American having one each.

FMI: www.united.com, www.dot.gov


More News

Samson Sky Hits the Wind Tunnel

Improvements Stack as Brand Readies for Mass Production Samson Sky updated followers on its flying car progress, describing some of the travails of the wind tunnel as they get clos>[...]

ANN's Daily Aero-Term (05.22.24): LAHSO

LAHSO An acronym for “Land and Hold Short Operation.” These operations include landing and holding short of an intersecting runway, a taxiway, a predetermined point, or>[...]

Aero-FAQ: Dave Juwel's Aviation Marketing Stories -- ITBOA BNITBOB

Dave Juwel's Aviation Marketing Stories ITBOA BNITBOB ... what does that mean? It's not gibberish, it's a lengthy acronym for "In The Business Of Aviation ... But Not In The Busine>[...]

ANN's Daily Aero-Linx (05.19.24)

Aero Linx: Space Medicine Association (SMA) The Space Medicine Branch was founded in 1951 as the first constituent organization of the Aerospace Medical Association (AsMA). In 2006>[...]

ANN's Daily Aero-Term (05.19.24): Back-Taxi

Back-Taxi A term used by air traffic controllers to taxi an aircraft on the runway opposite to the traffic flow. The aircraft may be instructed to back-taxi to the beginning of the>[...]

blog comments powered by Disqus





© 2007 - 2024 Web Development & Design by Pauli Systems, LC