UA Delays Launch of SFO-CAN (Guangzhou)
Apr 11, 2008, 5:04 pm
#1
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UA Delays Launch of SFO-CAN (Guangzhou)
Does anyone have any official information on this?
Looks like UA's now officially announced the delay of CAN by 1 year due to fuel.
Posted by PA110, at airliners.net
"United applied to the U.S. Department of Transportation (DOT) to defer the start of nonstop flights between San Francisco and Guangzhou for one year. This is one of many difficult decisions that United must make in an environment when oil prices are at $100-plus per barrel, when at the time United originally applied for the route, the jet fuel price was around US$72 a barrel."
[Edited to add]"United applied to the U.S. Department of Transportation (DOT) to defer the start of nonstop flights between San Francisco and Guangzhou for one year. This is one of many difficult decisions that United must make in an environment when oil prices are at $100-plus per barrel, when at the time United originally applied for the route, the jet fuel price was around US$72 a barrel."
Looks like UA's now officially announced the delay of CAN by 1 year due to fuel.
Last edited by J.Edward; Apr 14, 2008 at 6:15 am
Apr 11, 2008, 5:17 pm
#2
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Interesting, although I'll believe it when I see it. That should be a pretty profitable route, based on the limited info I have, but I'm not sure what they'd do with the 777 otherwise. Yeah, oil prices are high, but we don't see UA grounding their whole fleet as a result, they have to fly somewhere.
Apr 11, 2008, 5:21 pm
#3
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They are not canceling it, they applied today to the DOT to postpone launch of service by one year. Citing reasons of high oil prices and downturn in the economy.
Apr 11, 2008, 5:34 pm
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Wow... I thought SFO-CAN would be profitable even at $100/barrel oil price.
I work in import business, and still see tons of cargo coming into our warehouse by air from Guanzhou/Shenzen area.
I work in import business, and still see tons of cargo coming into our warehouse by air from Guanzhou/Shenzen area.
Apr 11, 2008, 5:55 pm
#5
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Not to dis airliners.net, but is there a better source that verifies this? Very surprising as SFO-CAN has no nonstop competition and United fought so hard to get that (very profitable) route.
Apr 11, 2008, 6:28 pm
#6
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ORD-KIX didn't survive at $72/bbl, so what one thinks will be profitable and what is are not the same. Clearly someone at WHQ thought it would, or we never would have started it...and they were wrong.
Apr 11, 2008, 6:33 pm
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Well... I believe Osaka isn't as cargo happy as Guanzhou/Shenzhen area. Maybe I was wrong.
Apr 11, 2008, 6:36 pm
#8
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I just spent a while poking around regulations.gov looking for any documents relating to the word "Guangzhou" as well as a separate search for "United Airlines" posted in the last 30 days, and I couldn't find any document referencing this.
Apr 11, 2008, 6:39 pm
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I wouldn't quite say "fought so hard to get". They were the only airline applying for the CAN rights.
Apr 11, 2008, 6:39 pm
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Apr 11, 2008, 6:41 pm
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Apr 11, 2008, 7:14 pm
#12
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UA won that route by default. The other carriers wanted other cities if I recall. Some of the slots had to go to incumbants, and others were open to new entrants.
That isn't to say that UA didn't work the PR networks to get it...one never knows what your competition is going to do, so sometimes you fight hard, when no fight is necessary. I lobbied hard for a girlfriend once...turns out she was intrested in me before I was ever interested in her. I could have saved alot of PR money on flowers and meals had I known the outcome in advance.
Apr 11, 2008, 7:38 pm
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UA won that route by default. The other carriers wanted other cities if I recall. Some of the slots had to go to incumbants, and others were open to new entrants.
That isn't to say that UA didn't work the PR networks to get it...one never knows what your competition is going to do, so sometimes you fight hard, when no fight is necessary. I lobbied hard for a girlfriend once...turns out she was intrested in me before I was ever interested in her. I could have saved alot of PR money on flowers and meals had I known the outcome in advance.
That isn't to say that UA didn't work the PR networks to get it...one never knows what your competition is going to do, so sometimes you fight hard, when no fight is necessary. I lobbied hard for a girlfriend once...turns out she was intrested in me before I was ever interested in her. I could have saved alot of PR money on flowers and meals had I known the outcome in advance.
Apr 11, 2008, 7:49 pm
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-David
Apr 11, 2008, 8:07 pm
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Hmmmm I just tried finishing a dummy booking and all the flights are zeroed out?
Last edited by jhayes_1780; Apr 11, 2008 at 8:13 pm
